Vanguard’s Grandma Finally Free of Junk Fees After 49 Years of Nickel-and-Diming

Vanguard Group, known for its commitment to low fees and investor-friendly practices, is making some controversial changes that are raising eyebrows among its loyal customers. Founded almost 50 years ago by Jack Bogle, Vanguard has been a pioneer in the world of money management, offering minimal fee index funds and actively managed funds with low fees.

However, the company’s recent decision to sell small-business retirement accounts to a firm called Ascensus has sparked outrage among some investors. These accounts, including individual 401(k)s and IRAs, will now be subject to fees that were previously non-existent under Vanguard’s ownership.

Additionally, Vanguard is imposing a $25 fee on investors who buy or sell funds over the phone, rather than online. This move has been criticized as targeting elderly investors who may not be comfortable with online trading, earning the nickname “nickel-and-diming Grandma.”

Furthermore, a new 1% fee on dividends received from foreign securities and American Depositary Receipts has been introduced, along with a $100 fee for transferring accounts to other brokerage houses for investors with less than $5 million in Vanguard funds.

These changes, which seem to contradict Vanguard’s reputation for fair and transparent practices, have left many customers feeling disillusioned. As the company adapts to a changing financial landscape, some investors are questioning whether Vanguard is straying from its original mission of putting investors first.

With the legacy of Jack Bogle in mind, investors are left wondering if Vanguard’s recent fee increases are in line with the values that made the company a trusted name in the industry. As the debate continues, customers are left to weigh the benefits of Vanguard’s services against the new costs they may incur.