No. of Recommendations: 0
I guess it's possible for Vanguard to collapse, but I think it unlikely in the extreme. If they were to tank, then it's a sure bet most of the others already would be in the tank.

For my own investing, I can wrap my mind around this OK. I have about 25% of my assets at VG. If they fell, it'd be painful, but not devastating.

It's when I'm looking at VG becoming a co-trustee and successor trustee for my kids that this becomes a tad bit unnerving.
I could see VG pulling my other brokerage and bank accts into their funds, so there's another 25%. My RE would be most likely be sold after the kids are taken in by their guardians, so there's another 25%. And it's feasible that they might liquidate my Treasuries, so that'd be the last quarter going, now entirely, into VG's realm.

I acknowledge that I have some hangups of trying to manage from the grave, but I'd still like to have something that mitigates the risk of having the kids' trust being in a single fund family.

More globally, if VG is what I think most of us regard them as being, then why is it that they don't want to be a SIPC member, or at least have a private insurer backing the assets held under their mgmt?
It just seems strange that I can hold a VG fund through Scottrade and be insured under SIPC, yet if I hold the fund directly with VG, I'm not.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.