Switched to Vanguard E-Service to Eliminate Account Fees

Late last month, Vanguard introduced simplified fee structure aimed to reduce costs on owning Vanguard funds. Though at first, it seemed that replacing $10 fee with $20 fee was going in the opposite direction of reducing investor’s cost, Vanguard does offer a couple of ways to eliminate the fee all together for good and one of them is using their electronic delivery service instead of getting proxy and fund materials in the mail.

I have four Vanguard funds in my Roth IRA account and my wife has two. Except the Total Stock Market Fund (VTSMX) and Wellington Fund ( VWELX), the other four are all subject to annual account service fees because the asset in each fund is less than $5,000. But somehow I didn’t make the switch until yesterday when I got a letter from Vanguard saying that I have till June 18, 2007 to opt in the electronic delivery service; otherwise, I will be charged with service fees.

If you haven’t enrolled in the e-service package yet, remember to do so before June 18th to avoid the fee. The process is very simple, taking less than a minute to complete with only four clicks (select e-service package, review option, read agreement and agree, and confirm email address). It will save you money (the fees) and time (the time to shred and throw away the mails you no longer need).

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