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When I started taking QCDs and RMDs, several years ago, I called Vanguard each time. Then, last year, I was able to do the whole thing on the website. Naturally, I expected to be able to do it on the web site again this year.
I started with the QCDs. I found the description of what I was supposed to do after a search on the website. I found the correct location. The options presented bore no relationship to the instructions, nor to what I wanted to do. I gave up and called Vanguard. I felt sorry for the unfortunate employee who had to read a lengthy spiel four times, once per check. He offered to explain the process to me, but since it would no doubt change again next year, and in any case I would forget, I declined.
Surely the RMD should be simpler, I thought. I found the right web page easily enough, only to discover that it would let me send the distribution to my bank account, but not to my Vanguard brokerage account. Just how does that make sense? I would just have to send the money back again. A further phone call got the money directed to the right place, but also informed me that I could only have tax withheld from money going to my settlement fund, and not to a mutual fund.
I started the RMD transfer before close of business on Friday. The transaction officially completed yesterday (Monday), although I didn’t see the result until this morning. I can conceive of no earthly reason why it should not have completed on Friday. I have been a Vanguard customer for decades but am hereby soliciting recommendations for an alternative, bearing in mind that my portfolio is almost entirely invested in Vanguard mutual funds.
I have both Fidelity and Vanguard accounts. I’ve had issues with each one on occasion, and each one does a couple of things better than the other or has a couple of system idiosyncrasies that work better or worse than the other. On balance, I’m satisfied with each of them. I have noticed recently that Vanguard seems to have lost a bit of its customer intimacy and has kept trying to get me to give it more of my portfolio or to use some services that I believe would be far more profitable for it. Fidelity is fine for things with a clearly-defined path or structure, but has failed me on a couple of one-offs related to my kids’ trusts, mainly through human errors. But I still value both relationships, and each helps me keep the other one honest and helps me choose the better of the two options for certain things.
I’m a fan of Jack Bogle, read several of his books and used to invest in Vanguard funds. When Vanguard stopped mailing quarterly paper reports, I pulled my money out.
Both my retirement and taxable investments were with Vanguard for years. Three or four years ago I tried opening up a trust account for my wife, but over a week after submitting the paperwork they still couldn’t tell me when it would be opened. That afternoon I contacted Schwab and the account was open the next morning. Vanguard would not withhold state taxes from the RMD of an inherited IRA, only when required by law. The shares Vanguard sold to generate cash for my RMD one year generated 20 or 30 cents more than the RMD. The reason I left Vanguard and switched to Schwab and Fidelity was Vanguard’s sending me the amount of the RMD and keeping the extra pennies. I called and was told it was just a rounding error, they wouldn’t pay me my money or even deposit it into my account as cash. John Bogle is turning over in his grave.
Here is my 2 cents. I have been with Vanguard since 1989, and Fidelity since 1987. I just do not believe in putting all my eggs in one basket. I find Vanguard helps with lowest fees, makes a difference after 40 years or so. I have no issues with RMD’s or QCD’s both done on the website, year after year. You get to elect what taxes you want to pay, Fed and State. In the beginning I had a few questions, and all answered quickly and easily. Any company can have an issue here and there, Vanguard did back in 2021, but it was resolved fairly and quickly. I do hear Schwab is another good alternative. I have no plans to change either one. I bank with Chase.