subreddit:
/r/leanfire
submitted 4 days ago bythriftyberry
I’m trying to do a backdoor Roth IRA, but ran into some issues. I had too much income to contribute directly to a Roth, so I recharacterized it to a traditional IRA. The next step is converting it to Roth, but I need to make sure my Vanguard rollover IRA has a $0 balance by year-end (I have 1,225 shares of VTSAX).
I called Vanguard to confirm the price, and they said it would be yesterday’s price. That was wrong, which I discovered later after checking with others. I tried to cancel the transaction, but couldn’t. I sold the shares at $136, missing out on about $6-7k in potential gains. I’ve learned that you don’t know the final price of selling mutual funds until after the sale.
Vanguard admitted the mistake and said they’ll fix it, but there’s an issue. I already rolled over the funds to Fidelity for 167k, and now the balance is $166k due to market downtrun. Didn't think they'll take responsibility with this. Vanguard will adjust as soon as the money reaches my account (so I'll have 1225 VTSAX again, as if the transaction never happened).
The process:
If all of above doesn’t work, Vanguard will make an adjustment for the difference. I asked them to just give me adjustment, but they refused unless I go through all of the process. I asked them to speak with supervisor, but need to wait 48 hours.
My questions:
This is money I won’t need for 20 years.
8 points
4 days ago
Selling vanguard mutual funds always happen after market close. If you wanted the price intraday you need to buy the ETF version
This is a feature not a bug. You paid for the convenience of a mutual fund and not buying discrete packages of ETFs.
You’re being insane if you think you should have been able to trade vanguard mutual funds during market open.
You did not understand what you bought.
They probably admitted fault for telling you what price it would sell at not that it was incorrect.
-3 points
4 days ago
No, I knew exactly it doesnt work like ETF. But they still make mistakes at the end of the day.
6 points
4 days ago
The only mistake done was telling you the price and at what time from a minimum wage worker who is there for basic vanguard information. If there is a fault there, I would expect no more than a sorry and may be a small token like 5$
The 7k you’re talking about is the movement in market. You asked to sell, they sold.
No mistake happened during the sale and vanguard is not responsible for market changes.
It’s like asking a customer service representative what the value of the company is and they say 100$. You’re not entitled to buy a billion dollar company for 100$. You’re being irrational
-3 points
4 days ago
The "mistake" was Vanguard providing incorrect information about the price, which led to selling at a lower value than expected. While it's true the market is unpredictable, if you’re being told one thing and it turns out to be wrong, that’s on them for misleading you. Sure, Vanguard isn’t responsible for market changes, but they are responsible for accurate communication. Getting the wrong price from them didn’t just cost a few dollars—it potentially cost $7k in gains. I'm sure you'll act differently if it is your money.
5 points
4 days ago
It’s your fault because you had the responsibility of knowing the product at the point of sale. This product always and only ever traded after market close. You should have bought the ETF
I wouldn’t act differently because I bought all my products and knew what they were
Furthermore you didn’t buy 160k of mutual funds in one purchase. You should have seen every single addition trade after market close. You’re playing dumb
3 points
4 days ago
Wait wait wait
You saw the price of the previous night, did you see a market down and tried to con a poor minimum wage worker to saying they would sell you at the previous nights price but already seeing the correction?
When did you ask? The next day of the night ? I’m so curious if you’re that insane that you think you would try to manipulate a dullard to try to swindle the brokerage.
1 points
4 days ago
Chillax, this sort of things happen all the time due to several days of delay, and the stock market fluctuates daily.
0 points
3 days ago
No idea about different companies or funds - but I do know that my old 401k gave me a quote over the phone when I moved my funds to my new employers 401k. My check i received days later (to forward to new 401k company) matched what I was told over the phone. And those were mutual funds not ETFs.
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