16
•
Fund Family Shareholder Association
Never Use a
PIN
Again
AdviserOnline.com
is more streamlined
and easier to use than ever. But there’s one
thing that can make it even better: Setting up
your unique username and password. Instead
of looking for a new PIN on page 1 of the
newsletter each month, you can simply use
your own personalized login.
If you don’t have your own unique login, you
should set it up now, as
we’ve discontin-
ued the PIN as of September 1
. Here are
a few tips to help you set up or modify a
unique login:
Create a username and password
at
.
You’ll need your account number, or if you
just joined, your order number. Both can be
found on correspondence you receive such as
the Hotline emails.
Modify your username and password
at
.
php. All you need is your current personal
login information.
Forgot your username or password?
No
problem. Reset it at
/
password/forgot.php. Again, you should have
your account number or order number handy.
Set up or modify your login at AdviserOnline.
com today. If you have any questions or prob-
lems, call us at 800-211-7641 or email us at
.
Daniel P. Wiener
is America’s leading expert on
the Vanguard family of funds. He is founder of
the Fund Family Shareholder Association and
chairman and chief executive officer of Adviser
Investments, LLC, a Newton, Massachusetts,
investment advisory firm (800-492-6868). As
editor of
The Independent Adviser for Vanguard Investors
, he is
a five-time recipient of the Newsletter Publishers Foundation’s
Editorial Excellence Award. He also edits the annual
Independent Guide to the Vanguard Funds.
Mr. Wiener is often
quoted in the nation’s leading financial publications.
Jeffrey D. DeMaso,
Editor/Director of
Research, works directly with Dan Wiener
researching and writing the multiple-award
winning
Independent Adviser for Vanguard
Investors
newsletter. He also leads the analyst
team for Adviser Investments, LLC, helping to
oversee $2.7 billion in assets. Jeff graduated
magna cum laude
from Tufts University with a B.A. in economics, holds the
Chartered Financial Analyst designation and is a member of
the CFA Institute and the Boston Security Analysts Society.
money from Vanguard to his bank
when he needs to replenish the account.
So there’s not even any precedent for a
transaction in that direction.
Second, John’s local bank account
was immediately overdrawn because
he didn’t have $29,000 in the account,
so the bank began to charge him fees.
And third, it’s not clear why
Vanguard didn’t try to take money
from John’s other Vanguard accounts
since, as he says, he has substantial
sums with Vanguard and is a Flagship
client, which, by definition, means he
has more than $1 million invested there.
John says this wouldn’t have made him
any happier, but at least he wouldn’t
have been dunned by his local bank.
John’s a lawyer. John’s firm has a
profit-sharing account at Vanguard with,
he says, more than $60 million invested
in it. John’s obviously a larger-than-
average shareholder in Vanguard. He’s
livid at Vanguard’s response, which was
to fix it with his bank to reverse the fees
and to basically tell him it was human
error and they’re sorry. Not once, he
says, did anyone with any authority
call or write him to both apologize and
explain how sucking money out of
his personal bank account could have
happened. “I was in disbelief and apo-
plectic. Vanguard actually stole money
from our personal bank account,” he
says, “further compounding its numer-
ous errors.” As he told me, “I wanted
them to take ownership. But all I got
was what I call ‘Vanguard speak.’”
John didn’t authorize me to ask
Vanguard about this, but then again,
Vanguard never discusses individual
client issues.
In the end, John decided not to pur-
sue legal action but has lost a good deal
of faith in the company he says he used
to recommend to his family, friends and
partners. I asked him what lessons he
would share with other Vanguard inves-
tors after this experience.
“Be vigilant,” he says. “Don’t assume
Vanguard will do what you expect them
to do. You control your destiny.”
Also, be ready to be surprised. “The
wildest things beyond your imagination
can and will occur,” he says.
What bothers John most, he says,
was the sense that this was an “ordinary
day for Vanguard.” So, Bill McNabb, if
you’re listening, maybe it’s time to give
John a phone call and perhaps send him
a nice bottle of wine for his troubles.
I’ll report back if there’s a coda to
this tale, but as I constantly remind you,
it’s your money and you’re the only one
who really cares about it, so stay alert,
stay vigilant, and trust—but verify.
n
>
DAN’S DO-IT-NOW ACTION RECOMMENDATIONS
4
Compounding has been called the eighth wonder of the world. All investors should understand
its power. (See page 12)
4
Yields are at zero and inflation isn’t, yet money market funds like
Tax-Exempt Money
Market
still have a place in your portfolio. Boost your yield? (See page 1)
4
Capital Opportunity
remains one of my all-time favorite Vanguard funds, but its character
has changed over time. What’s right and what’s changed? (See page 14)
