Your Survival Guy was recently told that Vanguard no longer wants to be in the administration business for SEP IRAs, and therefore, accounts would be transferred, in-kind or as is, to a new custodian. After the transfer is completed and with the new custodian, the only real difference is where the assets are held. You still have the same Vanguard funds owned by its shareholders.
If you have concerns about leadership at Vanguard, why stick around when you don’t have to sell to change custodianship? You can move your assets, as explained above, to greener pastures, Fidelity Investments, as an example, without selling your Vanguard funds.
You have read about my concerns with Vanguard. Why did former CEO Tim Buckley leave? Why did Vanguard bring in an outsider, Salim Ramji, as CEO from BlackRock for the first time in the firm’s history? Did current owner-investors have a say in the process? When you look at the composition of Vanguard’s board of directors, you have two insiders and ten outsiders calling the shots.
The success of Vanguard is the result of Jack Bogle’s low-cost, passive investing mission, espoused by industry leaders like Richard C. Young, who, as Bogle said, did more for Vanguard than anyone else in the investment newsletter business. Richard C. Young’s Intelligence Report was your trusted guide. Now, Vanguard, a victim of its zero-cost funds, needs new streams of income. Stick around and be prepared for change, or as noted above, don’t. You have choices.
Action Line: Life changes. Pay attention. You don’t have to be the one dealing with it all. When you’re ready to talk, let’s talk. But only if you’re serious.
