Vanguard: Transition to our new investment platform

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
User avatar
abuss368
Posts: 15539
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!

Re: Vanguard: Transition to our new investment platform

Post by abuss368 » Thu Oct 03, 2019 8:31 pm

FlyingMoose wrote:
Sun Apr 01, 2018 4:10 pm
My big complaint is that the brokerage 1099s aren’t available until mid-February so I can’t file my taxes early.
I did read this. With the mutual fund accounts, the 1099 tax forms are available rather quickly.
John C. Bogle: "Simplicity is the master key to financial success."

User avatar
abuss368
Posts: 15539
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!

Re: Vanguard: Transition to our new investment platform

Post by abuss368 » Thu Oct 03, 2019 8:34 pm

Monster99 wrote:
Sat Sep 29, 2018 7:05 am
The statements are different - the one thing that I dislike is that the December statement is not a total summary of the year, as the old mutual fund format.
That has been my complaint! I have written on many threads that this has prevented us from changing. If they could make that change it probably would be fine to convert.
John C. Bogle: "Simplicity is the master key to financial success."

User avatar
abuss368
Posts: 15539
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!

Re: Vanguard: Transition to our new investment platform

Post by abuss368 » Thu Oct 03, 2019 8:36 pm

retired@50 wrote:
Thu Oct 03, 2019 5:40 pm
My understanding of the situation is that old account holders who are not on the brokerage platform, but are still on the mutual fund account platform are being urged to switch to the brokerage platform. This was based on a telephone conversation with my Vanguard rep at the time. He claims that they actually have to hire / maintain more I.T. staff to keep both platforms up and running. I'm intending to switch in 2020, but not sooner. The potential upside is that on the brokerage platform, you can hold ETFs, if that appeals to you. One downside (in my book) is that once you're on the brokerage platform, you'll get a 1099-B statement instead of a 1099-DIV. From what I understand, the 1099-B statement comes out in late Feb. or March, while the 1099-DIV statement arrives in late January. For folks who like to file taxes early, the 1099-B will slow them down by 4 to 6 weeks.

Regards...
Form 1009-B is for any investment sales - reports gains and losses.
Form 1099-Div - is for any dividends paid for the year.
John C. Bogle: "Simplicity is the master key to financial success."

User avatar
beyou
Posts: 2791
Joined: Sat Feb 27, 2010 3:57 pm
Location: Northeastern US

Re: Vanguard: Transition to our new investment platform

Post by beyou » Thu Oct 03, 2019 8:38 pm

abuss368 wrote:
Thu Oct 03, 2019 8:31 pm
FlyingMoose wrote:
Sun Apr 01, 2018 4:10 pm
My big complaint is that the brokerage 1099s aren’t available until mid-February so I can’t file my taxes early.
I did read this. With the mutual fund accounts, the 1099 tax forms are available rather quickly.
I agree but there is always something that holds things up.
I once filed early, then got a correction from someone and had to amend.

Note that this late delivery is ALL brokers, not just Vanguard.
They have to collect data from many sources, compile it for you.
Vanguard as a fund only account, has only one source of data to send you, their own data.
I am usually waiting on Etrade, documents from my employer, wife's employer etc, so the early receipt of
my older fund accounts does not allow me to file early anyway.

User avatar
abuss368
Posts: 15539
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!

Re: Vanguard: Transition to our new investment platform

Post by abuss368 » Thu Oct 03, 2019 8:41 pm

beyou wrote:
Thu Oct 03, 2019 8:38 pm
abuss368 wrote:
Thu Oct 03, 2019 8:31 pm
FlyingMoose wrote:
Sun Apr 01, 2018 4:10 pm
My big complaint is that the brokerage 1099s aren’t available until mid-February so I can’t file my taxes early.
I did read this. With the mutual fund accounts, the 1099 tax forms are available rather quickly.
I agree but there is always something that holds things up.
I once filed early, then got a correction from someone and had to amend.

Note that this late delivery is ALL brokers, not just Vanguard.
They have to collect data from many sources, compile it for you.
Vanguard as a fund only account, has only one source of data to send you, their own data.
I am usually waiting on Etrade, documents from my employer, wife's employer etc, so the early receipt of
my older fund accounts does not allow me to file early anyway.
Exactly. I have never received a corrected form for our Vanguard mutual fund accounts. Years ago when we traded stocks with other brokerage homes, we received 1 - 3 corrected forms each year. It resulted in a lot of paperwork and tax documents.
John C. Bogle: "Simplicity is the master key to financial success."

User avatar
abuss368
Posts: 15539
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!

Re: Vanguard: Transition to our new investment platform

Post by abuss368 » Thu Oct 03, 2019 8:42 pm

We were receiving the messages when logging in for a while but simply ignored them. It appears to have stopped.
John C. Bogle: "Simplicity is the master key to financial success."

User avatar
beyou
Posts: 2791
Joined: Sat Feb 27, 2010 3:57 pm
Location: Northeastern US

Re: Vanguard: Transition to our new investment platform

Post by beyou » Thu Oct 03, 2019 8:44 pm

Woodthrush wrote:
Thu Oct 03, 2019 5:30 pm
I just received one of these emails from Vanguard today (10-3-19), which is interesting since my husband and I have both had accounts with Vanguard for many years and I don't recall them sending us an email about this before. They didn't send one to my husband, only to me. It seems like SIPC protection would be the only reason we would want to switch. In checking into SIPC to see what would actually be protected I came across a Motley Fool article that listed some things that are NOT covered and I was surprised to read this:

"Brokerage firm failures where customer assets were not the subject of theft or unauthorized trading."

So does this mean that if Vanguard were to fail and there was no theft or unauthorized trading that SIPC wouldn't protect the client's assets? When they are referring to "theft" do they mean by the broker or by an outside party that fraudulently accesses someone's account? The latter is a bigger concern given all the security breaches at major institutions in recent years. I read that Schwabb will protect clients from any fraudulent theft from their accounts, whereas Vanguard doesn't offer any such guarantee. I would much rather stay with Vanguard, but we want our retirement savings to be protected from any fraud. I would welcome other's thoughts on this issue.
Old platform is very widespread from a legal standpoint. Basically almost all fund mangers sell direct to consumers without a brokerage account historically. The protections are explained here :

https://www.kiplinger.com/article/inves ... ected.html
Long story but many protections, read if interested.

New platform at Vanguard is simply a brokerage account that is protected by SIPC insurance.
https://www.sipc.org/for-investors/what-sipc-protects

"Protects against the loss of cash and securities – held by a customer at a financially-troubled SIPC-member brokerage firm. "

User avatar
heartwood
Posts: 1402
Joined: Sat Nov 23, 2013 1:40 pm

Re: Vanguard: Transition to our new investment platform

Post by heartwood » Thu Oct 03, 2019 8:56 pm

retired@50 wrote:
Thu Oct 03, 2019 5:40 pm
My understanding of the situation is that old account holders who are not on the brokerage platform, but are still on the mutual fund account platform are being urged to switch to the brokerage platform. This was based on a telephone conversation with my Vanguard rep at the time. He claims that they actually have to hire / maintain more I.T. staff to keep both platforms up and running. I'm intending to switch in 2020, but not sooner. The potential upside is that on the brokerage platform, you can hold ETFs, if that appeals to you. One downside (in my book) is that once you're on the brokerage platform, you'll get a 1099-B statement instead of a 1099-DIV. From what I understand, the 1099-B statement comes out in late Feb. or March, while the 1099-DIV statement arrives in late January. For folks who like to file taxes early, the 1099-B will slow them down by 4 to 6 weeks.

Regards...
If you do plan to migrate over in 2020 be aware that in the year you switch you get two sets of 1099s. One for the period in the mutual fund platform, the other for after you switch to the brokerage platform. So double the documents. You might transition this year and start 2020 fresh.
In 2019 we got our 1099-Bs in late January, pretty much the same time we get out mortgage and other forms.

Gnirk
Posts: 1074
Joined: Sun Sep 09, 2012 3:11 am
Location: Western Washington

Re: Vanguard: Transition to our new investment platform

Post by Gnirk » Thu Oct 03, 2019 9:26 pm

If you have trading authority for other family members accounts under the current platform, that doesn’t transition to the new brokerage platform and you will need to complete all the forms again and submit them, Also, my daughters accounts are currently included as part of our family accounts so they don’t pay account fees. Not sure if that will continue if we transition to the new platform.

User avatar
Jerry55
Posts: 667
Joined: Tue Jan 27, 2015 1:56 am
Location: That Toddlin' Town

Re: Vanguard: Transition to our new investment platform

Post by Jerry55 » Tue Oct 08, 2019 5:13 pm

So, I have 2 mutual funds here, Wellesley ROTH IRA and Wellington (Taxable). I've had these since 2011 and I never plan to take distributions from the ROTH Acct. But, in Sept. I decided to have Vanguard start sending my distributions from Wellington, instead of reinvesting (Dividends and Cap. Gains) to my Checking account. Wellington is the only acct that sends 1099s.

Should I transfer BOTH to the new platform, or just Wellington ? Will they send Div and CG to the Brokerage Acct and I, in turn, have to go and have it sent to my checking account manually , or would they do it automatically.
Also, I'll have to call. I read somewhere that, if both mutual funds have different beneficiaries, it'll be consolidated into ONE.
In other words, if Joe and Sue are the beneficiaries of each mutual fund, only one can be named to inherit the account, which leaves me in a quandary.

Or, should I just migrate them both and be done with it ??? Thanks in advance ~
Retired CSRS on 12/19/2012 @ age 57 w/39 years | Good Bye Tension, Hello Pension !!!

Post Reply