Opening a Vanguard account today.

[Woodreaux]

Does anyone know of any sign-on bonuses or rewards programs that follow Vanguard similar to what Fidelity has?
Or any bloggers (MMM, jlcollinsnh, etc) that get anything for referrals?

Thanks
Woodreaux

[schimt]

The amazing fee's compared to the industry is enough of a sign on bonus for me. I believe they do not offer anything like this, due to the fact that they run their fund's as close to at cost as possible. Hence the reason they don't have extra money to throw at sign on bonus's like fidelity does, but fidelity will make that money back in the extra fee's they charge you. Also, a company that already offers the best products at the best price has to reason to offer additional incentives to get membership.

Every post i have read from MMM and JLCollinsNH has stated that they receive no financial ties or kick backs from Vanguard.

Good luck and congrats on an positive move for your financial future!

[Another Reader]

If the incentive is large enough, why not go with Fidelity and invest in their Spartan index funds?  Fidelity has a much better website, more customer resources, and a lot of benefits.  The Spartan funds have about the same ER's as Vanguard, sometimes lower.  Now that index funds are all the rage, it's a race to the bottom on ER's.  Index fund ER's have become marketing tools.  They also have a lot of commission free ETF's, and some are tied to different indexes than the Vanguard ETF's.

[Woodreaux]

Thanks for replies. I've just seen so many good things about Vanguard on here and around MMM that I will likely go with them. Just wanted to help out someone or grab some easy rewards points for the trouble.

[the fixer]

Vanguard is the way to go long-term because of corporate structure. Fidelity/iShares/T Rowe Price offer low-cost index ETFs just like a grocery store offers ridiculous sales on product X to get you in the door. They're hoping to get your business so you then buy their more expensive stuff that has higher profit margins. If enough people take advantage of the deals but don't buy the expensive crap they will have to raise their prices on the things you buy and you'll want to move out to find better deals elsewhere. This kind of deal-hunting can be profitable, just like with groceries, but it takes a fair amount of work and you have to be careful to do it well.

Vanguard has structured its entire business around offering investments at-cost. There is no incentive for them to generate revenue beyond what is needed to operate the funds, website, and accounting. They are also so big that they have little incentive to spend money on marketing... a business getting more customers allows increased profits and achieving economies of scale, but Vanguard already has the latter and isn't interested in the former.

[Another Reader]

Odd, I have been dealing with Fidelity for something like 30 years, and  I have had a completely different experience.  Vanguard reminds me of the old Co-op Market in Berkeley.  It was politically correct to praise, but it had crummy produce and meat, was always dirty, and there was never any place to park.  Vanguard has a lousy website, mediocre customer service, a lot of poorly performing actively managed funds, and the index funds and ETF's that have become so popular.  If can get the same grocery prices at a clean, well lit store with quality meat and fresh produce and a spacious parking lot, why wouldn't I do that?  Fidelity has a lot more choices, some cash management and credit card tools, better investing information for the retail customer, and bricks and mortar offices in case you want to visit your money.  I have some money in index products at Vanguard because their index funds predated Fidelity Spartan and it's costly to sell and move.  But the rest of my assets are at places with better service and better products.

[Another Reader]

Oh, and Vanguard advertises everywhere, including this site.  Their marketing budget is substantial.