Skip to main content
No. of Recommendations: 0
Thanks for such a quick reply, the.

Over at www.vanguard.com I noticed that the fee schedule appears to be more like $20/year at first. Correct me if I'm wrong, but there is a custodial fee of $10 charged on the account until it reaches $5000, and then a fund fee of $10 until the account reaches $10,000. The reason I think I may be reading this wrong, is that the discussion here on this board earlier was whether they charged until 5,000 or 10,000, when the answer appears to be both.
I quote from the Vanguard site:

IRA Custodial Fees
Vanguard assesses a $10 custodial fee each year—in addition to any fund-specific fees—for any Vanguard IRA mutual fund account with less than $5,000. However, if you maintain a total Vanguard mutual fund balance of $50,000 or more, custodial fees are waived. Assets in a Vanguard Variable Annuity Plan will count toward this $50,000, but not assets in an employer-sponsored retirement plan or a Vanguard Brokerage Services (VBS) account. Please note: custodial fees are assessed in either June or December, depending on when your account was opened.

--end quote

That alone sounds kind of double-speaky to me. They charge for funds up to $5,000....but if you have more than $50,000 the fee is waived? Shouldn't it have been waived $45,000 dollars back?
I assume that it means that if you have a total of $50,000 in any number of Vanguard accounts, any accounts with less than $5,000 aren't charged.

Then it asks you to pick your fund and it says this:

Vanguard 500 Index Fund Investor Shares
Shareholders are charged an annual $10 account maintenance fee, which is paid directly to the fund. This fee is waived for accounts with balances of $10,000 or more.

--end quote

So you have to get to $10,000 before this one goes away. And what does that bit "which is paid directly to the fund" mean? It's a Vanguard fund, so it's paid to the same place as the custodial fee, no?

So what if I opened a Datek account (the 10 free trades type deals usually don't apply to IRAs) and paid 10 bucks a year (buying $2000 worth of Spyders every year), then when the account clears the $10,000 mark moving it over to Vanguard....would they charge me anything for that?
One thing I know is that Vanguard doesn't require that your fees come out of the account, i.e. you can pay for them separately, so they don't reduce the amount invested. I can't figure out from Datek whether they allow for that or not.

now my brain hurts....I guess that's what I get for putting this off until April 9th.

If anyone actually read this far, thanks.
Mike
Print the post  

Announcements

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.