Vanguard Retirement Planning

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Gatewood
Posts: 30
Joined: Tue Dec 01, 2015 5:30 pm

Vanguard Retirement Planning

Post by Gatewood » Wed Jan 17, 2018 3:16 pm

Assisting a relative with retirement planning (she is in her late 50's), Her money is well diversified in Vanguard Target Retirement funds. I went to the Vanguard web site to help her fill out the retirement analysis worksheet and was directed to consult with a Vanguard Investment Advisor that charges .3%. While I assume the services Vanguard offers are of value and their price is very competitive -- her estate is very limited and not very complex. I doubt the fee of over $1,000 is necessary.

Would appreciate direction to a web site that provides retirement information for a more reasonable price

Thanks in advance

bloom2708
Posts: 3359
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Vanguard Retirement Planning

Post by bloom2708 » Wed Jan 17, 2018 3:40 pm

How about Bogleheads? :wink:

Oh wait, you are here already. :arrow:

If she is at Vanguard and in Target funds that closely match her desired mix of stocks/bonds, why do anything?

.3% is reasonable for people who are not confident or need some advisory services to feel "safe". A "fee only" type consultation will probably run in the $600+ range. The danger of the consultation is they likely want to sell her expensive products or get her in an Assets Under Management fee structure. That will cost much more over time.

Vanguard PAS many times suggests a 4 fund portfolio. Total US, Total International, Total US Bond, Total International Bond. That just happens to be the 4 components of the Target Date funds. 2020 or 2025 would be in that 50/50 to 60/40 zone for mix of stocks and bonds.
"We are here not to please but to provoke thoughtfulness" Unknown Boglehead

dbr
Posts: 25299
Joined: Sun Mar 04, 2007 9:50 am

Re: Vanguard Retirement Planning

Post by dbr » Wed Jan 17, 2018 6:18 pm

Gatewood wrote:
Wed Jan 17, 2018 3:16 pm
. . . was directed to consult with a Vanguard Investment Advisor that charges .3%.

Would appreciate direction to a web site that provides retirement information for a more reasonable price

Thanks in advance
That is disturbing. What do you really mean when you say "directed to consult . . ." Does that mean you started out with what appeared to be a free tool and they shunted you off to complete an application for Vanguard Personal Advisory Service" which does indeed charge 0.3%

As to advice, this forum, in particular the Wiki, and in particular on the Wiki such sections as "getting started" and the reading suggestions are a good source. One specific book directed exactly to retirement would be Otar's book here: http://www.retirementoptimizer.com/ Jim Otar is not a person selling investments or charging for advice. He is selling a book and a retirement calculator. Another book I have seen recommended here but have not read is this https://www.amazon.com/Living-Off-Your- ... ds=mcclung

Gatewood
Posts: 30
Joined: Tue Dec 01, 2015 5:30 pm

Re: Vanguard Retirement Planning

Post by Gatewood » Thu Jan 18, 2018 10:47 am

Thanks -- I appreciate your help

All the best

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ps56k
Posts: 763
Joined: Sat Mar 19, 2011 1:28 pm
Location: Chicago area

Re: Vanguard Retirement Planning

Post by ps56k » Mon Jan 22, 2018 3:52 pm


dbr
Posts: 25299
Joined: Sun Mar 04, 2007 9:50 am

Re: Vanguard Retirement Planning

Post by dbr » Mon Jan 22, 2018 5:59 pm

ps56k wrote:
Mon Jan 22, 2018 3:52 pm
these calculators seem like they would work -
BUT - not sure if the Income is Gross or Net for things like taxes on pension, W2, etc -

https://personal.vanguard.com/us/insigh ... ment-tools

https://personal.vanguard.com/us/insigh ... -worksheet
https://personal.vanguard.com/us/insigh ... -worksheet

https://retirementplans.vanguard.com/VG ... ggCalc.jsf
It does appear that income taxes are "negative income" on the income worksheet but property taxes are expenses on the expense worksheet.

Something like this is just a question of self consistency. My preference is to tally income taxes as expenses and never try to talk about after tax income.

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