Freezing in NH

Today Vanguard announced it will drop account fees under certain circumstances:

Beginning in June, Vanguard will implement a much simpler, single-fee approach under which a $20 yearly fee will be assessed on all fund accounts with a balance below $10,000.

Under the new approach, shareholders have three options to invest fee-free with Vanguard: 1) establishing account access on Vanguard.com and choosing electronic delivery of statements, reports, and prospectuses; 2) maintaining total Vanguard® fund assets of $100,000 or more; or 3) consolidating accounts or investing additional assets to bring all account balances to $10,000 or more. 

For small investors who don’t choose e-delivery, it may be a fee increase depending on where they’re invested.  But for those of us who have a balance that could be over 10k per fund but want to diversify, this is great news.  No more choosing between a fee and diversity!  (Of course you have to be comfortable getting things online, but given the sea of papers on my desk right now, I’d rather have things online where I can find them.)

This entry was posted on Thursday, April 26th, 2007 at 10:10 pm and is filed under retirement. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.