Thoughts on Vanguard, can I leave my money I have there, do I need to pull it out, if I leave it there can I make withdrawals, I'm 60 and a half and retiring. Guidance? It's 100% Chevron Stock.
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Wow, the tales keep getting taller and taller. Before long the same poster will claim he/she has 30,000 shares and it's only 2% of their net worth, yet another barometer which worthless losers claim as the measure of their pathetically miserable life or the length of their tiny prick. If all these figures were that good , truthful, and/or meaningful, the person wouldn't need to post about them anonymously on a layoff's forum, particularly on a completely unrelated thread and REPEATEDLY nonetheless. Quit trolling. Does anyone have anything to post about the actual topic - How good is Vanguard and any details on the options? I have read enough of the "my prick is this big even though you can't see it" stories.
@7gnh, you can do what you like. After all it's your stock and your money. I can't help but ask you how it felt when CVX had dropped to $69 or $70 a share a year or so ago?
I can tell you that I would have been having a fit if I was holding the stock. On the other hand, I raked up big time on CVX that day. I was awash in cash and picked up 10,000 shares. Still have them today with a $47 per share gain to date plus dividends. Got to love CVX.
OK, I am the poster (4vgv) with the 21,170 shares of CVX stock in my Vanguard 401K that extolled the virtues of quarterly dividends from CVX. I did not get in all of the details of my investments but with my Lump Sum Pension is invested in an IRA with someone other than Vanguard, I currently have 43.4% of my asset value in CVX stock. If I had listened to all of the pundits that said never have more than 10% in any one company stock, I would not have anywhere near what I have now in CVX and would not have benefited as much from the 2 for 1 stock splits in 1994 & 2004. Risky? Maybe, especially while I was working and my CVX % of the Vanguard 401K was as high as 70+%. But I had faith in Chevron and stayed the course, now reaping the rewards. If Chevron were ever to stop paying dividends, then I have a plan B to go to for my living expenses.
I don't have a Vanguard account but everything that I heard is good. I own many Vanguard ETFs. I would be tempted to leave a portion in that account or roll over to equivalent Vanguard MF's depending on your performance/experience. I would be anxious to learn the relative expense ratios of the institutionalized 401k MF's that you were able to buy while an employee versus the rollover options for retirees. In general, you cannot purchase the same funds because you no longer have an ability to contribute to that account, but I don't know if that's the case for DRIPs, etc. . Also, is there any advantage to those funds vs the "equivalent" ones offered to the retiree rollover acct at Vanguard which they would put you in? I am doing some research for my folks. Please respond if you have any answers/advice. thanks
-6bxe I have about that same amount of CVX also but it's not as much of my portfolio/exposure and there's no way I would waste time all day pretending to be a day trader or being a market timer, even worse. I have MUCH better things to do with my retirement days, it's called enjoying life and not worrying about my finances.
Nothing outrageous about the numbers, retired last year after 36 years with about 24K shares which anyboby really in the game knows brings in a bit over $100K in dividends. BTW, on that portion it still is and will remain in Chevron Stock, giving Chevron about 40% or so of my portfolio. The rest (my lump Doediversified, through an E Trade IRA I set up, with half of that parked in dividend aristcrats, 30% parked in bond funds, and 20% in cash residing in the sweeps account in my regular E Trade account, where I'm having a blast playing stock trader.
I am the poster who gave my approximate shares of Chevron stock that I worked very hard for and am proud of it - almost 30,000. I worked my way through school, earned two degrees, and paid off my small student loans quickly. I also live a very frugal lifestyle. I am sorry that it caused so much foolishness and obvious jokesters. It is nobody's fault but your own if you did not prepare for your future, however. It is obvious that only the ne'er do wells would post BS in response. Good luck to all and have fun with the tall tales. It's not hurting anyone to have fun with it. It definitely doesn't bother me! Good night and God bless.
@4vgv , That's awesome, I am in a similar boat and had 36 years with chevron and I actually have more Chevron stock , about 30,000 shares( ~ 60% of holdings) and my annual dividends well clears 6 figures on a slow year. I desperately need to diversity that position but have just been procrastinating. However, I am not in the habit of lending money to Uncle Sam or anyone else at 0% interest. Every penny that I own is either cash ready to spend or collecting interest or invested. There is Zero advantage of paying taxes ahead of time on capital gains and dividends. Just make the 4th quarter payment by the Jan 15th deadline. Good luck to you all who survive the reductions and those who do not.
@4ecw, Nobody ever asks for trouble, but we know lots get it without asking. But, any retiree would be well advised to safeguard his/her hard earned savings by carefully diversifying their investments with the help of a certified financial planner or analyst.
-4vgv. You very seriously need to diversify! Chevron is a great company, but you are a fool to have that much placed on one company in one sector of the economy. Your asking for trouble!
4vgv..you're doing well man. Congratulations on your great career with Chevron and your sense to save. You look like you'll have a nice, stress free retirement. Enjoy !
Vanguard Administrative Fee is $30/year, going down to $26/year, so very cheap to keep your funds there. I am 58 years old and retired in April, 2015 after 34+ years with Chevron. I have almost 73% of the value of my 401K in Chevron Stock (21,170 share) and have the dividends ($22,863 quarterly/$91,455 annually) direct deposited to my checking account quarterly to cover all of my living expenses. The dividends are not taxed before I get them from Vanguard, so I pay estimated quarterly taxes to avoid paying a huge tax bill in April of each year. As a result, I have not had to touch my Lump Sum Pension from Chevron or any of the other funds, besides the Chevron Stock Dividends, in my Vanguard 401K. I believe that if Chevron has been able to continue paying Dividends over the past 2+ years with the drop in oil prices, they will be able to continue doing so going forward.
@xbn, what do you mean by you "rolled over my Chevron annuity into my ESIP"? Are you depositing your annuity checks into the ESIP? Because that doesn't sound correct since the ESIP is an employer 401k plan and cannot accept deposits that are not employment income. Or did mean to say you rolled over your Chevron Lump Doedon't know... are you for real or just BSing the crowd?
@Lq5v3xl-lcb "I have not been too impressed with Vanguard in terms of performance. There are better companies out there." Never heard that one or anything like it. Please elaborate and give specifics, including performance and fees. If you don't we will all consider you a troll and your post as the BS that it is. Thanks.
Another alternative is to retain the money in the Vanguard ESIP, like I did. The fees on the ESIP mutual funds are super-low, even cheaper than you can get on your own in a Vanguard IRA. If you want more choices for mutual fund investments than what the ESIP normally offers, you can add the Vanguard Brokerage Option (VBO) to the ESIP for a $50/year charge. With VBO, Vanguard will let you direct some or all of your ESIP money into any mutual fund or Exchange Traded Fund you want, even non-Vanguard ones.
The advantage of VBO is that you can benefit from Vanguard's low fees on the bulk of your money, but use VBO to make some specialty investments, like gold or bitcoin. I liked this so feature much that I rolled over my Chevron annuity into the ESIP so all of my investments could have cheap fees plus flexibility.
@lcb, Vanguard ESIP has served me well while I was working with Chevron. I gained from Vanguard's low expense ratio index funds which were set up as good long term savings investments. I'm now retired and 2 months ago after I turned 59.5, I rolled over 3/4 of my Vanguard 401k balances into a Charles Schwab IRA, which gives me more choices to invest my retirement savings. I must say that Vanguard has been an advantage to me when I was still working and building wealth, especially with the 8% Chevron savings contribution. But today, an IRA retirement savings account elsewhere is my best choice. For those who like Vanguard, they too offer both traditional and Roth IRA funds, separate from the ESIP 401k funds.
I have not been too impressed with Vanguard in terms of performance. There are better companies out there.
OP, you can certainly leave your money with Vanguard after you retire but the only funds you can withdraw are your dividends. I wanted to take just my after-tax funds and Vanguard told me I would have to cash out everything. They are a very low cost provider, so I decided to stay with them for a while. I do take the dividends on the few CVX shares I own. I diversified after I retired and am happy about that. Good luck.
To answer your question, Vanguard is an excellent low cost provider of investment services.
You desperately need to get out of your 100% Chevron position and diversify. Talk to a financial adviser in your town for advice. Do it TODAY.
I think the question was if they had to pull it out when retired. I don't think you do, but when you hit 70.5 they will probably distribute it to you.