UK resident : Vanguard USA dropped a bombshell

goodValue

The US mail service for a US address does work. I know of people who use their UK residential address on their Vanguard account and a US mail service as their mailing address (Vanguard allows for two separate addresses) and they have full service with Vanguard.

That's very good news.
Is there a particular mail service that works well with Vanguard?

EdSwippet

goodValue said:

I tried looking at the Bogleheads link, but it gave the message:

The requested topic does not exist.

The linked thread got merged into an existing one, and phpBB isn't smart enough to create a URL redirect. The full thread is here:

US Nonresident Aliens - Vanguard freezing legacy accounts

It got locked after discussion became contentious. Continuation thread:

US Nonresident Aliens - Vanguard freezing legacy accounts - Part 2

BlisteringBarnacles

Sorry all - I have become lethargic and not following up any of these forums. Just saw this. Happy New Year to all !

I doubt the "US address" approach will work. When I discussed this whole saga with Vanguard in Nov last year I got inconsistent replies - then I kicked up a storm on social media and got a response from an executive assistant to a C-Suite exec. The replies were very professional and I recall asking her if I can "use" a US address. She said they will need proof of address etc so it is probably not that easy.

After several emails she finally said she has no new information on top of what they have already told me : ie. 1) I can continue to maintain the accounts as an NRA. However at some point in the future I will not be allowed to buy additional units and I will only be allowed to sell existing units or transfer in kind to another provider. 2) Dividend re-investing will still be allowed even though that tantamounts to buying. 3) As an NRA I cannot upgrade to Vangard USA brokerage account 4) No new / additional info on what will happen to the "legacy" retail platform in future. So there is no clarity on how they will service us unfortunate NRAs on the "legacy" retail platform at some point in the future (end of 2025). After Thanksgiving she just said she has no new info to give me and considers the case "closed" and any future requests from me will go thru the "normal support channels".

So if I now ask the "normal support channels", I will probably get inconsistent info. Maybe I can use a "US address", maybe not. I dont know. I fear that using a US address might get me into other troubles. With a US address, can I still be an NRA ? Will they ask me to file W9 form instead of W8-BEN ? Will that make me a "US person" and invite other problems ? I file a 1040-NR US tax return as non resident alien every year. Will having a US address for one broker trigger various other flags in the ecosystem ? I dont know. I am unlikely to get any clarity on this from the Vanguard front-line support staff.  

If the US address approach worked for anyone you know please provide an update. It may have worked in the past when apparently various customers were "grandfathered back in" as per some of the posts on that Bogleheads thread. I have to go thru that thread again as I have already forgotten lot of the details in it.

My plan was to move to Charles Schwab who appears to have outstanding service. It's looking good and ticks most of the boxes for me. I have summarized it in the Bogleheads post. The Schwab London agent wrote back to me today saying he has not heard from me. And no this is not an automated mail. A reminder email wishing me a Happy New Year from an actual human being. But due to my lethargy I have done thing so far. I really need to get back on track.

Thanks.

BlisteringBarnacles

goodValue said:

The US mail service for a US address does work. I know of people who use their UK residential address on their Vanguard account and a US mail service as their mailing address (Vanguard allows for two separate addresses) and they have full service with Vanguard.

That's very good news.
Is there a particular mail service that works well with Vanguard?

Bostonerimus1 : I would like to know more details on this as well please. Did you mean a P.O.Box or a friend / relative's address ?

Let me call Vanguard and ask if they will allow 2 separate addresses as mentioned above. The problem is : It is difficult to believe what the front-line staff say. They dont seem to be adequately trained. But I guess it is worth asking.

Thanks

Hoenir

BlisteringBarnacles said:

 Will having a US address for one broker trigger various other flags in the ecosystem ? I dont know. I am unlikely to get any clarity on this from the Vanguard front-line support staff.  

Be unreasonable to expect front line customer service agents to be qualified or even expected to handle such enquiries. 

Bostonerimus1

BlisteringBarnacles said:

goodValue said:

The US mail service for a US address does work. I know of people who use their UK residential address on their Vanguard account and a US mail service as their mailing address (Vanguard allows for two separate addresses) and they have full service with Vanguard.

That's very good news.
Is there a particular mail service that works well with Vanguard?

Bostonerimus1 : I would like to know more details on this as well please. Did you mean a P.O.Box or a friend / relative's address ?

Let me call Vanguard and ask if they will allow 2 separate addresses as mentioned above. The problem is : It is difficult to believe what the front-line staff say. They dont seem to be adequately trained. But I guess it is worth asking.

Thanks

Not a PO BOX but a street address that can be provided by many of the mail forwarding services. I think this is probably best for US citizens and know that it works for US citizen non US residents. You have probably found the best solution for an NRA and that's going to someone like Schwab.