Is Vanguard so bad?

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namajones
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Is Vanguard so bad?

Post by namajones »

I read a lot of posts these days from people who are abandoning Vanguard and moving their funds elsewhere. Is it the general consensus that Vanguard is worth leaving? I ask because I have a dormant, 0 balance account there, but I'm considering moving some funds in simply to buy a Vanguard mutual fund without having to pay a commission through a brokerage.

I do remember when I used that Vanguard account years ago I had issues with 1099s that were delivered inexplicably late in the tax filing season (I thought they were required to be available by Feb. 15) and also with funds taking up to 5 days to get into and out of the account, whereas with my brokerage they show up the very next day. Are these the kinds of issues that people are still having problems with?

Thanks.
bloom2708
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Re: Is Vanguard so bad?

Post by bloom2708 »

Happy Vanguard customer. No need/desire to change.

If you want to own Vanguard funds, Vanguard is a pretty good choice.
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David Jay
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Re: Is Vanguard so bad?

Post by David Jay »

Never had an issue with Vanguard, been with them for about 20 years...

All our accounts are there: tIRA, 2-Roth, taxable brokerage.
Last edited by David Jay on Thu Oct 14, 2021 9:44 am, edited 1 time in total.
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sureshoe
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Re: Is Vanguard so bad?

Post by sureshoe »

Most brokerages are very similar and some rank higher than others. It's all a matter of opinion, and this thread will likely fill up with those.

I use Ameritrade and it seems to rank very high on lists (google "best brokerages"). It's nice enough, but doesn't blow my socks off. You have to fax to do Roth conversions whereas others do it as an online form. I also use Etrade and Fidelity and Empower. They're all very similar, I honestly would have trouble choosing "the best" or "the worst".

I can't specifically tell you "go or stay", but here's what I'd recommend:
Keep to a single brokerage as much as possible for simplicity.
sport
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Re: Is Vanguard so bad?

Post by sport »

No Vanguard is not so bad. They have some faults, but they are not as bad as some posters have indicated. Some people just like to complain. Perhaps some of them have other reasons to put Vanguard in a bad light.
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namajones
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Re: Is Vanguard so bad?

Post by namajones »

sureshoe wrote: Thu Oct 14, 2021 9:44 am
Keep to a single brokerage as much as possible for simplicity.
That's my inclination, too, but I prefer mutual funds to ETFs, and I bristle at having to pay a fee at Ameritrade/Schwab to buy a Vanguard fund.

I also like how you can set up automatic periodic withdrawals at Vanguard. I don't see that possibility at TD.
SmallSaver
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Re: Is Vanguard so bad?

Post by SmallSaver »

I've used them for years with no problems, but my investing is pretty simple and I can do it 100% online. Recently I have begun helping my mother get things straight after the passing of my stepfather and needed to call a half dozen financial institutions of various kinds. Vanguard was the only one I had a negative experience with. YMMV.
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burritoLover
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Re: Is Vanguard so bad?

Post by burritoLover »

sport wrote: Thu Oct 14, 2021 9:44 am No Vanguard is not so bad. They have some faults, but they are not as bad as some posters have indicated. Some people just like to complain. Perhaps some of them have other reasons to put Vanguard in a bad light.
What reason would that be?
Topic Author
namajones
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Re: Is Vanguard so bad?

Post by namajones »

SmallSaver wrote: Thu Oct 14, 2021 9:47 am I've used them for years with no problems, but my investing is pretty simple and I can do it 100% online. Recently I have begun helping my mother get things straight after the passing of my stepfather and needed to call a half dozen financial institutions of various kinds. Vanguard was the only one I had a negative experience with. YMMV.
What kind of negative experience?
sureshoe
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Re: Is Vanguard so bad?

Post by sureshoe »

namajones wrote: Thu Oct 14, 2021 9:45 am
sureshoe wrote: Thu Oct 14, 2021 9:44 am
Keep to a single brokerage as much as possible for simplicity.
That's my inclination, too, but I prefer mutual funds to ETFs, and I bristle at having to pay a fee at Ameritrade/Schwab to buy a Vanguard fund.

I also like how you can set up automatic periodic withdrawals at Vanguard. I don't see that possibility at TD.
#1 > Why do you prefer mutual funds to ETFs? In general, ETFs cost less. This is a bit of a Pepsi/Coke debate, but I haven't bought a mutual fund outside a 401k in years.

#2 > I'd be surprised if they don't have this, I just haven't used it. I know I had something set up years ago to fund the IRA/etc. automatically.
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Re: Is Vanguard so bad?

Post by H-Town »

The people who complain will complain, regardless it’s Vanguard or any place else. The people who find ways to get things done will get things done.
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namajones
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Re: Is Vanguard so bad?

Post by namajones »

sureshoe wrote: Thu Oct 14, 2021 9:52 am
#1 > Why do you prefer mutual funds to ETFs? In general, ETFs cost less. This is a bit of a Pepsi/Coke debate, but I haven't bought a mutual fund outside a 401k in years.
I don't want to be tempted to look at the ups and down every day. And I am tempted. I know myself well enough now to know that that's just me.

I also like to be able to invest total amounts rather than having cash turds left over after purchasing whole shares.

I also don't like "negotiating" buy-in price intraday. I'll take the end-of-day NAV, thank you very much.

In short, I don't like ETFs at all. The fee difference, if any, is next to meaningless for me.
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Cheez-It Guy
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Re: Is Vanguard so bad?

Post by Cheez-It Guy »

No, it isn't.
stan1
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Re: Is Vanguard so bad?

Post by stan1 »

Vanguard is the best place to buy Vanguard funds. No fees, website optimized for Vanguard mutual funds. Unless you have a complicated situation there should be very little reason to call Vanguard.
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retiredjg
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Re: Is Vanguard so bad?

Post by retiredjg »

I don't think there is a general consensus. Some people are happy. Some are not.
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Re: Is Vanguard so bad?

Post by ebeb »

20+ years with Vanguard, 15+ years with Schwab both are same no complaints since I do everything online. My goal would be 2MM each in Vanguard, Schwab and Fidelity then retire happy since I don't trust any of them for cyber fraud and hacking if it happens. Only difference is Schwab local CFP tries to sell their portfolio management service every year and Vanguard never bothered to call in 20 years :o
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iamz
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Re: Is Vanguard so bad?

Post by iamz »

I'm a long time Vanguard customer.

I have a few issues -
- Takes too for a linked external bank account to be added. Once the two small deposits are entered, it takes an additional 7 -14 days.
- Constant pestering to use their financial advisors when calling in. But a polite "no" solves that problem.
- Close to zero interest on money parked in Vanguard.
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Leif
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Re: Is Vanguard so bad?

Post by Leif »

I've been with Vanguard for many years. It seems recently they are on a downward path for their service.

Just like an insurance company, they are fine if you never have interaction with them.

Most recently they have some bug in their system (they acknowledged it) that displays incorrect (as in missing) beneficiary account information. I probably would not have even noticed it, but I just wanted to confirm my information. Its been about 3 months since I noticed and reported the problem. I keep being told that a fix is on the way.

In the last few years I've had other problems. One was they set up the wrong type of account for me (tIRA instead of Roth). That is quickly fixed, but scary.

I'm suppose to be flagship class. I use to think that meant something. Now, I think that means nothing. Wait times on the phone have been extreme (> 30 minutes). Then I was told they need to transfer me. But, I'm told don't worry, internal transfers are faster. They were right. Only an additional 20 minutes.

So if you never have to change beneficiaries, or ask a question, or have them fix something, then yes I'm sure you are happy with them.
Last edited by Leif on Thu Oct 14, 2021 10:30 am, edited 3 times in total.
fortunefavored
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Re: Is Vanguard so bad?

Post by fortunefavored »

If you are already with them, they are fine. The main issue is they are simply getting worse:
No more Foreign Tax Credit statements
Mobile app replaced with a terrible version
Removing secure messaging with no obvious replacement
Getting rid of the mutual fund platform
Selling off their annuity business to a 3rd party
Degrading their private-401k offerings
DAF offering is not-competitive
Moving into private equity markets
Pushing their managed investment options

..and so on..

So there's really no reason to sign up with them. They are becoming more like other brokers, except slightly worse.
Grt2bOutdoors
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Re: Is Vanguard so bad?

Post by Grt2bOutdoors »

I’m happy with them, no plans on leaving. There was some past mention of inaccessibility calling by phone, my experience had been the complete opposite. I’ve called twice in the last 2 weeks and each time the representatives picked up the call within 30 seconds, probably even less time now that I think about it. That’s less time than my local telephone company which makes the caller jump through hoops to speak to a live person. The phone company could learn something about good customer service from Vanguard.

The one thing Vanguard has consistently offered and not wavered on is charging a good and fair price that provides value to the end user. I know the difference between them and other companies where they serve multiple masters, that’s not the case at Vanguard.
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RSIdaho
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Re: Is Vanguard so bad?

Post by RSIdaho »

Vanguard is good, I have experienced some issues with them over the years mostly related to customer service, but that can happen anywhere. The main reason I stick with them is the funds are very good. However most of their competitors have products that are arguably just as good.
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Re: Is Vanguard so bad?

Post by Nutmeg »

I am in the process of moving $500K from Vanguard to Fidelity because:

1. Vanguard took away my great Flagship rep, and the random customer service rep I get now usually isn’t as knowledgeable. Many people say that they never call Vanguard, and for those people this is not a factor, but I have a trust account and a POA account as well as personal accounts, and sometimes I must call. At Fidelity, I can talk to an individual who is familiar with the accounts and is very knowledgeable. (Note that, when I have gotten random customer service reps at either Vanguard or Fidelity,
responses have been similarly spotty).

2. Vanguard doesn’t offer Transfer on Death per stirpes. Vanguard says it is too difficult to determine who the surviving heirs are, but somehow Fidelity manages to do it. That means that I can’t use TOD with Vanguard, because on the account for which I am agent under a POA, it would be unfair to disinherit someone in the third or fourth generation if a second-generation beneficiary dies before the first generation account owner does, and before I am able to update beneficiaries.
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Re: Is Vanguard so bad?

Post by jebmke »

I have been with Vanguard for decades. Very few issues. I am not a real active investor so some of the perceived weaknesses in the brokerage platform are of no concern to me personally. The few times I have needed to seek a live person for a unique issue, I have been able to do so by contacting my rep and explaining the issue, after which I was connected with a subject-matter expert.

I haven't spoken with anyone there in several years so my experience with personal contact is dated.
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dnka
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Re: Is Vanguard so bad?

Post by dnka »

No problem at all. Not the best costumer service but that shouldn't affect your investments.
Dave55
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Re: Is Vanguard so bad?

Post by Dave55 »

Never a problem with Vanguard.

"Perfection is unattainable".

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sport
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Re: Is Vanguard so bad?

Post by sport »

burritoLover wrote: Thu Oct 14, 2021 9:48 am
sport wrote: Thu Oct 14, 2021 9:44 am No Vanguard is not so bad. They have some faults, but they are not as bad as some posters have indicated. Some people just like to complain. Perhaps some of them have other reasons to put Vanguard in a bad light.
What reason would that be?
Historically, Vanguard has been responsible for the lowering of investment costs throughout the industry. Commissions, loads, and fees used to be much higher than they are now. Many people who worked in that industry had their incomes adversely affected by Vanguard driving down the prices for their services.
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namajones
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Re: Is Vanguard so bad?

Post by namajones »

Leif wrote: Thu Oct 14, 2021 10:11 am Wait times on the phone have been extreme (> 30 minutes). Then I was told they need to transfer me. But, I'm told don't worry, internal transfers are faster. They were right. Only an additional 20 minutes.

Now that you mention it, I did call recently with a question and was on hold for 15 minutes. I finally just hung up.
SmallSaver
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Re: Is Vanguard so bad?

Post by SmallSaver »

namajones wrote: Thu Oct 14, 2021 9:52 am
SmallSaver wrote: Thu Oct 14, 2021 9:47 am I've used them for years with no problems, but my investing is pretty simple and I can do it 100% online. Recently I have begun helping my mother get things straight after the passing of my stepfather and needed to call a half dozen financial institutions of various kinds. Vanguard was the only one I had a negative experience with. YMMV.
What kind of negative experience?
On hold for half an hour. Associate I got was standoffish. During the identity verification (which I understand the need for and appreciate) he put us on hold again and nearly terminated the call when we asked him where on the quarterly statement we could find the account number (I finally found it on like page 5 of 14 in a non-obvious spot, my mother never would have). Finally when that got cleared he told me I needed to call a different department that currently had an hour and a half hold time. That's as far as we had the time to go that day, still haven't gotten it resolved. It wasn't appalling, but it was bad enough we looked at each other after and said "well, you can't win them all."
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Re: Is Vanguard so bad?

Post by Grt2bOutdoors »

fortunefavored wrote: Thu Oct 14, 2021 10:13 am If you are already with them, they are fine. The main issue is they are simply getting worse:
No more Foreign Tax Credit statements
Mobile app replaced with a terrible version
Removing secure messaging with no obvious replacement
Getting rid of the mutual fund platform
Selling off their annuity business to a 3rd party
Degrading their private-401k offerings
DAF offering is not-competitive
Moving into private equity markets
Pushing their managed investment options

..and so on..

So there's really no reason to sign up with them. They are becoming more like other brokers, except slightly worse.
My guess is you did not listen to the recent podcasts with Fran Kinnery on why they are offering the opportunity to invest in private equity. There will be those who like plain vanilla and that’s fine if it meets your end objectives but there are others who like fudge swirl and need additional diversification to reach their end goals too. Private equity can be quite lucrative for the investor as well, for truly long term investors like pensions, endowments, foundations, high net worth with a true long term horizon, it can be one more tool to reach their objectives. One need only look at the public financial statements of pension plans to see the use of these investments are nothing new. Some will perform better than others and some worse, not much different than various companies held in a stock index - the strong go up in price, the weak get culled.

Selling off the annuity business is a business strategy move - would you prefer the company retain a business that either was not profitable or a core competency?

I don’t work for Vanguard but companies need to evolve to remain relevant. So long as it’s done in a slow, thoughtful manner. Believe me, none of the other financial providers are taking input from customers before making strategic moves in their businesses.
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Grt2bOutdoors
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Re: Is Vanguard so bad?

Post by Grt2bOutdoors »

sport wrote: Thu Oct 14, 2021 10:23 am
burritoLover wrote: Thu Oct 14, 2021 9:48 am
sport wrote: Thu Oct 14, 2021 9:44 am No Vanguard is not so bad. They have some faults, but they are not as bad as some posters have indicated. Some people just like to complain. Perhaps some of them have other reasons to put Vanguard in a bad light.
What reason would that be?
Historically, Vanguard has been responsible for the lowering of investment costs throughout the industry. Commissions, loads, and fees used to be much higher than they are now. Many people who worked in that industry had their incomes adversely affected by Vanguard driving down the prices for their services.
Yeah - they don’t care for us Bogleheads either! Just ask Edward Jones! :twisted:
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260chrisb
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Re: Is Vanguard so bad?

Post by 260chrisb »

I think I'm at 15+ years with Vanguard for my Taxable portfolio as well as a small Roth. I'm yet to have any issues......am I not trying hard enough?? No regrets! So, no they are not so bad!
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burritoLover
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Re: Is Vanguard so bad?

Post by burritoLover »

sport wrote: Thu Oct 14, 2021 10:23 am
burritoLover wrote: Thu Oct 14, 2021 9:48 am
sport wrote: Thu Oct 14, 2021 9:44 am No Vanguard is not so bad. They have some faults, but they are not as bad as some posters have indicated. Some people just like to complain. Perhaps some of them have other reasons to put Vanguard in a bad light.
What reason would that be?
Historically, Vanguard has been responsible for the lowering of investment costs throughout the industry. Commissions, loads, and fees used to be much higher than they are now. Many people who worked in that industry had their incomes adversely affected by Vanguard driving down the prices for their services.
Maybe in Bogle's time at Vanguard but the industry has been moving away from those high-fee approaches for quite awhile (except in my 401k!). It is hard to fake a story with numerous details about how Vanguard screwed up your transfer or rollover - you can usually easily spot someone who making up crap, especially in their responses to questions.
whereskyle
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Re: Is Vanguard so bad?

Post by whereskyle »

namajones wrote: Thu Oct 14, 2021 9:40 am I read a lot of posts these days from people who are abandoning Vanguard and moving their funds elsewhere. Is it the general consensus that Vanguard is worth leaving? I ask because I have a dormant, 0 balance account there, but I'm considering moving some funds in simply to buy a Vanguard mutual fund without having to pay a commission through a brokerage.

I do remember when I used that Vanguard account years ago I had issues with 1099s that were delivered inexplicably late in the tax filing season (I thought they were required to be available by Feb. 15) and also with funds taking up to 5 days to get into and out of the account, whereas with my brokerage they show up the very next day. Are these the kinds of issues that people are still having problems with?

Thanks.
Vanguard's tech is less than convenient. One issue: letting me buy into a fund before I could buy into a fund, so I had my account locked and had to call to remove the lock.

I've had much better ease of use at M1 Finance and Fidelity. I only buy vanguard funds there and I still have most of my assets at Vanguard. I just direct most new contributions to these more convenient brokerages.
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Re: Is Vanguard so bad?

Post by ronno2018 »

I have a Fidelity HSA and the rest in Vanguard, I sometimes think about switching when I retire to get everything in one place and get the Fidelity credit card and cash management account which would allow me to close my Ally checking and savings, but I think I will stick with Vanguard.

The only issue I had was when I first moved from Wells Fargo brokerage to Vanguard I accidently bought shares without funds. Whoopsie. They corrected it and I think I made some profit. LOL.
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Wricha
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Re: Is Vanguard so bad?

Post by Wricha »

Is vanguard so bad ? Must be the post Covid is vanguard good? My advice is if you like where you are stay there.
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Re: Is Vanguard so bad?

Post by willthrill81 »

Vaguard has become too much like a 'parent that knows better than its children'. They will not allow their investors to buy leveraged funds, for instance. Even if I don't want to own leveraged funds, I don't want my broker to tell me what I can and cannot buy with my own money. Investors shouldn't expect these restrictions to end with leveraged funds either; that kind of mindset can lead to all sorts of restrictions.
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Vulcan
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Re: Is Vanguard so bad?

Post by Vulcan »

Vanguard is the only place where I can buy VTWAX commission-free.

Since there are no VTWAX equivalents from other fund families, and I have no interest in dealing with ETFs (VT) or approximating Total World via slicing-and-dicing, even if I wanted to leave, there'd be nowhere to go.
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Re: Is Vanguard so bad?

Post by blackhawkfan »

Have been a Vanguard brokerage customer for over 25 years. We have virtually everything with them, including our kids future dollars, 529s, IRAs and a trust for my mother. Up until a couple years ago I was very happy with Vanguard and told everyone. The past handful of years I have seen a deterioration, both in features and customer service. These issues include making Flagship status meaningless, dropping their cash management account option and waiting A LONG time on hold for answers, sometimes to be transferred to another person and put on hold because the first person could not answer my question.

The pandemic has certainly messed up their phone performance. I want to stress that I only call when I cannot find the answer to my questions online. My phone interaction had been almost non-existent but there are times that a live person is needed and wow, has Vanguard gone downhill in that regard.

Have I thought of switching, yes. I went so far as to do a bunch of research into features and benefits of other brokers, only to not pull the trigger yet. But in the back of my mind, it remains a possibility. I have virtually no experience with other brokers like Schwab and Fidelity so I have nothing to compare Vanguard to.

My own personal opinion is that Vanguard has grown so fast and so large that they have changed their goals and objectives and seem lost as to what they want to be when they grow up. Read the other day that they tried to cut employee benefits and there was a rebellion so they turned around and reinstated these benefits for the short term. Dissention in the ranks maybe? Again in my opinion they have the best lineup of mutual funds but at present that's all they have that's better than the rest. Hope they wakeup before its too late.
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Re: Is Vanguard so bad?

Post by Grt2bOutdoors »

willthrill81 wrote: Thu Oct 14, 2021 10:50 am Vaguard has become too much like a 'parent that knows better than its children'. They will not allow their investors to buy leveraged funds, for instance. Even if I don't want to own leveraged funds, I don't want my broker to tell me what I can and cannot buy with my own money. Investors shouldn't expect these restrictions to end with leveraged funds either; that kind of mindset can lead to all sorts of restrictions.
There are plenty of other brokerages willing to take your money. Using leverage isn’t investing even if you want to believe the mirage, it’s speculation or gambling.

They say a reputation takes a lifetime to earn and five minutes to lose. Vanguard not offering leveraged funds is done for a reason - read between the lines.
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Re: Is Vanguard so bad?

Post by willthrill81 »

Grt2bOutdoors wrote: Thu Oct 14, 2021 10:59 am
willthrill81 wrote: Thu Oct 14, 2021 10:50 am Vaguard has become too much like a 'parent that knows better than its children'. They will not allow their investors to buy leveraged funds, for instance. Even if I don't want to own leveraged funds, I don't want my broker to tell me what I can and cannot buy with my own money. Investors shouldn't expect these restrictions to end with leveraged funds either; that kind of mindset can lead to all sorts of restrictions.
There are plenty of other brokerages willing to take your money. Using leverage isn’t investing even if you want to believe the mirage, it’s speculation or gambling.
We'll have to agree to disagree on that. Leverage is not necessarily gambling. Every investor who has any debt at all while also investing is using leverage. They just don't typically think about it as being such, but it's still leverage.
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Wiggums
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Re: Is Vanguard so bad?

Post by Wiggums »

Been with Fidelity and vanguard for a very long time. I like the VG mutual fund choices. I rarely have a need to call. As a buy and hold investor, I’m a happy customer.
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H-Town
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Re: Is Vanguard so bad?

Post by H-Town »

namajones wrote: Thu Oct 14, 2021 10:26 am
Leif wrote: Thu Oct 14, 2021 10:11 am Wait times on the phone have been extreme (> 30 minutes). Then I was told they need to transfer me. But, I'm told don't worry, internal transfers are faster. They were right. Only an additional 20 minutes.

Now that you mention it, I did call recently with a question and was on hold for 15 minutes. I finally just hung up.
I sincerely hope that you'll never have to call the IRS...
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exodusNH
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Re: Is Vanguard so bad?

Post by exodusNH »

iamz wrote: Thu Oct 14, 2021 10:09 am I'm a long time Vanguard customer.

I have a few issues -
- Takes too for a linked external bank account to be added. Once the two small deposits are entered, it takes an additional 7 -14 days.
- Constant pestering to use their financial advisors when calling in. But a polite "no" solves that problem.
- Close to zero interest on money parked in Vanguard.
How often are you adding accounts that this is really an issue? Once verified, purchases can be made immediately. You can't send the money back to your linked account until the ACH clears, but that does not affect trading.

Most brokerages are paying nothing on the money market mutual funds since interest rates are so low.
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Re: Is Vanguard so bad?

Post by MoonOrb »

I've been happy with Vanguard for quite a long time.
Cubs Fan
Posts: 150
Joined: Wed Nov 11, 2020 11:22 am

Re: Is Vanguard so bad?

Post by Cubs Fan »

I transferred VTI in the amount of $100,000.00 from Vanguard to Merrill Edge over one year ago and received a $900.00 bonus from Merrill Edge. I am now in the process of transferring another investment in the amount of over $200,000.00 to Merrill Edge and will receive a $600.00 bonus. Because I have over $100,000.00 at Merrill Edge my entire banking with Bank of America is free. This includes a safety deposit box, Preferred Platinum Rewards credit card money back and everything else I receive from Bank of America. If Fidelity or Schwab offers a bonus I will certainly consider transferring a Vanguard ETF to them as well. I do not have a problem with Vanguard, and I understand that telephone wait times are long everywhere.
wait until next year!
JD
Posts: 226
Joined: Fri Jul 18, 2008 11:19 pm
Location: TN

Re: Is Vanguard so bad?

Post by JD »

No, Vanguard is not so bad.
Thank you!
jyoung
Posts: 128
Joined: Mon Jan 21, 2019 12:26 pm
Location: Houston, TX

Re: Is Vanguard so bad?

Post by jyoung »

I don't think so. All I ever do is add to some positions in my account and check balances. I like that they don't have a lot of "bells and whistles" getting in the way on their website or app. Very simple and straightforward is what I'm personally looking for out of a brokerage. I've never really needed to call CS or do much so my interaction with that end is very limited.
bondsr4me
Posts: 2427
Joined: Fri Oct 18, 2013 7:08 am

Re: Is Vanguard so bad?

Post by bondsr4me »

They, like other businesses, are having a tough time dealing with Covid.

But, here is a recent situation that I give VG high kudos for:

My wife and I recently transferred our IRA accounts from VG to Schwab (we each received a bonus).
On 9/23/21 we were informed by VG letter that our accounts were closed.
We did not want our accounts to be closed just in case we would decide in the future to transfer back to VG from CS.

On 10/4/21 we faxed to VG a "Letter of Instruction" to reopen our accounts.
On 10/5/21 our accounts were reopened.
We were able to log-in to each account.

To me, this is pretty darned good service....1 day to reopen the accounts.
Not bad at all.
I'm not advocating moving to or away from VG, just noting a recent experience.
Last edited by bondsr4me on Thu Oct 14, 2021 12:21 pm, edited 1 time in total.
Running Bum
Posts: 356
Joined: Sun Feb 10, 2013 1:00 pm

Re: Is Vanguard so bad?

Post by Running Bum »

20+ years with VG. I've had a couple of issues that have nearly made me move, due to account integrity problems. On the rare times I've had to call or message I've never had an issue with responses.

Once an inner page of my year end statement had a completely different address in a state I've never lived in, but with my name and account info on it. I asked and never got an explanation. It had me worried that someone got an address change in for an account and would start having withdrawal checks mailed to them. I know I should get notice of an address change but what if that got dropped?

Then my 2019 year end statement had an extra Roth IRA account with $1.18 in it, which didn't show up online. I messaged VG asking what it is, why it doesn't show online, and to merge it with my other Roth IRA account. I got a reply the next day from a Vanguard rep that the account number was an old account that was previously merged a year earlier, and the rep confirmed that I only had one active Roth account. A couple weeks later I got a followup that they found the issue that caused that account to show up on the year end statement, and it was fixed. OK, good enough, right? But then a week later I noticed a $1.18 transfer into my existing Roth. That one really had me steamed, not for the $1.18 of course, but because they couldn't accurately tell me what accounts I had with them and in fact got it wrong even when I gave them a specific account number. What if it was a 6 figure account?

That happened to be a busy time for me so I didn't do anything, and there's no guarantee it'd be better at another broker. But I have outlined what I'd want to do to transfer my account, probably to Fidelity, but maybe Schwab. Maybe I'll see if anything else happens, or maybe I won't take that chance. I have a DAF and an HSA with Fidelity, and I don't find their interface as easy to use if I want to change investments, for example, but that might just be due to lack of familiarity.
blackburnian
Posts: 212
Joined: Thu May 04, 2017 12:40 pm

Re: Is Vanguard so bad?

Post by blackburnian »

They definitely need more phone operators. I have now been on hold for three hours (with the message saying that my hold time is still more than an hour), and will have to give up on the transaction I was trying to accomplish today (which cannot be done online).
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