Vanguard Isn’t Afraid Of Tax Whistleblower

whistle 

Recent media reports say that Vanguard might have to raise fund fees.

A tax whistleblower threatens to take some spoils.

Vanguard’s actions, however, say that they aren’t concerned at all.

Image from morguefile.com

Read Why Here

 


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Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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2 Responses

  1. Ben says:

    Thank you for your post. I personally have 2 ETFs with Vanguard. I use the Index Fund approach because, as you say in your books, it is a relatively safe long term solution to saving and growing my portfolio.

    However, the idea that Vanguard could be held liable for back taxes raises the following questions for me:

    1. Can an Index Fund company like Vanguard cease to exist? If so, will I lose all of my investments through them? (I thought that I owned tiny little bits of a whole bunch of companies … so why not just get back a whole bunch of stocks?)

    2. If Vangaurd’s legal troubles increase are they obligated to inform me that they expect trouble?

    3. Hypothetically, if everyone jumps ship from VCE or VUN, would I lose the value of my stock? I thought that my risk was found in a volatile stock market, high fees and speculation – not the index fund I invest through.

    4. If I have 2 of 3 ETFS in Vanguard would you suggest I have too many eggs in one basket? Should I diversify my index fund providers?

    I know this is a lot – but I do appreciate your advice. I have posted before so thanks for your past replies.

    • Hi Ben,

      I think you’ll be fine with Vanguard. It’s tough to name a company free of any current litigation. With Vanguard’s funds, you own the funds, period. Nobody can take away the fact that you own those products.

      Vanguard is rock solid. Don’t worry.

      Cheers,
      Andrew


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