[TDAmeritrade Retention Bonuses]

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Leesbro63
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[TDAmeritrade Retention Bonuses]

Post by Leesbro63 »

[Title was "Vanguard Retention Bonuses" --admin LadyGeek]

EDIT: After showing this thread to said family member, he sheepishly realized it was TDAmeritrade that offered the $1000 and not Vanguard. He extends his apology here as I do I. :oops:


I find this hard to believe, but a very reliable close family member reports that Vanguard offered $1000 if he did not move to Schwab (which he did, for $3500 after they met ETrades offer that he showed them). This is the first I've heard of Vanguard offering retention bonuses. If true, shouldn't many of us be asking for this?
Last edited by Leesbro63 on Wed Jul 28, 2021 8:57 am, edited 1 time in total.
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anon_investor
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Re: Vanguard Retention Bonuses

Post by anon_investor »

Leesbro63 wrote: Tue Jul 27, 2021 9:54 am I find this hard to believe, but a very reliable close family member reports that Vanguard offered $1000 if he did not move to Schwab (which he did, for $3500 after they met ETrades offer that he showed them). This is the first I've heard of Vanguard offering retention bonuses. If true, shouldn't many of us be asking for this?
How big was his portfolio? Was he using PAS?
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gwe67
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Re: Vanguard Retention Bonuses

Post by gwe67 »

Vanguard does pay bonuses...to its employees.

https://www.glassdoor.com/Bonuses/Vangu ... -E4084.htm

But not to its customers.
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psteinx
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Re: Vanguard Retention Bonuses

Post by psteinx »

Vanguard's margins are, I think, slimmer on average than Fidelity, Schwab, etc. Furthermore, if they *really* did this (pay retention bonuses to some), word would get out, and others would try for the same.

I'll file this in the "highly unlikely" bin unless/until I hear further supporting evidence.
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Cheez-It Guy
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Re: Vanguard Retention Bonuses

Post by Cheez-It Guy »

I hope they aren't doing this.
stan1
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Re: Vanguard Retention Bonuses

Post by stan1 »

Cheez-It Guy wrote: Tue Jul 27, 2021 11:13 am I hope they aren't doing this.
Agree, the answer to the PAS question is important.
bltn
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Re: Vanguard Retention Bonuses

Post by bltn »

psteinx wrote: Tue Jul 27, 2021 10:55 am Vanguard's margins are, I think, slimmer on average than Fidelity, Schwab, etc. Furthermore, if they *really* did this (pay retention bonuses to some), word would get out, and others would try for the same.

I'll file this in the "highly unlikely" bin unless/until I hear further supporting evidence.
I also think this isn t likely. We ll see what future supporting reports develop.
nalor511
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Re: Vanguard Retention Bonuses

Post by nalor511 »

I am not using PAS, I asked VG for a retention bonus, they said no. I moved to Schwab who matched etrade's bonus. Schwab won't let me same-day exchange one fund for another. Boo hoo.
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Leesbro63
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Re: Vanguard Retention Bonuses

Post by Leesbro63 »

I am fairly sure this was NOT for PAS, but to be perfectly honest I'm not totally sure. The account was $1.2M.
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gwe67
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Re: Vanguard Retention Bonuses

Post by gwe67 »

Leesbro63 wrote: Tue Jul 27, 2021 3:00 pm I am fairly sure this was NOT for PAS, but to be perfectly honest I'm not totally sure. The account was $1.2M.
Why would VG offer $1,000 to retain a customer who would pay about $600 per year for a $1.2M portfolio invested in low-cost index funds?

Internet search reveals no examples of VG paying a customer retention bonus.

If they do anything, it would begin with transfer bonuses. Why pay $1,000 to each current customer who calls and threatens to leave?
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nalor511
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Re: Vanguard Retention Bonuses

Post by nalor511 »

gwe67 wrote: Tue Jul 27, 2021 3:16 pm
Leesbro63 wrote: Tue Jul 27, 2021 3:00 pm I am fairly sure this was NOT for PAS, but to be perfectly honest I'm not totally sure. The account was $1.2M.
Why would VG offer $1,000 to retain a customer who would pay about $600 per year for a $1.2M portfolio invested in low-cost index funds?

Internet search reveals no examples of VG paying a customer retention bonus.

If they do anything, it would begin with transfer bonuses. Why pay $1,000 to each current customer who calls and threatens to leave?
The only reason I could think of would be because they have no shortage of "new" customers, but perhaps they have a huge outflow of recent "exiting" customers. I'm not saying that's the case, I'm saying I could see it happening. Maybe. For sure if it wasn't VG, but it is, so... who knows.
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Re: Vanguard Retention Bonuses

Post by Broken Man 1999 »

gwe67 wrote: Tue Jul 27, 2021 3:16 pm
Leesbro63 wrote: Tue Jul 27, 2021 3:00 pm I am fairly sure this was NOT for PAS, but to be perfectly honest I'm not totally sure. The account was $1.2M.
Why would VG offer $1,000 to retain a customer who would pay about $600 per year for a $1.2M portfolio invested in low-cost index funds?

Internet search reveals no examples of VG paying a customer retention bonus.

If they do anything, it would begin with transfer bonuses. Why pay $1,000 to each current customer who calls and threatens to leave?
Yep. That makes zero sense to me, also.

I think there is a disconnect in some folks beliefs of the value of a $1.2mil account to Vanguard.

It just doesn't typically bring in a lot of bucks to Vanguard.

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anon_investor
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Re: Vanguard Retention Bonuses

Post by anon_investor »

nalor511 wrote: Tue Jul 27, 2021 2:46 pm I am not using PAS, I asked VG for a retention bonus, they said no. I moved to Schwab who matched etrade's bonus. Schwab won't let me same-day exchange one fund for another. Boo hoo.
Some other brokerages do. How long do you have to stay at Schwab to keep the bonus?
nalor511
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Re: Vanguard Retention Bonuses

Post by nalor511 »

anon_investor wrote: Tue Jul 27, 2021 6:03 pm
nalor511 wrote: Tue Jul 27, 2021 2:46 pm I am not using PAS, I asked VG for a retention bonus, they said no. I moved to Schwab who matched etrade's bonus. Schwab won't let me same-day exchange one fund for another. Boo hoo.
Some other brokerages do. How long do you have to stay at Schwab to keep the bonus?
That's a good question. Nothing in the terms about staying, but it was a match so not a lot of info provided. Pays out in 45 days but I expect they wouldn't be pleased if I tried to transfer out right away. But it appears they are not a good place to trade vg mf
Lumpr
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Re: Vanguard Retention Bonuses

Post by Lumpr »

I think a lot of folks are missing where the industry makes a big chunk of the money.

Whether or not Vanguard is paying bonuses I don't know, but it's certainly possible. I pretty sure they've brought in some new high level executives, so it wouldn't surprise me if they are (or started) paying bonuses.
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Re: Vanguard Retention Bonuses

Post by UpperNwGuy »

nalor511 wrote: Tue Jul 27, 2021 6:18 pm
anon_investor wrote: Tue Jul 27, 2021 6:03 pm
nalor511 wrote: Tue Jul 27, 2021 2:46 pm I am not using PAS, I asked VG for a retention bonus, they said no. I moved to Schwab who matched etrade's bonus. Schwab won't let me same-day exchange one fund for another. Boo hoo.
Some other brokerages do. How long do you have to stay at Schwab to keep the bonus?
That's a good question. Nothing in the terms about staying, but it was a match so not a lot of info provided. Pays out in 45 days but I expect they wouldn't be pleased if I tried to transfer out right away. But it appears they are not a good place to trade vg mf
No broker is a good place to trade Vanguard mutual funds — except for Vanguard itself. Why did you think otherwise?
bmelikia
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Re: Vanguard Retention Bonuses

Post by bmelikia »

Cheez-It Guy wrote: Tue Jul 27, 2021 11:13 am I hope they aren't doing this.
I mean. . .why do you care?
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nalor511
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Re: Vanguard Retention Bonuses

Post by nalor511 »

UpperNwGuy wrote: Tue Jul 27, 2021 6:39 pm
nalor511 wrote: Tue Jul 27, 2021 6:18 pm
anon_investor wrote: Tue Jul 27, 2021 6:03 pm
nalor511 wrote: Tue Jul 27, 2021 2:46 pm I am not using PAS, I asked VG for a retention bonus, they said no. I moved to Schwab who matched etrade's bonus. Schwab won't let me same-day exchange one fund for another. Boo hoo.
Some other brokerages do. How long do you have to stay at Schwab to keep the bonus?
That's a good question. Nothing in the terms about staying, but it was a match so not a lot of info provided. Pays out in 45 days but I expect they wouldn't be pleased if I tried to transfer out right away. But it appears they are not a good place to trade vg mf
No broker is a good place to trade Vanguard mutual funds — except for Vanguard itself. Why did you think otherwise?
Complacency? Marketing? Hubris? Naivete?
BigPrince
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Re: Vanguard Retention Bonuses

Post by BigPrince »

Leesbro63 wrote: Tue Jul 27, 2021 9:54 ama very reliable close family member
You no longer have a reliable family member.
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Re: Vanguard Retention Bonuses

Post by celia »

Leesbro63 wrote: Tue Jul 27, 2021 3:00 pm I am fairly sure this was NOT for PAS, but to be perfectly honest I'm not totally sure. The account was $1.2M.
How much else did he have at Vanguard besides the $1.2M account? How many family members in his household (same address) have Vanguard accounts?


At least Vanguard apparently didn’t have to pay out $1,000. Good for us (shareholders)!
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Re: Vanguard Retention Bonuses

Post by RickBoglehead »

BigPrince wrote: Tue Jul 27, 2021 7:36 pm
Leesbro63 wrote: Tue Jul 27, 2021 9:54 ama very reliable close family member
You no longer have a reliable family member.
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Cheez-It Guy
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Re: Vanguard Retention Bonuses

Post by Cheez-It Guy »

bmelikia wrote: Tue Jul 27, 2021 6:47 pm
Cheez-It Guy wrote: Tue Jul 27, 2021 11:13 am I hope they aren't doing this.
I mean. . .why do you care?
Because the money they would pay in that scenario has to come from somewhere, and while in truth I have no say, I'd prefer the money be used elsewhere. If someone wants to leave, they should leave. Confirmation and common awareness of the retention bonus at Vanguard would then lead to exploitation and likely revocation. However, I still have my doubts that it's happening at all.
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Leesbro63
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Re: Vanguard Retention Bonuses

Post by Leesbro63 »

Please see original post for my full fessing up! We goofed! :oops:
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Re: [TDAmeritrade Retention Bonuses]

Post by LadyGeek »

This thread is now in the Investing - Theory, News & General forum (retention bonus). I retitled the thread.

Credit to the OP for admitting the error. However, the discussion is not productive due to the confusion.

(This thread is locked to end the discussion.)
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