Skip to main content
No. of Recommendations: 0
Thanks for all of the input. The simplicity of one firm makes sense!
Print the post Back To Top
No. of Recommendations: 0
Frenesy,

Hello! Vanguard offers a wide variety of funds, ETFs, etc., and can be a "one stop shop." If you are wanting to diversify and don't wish to purchase individual stocks and bonds, you can do great with Vanguard. Their funds have low expense ratios and you have a wide variety of options. Depending on what you are looking for, Vanguard could take care of all of your investment needs. Also, their site is easy to navigate, find information on particular funds, etc.

Best,

Cameron
Print the post Back To Top
No. of Recommendations: 0
It is hard to argue against 100% vanguard but:

After Katrina some people had trouble withdrawing their money due to the banks IT.

Money market accounts are not FDIC insured.

If someone got your password they would have access to 100% of your assets.







Print the post Back To Top
No. of Recommendations: 0
If someone got your password they would have access to 100% of your assets.


Actually, they need your user id, password and the answer to a security question. Vanguard tracks the individual pc's which you log in from, and if you try from a new pc, you have to answer a security question.

JSergeant
Print the post Back To Top
No. of Recommendations: 1
Money market accounts are not FDIC insured.

They have 'passthrough' FDIC insurance for whatever portion of assets they own that are CDs and other banking issues. The rest of what they own are very short term, very high quality corporate paper.

Furthermore, while they are not FDIC insured, most brokers do insure - or at least individually guarantee their asset value - and no MMF has ever lost value.

While technically true, your statement above ignores the variety of ways in which MMFs are insured or otherwise guaranteed, and basically ends up being a scare tactic.
Print the post Back To Top
No. of Recommendations: 1
>> Furthermore, while they are not FDIC insured, most brokers do insure - or at least individually guarantee their asset value - and no MMF has ever lost value. <<

I don't know that fund families "guarantee" a constant NAV; in fact, I always see disclaimers stating that money funds CAN lose principal. While there's no guarantee they will continue to do it, the major brokerages and fund families know that a money market fund that loses principal is the kiss of death for that firm's money funds, and perhaps confidence in money market funds everywhere.

To date there have been a couple of money funds which lost a cent or two off of their typical $1 share price, but the fund families contributed cash of their own to keep the share price stable. That's a small price for them to pay compared to a massive, widespread loss of confidence in money market funds and the fees they generate for the fund families and brokerages.

#29
Print the post Back To Top
No. of Recommendations: 0
> I don't know that fund families "guarantee" a constant NAV

> To date there have been a couple of money funds which lost a cent or two
> off of their typical $1 share price, but the fund families contributed
> cash of their own to keep the share price stable.


Well, that's exactly the action that I was talking about as "guaranteeing" the NAV. I don't know if they do it explictly, but in practice, when it happens, they typically kick cash back in for exactly the reasons you mentioned.
Print the post Back To Top
No. of Recommendations: 0
If your assets are huge (however you define that), it always makes sense to diversify some, but anything can be carried to excess of course!

In the first place, there are limits on the amounts of insurance, for example I think it is $500,000 for brokerage accounts. We all should have that problem, but you may not (yet).

If I had a large amount of retirement funds (say, $1 million), I would probably have roughly half in a internet brokerage account such as Scottrade, and half in a direct investment with a mutual fund Co. such as Vanguard.

If you were filthy rich, you would probably be well advised to have some, perhaps most, of your money outside the United States. Chances are people that rich don't, or don't need to, read TMF.

The point is to diversify your risks. The chances of a Katrina or other disaster are small, but they happen. Vanguard (probably) is a sound company, but having half your assets with Fidelity or Schwab helps insure that you could access some of your assets if Vanguard's computers go out to lunch one day.
Print the post Back To Top
No. of Recommendations: 0
Simpler and less costly, especially if you have similar funds.

Check the fund cost between Vanguard and similar funds at even low cost rivals. I did and it was costing me .4 to .6% on average to diversify (that was with TIAA-CREF -- that I love). I'm moving past TIAA contracts to Vanguard.

It makes it easier to reallocate too.

Hockeypop
Print the post Back To Top
No. of Recommendations: 0
Actually, they need your user id, password and the answer to a security question. Vanguard tracks the individual pc's which you log in from, and if you try from a new pc, you have to answer a security question.

JSergeant


FWIW we are cooperating with a California police division that oversees computer fraud. These are VERY smart people. I am pleased that the more sophisticated the criminals become, so do the police.

I also appreciate the extra step that Vanguard takes to insure we're logging into a legitimate website.

Hockeypop
Print the post Back To Top
No. of Recommendations: 0
DeltaOne81: "Furthermore, while they are not FDIC insured, most brokers do insure - or at least individually guarantee their asset value - and no MMF has ever lost value."

Are you sure? I seem to recall that at least one (or possibly a small handful) have busted the dollar.

Regards, JAFO

Print the post Back To Top
No. of Recommendations: 5
Are you sure? I seem to recall that at least one (or possibly a small handful) have busted the dollar.

http://www.fdic.gov/bank/analytical/fyi/2004/051904fyi.html

rad

Print the post Back To Top
No. of Recommendations: 1
FWIW we are cooperating with a California police division that oversees computer fraud. These are VERY smart people. I am pleased that the more sophisticated the criminals become, so do the police.

I also appreciate the extra step that Vanguard takes to insure we're logging into a legitimate website.


I read an article recently (though I don't recall where) about how fraud related to retirement accounts is the new trend for criminals. The idea is, get access to someone's 401(k), withdraw all the funds to a bank account somewhere. 401ks are often high value especially if you target the middle or upper class in middle age.

And these accounts are NOT insured. Brokers seem to be covering any funds that can't be recovered themselves to preserve their reputations when an incident occurs, but nothing requires them to do this.
Print the post Back To Top