Opinion on Vanguard Personal Advisor Services

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bogletail
Posts: 2
Joined: Wed Jan 03, 2018 11:38 pm

Opinion on Vanguard Personal Advisor Services

Post by bogletail » Thu Apr 19, 2018 5:50 pm

Hi all,

I have ~80K with Vanguard currently. I plan to add another 20K to it next month.
My current portfolio consists of the following

- VFIAX (30%)
- VTSAX (30%)
- VTIAX (30%)
- VBMFX (10%)

I don't actively manage or rebalance my portfolio. I don't do TLH either. Lately, I have been wondering if I am missing out on these and other features due to my limited knowledge.
I would like to know what's your opinion and/or experience using Vanguard's Personal Advisor Services. Is it worth the 0.3% management fees?

I am 29 years old and would like to build a long term growth portfolio.

Thanks for your help!

sksbog
Posts: 228
Joined: Wed Jun 20, 2012 9:14 pm

Re: Opinion on Vanguard Personal Advisor Services

Post by sksbog » Thu Apr 19, 2018 6:22 pm

for you, it will be 300 dollar per year.
i would say go ahead for a year and learn from them. ask questions, when and how they re balance. see them doing for a year.

and then cut loose.

for bigger portfolio, north of 300K, i would not use them, once i have learned when and how to re balance.

sksbog
Posts: 228
Joined: Wed Jun 20, 2012 9:14 pm

Re: Opinion on Vanguard Personal Advisor Services

Post by sksbog » Thu Apr 19, 2018 6:23 pm

oh, forgot to mention, part of their role is to keep clients calm at the time of hype and turbulence, and prevent them from making rash decisions.

can you control yourself when the market swings in either direction?

ExitStageLeft
Posts: 988
Joined: Sat Jan 20, 2018 4:02 pm

Re: Opinion on Vanguard Personal Advisor Services

Post by ExitStageLeft » Thu Apr 19, 2018 6:38 pm

Welcome to the forum! I don't have advice on the Vanguard PAS, but I am curious as to whether your account is a taxable account or is it tax-advantaged? That may have implications as to whether you need to be concerned about tax loss harvesting, etc.

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whodidntante
Posts: 4304
Joined: Thu Jan 21, 2016 11:11 pm

Re: Opinion on Vanguard Personal Advisor Services

Post by whodidntante » Thu Apr 19, 2018 6:42 pm

No, I don't think it's worth 0.3% a year to get rebalancing and TLH. You can do that yourself in an hour, assuming that it takes 50 minutes for your computer to boot up.

RickBoglehead
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Joined: Wed Feb 14, 2018 9:10 am

Re: Opinion on Vanguard Personal Advisor Services

Post by RickBoglehead » Thu Apr 19, 2018 9:22 pm

Portfolio looks fine for your age.

MrPotatoHead
Posts: 429
Joined: Sat Oct 14, 2017 10:41 pm

Re: Opinion on Vanguard Personal Advisor Services

Post by MrPotatoHead » Thu Apr 19, 2018 10:55 pm

bogletail wrote:
Thu Apr 19, 2018 5:50 pm
Hi all,

I have ~80K with Vanguard currently. I plan to add another 20K to it next month.
My current portfolio consists of the following

- VFIAX (30%)
- VTSAX (30%)
- VTIAX (30%)
- VBMFX (10%)

I don't actively manage or rebalance my portfolio. I don't do TLH either. Lately, I have been wondering if I am missing out on these and other features due to my limited knowledge.
I would like to know what's your opinion and/or experience using Vanguard's Personal Advisor Services. Is it worth the 0.3% management fees?

I am 29 years old and would like to build a long term growth portfolio.

Thanks for your help!
Saint Jack Bogle (that is honorific not sarcastic) has indicated that one valid strategy is to commit your funds and not look at them again for 30 years. One can do far worse in life than to take Mr Bogle's advice.

Fees matter.

And TLH is a dual edge sword. It makes sense if you are going to buy and hold and leave the proceeds to your heirs just pulling the dividends in retirement. It makes less sense, in part depending on your current tax rate relative to your retirement tax rate, because by doing the TLH you essentially lowered your cost basis and may have to pay more in capital gains.

Cheers...

McDougal
Posts: 36
Joined: Tue Feb 27, 2018 3:42 pm

Re: Opinion on Vanguard Personal Advisor Services

Post by McDougal » Fri Apr 20, 2018 6:23 am

bogletail wrote:
Thu Apr 19, 2018 5:50 pm
Hi all,


I would like to know what's your opinion and/or experience using Vanguard's Personal Advisor Services. Is it worth the 0.3% management fees?


Thanks for your help!
To answer this part of your question, I just started with them. It was a tough decision for me to pull the trigger as I am much older and portfolio is larger. My experience thus far (1 month, AA has been re-balanced) is that I am extremely happy with the advisor I am working with. I know it probably is the luck of the draw, but he is extremely knowledgeable, courteous, responsive, etc. I agree with the above, as my plan is to give it a year, learn, and then manage it myself. Way too early for me to comment on financial aspect of their service or whether or not it's worth the fee (I suspect and hope it is!), but I am very pleased with the caliber of advisors they use, in my N of 1 situation. Good luck whatever you decide.

livesoft
Posts: 62838
Joined: Thu Mar 01, 2007 8:00 pm

Re: Opinion on Vanguard Personal Advisor Services

Post by livesoft » Fri Apr 20, 2018 7:07 am

MrPotatoHead wrote:
Thu Apr 19, 2018 10:55 pm
And TLH is a dual edge sword. It makes sense if you are going to buy and hold and leave the proceeds to your heirs just pulling the dividends in retirement. It makes less sense, in part depending on your current tax rate relative to your retirement tax rate, because by doing the TLH you essentially lowered your cost basis and may have to pay more in capital gains.

Cheers...
This is a gross mischaracterization of tax-loss harvesting. I don't mind paying more in capital gains taxes in the future than I otherwise might have if I paid less in ordinary income taxes. OTOH, I don't pay capital gains taxes anyways.

Whether the OP needs to worry about TLH at the present time is unclear. For instance, maybe they don't pay income taxes at all right now. I haven't seen any evidence that Vanguard Portfolio Advisory Services does any diligent tax-loss harvesting anyways.
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donutholes
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Joined: Fri Apr 21, 2017 7:06 pm

Re: Opinion on Vanguard Personal Advisor Services

Post by donutholes » Fri Apr 20, 2018 7:50 am

VTSAX and VFIAX are holding some of the same holdings but that may be intentional to give you a heavier large cap exposure. I just hold VTSAX which includes holdings in VFIAX.

As for PAS, I like it. You will not be impressed if your goal is a sexy AA. It's basically what you have now and likely know. If you don't know it, you can pay ~0.14% and hold Life Strategy funds with the same funds/AA that PAS will provide with built in rebalancing. For me, I use the service for the guidance and personal finance help to help with tax strategy in terms of where I hold my funds. I need a talk to someone on occasion and when it comes to getting help, I only have this forum for that help. This forum is amazing and it's been incredibly valuable and accurate, but I literally have nobody else in my life that I can talk about financial strategy. My wife tries but it's just a left brain/right brain thing for her and usually ends in "if you think that's best I'm onboard". At some point though, I likely will not need PAS for questions and separation is easy. For now, I have a lot of changes going in the next 2 years and it's very useful.

livesoft
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Joined: Thu Mar 01, 2007 8:00 pm

Re: Opinion on Vanguard Personal Advisor Services

Post by livesoft » Fri Apr 20, 2018 7:57 am

And here is a link to another very good discussion of Vanguard PAS:

viewtopic.php?f=2&t=236085
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carolinaman
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Location: North Carolina

Re: Opinion on Vanguard Personal Advisor Services

Post by carolinaman » Fri Apr 20, 2018 8:08 am

One way to get around the re-balancing issue is to invest in a LifeStrategy fund from Vanguard. These are similar to target date funds but they maintain a relatively constant ratio of equity to fixed income. There are several different ones. Two that you may be interested in are: Life Strategy Growth (80% equity, 20% fixed) or Life Strategy Moderate Growth (60% equity, 40% fixed). Equity is a mix of US and international. Low ER although not as low as Vanguard index funds.

bogletail
Posts: 2
Joined: Wed Jan 03, 2018 11:38 pm

Re: Opinion on Vanguard Personal Advisor Services

Post by bogletail » Fri Apr 20, 2018 1:08 pm

livesoft wrote:
Fri Apr 20, 2018 7:57 am
And here is a link to another very good discussion of Vanguard PAS:

viewtopic.php?f=2&t=236085
Good discussion indeed! Thanks!

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