Vanguard brokerage account transition

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BigJohn
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Re: Vanguard brokerage account transition

Post by BigJohn » Thu May 21, 2020 2:46 pm

I take no joy in people’s angst over this but, since VG has made it clear that this is happening in the next few years, here’s a simple decision tree.

What functionality does the brokerage platform not have that I want? We’ll call it A.

Can I get A elsewhere?

If no, then you're stuck wanting something you can’t have. You don’t need to like it but you have to accept it as the reality of the financial world today.

If yes, what’s the total cost?

If it costs about the same as VG move your assets in kind and be done with all the angst.

If the costs are higher than VG you’ll have to make a judgement on whether A is worth the incremental cost.

Before VG announced an official end-of-life date, taking a wait and see attitude was OK. However, at this point there honestly aren’t any other productive choices that I see.

DaftInvestor
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Re: Vanguard brokerage account transition

Post by DaftInvestor » Thu May 21, 2020 2:53 pm

Nate79 wrote:
Thu May 21, 2020 2:11 pm
It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Why would it be more painful later rather than now? I am suffering 0 pain right now but will if I switch. Maybe they will add the missing functionality to the brokerage account I am looking for in 2022 before (or rather if) they shutdown the current MF platform I am on and it will be less painful for me later. Right now since there is no pain I will just stick with what works for me and what I have had for many years.

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Nate79
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Re: Vanguard brokerage account transition

Post by Nate79 » Thu May 21, 2020 2:54 pm

palanzo wrote:
Thu May 21, 2020 2:35 pm
Nate79 wrote:
Thu May 21, 2020 2:27 pm
palanzo wrote:
Thu May 21, 2020 2:20 pm
Nate79 wrote:
Thu May 21, 2020 2:11 pm
It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Except that Vanguard cannot move mutual funds and their registration without the owners permission.
I didn't say that Vanguard will move you. But you will move one way or another or else lose all functionality such that you will want to move.
I know you didn't say that. I mean that Vanguard may not be able to close the mutual fund platform if people do not give permission to move their funds.
I really depends on what the meaning of shutting down a platform means. For example, if the only allowed activity on the mutual fund platform is complete transfer to the brokerage account or to transfer out of Vanguard that would be effectively shutting the platform down. i.e. accounts are frozen, only complete transfers allowed. It all depends on how painful Vanguard want's to make the shutdown that is coming soon.

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abuss368
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Re: Vanguard brokerage account transition

Post by abuss368 » Thu May 21, 2020 2:56 pm

DaftInvestor wrote:
Thu May 21, 2020 2:53 pm
Nate79 wrote:
Thu May 21, 2020 2:11 pm
It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Why would it be more painful later rather than now? I am suffering 0 pain right now but will if I switch. Maybe they will add the missing functionality to the brokerage account I am looking for in 2022 before (or rather if) they shutdown the current MF platform I am on and it will be less painful for me later. Right now since there is no pain I will just stick with what works for me and what I have had for many years.
From many of the responses in this thread of folks who have done it, appears to have gone well with no issues.
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

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Nate79
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Re: Vanguard brokerage account transition

Post by Nate79 » Thu May 21, 2020 2:56 pm

DaftInvestor wrote:
Thu May 21, 2020 2:53 pm
Nate79 wrote:
Thu May 21, 2020 2:11 pm
It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Why would it be more painful later rather than now? I am suffering 0 pain right now but will if I switch. Maybe they will add the missing functionality to the brokerage account I am looking for in 2022 before (or rather if) they shutdown the current MF platform I am on and it will be less painful for me later. Right now since there is no pain I will just stick with what works for me and what I have had for many years.
There is lots of pain Vanguard can make to insist people move. They could add fees, they could add very restricted activity such as transfer only (no buy/sell/etc). But it doesn't really matter. It's coming.

The other issue is that I would much rather transfer during a low activity point where if there is any issues or delay it happens on my schedule. I would not want to be transferring during the shutdown period.

DaftInvestor
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Re: Vanguard brokerage account transition

Post by DaftInvestor » Thu May 21, 2020 3:01 pm

Nate79 wrote:
Thu May 21, 2020 2:56 pm

There is lots of pain Vanguard can make to insist people move. They could add fees, they could add very restricted activity such as transfer only (no buy/sell/etc). But it doesn't really matter. It's coming.
Okay - but right now none of this pain exists. There is more pain with switching so why would I switch. When it comes I will consider switching.

abuss368 wrote:
Thu May 21, 2020 2:56 pm
From many of the responses in this thread of folks who have done it, appears to have gone well with no issues.
Those folks likely did not set up all the reinvestment rules I have in place in my MF account.

palanzo
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Re: Vanguard brokerage account transition

Post by palanzo » Thu May 21, 2020 3:25 pm

DaftInvestor wrote:
Thu May 21, 2020 2:53 pm
Nate79 wrote:
Thu May 21, 2020 2:11 pm
It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Why would it be more painful later rather than now? I am suffering 0 pain right now but will if I switch. Maybe they will add the missing functionality to the brokerage account I am looking for in 2022 before (or rather if) they shutdown the current MF platform I am on and it will be less painful for me later. Right now since there is no pain I will just stick with what works for me and what I have had for many years.
+1 same here

palanzo
Posts: 651
Joined: Thu Oct 10, 2019 4:28 pm

Re: Vanguard brokerage account transition

Post by palanzo » Thu May 21, 2020 3:28 pm

Nate79 wrote:
Thu May 21, 2020 2:54 pm
palanzo wrote:
Thu May 21, 2020 2:35 pm
Nate79 wrote:
Thu May 21, 2020 2:27 pm
palanzo wrote:
Thu May 21, 2020 2:20 pm
Nate79 wrote:
Thu May 21, 2020 2:11 pm
It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Except that Vanguard cannot move mutual funds and their registration without the owners permission.
I didn't say that Vanguard will move you. But you will move one way or another or else lose all functionality such that you will want to move.
I know you didn't say that. I mean that Vanguard may not be able to close the mutual fund platform if people do not give permission to move their funds.
I really depends on what the meaning of shutting down a platform means. For example, if the only allowed activity on the mutual fund platform is complete transfer to the brokerage account or to transfer out of Vanguard that would be effectively shutting the platform down. i.e. accounts are frozen, only complete transfers allowed. It all depends on how painful Vanguard want's to make the shutdown that is coming soon.
Agreed. And if many customers choose not to move to the brokerage platform, Vanguard may have to revise its current plan. It would be interesting to know just what percentage of customers are on the brokerage platform.

palanzo
Posts: 651
Joined: Thu Oct 10, 2019 4:28 pm

Re: Vanguard brokerage account transition

Post by palanzo » Thu May 21, 2020 3:29 pm

DaftInvestor wrote:
Thu May 21, 2020 3:01 pm
Nate79 wrote:
Thu May 21, 2020 2:56 pm

There is lots of pain Vanguard can make to insist people move. They could add fees, they could add very restricted activity such as transfer only (no buy/sell/etc). But it doesn't really matter. It's coming.
Okay - but right now none of this pain exists. There is more pain with switching so why would I switch. When it comes I will consider switching.

abuss368 wrote:
Thu May 21, 2020 2:56 pm
From many of the responses in this thread of folks who have done it, appears to have gone well with no issues.
Those folks likely did not set up all the reinvestment rules I have in place in my MF account.
And Vanguard could make everyone happy by implementing the few features that are missing e.g. dividends reinvestment in another MF.
Last edited by palanzo on Thu May 21, 2020 5:08 pm, edited 1 time in total.

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jeffyscott
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Re: Vanguard brokerage account transition

Post by jeffyscott » Thu May 21, 2020 5:05 pm

palanzo wrote:
Thu May 21, 2020 3:25 pm
DaftInvestor wrote:
Thu May 21, 2020 2:53 pm
Nate79 wrote:
Thu May 21, 2020 2:11 pm
It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Why would it be more painful later rather than now? I am suffering 0 pain right now but will if I switch. Maybe they will add the missing functionality to the brokerage account I am looking for in 2022 before (or rather if) they shutdown the current MF platform I am on and it will be less painful for me later. Right now since there is no pain I will just stick with what works for me and what I have had for many years.
+1 same here
Me too, waiting will cause no pain.

What we have works, brokerage account will not be a problem either. When/if there's a reason to make a change, I'll do it then. I believe vanguard even said that they will give advance notice when/if there's going to be any reduction in functionality of the classic platform.

Not sure why anyone else should care so much that others choose to remain on the MF platform for now.
Time is your friend; impulse is your enemy. - John C. Bogle

Dead Man Walking
Posts: 963
Joined: Wed Nov 07, 2007 6:51 pm

Re: Vanguard brokerage account transition

Post by Dead Man Walking » Thu May 21, 2020 11:05 pm

Vanguard could resolve the problem by simply providing complete year to date statements. I’d transition tomorrow if they chose to provide year to date statements at year’s end. The fact that they can’t do so with brokerage accounts leads me to believe that they have an inefficient algorithm for their accounting program. It’s the 21st century, hire some competent computer programmers.

DMW

acegolfer
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Re: Vanguard brokerage account transition

Post by acegolfer » Fri May 22, 2020 7:20 am

Just completed the transition.

If anyone downloads CSV from vanguard, note that the format for brokerage accounts is different from MF's. Notable differences are investment names and the amounts. For example, if I purchase $1000 worth of VTSAX, "Principal Amt" is now recorded as -1000 (used to be 1000).

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Toons
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Re: Vanguard brokerage account transition

Post by Toons » Fri May 22, 2020 9:30 am

jeffyscott wrote:
Thu May 21, 2020 9:38 am
Toons wrote:
Thu May 21, 2020 9:24 am
Glad I did
Why?
Now I can readily purchase more shares of
Coca Cola and Mcdonalds.
:mrgreen: :mrgreen:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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