Author Topic: Vanguard to begin charging $5 a month on 403(b) plans  (Read 1361 times)

facepalm

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Vanguard to begin charging $5 a month on 403(b) plans
« on: July 17, 2017, 05:07:23 PM »
Opened the mail today to find a letter from Vanguard. It seems later this year they are going to "partner" with Newport Group to offer enhanced record-keeping capabilities as well as some other services (most questionable in my opinion). And they are only going to charge me $5 a month for the service.

One of the reasons I went with Vanguard instead of Fidelity is that I have the perception that they were the lowest cost provider of  403(b) accounts. I know as far as fees go $5 a month is not that bad, and could be  a lot worse, judging by what other plan providers charge. Still, It bugs me.

Anyone else get the letter?


Hargrove

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Re: Vanguard to begin charging $5 a month on 403(b) plans
« Reply #1 on: July 17, 2017, 05:38:00 PM »
If it makes you feel any better, at a balance of $54,545, you break even on the fee (VTSAX comparison with VTSMX).

facepalm

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Re: Vanguard to begin charging $5 a month on 403(b) plans
« Reply #2 on: July 17, 2017, 05:50:45 PM »
If it makes you feel any better, at a balance of $54,545, you break even on the fee (VTSAX comparison with VTSMX).
I'd feel even better if they offered me institutional shares (VSMPX). :-)
« Last Edit: July 17, 2017, 06:33:41 PM by facepalm »

MDM

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Chesleygirl

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Re: Vanguard to begin charging $5 a month on 403(b) plans
« Reply #4 on: July 17, 2017, 10:25:52 PM »
Off topic slightly, but I wonder if Vanguard will start charging more for their services now that they are increasing in popularity. Lots of people are going to Vanguard now.

marty998

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Re: Vanguard to begin charging $5 a month on 403(b) plans
« Reply #5 on: July 18, 2017, 02:54:20 AM »
Vanguard is owned by the unit holders through each of the managed funds (i.e. the Funds own the Responsible Entities). It's not a typical structure by any means, but works in the best interests of members (you)

The not-for-profit nature means that the bigger they get, the lower fees will be - economies of scale etc.

hadabeardonce

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Re: Vanguard to begin charging $5 a month on 403(b) plans
« Reply #6 on: November 14, 2017, 01:05:51 PM »
I'm looking at a mix of admiral shares: VTSAX, VTIAX, VBTLX, VTABX.

JL Collins is all about the 100% VTSAX though...
« Last Edit: November 14, 2017, 01:31:58 PM by hadabeardonce »