Vanguard Announces New Fees (Except for the Rich)

[@rob_berger]

The $25 broker-assisted fee to buy Vanguard funds is waived "for brokerage accounts enrolled in a Vanguard-affiliated advisory service or for clients with $1 million or more in qualifying Vanguard assets." And the $100 account transfer fee is waived "for clients who hold at least $5 million in qualifying Vanguard assets."

[@payroll970]

Fantastic, I'm off the hook.

[@bobbert1945]

That's exactly the question I was going to ask. Thanks for this great video. I've already forwarded it to a few people. Thank you for what you do.

[@winxtra2892]

@@payroll970 LOL... I'm planning to have ~ 4,999,999 by EOD.

[@Koyaanisquatski]

I spent 45 minutes on hold w/Vanguard last night to ask about fees. One thing I learned was that you can ask for help and they will guide you for free,

[@cathyg1099]

I’ve never been on hold that long with Fidelity.

[@Mary-tj5qx]

The whole reason most of us used Vanguard is that we trusted Bogle. He was on the side of the investor. If Vanguard is going to go the same way as the industry, that changes the calculus.

[@johnsmith1953x]

Bigtime.

[@TheSombreroHead]

"Vanguard's business model is unique because it's owned by its member funds, which are owned by fund shareholders. This structure allows Vanguard to focus on the investor and their goals, act on investment themes that are important to the investor, and focus on the long term rather than quarterly results."

[@TheSombreroHead]

"On May 14, 2024, Vanguard announced the appointment of Salim Ramji, a veteran from BlackRock Inc., as its next CEO, succeeding Tim Buckley. Ramji, the first outsider to lead Vanguard, assumed his role on July 8, 2024."

[@wannamontana4130]

If your "trust" in investments is based on fee alone, ... then whoa is ye. The overall fee structure is still quite attractive.

[@kokalti]

Jack Bogel would be infuriated if he was to see what happened to Vanguard now

[@noreenn6976]

They n ed to step up their game with the website. Still quite clunky, even with recent vhanges

[@Random-ld6wg]

@@noreenn6976 i never had much of an issue with their website except for a particular glitch that lasted for a few years that forced me to complete a particular trade over my phone. i can't even recall what it was now but it was a buy order on one of my accounts. it will kick me into an unrelated page in their website instead of the ordering page. the quarterly dividends tab doesn't seem to correlate with amounts that stop at the tax quarters and seems to continue on up to the 15th of the month when the taxes are due and this bugs me when doing quarterly estimated taxes. no experience with other brokerages. i much prefer the previous version of their mobile app. the current one is only in vertical mode and i see less info at a glance. the previous version screen rotated. i actually have 3 accounts at fidelity: an old 401k, a 457b and my HSA. i prefer the layout of vanguard as the positions in each account are seen right away instead of having to dive in deeper to each account.

[@davearey4922]

Bogle brought low cost investing directly (i.e. without a sales person) to consumers. That was hugely successful (an understatement). Jack fought against Vanguard bringing ETFs to market. Vanguard customers bought mutual funds and held them forever. This was very, very different than all the other mutual funds that were sold to customers. Providing low cost mutual funds that sold themselves largely by mailing in a physical check) is a business Vanguard was a world class leader. And that low cost mentality has been an overwhelming (insurmountable?) impediment for Vanguard to compete over the past decade with Fidelity and Schwab. People now demand a great website and an app for a phone that work…not a mail room that processes checks that come in by the tens of thousands a day. Vanguard has utterly fails to make that transition. Vanguard’s “customer service” was and unfortunately continues to be providing low cost mutual funds and ETFs. Period. That approach provides Vanguard with way less revenue to update their computer systems, that are decades out of date (and very expensive to update) let alone come up with a functional website and an app that is intuitive. Schwab and Fidelity have the revenue and lots of ways to generate more to make those improvements. Jack Bogle’s laser focus on “low cost” mutual funds has crippled Vanguard because their revenue is not sufficient to compete with Fidelity or Schwab. Vanguard has fallen…and I don’t think they’re going to be able to get up.

[@MikeBresler]

@@noreenn6976 I find myself having to hunt for data, much more so than a few years ago.

[@ayrplanes]

Yes he would. Waiving fees for the wealthy is the worst part. Vanguard is becoming Vangreed.

[@leondonald]

This doesn't really surprise me. The situation has evolved. In my life, the idea of mini-retirement was revolutionary. I'm not waiting to be 65 and retire to some idyllic place. Knowing how to pay for the lifestyle is helpful. Earning money while enjoying a piña colada by the beach is, you know, helpful. If not, I could not have completed it.

[@donna_martins]

Yes, people tend to overlook that. You don't take your life savings and take off for Puerto Rico. Two major benefits are prudent investment and sound business judgment. Invest in real estate, stocks, and start-up companies. That is all.

[@Walter_hill_]

It's safe to say that not everyone possesses the aptitude for investing. However, it's always simple to heed the guidance of an expert, such as a financial advisor. The range of 10-40k is possible with the appropriate ones. If you're smart, online businesses are also a good investment.

[@Trevor_Morrow_LTD]

I appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?

[@Trevor_Morrow_LTD]

Thank you for the information. I conducted my own research and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.

[@GeoffreyHiggs]

Vanguard - legacy brokerage that just put the final nail in its own coffin. Gen-Z and younger won't touch this brokerage

[@nelsonricciardi7087]

I tend to agree

[@seanwool]

With a website that bad and no more low fees to make up for it, Millennials aren't going to put up with this and GenZ definitely isn't. And these guys are about to inherit a LOT of money. I've been worried about Vanguard for a while and this doesn't help.

[@cathyg1099]

Bingo. I’m an older Gen-Xer. I wanted to love Vanguard, but it’s archaic website and poor customer service was a turn-off compared to Fidelity’s robust website and fantastic customer service. It will be worse with the younger, tech savvy generations. Vanguard is in deep trouble.

[@mstanley1178]

@@cathyg1099 "older" millennial here - I love Fidelity and Schwab's interfaces, services, customer service, and offerings. I haven't used Vanguard in over 5 years after using the other two. I also direct most people who ask me where to start to check start with either Fidelity or Schwab.

[@amyx231]

I mean, my employer uses them for 401k. So all the new 18 year old employees are using this (staring 2025, with the automatic contribution rule).

[@uaeio]

Last year I transferred all my Vanguard accounts (IRA TRAD, IRA ROTH, 401K) to Fidelity and I am extremely happy.

[@MrDocneeson]

If you did that because Fidelity offered services that Vanguard didn't, then you made a wise decision. If you did that because you think you will make more money at Fidelity, then you are mistaken. The difference between the expense ratios at Fidelity and Vanguard are large and within a few months you will have lost more money than any fee increase that Vanguard has instituted. And your losses will be compounded monthly.

[@leegonzalestx]

​@@MrDocneesonyou can purchase same ETFs at same expense ratios

[@missouri6014]

On the Fidelity platform I own no fidelity, ETFs or mutual funds, but I do on VGT and SCh G So Fidelity’s platform is so nice and you can own funds from other companies. Can you get all these benefits of great customer service and their webinars and a free financial planner whenever you want and the retirement software is almost as good as new retirement and it’s free. Did I mention it’s free

[@sk1996]

@@MrDocneeson Fidelity index funds have lower ERs than Vanguard.

[@kaligirl1980]

​@@MrDocneeson - Fidelity has a number of funds that have lower ERs than Vanguard and some zero ERs funds.

[@johnc4789]

The CEO failed to understand what made Vanguard good. Took to long to get rid of him.

[@davidpowell3347]

The present CEO is supposed to be scheduled for replacement,I think by the end of this year.

[@barneycasting8331]

What made Vanguard so good was its employees! CEO is doing the correct thing enhancing the compensation and benefits package of employees! When you guys make a profit you think like Capitalists, but when you are hit with fees you think like Socialist! Come on now!

[@johnc4789]

@@barneycasting8331 The phone support staff are employees, and if you dealt with them you would have seen that they are poorly educated for their jobs, and frequently give you wrong information.

[@johnc4789]

@@barneycasting8331 When you have experienced some of Vanguard's phone support or their new website in the last couple of years, you know that the CEO has cut cost in such way that it has become impossible to stay with Vanguard as an investor.

[@Capecodham]

too

[@rickdunn3883]

I've been a Vanguard Indexer for 35 years. Amazing to watch the rise and fall. I don't thing Boggle would be happy. Thinking of moving to Fidelity and using the zero cap weighted index funds.

[@bobbya51]

@@MyNameIsJeff872 😅

[@kevinbarrett3706]

@@MyNameIsJeff872 Thanks Jef

[@southrichmondtofl]

@@MyNameIsJeff872 probably auto correct got his ars! easy buddy.

[@jackdubl310]

Fidelity is the new Vanguard.

[@BillyCarsley]

Can't use zero ER funds in retirement accounts. If you're moving a 401k remember they cut a check and your retirement floats outside the market for several days, so consider rolling over to Fidelity 10% at a time.

[@kylehackett162]

I just don't see these fees as being a big deal. It's not like they are raising the expense ratios on your investments.

[@juliekeller1172]

I called Vanguard today. The $100 account closure fee is only if you move the assets in kind to another firm. If you sell the assets online and transfer them to your bank account, there is no fee. The rep said the letter was not written very well.

[@Mathignihilcehk]

Do you have any evidence that this is true? The way it’s written, they could potentially charge you $100 every time you withdraw any assets or cash.

[@davidpowell3347]

Vanguard: if you read this please clarify your letter and/or provide a bit of background explanation. also could consider putting a short tutorial on the website telling/showing how to do various kinds of transactions and moving money in and out to various accounts and details of how to do various "conversions" without having to go to the telephone reps -- how to uncover hidden or not so obvious tabs in the webpage -- (mostly for the newer brokerage platform which some people still don't seem to be comfortably navigating) preferably on the public facing part of the webpage that greets you before you put in your username and/or login

[@richards144]

I just finished moving all my 401k funds over to Schwab in kind and there was no fee

[@lourenshaw865]

@@richards144 The fee doesn't kick in until July 1, 2024

[@bobsmithhome2]

Yeah, but $100 pales in comparison to being out of the market for a couple of weeks at the wrong time.

[@tomn1173]

Make no mistake, these are "testing the waters" fees. They are trying to ease the customers in with these bad news. In the near future, they will have another round of new fees.

[@MeltingRubberZ28]

These fees are likely in response to low net worth investors making a documentation nightmare for vanguard when switching to robinhood

[@tonycrabtree3416]

So, basically returning the 90s? Y’all have had it easy for the past 2 decades.

[@govinda102000]

Exactly. They are watching and I'm sure some customers will react.

[@pfeilspitze]

I mean, $0 for online transactions still, so TBH I'm in favour of charging the people who are causing the costs, rather than having everyone else subsidize the people who can't click buy on the website themselves. You *can* just get an annual distribution and not have to pay it that often.

[@fairbanksbrian]

My biggest complaint is that their website is built to be used from a phone now. On a computer, the website only uses the middle third of the screen, and then you often have to scroll within the middle third of the page to see all the content. For example, if you go to a list of vanguard mutual funds on the site and then use a "filter", for example to show only bond funds, then you have to scroll within the frame to see all the information. Yet there are acres of blank white is on each side of the page.

[@whenifeellow]

Rob Berger, you are the man for all that you do!

[@Schizeophonic]

Thanks for the information Rob! I think a number of us were waiting on this video. I just got off the phone with 2 vanguard service reps, and they stated some concerning additional information. Namely, that it doesn’t take a full closure of the account to trigger the $100 fee, but instead any partial transfer that could occur under certain circumstances (like a partial transfer initiated by Fidelity). Also, this is on a per account basis, so if you have Roth,brokerage, and HSA that is $300 in fees. Additionally, I asked if VXUS would be subject to the 1% dividend fee, and both of them said yes. I think this is incorrect, but the email from vanguard is so poorly written that it is causing confusion for everyone, even Vanguard’s own associates. Very disappointed with the direction of Vanguard.

[@cmdrfunk]

I read on one blog about these fees "Readers note that the 1% fee is only for stocks that trade on foreign exchanges, not funds like VXUS which trade on US exchanges."

[@Schizeophonic]

@@cmdrfunk Agreed! My main frustration is with vanguard associates giving out bad information because they can’t understand their own policies. I believe better communication would have gone a long way here. The whole interaction undermines my confidence for Vanguard’s future.

[@Koyaanisquatski]

@@Schizeophonic After being on hold for 40 minutes I was told closing fee would only apply when totally closing account. But when I mentioned the email she could not locate it and I ended up reading it to her. I think vanguard’s best days are over. Thinking of moving to fidelity even though fees are a bit higher and returns are a bit lower on target funds.

[@Video-vv9vc]

It is their management. It is Philly style of vicious management creating us mess.

[@dwood6285]

with these recently announced changes by Vanguard, would be useful to me to see a comparison of common investor fees among Vanguard, Fidelity, and Schwab. would perhaps put the Vanguard changes into proper context.

[@cmai553]

Agreed, most of these fees are in line with the other major brokerage firms

[@troopdog2003]

@@cmai553 Bogle didn't create Vanguard to get in line with other brokerage firms. He named the company Vanguard for a reason.

[@jimmyleopold]

Due to Vanguard's mutual ownership structure it's not clear to me that these fees are increasing the cost for Vanguard account holders as a whole. These changes clearly increase the cost for those who do these specific actions. But for account holders who don't do these things these new fees may actually save them money as cost that was there all along, and had to be covered by the mutual fund fees, can now be charged solely to those who perform these cost bearing actions. This would allow Vanguard to lower expense ratios, avoid increasing them, or worst case increase them by a smaller amount than they would have otherwise to absorb any rising costs. Of course, the alternative is that these fees are being used to raise employee wages beyond inflation in which case this is a deterioration of Vanguard's low cost promise.

[@colleenconger5265]

I have a dedicated personal advisor at Vanguard if you have more than $500,000 with them, you get that it’s a personal advisor

[@mutantryeff]

Account closure fee is like an enslavement tax - we'll free you when you pay for your freedom.

[@mnfchen]

You have til July to move out if you don't like it

[@kaovilai]

I think move out fee is reasonable to prevent people using their brokerage as a mean to trigger account transfer to Robinhood for a 3% match

[@barneyfyfe8313]

Smith Barney charged me when I switched to Vanguard years ago.

[@Kimmer]

Agreed, but everyone charges them because it takes time and effort to transfer funds. Vanguard is trying to focus on their customers so I'm happy they are charging those who are bailing to reduce costs in other areas!

[@davidbundesen5867]

Charles Schwab charged me a $75 account closure fee years ago. And I was furious when I moved everything to Vanguard. Well, I guess Vanguard is no better and maybe now even worse than Schwab. God I miss John Bogel

[@janlajoie6120]

Vanguard is placing fees on services that cost it money and don't return much value to the company. Stop playing with your money and check the expense ratio of the funds / company your investing in. That is the true cost of ownership. In my case I checked and found that every day I was always 50 basis points ahead of the competition. That is a strong head wind to overcome.

[@charliehargrave7458]

The bottom line Vanguard is trying to drive away small accounts and only wants ones with millions or corporate accounts.

[@analiabertoni9793]

😢

[@timb6985]

Not just millions, at least $5million!

[@steftrando]

I should not be subsidizing people who can’t be bothered to do online transactions. If you need to call to do a trade then you should be charged. If that means keeping vanguard expense ratios low.

[@briangoss9771]

Exactly. Rob doesn’t touch on this point at all.

[@JRRob3wn]

Yeah, I’m not sure why I’m supposed to subsidize confused people that don’t understand the internet.

[@edwardstanton3571]

,,,says the generation that expects to have their student loans forgiven.

[@FrankC76]

You're right, let's take a big crap on old people, because they are the ones who aren't comfortable online. That will be you one day, unfamiliar without whatever new technology comes rolling in when you are in your 70's and 80's.

[@richardlarson2969]

Whew!! We just transferred all our money out of Vanguard in December, just in time. This is really amazing, given that Vanguard's latest advertising blitz is about how well they treat their clients because they are "owners". It's just a shame what the new Vanguard management has done. Poor Jack must be rolling in his grave.

[@JennyLouRN]

I withdrew my money a year ago as well. Vanguard is terrible.

[@retiredadvisor]

You’re looking for services beyond their core business. They aren’t a retail broker and clearly add brokerage and retail advisory services as value adds, but only to the degree that they don’t become an expense. Their core business is as an asset manager (albeit passive for the most part) and manufacturer. Distribution is largely handled for them via retirement plans and other intermediaries. They don’t need retail, so it’s not surprising they are adding fees to recover some of the costs. Don’t expect them to be something they aren’t.

[@jeevang7853]

Defensive

[@jeremywhite92]

Telephone assistance is very expensive for the company, and may frequently cost more than $25 for the company to provide that service. I don't really blame them for wanting to put a price on those calls.

[@Dragontail65]

Vanguard has very poor customer service now compared to 25 years ago.

[@nicmart]

So does Fidelity.

[@vinyl1Earthlink]

The ADR fee doesn't make any sense. The ADR sponsor handles all the work - it buys the foreign stock on the foreign exchange, deposits it with a custodian, and receives the payment in the foreign currency and converts it to US dollars. They are the ones who charge the fee, and quite rightly so, as they do all the work. Vanguard just receives the dividend in US dollars, just like any stock, so why should they get a fee?

[@jjartdesign]

Yeah this one threw me off. Can’t make sense of this. Does anyone know if fidelity charges this?

[@swisstroll3]

@@jjartdesign My family has a couple of stocks that are represented by ADRs at Fidelity. The institutions that hold these shares are allowed to charge between a half a cent per share per year and 5 cents for record-keeping. I assume that is the small amounts that are charged. Fidelity doesn’t have an ADR fee. But they do charge a small amount for dividends and payments from ADRs.

[@vejoshiraptor]

Vanguard has been making a lot of subtle changes that remove utility and convenience. They seem to be struggling as a company. Lots of red flags. I’m jumping ship before the fee to transfer takes effect.

[@davidpierce3217]

I've been with Vanguard literally decades. During COVID I had to interact with them a lot because of an inheritance, and it was miserable dealing with them. I chalked it up to the difficulties during that time period, but it left a bad taste for Vanguard in my mouth. Since then Vanguard has just gotten worse and worse. I'm now exploring options to switch to another company.

[@neeferpd]

I see a lot of Fidelity customers here in the comments. My account has been with Schwab for many years. The few times I've ever needed to call have been pleasant and easy. I love the website. My current 401k with work, however, is Fidelity. I don't know if it being a 401k account is the reason, but I detest the website in comparison to my Schwab interface. Also, I do believe Schwab has an incentive available to new accounts if referred by a current customer. At least that was the case some months ago when I checked.

[@JennyLouRN]

Yep, same experience here. I now use several other large brokerage firms that I’m not mentioning for security reasons. They are all better than Vanguard.

[@ForgeofSouls]

Fidelity is fantastic choice. Ive been with them for 5 years. Moved from Edward Jones

[@ucdcrush]

Can you expand more on what the issue was with inheritance? I am planning to setup a cashplus savings acct for my mom, and expect to inherit it when she eventually passes. What pitfalls did you run into?

[@davidpierce3217]

@@ucdcrush I had to make perhaps a dozen phone calls to Vanguard to accomplish all the tasks involved with the inheritance, which was somewhat complicated. Each time I called them there was a 30-40 minute wait to speak to the appropriate person who could help me. That's the part that was miserable to deal with. It's not like Vanguard did anything wrong or bungled it, but having to wait so long every time was pretty unpleasant.

[@brennendavis3283]

I think an important clarification is that the broker assisted fee does not apply if you call and ask a representative to show you how to make the trade. It only applies if they’re the ones placing the trade for you.

[@AugieBenDougie-wk9pr]

Exactly. Schwab is the same.

[@ShirleyRand-ix5wj]

I think Vanguard does not want any calls, as I indicated in my post. They are not investing in customer service at all. I do all my self managing on the computer, but sometimes need some clarification or help on how to do it, and just advised they will close my accounts if I continue to call. This is not just about fees, but about customer service being cancelled.

[@notyetjp]

@@ShirleyRand-ix5wj Your "needs" are obviously far more than they can handle. Perhaps Fidelity or Schwab would be able to handle them. You could try both of them. Good luck.

[@CrabbyE8]

It seems to me that Vanguard is “cleaning house.” They likely have too many small dollar accounts (and with the Ascensus move too many small business accounts) that are tying up too many resources. I don’t know if adding fees fixes the issues, but they appear to be focusing on disincentives for certain things.

[@DeadCat-42]

They don't want new young investors, they only want established investors with large accounts.

[@tompiwowar6934]

In the past, you have been critical of Vanguard for not investing enough in its services, particularly their online services. You said that perhaps their low-cost strategy was catching up with them so they did not have the resources to keep up with the competition. Recently, I've noticed that Vanguard has started making such improvements. So perhaps Vanguard giving more attention to its own income will be a long-term benefit for its customers. 🤞

[@JRRob3wn]

They updated the app about a year ago and now it’s fantastic IMO.

[@MeltingRubberZ28]

This is likely in rewponse to robinhood. Probably have a ton of customers with less than 10 grand in their account jumping ship and its turning into a documentation nightmare for vanguard over 0.00000001% of their holdings. I dont like the idea of fees any more than the next guy but this is probably just ensuring you're not leaving on a whim. None of these fees apply to me so I'm staying the course.

[@MeltingRubberZ28]

@@Capecodham response

[@darienlambert248]

What happened to Robinhood?

[@EatLeadPal]

Like you, I manage my own accounts at Vanguard and none of these fees affect me. I was using their team to manage my accounts until I realized they were putting my money into poorly performing ETFs. When I asked them to put my money into index funds, they REFUSED, so I fired them and am doing fine on my own. I managed my own 401k during my working years and made a lot of money riding the S&P 500 index so hopefully, I'll do the same at Vanguard.

[@paulacothren3591]

Good that you fired your personal advisor at Vanguard. I did the same in 2021. In Vanguard's investment ecosystem that is largely passive there really is no need for their PAS services. Rob Berger will certainly be a benefit to your knowledge on how to manage your investments yourself.

[@sartorius73]

Bogle was clearly the driving force behind the entire philosophy, which was low fees and good service to the customers/owners. Since his passing, they have gone downhill, exactly as you said. In tech, they call this enshitification.

[@bridgecross]

"What sets us apart: Our company is owned by its member funds, which in turn are owned by fund shareholders. With no outside owners to satisfy, we focus squarely on meeting the investment needs of our clients." 🙄

[@sayyedal-afghani]

Give me a publicly traded company (Schwab) or privately owned company (Fidelity) brokerage with great customer service over a "member owned" brokerage with crappy customer service...

[@rgarri6396]

If we own the company then let vote the bums out.

[@geoffgordon9569]

​@@rgarri6396did that with the proxy vote index card sent to me every year. Every time I would vote differently.

[@richardlarson2969]

Yes! This is exactly their pitch and then they turn around and screw their "owners". They couldn't be more deceitful in my opinion.

[@sayyedal-afghani]

@@richardlarson2969 The most poorly owned companies/organizations in America are often "member owned." You even see the same thing with Credit Unions. If I'm a "Vice President of Bullshit" in some publicly owned company and you're the CEO, you're not going to put up with my crap because you will be held accountable by the Board and the stockholders. If we're both in a "non-profit" owned by the members- you're probably going to do nothing about me because you don't want to rock the boat. Let the members think all is well. If they dig too deep, they might not like the job you are doing either...

[@jmg6547]

Has anybody heard if Bogel's family is transferring to Fidelity?

[@canyonoverlook9937]

If I remember right, years ago they charged a maintenance fee for accounts that didn't have a large amount in them. Then they got rid of that. Does anybody remember that? That favored wealthier people over the younger people just starting out.

[@clintonwoodward]

The maintenance fee is simply waived if you elect electronic delivery. If you want mailed paper the fee applies. I have no issue with this because it drives people to lower cost options which saves all of us money.

[@canyonoverlook9937]

@@clintonwoodward I have no problem either. What I am saying is Rob and others act like there were no fees in the past. It wasn't waived in the past either. They also had higher fees for the funds in the past and still charge less for people with bigger balances with Admiral shares.

[@moriorinvictus]

A lot of to-do about nothing. People wetting their pants over a $100 transfer fee that their new brokerage house will pay. That being said, this would have never jived with Mr. Bogle.

[@josephroberts7374]

Nothing wrong with the broker assisted fee. Ties up their employees, to do something that is SUPER easy to do yourself, online. If you need help, call up, ask a million questions, then do it yourself with 2 clicks on a computer.

[@terrymurray7120]

A lot of seniors do not have a computer. Seniors are the ones with the most retirement money. Again the old people get dinged.

[@OldNavyGuy]

Fidelity costs nothing to call.

[@josephroberts7374]

They’re not charging you when you call with a question, they’re charging you when you have a broker complete the transaction for you on the phone. All you have to do is call in, ask all your questions, then complete the transaction yourself online. Most brokerages charge that same fee.

[@jeevang7853]

Easy to see things from one’s own perspective.

[@MaryBethMcCoy]

I know Schwab has always had a broker assisted fee, but that is only if they complete the trade for you. They will help you complete the transaction and will not charge the fee when they guide you through each step of the transaction on the phone and you do it yourself on your computer.

[@JohnSmith-cd8ch]

I passed $5 million in Vanguard assets last spring and now I have a dedicated account specialist who has helped me with a couple of complicated transactions (for which there was no fee) and was invaluable in doing so. I am probably going to be Vanguard for life

[@garyhagstrom7512]

Seems like a philosophy of pay for the services you use and don't pay for those you don't use. Given the rising price of personnel nowadays I expect their options were make people pay for what they use vs spread the fees to everyone regardless of whether they use them or not. Sounds like a fair choice to me, after all they are not a welfare organization.

[@MrDocneeson]

The cost of everything is going up. One time fee increases for specific actions or services may seem costly, but the long term gain you receive from industry low expense ratios far out weigh those fees.

[@Video-vv9vc]

Hello. Their low expense ratio ETFs are available at other brokers that doesn't charge these fee. They need to sell or close their non performing units that is now compounding cost and wiping out all the good things.

[@Gj-et5xm]

I just opened a brokerage account with vanguard last month, I am closing it today. Thanks for the info

[@SD-co9xe]

When I first saw this I was alarmed but once you went through the new fees I realized none of these would impact me personally unless I sold everything and left Vanguard.

[@JennyLouRN]

Hahaha! Me too!!

[@robertwiersberg4299]

These fees don’t bother me,they actually seem reasonable. I can’t see why these would drive people away or make you want to switch. Also, Vanguard recently introduced automatic investing for their ETFs which allows for automatic structured investing (dollar cost averaging) into my ETF portfolio. That’s an awesome new feature, love it!

[@Video-vv9vc]

Are you an employee their or paid to do this?

[@robertwiersberg4299]

@@Video-vv9vc haha, no. I just think this whole topic is blown out of proportion. I have brokerage accounts at both fidelity and vanguard, I actually prefer vanguard’s webpage. I don’t understand all the venom being spread here. But o-well.

[@frontiermusings]

I’m not leaving Vanguard. These fees don’t affect me at all. I moved my husband’s vanguard account to Fidelity a few months ago and I don’t like them. Limited options.

[@Yette]

Gotta believe Vanguard knows these fees will cost them customers, assuming they are fine with that

[@tomn1173]

Vanguard sucks now. Everybody complains about their app and website layout and functionality. Not user friendly. Other brokerage apps are much better. Now these fees are just the nail in the coffin for me.

[@semosancus5506]

Yep I'm going to start the move and get my kids to move too.

[@g.t.richardson6311]

@@semosancus5506 fidelity is great, I have had zero issues for years, rollover Ira’s and an HSA they bent over backwards to transfer a sub 10,000 balance from my credit union when I retired.. I had to do nothing. Entered it online Sunday account was established with the money by Thursday. Not only answer the phone they call you back if someone specific is handling your issue. They were also very helpful when I transferred a large some from my pension rollover that was being stalled by my employer. Actually sent paperwork at their own cost overnight when the employer kept claiming they had not received it. A signature does wonders. I also have Schwab via TD Ameritrade via Scottrade… my only issue with them is often times CD interest and dividends do not post in a timely manner and it may be a day or two till it shows up in your account, with TD Ameritrade, it showed up the day before. no real issues with their website just still trying to get used to it since I was transferred to them

[@obidamnkenobi]

Because you call to buy funds and buy ADRs often?

[@JRRob3wn]

They updated the app over a year ago and it’s fantastic now.

[@tinaardo2585]

Just found you on KZbin, thankfully! I am a previous TDAmeritrade client, so new to Schwab. This has happened TWICE to me and it must be addressed. Put in an order to buy BROS @limit $38.24; however it was bought at $41`.00 per Schwab. I attributed it to unfamiliarity with this firm. Placed a limit order for PLTR @10% drop; however Scwab bought it at market price. So TWICE NOW SCHWAB HAS BOUGHT AT THE MKT PRICE INSTEAD OF THE LIMIT PRICE. WHAT DO I DO? This sounds like fraud to me.

[@bartito15]

Rob- I'm new to your channel and just wanted to say thank you for this video. I've been generally happy with Vanguard ... but have had a different feel from them over the past few years. After your excellent explanation of the email I recently received, I think I'll stay put for now. I'll be interested to see how I feel now that's they've moved me to some type of robot/personal advisor product. Again, thanks for a great, simple to understand video for a Vanguard client.

[@johncrissey3496]

No free lunch! I guess their very low cost fee structure is catching up to Vanguard.

[@tfc850]

I'll take Vanguard off my list.

[@robn.5932]

Rob, I have be waiting almost 24 hours for you to make this video(ha ha) and you delivered! Thanks for explaining all the fees in plain English and I am sure Mr. Bogel would not have allowed this to happen. I thought Vanguard was owned by us, did we vote for this?

[@jeffro221]

Move to Fidelity, folks. Fidelity is the best.

[@TedWesterfield]

Jack Bogle is turning over in his grave. Nickel and dining individuals for esoteric fees that Bogle historically railed against.

[@claire4974]

I worked for 9 years at Vanguard in Pennsylvania . The app and the website is terrible . Terrible service on the phone… I want to transfer my assets to Fidelity. I can’t believe I am saying this…. 😢

[@JRRob3wn]

They updated the app a while ago and I find it excellent.

[@theinfiniteradness]

They made the website a little more modern looking over the past few years and it looks worse, IMO. Was easier to navigate and easier on the eyes when it looked outdated.

[@DrBilly90210]

Agree that the optics aren't good and Vanguard could use a liitle help from PR. Though they'd probably add a "public relations advisory fee" given recent history.

[@dforrest4503]

I’ve been a Vanguard client for my entire adult life of 35 years. Generally satisfied, but the trend isn’t good. The problem is that if I were to sell things and move it would trigger a lot of capital gains. I bet a lot of people are in this situation. So Vanguard won’t attract new customers and will gradually get less and less competitive.

[@ok2tmtsg]

Same here

[@andreal2625]

You can’t just do a rollover to a new broker without triggering it as income?

[@jaycox1836]

Fidelity just emailed me about raising their fees, a snippet, "Effective June 3, 2024, the transaction fee for Vanguard and Dodge & Cox mutual funds will increase from $75 to $100 per purchase. Also effective June 3, 2024, participants purchasing shares in applicable ETFs will now be subject to a new service fee of up to $100 per purchase. For purchase orders below $2,000, the service fee will be reduced to an amount that is approximately 5% of the purchase value. The complete list of ETFs currently subject to this service fee can be found here, and will be updated periodically." Guess that's not too big...

[@jeevang7853]

Mutual funds… That list of ETFs with the new $100 fee does not include the big names, e.g. Vanguard and iShares. Nice try though.

[@lorrainebrugnoli-kd5hv]

Thank you for explaining in plain English all the new fees.

[@lostboi3974]

All I do is dollar cost average into VOO and VGT. I dont think its a problem for me. I dont think I need to touch it for 12 years from now.

[@travelingfool9096]

newly retired went though their financial advisor, and deceived not to do that, didn't see value. I think their website is becoming less user friendly. I just rearranged ( with some info I got from advisor's original plan). They been doing things that are quite concerning and now these fees. They only give you a month before fees take effect and I and going to be too busy to do before free time is up. There is a bad pattern emerging and it is only going to get worse. I will seriously looking at fidelity later this year. I think they are kicking up a shit storm and it may bit them in the ......

[@wwz1011]

Vanguard has typically been set up for do it yourself investors. Want someone to help you? Try Edwards Jones or similar. I've never need assistance to buy an index fund, which is almost all I have with Vanguard. I do have one single stock, that I have held for 25 years. So no churn there.

[@JoeSmith-jd5zg]

I've said it before, ever since Bogle died they've been going to crap. It's disgusting. I've been with them for 29 years and if I didn't have to pay a ridiculous amount of capital gains tax, I"d be about at the point where I'd dump them for Fidelity or Schwab.

[@JD..........]

None of these fees apply to me. Seems like an over reaction, but thank you!

[@steftrando]

Completely agree. In theory it keeps my fees low and puts the cost on PITA customers that constantly need to call customer service. Everyone’s costs are going up. I love making PITA customers pay the increased fees and not me.

[@jeevang7853]

Yet

[@Chris-N916]

What did they say during WWII about the Nazis coming for someone else, but you didn't care because they weren't coming for you, and eventually, when they did come for you, you're all by yourself?

[@Chris-N916]

@@steftrando They are just getting started. Wait till they implement a monthly fee for everyone just for having any accounts with them.

[@willmansfield6532]

My dissatisfaction with Vanguard has been growing steadily over the past few years. After 30 years with the company, I'm likely going to move all of my assets to Fidelity. Vanguard's recent imposition of a $25 fee simply to deposit a dividend payment into my bank account is the last straw. As a retiree, I reply on dividends from my mutual fund investments, and I find it outrageous and unacceptable for Vanguard to skim money from the top on each and every dividend generated. In my opinion, Jack Bogle must be spinning in his grave over what Vanguard has become. Shame on the company!

[@dustinasche]

The ADR dividend fee, if I'm not mistaken, is a change from a flat $1 fee to a percent-based fee. Depending on how much capital you have in these types of securities, this could actually be a net reduction in fees.

[@alr9967]

Vanguard is a great investment platform for the 20th century

[@Omar-et7sb]

I honestly hate Vanguard's app and website and considering ETF's are (at this point - the era of fractional shares) objectively better - I really don't see a reason to use Vanguard.

[@mere_cat]

Many of the brokerages appear to be backtracking on “free” everything. Fidelity is trying to charge for ETFs, M1 changed their fee structure recently, and now this. Robinhood appears to be the only one keeping costs low and benefits high. I wonder how much higher interest rates are behind this or whether the drive for lower fees has finally hit a wall.

[@yyss486]

The fees are every where. Fidelity charges me $100 to handle my ADR dividend.

[@l.a.rivasesq.8841]

I’ve been itching to leave Vanguard after they kept pressuring my spouse and I to switch our accounts to their brokerage accounts. This isn’t the Vanguard experience I experienced initially and expected to have.

[@richards144]

I was planning on leaving Vanguard anyways as their getting rid of their individual 401K business. Found out about that via your previous video. I've already opened up a Schwab account and am now working on setting up the 401K and transferring funds. This just confirms my decision to move on this asap. Thanks so much for all your great work.

[@richards144]

Follow up: the transfer is all done, both my trad and Roth 401k are all moved over to Schwab

[@Mike-fn7rx]

It’s clear vanguard wants out of the small consumer market and that’s a shame. It’s against what their founder stood for.

[@obidamnkenobi]

No it's not. They're adding costs for extra bs, to keep fees low where it matters

[@davejoseph5615]

A relative of mine recently abandoned Vanguard, but for me these new fees are fairly irrelevant. I guess rather than close my account I would leave one dollar behind?

[@brennendavis3283]

The closure fee is only if you transfer the account to another firm. It has nothing to do with emptying the account in the normal way.

[@sayyedal-afghani]

I guess they haven't had enough customers moving over to Schwab or Fidelity in the past few years...

[@hm51008]

What an aggressive way to generate revenue…I wonder what reaction they would have received if they would have announced a .01% increase to some index funds, instead.

[@nelsonricciardi7087]

Rob, I believe the main concern is what might be behind these decisions. Are they having issues? Are they slowly and consistently moving the company in a different direction? Short term these fees don't mean much. But they might be only the tip of the iceberg. And if that is the case, then I need to find a new home.

[@bobmonson6432]

I cant qualify my statement, but I have read that Vanguard has adopted WOKE policies and invest in companies that dont support oil/gas, and do support green agendas. We all hear how well thats wrecking the economy. At the verge of anger, these fee increases are the straw on the camels back for me.

[@Fatbodypyle]

Ive been considering leaving vanguard and this may be the straw to break the proverbial camels back for me. Very unhappy with vanguard for a couple of years and this isnt helping.

[@danoberste8146]

Instead of closing your account, can't you just leave a $1 in it to avoid the $100 account closing fee?

[@gman68137]

I moved all my retirement funds from Vanguard 2 years ago when their emphasis became promoting ESG in their holdings instead of returns for their investors. Now trying to figure out how to extract my non-retirement funds w/o getting a a big tax bill. These new fees will be more impetus to get it done.

[@vincentslusser9205]

I jumped ship several years ago. Loving the much "greener pastures" for all those years. Let's pray that all stays the same in the future.

[@slovokia]

What costs Vanguard the most is their incompetence and poor internal organization. If your basis for competing is keeping investment costs as low as possible you need to figure out how to implement efficient snd competent business processes and customer service via the internet. When customers need to call multiple times to sort out problems that is a waste of resources. Unfortunately Vanguard is not learning from such encounters and applying the lessons learned to change and improve their internal processes. It’s more like the movie “Groundhog Day” for their customers.

[@RMahPersonal]

Absolutely bananas! I have an old rollover ira there of sub 1k. This makes me hate vanguard more

[@QSLIMQ]

transferred to fidelity yesterday. the final straw was them not offering any crypto-related products OR ability to buy existing products.

[@annoyed3]

Fidelity Cash Management account only pays 2.72% as of May 5, 2024. Not good at all

[@jillmartin5089]

Thank you. When I got the email I was hoping you would explain it to me. Your videos are always so helpful.

[@JJbike]

im a small time retired investor- wellington, wellesley IRAs. Noticed a few years ago the phone customer service decreased. Past few years i dont buy or sell. Vanguard isnt what it used to be. Thanks for explaining the email that i didnt understand.

[@martinlutherkingjr.5582]

I hope they use those fees to update their website from 1995.

[@bstevens9831]

Vanguard has removed the capability to send a secure message to them while logged in to your personal Vanguard account. It used to be possible to go to the Message Center and pick the "upload a document" and that would allow sending a message ( just skip adding a document ). This is not some temporary glitch as it has been this way for over a month now.

[@canyonoverlook9937]

Nothing has happened to Vanguard. This is so blown out of proportion it is ridiculous.

[@rubedo2075]

I received the email but di not fully understand what they're saying. Thanks for explainng.

[@smallcoffee75]

Sounds like it may have came from the overseas call center and the representative who told me that Vanguard and Fidelity Investments were the same company. He proved it because he opened my accounts and saw the 4 Fidelity Accounts (link outside investments). He told me if he can see it on the Vanguard Computer Vanguard owns it.

[@rightwingprofessor1356]

When I got the e-mail announcing these changes, I sent a note to my PAS Advisor. He verified that NONE of these charges affect me, since 1. I am a PAS Client, and 2. I have $500,000 + portfolio. Maybe people should consolidate their holdings at one company and pay the minuscule fee of 30 bp annually. Or better yet, start their own firm and then they can set their own policies and fees. If you don't like Vanguard's service, policies and fees, there is nothing stopping you from moving your accounts to Fidelity or Schwab, or any of a number of other firms.

[@jeffrosati2570]

A new CEO from Blackrock and McKinsey. Lol. Run like hell.

[@Mightyluna]

I received that letter a week after I opened their cash management savings account. My first thought was to close the account but then read the part about the $100 closure fee. I'm glad you mentioned that some brokerages will pay these fees if you transfer to them because I was feeling kind of stuck. I'm going to explore this option. Thanks for another informative video.

[@aldntn]

Got the email. While it doesn't affect me, it is a bit distressing that Vanguard is in a fee increasing mode.

[@JennyLouRN]

I withdrew all my money a couple years ago for different reasons. This confirms I made the right choice. Never again will I ever use Vanguard.

[@someguy95376]

If you are concerned about an account closing fee of $100, you have other issues that are more important.

[@maxcohn3228]

I'm sure Jack Bogle would not approve of this move, which makes this an even sadder situation. That said, these wont apply to me, so I'll stay at Vanguard. I still think Vanguard's ownership structure is a massive consumer win compare to private and publically traded brokerages.

[@MeltingRubberZ28]

Same sentiment here

[@johnwhite2576]

In theory yes, but as this points out in practice no.

[@sayyedal-afghani]

Give me a publicly traded company (Schwab) or privately owned company (Fidelity) brokerage with great customer service over a "member owned" brokerage with crappy customer service...

[@DPDurkee]

I am a longtime (decades) Vanguard account holder and these trends concern me. I have also noticed a significant quality reduction in phone services I.e., extensive wait times.