Vanguard financial plan

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gassert
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Vanguard financial plan

Post by gassert »

With respect to Vanguard's financial planning service that's offered to certain asset levels - Does anyone have a copy or a sample financial plan that can be shared? I would like to see what one would expect to receive (of course understanding that all situations are different)

Thanks - GG
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Dan Kohn
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Here you go

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nisiprius
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What is a "financial plan?"

Post by nisiprius »

I was curious about Vanguard's "financial plan." I've been a do-it-yourselfer for eons but have been at least open to the possibility that I should spring for professional assistance of some kind. However, all my instincts say that I'm in a plain vanilla situation, and don't have high enough total assets for a professional planner to be appropriate.

I'd thought maybe Vanguard's service would be a good compromise.

But. As nearly as I can tell, a Vanguard "financial plan" is just a recommendation on where to put your investable assets. They basically figure out what your current asset allocation actually is, tweak it, then suggest a sensible, fairly generic set of Vanguard funds to achieve it. Gussied up with a lot of explanatory charts and tables.

Is that what is meant by the phrase "financial plan?"

I would have vaguely assumed a "financial plan" would also deal with things like taxes, insurance, mortgages, Social Security claiming, and many, many things beyond a choice of core mutual funds for investable assets.
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nonnie
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Re: What is a "financial plan?"

Post by nonnie »

nisiprius wrote:
But. As nearly as I can tell, a Vanguard "financial plan" is just a recommendation on where to put your investable assets. They basically figure out what your current asset allocation actually is, tweak it, then suggest a sensible, fairly generic set of Vanguard funds to achieve it. Gussied up with a lot of explanatory charts and tables.

Is that what is meant by the phrase "financial plan?"
What you described is what Vanguard means by the phrase "financial plan." As far as I could figure out when I got my "free" one, based on various additional scenarios I convined them to run, it's produced by a software program and as others have said, very "cookie cutter." You do get an hour phone consult with one of their salaried planners to discuss it. Vanguard funds only, no other considerations like annunities, CDs, ETFs , etc.

Nonnie
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SpringMan
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Post by SpringMan »

Nonnie wrote:
Vanguard funds only, no other considerations like annunities, CDs, ETFs , etc.
Vanguard included outside investments when I had my plan. This included Fidelity accounts and my wifes Transamerica 401-K. Also ETFs are included and they don't have to be Vanguard ETFs, same for individual stocks and bonds and CDs. Perhaps the reason they were not included in your plan was that they were not linked in to Vanguard under outside investments. Vanguard can not consider what they don't know about.
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scpo
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vanguard financial plan

Post by scpo »

Springman
My outside investments, FID,TRP, are attatched to my Van site but they didn't include either in the plan. In our tax deffered accts. they put us into the TSM/Diversified Equity Funds. He eliminated the Wellesley/Wellington.
He also increased our TBM. Never mentioned VIPSX which several people on this recommend.
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SpringMan
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Re: vanguard financial plan

Post by SpringMan »

scpo wrote:Springman
My outside investments, FID,TRP, are attatched to my Van site but they didn't include either in the plan. In our tax deffered accts. they put us into the TSM/Diversified Equity Funds. He eliminated the Wellesley/Wellington.
He also increased our TBM. Never mentioned VIPSX which several people on this recommend.
They did include all my outside investments. The did an analysis of our current allocation, target allocation and the difference. Their proposal had three columns, Current Portfolio, Integrated Portfolio and Consolidated Portfolio. There were Fidelity funds in all three columns as well as some American funds from my wifes 401-k. It is almost time for my next annual plan, maybe they are doing it different now, I will find out and repost.
Best,
Best Wishes, SpringMan
nonnie
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Post by nonnie »

SpringMan wrote:Nonnie wrote:
Vanguard funds only, no other considerations like annunities, CDs, ETFs , etc.
Vanguard included outside investments when I had my plan.
Hi SpringMan,

Sorry my original response was not clear. What I meant was they did not recommend any funds other than Vanguard. I also had the three columnns for portfolios but since my current was all cash, there weren't any entries in the Integrated Portfolio column.
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