Vanguard will pay $106 million over 'misleading statements' about retirement funds
Posted: Jan 21, 2025
- Vanguard will pay $106.4 million to settle charges for misleading statements connected to its target retirement funds
- Retail investors faced higher taxes due to the misleading statements
- Vanguard lowered the minimum initial investment amount for its Vanguard Institutional Target Retirement Funds, causing a spike in redemptions
- Retail investors who continued to hold their fund shares in taxable accounts faced larger capital gains distributions and tax liabilities
- The SEC alleged that Vanguard failed to disclose the potential for increased capital gains distributions for investors
- Vanguard settled parallel cases with the Office of the New York Attorney General, the Connecticut Department of Banking, and the New Jersey Office of the Attorney General
What do people on Reddit think?
🚨 Reddit sentiment: negative - The majority of comments express dissatisfaction and skepticism about the Vanguard settlement, focusing on the lack of benefit to affected investors. Summarized comments: - Some users express frustration about the Vanguard app and its limitations. - Many believe the settlement will mainly benefit lawyers rather than those who lost money. - Users discuss the decrease in Vanguard's minimum initial investment amount and its impact on capital gains distributions. - There is skepticism about Vanguard's commitment to serving investors after misleading them. - Mention of AMEX facing similar financial penalties. - Some users are discussing timing for buying options such as SPY shorts.
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