The Nugget
- Vanguard is introducing new fees for services like broker-assisted commissions and account closure fees, potentially impacting clients who need more assistance with their investments.
Make it stick
- 📉 Broker-assisted commission fee: $25 each time for help trading Vanguard mutual funds or ETFs.
- 🏦 Restricted security Legend removal fee: $250 processing fee for removing restrictions on stock certificates.
- 🔄 Transfer Account fee: $100 processing fee to transfer your account to another broker.
- 💰 Class action service fee: 20% fee to opt into Vanguard handling class action paperwork.
Key insights
Broker-assisted commission fee
- Vanguard is introducing a $25 fee for each call to get assistance with buying or selling Vanguard mutual funds or ETFs.
- This fee may disproportionately affect clients who need help with their investments, potentially impacting older or less experienced investors.
Class action service fee
- Vanguard is charging a 20% fee for clients who opt into their assistance with class action paperwork.
- Clients can opt out of this service to avoid the fee, especially considering the relatively simple nature of filling out the paperwork themselves.
Transfer account fee
- Clients looking to transfer their accounts away from Vanguard will face a $100 processing fee starting July 1.
- Other brokers may cover this fee for clients with a large account balance, providing an opportunity for negotiation.
Restricted security Legend removal fee
- Vanguard will charge a $250 processing fee for removing restrictions on stock certificates, such as employee-owned restricted stock.
- While this fee may not affect most clients, it's essential to understand the implications if it applies to you.
Overall Implications
- Vanguard's shift towards introducing new fees and removing features may impact the appeal of their services for clients.
- Clients are advised to review the new fee structures, understand how they apply, and consider alternatives if necessary to ensure alignment with their financial goals.
Key quotes
- "I guess someone over in the PR department of Vanguard needs to tell management, hey, how about some good news, please; why don't we talk about what we're going to do for our customers rather than what we're going to charge them or what we're going to take away."
- "Having said all of that, if you're perfectly happy at Vanguard, absolutely no reason to change, but I would recommend that you check out these fees, check out that email, understand how they're going to apply to you, and before you move to another broker if that's what you decide to do, well make sure you understand their fees as well."
This summary contains AI-generated information and may have important inaccuracies or omissions.