Pulled the Plug on Vanguard
- Thread starter Al
- Start date
Their products are among the best. They pioneered the low cost mutual fund. They literally changed the industry.
However, the administration of those products needs work.
I'm still over 15 years from retirement so hopefully they'll get their act together in the meantime.
One of the advantages of being poor, none of this drama and hassle to deal with. 
JHZR2
Staff member
The Vanguard app is absolutely worthless. My wife has a 403b with a decent chunk of money in it. We used to be able to do most everything through the app many years ago. They’ve pulled out functionality to the point that nothing is available at all except the total balance. Completely idiotic.
I was at TD ameritrade so am now a Schwab customer. I much preferred the functionality of the Ameritrade app, but Schwab has been fine.
I was at TD ameritrade so am now a Schwab customer. I much preferred the functionality of the Ameritrade app, but Schwab has been fine.
JHZR2
Staff member
With the shift to etfs over the last few years, the need for vanguard’s account services is waning, But with the cash inflows and recent rises of some of their popular products, hopefully they can improve the administration/apps…
I've had good luck with Fidelity. I think my comments to my account executive when we first met may have influenced our relationship. I told him when that if he ever recommended an annuity they would never find his body. He has been very helpful and has never recommended one.
- Joined
- Jul 28, 2024
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- 1,048
Go with fidelity
I have Fidelity, Schwab, and Vanguard - vanguard being the work 401K. Vanguard is the largest provider of market funds and "age dated" retirement funds, and they market them to employers. I know they have more of a brokerage option but there whole operation is geared to selling companies on their 401K management plan, and the goal there is to have people put money in regularly for 45 years and do nothing else. So there tools and such are pretty kindergarten to me.
I don't like Schwab at all. There sweep account is non interest bearing (on purpose, they want your free float) and they don't have as good a research platform.
Fidelity I like the best for online abilities and there sweep account is a regular money market. However I called once and while I was able to talk to someone, they were completely useless. I finally found my own answer after searching through their documents for hours.
I also have a orphan Roth IRA account in state street. Other than getting statements from them once a quarter I haven't don't anything with them other than change my address 10 years ago.
My summary would be they all suck in their own way.
Glad its working out for you.
I don't like Schwab at all. There sweep account is non interest bearing (on purpose, they want your free float) and they don't have as good a research platform.
Fidelity I like the best for online abilities and there sweep account is a regular money market. However I called once and while I was able to talk to someone, they were completely useless. I finally found my own answer after searching through their documents for hours.
I also have a orphan Roth IRA account in state street. Other than getting statements from them once a quarter I haven't don't anything with them other than change my address 10 years ago.
My summary would be they all suck in their own way.
Glad its working out for you.
I was too, and it was by far the best. Hands down.
Had an account way back to when it was Ameitrade only, then TD Ameritrade. Best apps, best research.
In mid 2008 Fidelity came to my workplace to pitch a new fund, real estate. I didn’t appreciate that much.
I said something like “sure, now that they’re worthless you’re trying to dump them on us.”
In hindsight it would have been good to get in on that at that time.
I said something like “sure, now that they’re worthless you’re trying to dump them on us.”
In hindsight it would have been good to get in on that at that time.
Without getting into the relative merits of Vanguard or Fidelity, if you’re close to retirement I’d suggest moving your 401(k) money to an IRA after you retire. If your previous employer decides to change plan administrator then your 401(k) will move with it.
An IRA stays where you put it.
I had set up an advisor at EJ for my wife when I was ill, her Roth and her company stock. That advisor left to Amritrade, Was not charmed by the new guy or the simple fees " We do better when you do better" of about 1.2% and coupled with meager 5 to 6% returns. Pulled that back to Fid and some periodic self managed shuffling of ETF and mutual funds monies.
I am surprised you would not have some excess cash given you must have been required to do RMD for a bit now.
I was thinking about buying a new house as I am still in my first home. How do the loan originators consider your IRA money when financing?
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To address the elephant in the room here:
I would never wish to throw away mega dollars (in Fed and possibly local taxes) by withdrawing 1/4 million from my retirement Traditional IRA.
That would put you into the 24% tax bracket (MFJ) and also likely trigger a large increase in Medicare costs to $349/month due to IRMAA kicking in for (wealthy individuals)
Have you spoken to a tax advisor? Is this Roth or settled funds?
If not, this move could cost you over $30,000 out of pocket in ty 2025.
- Arco
JHZR2
Staff member
Same here. I want to say I had Ameritrade in the late 90s or very early 2000s.
No tax implication. I did not touch my 401K. I did not have to borrow money. The retirement vilage asks you to provide your assets bc they are on the hook for providing you with care for life.
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- Jul 28, 2024
- Messages
- 1,048
Vanguard and T Rowe price i put in the same basket. Whenever I worked for big companies their funds were brokered through them.
Phew! When you said "needed to come up with" I thought you needed cash for DP or outright.
Now why would you have a 401K if long retired? I rolled mine into a rollover IRA same company (fidelity).
Also, Al, are you taking the required minimum distributions which are required by law (rule) to start at age 73?!
There is a major Gov't spanking if not! (25% excise levy on the amount not withdrawn!)
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Let us know about the purported hijinks at the retirement village. I have heard it makes Club Med look like a Church Retreat weekend
- Arco
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Yea. I do the RMD
