Email from Vanguard about pilot for Digital Advisory Service

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Coato
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Email from Vanguard about pilot for Digital Advisory Service

Post by Coato » Thu Feb 13, 2020 1:32 pm

I'm curious if anyone can tell me how it is different than a Target Date fund. It uses TSM, TISM, TBM, TIBM and has a progressively higher percentage of bonds. The cost is .2 for any managed accounts. I played through all of the questions and risk selectors because I am looking for an account that would just withdraw 4% automatically for my wife if something happens to me.

Ive read through all of the various Robo threads but I still don't see an advantage of this vs. an All-In-One fund.

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nisiprius
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Re: Email from Vanguard about pilot for Digital Advisory Service

Post by nisiprius » Thu Feb 13, 2020 2:44 pm

Does it offer the option of "withdrawing 4% automatically," and, if so, exactly how does that work?
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azanon
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Re: Email from Vanguard about pilot for Digital Advisory Service

Post by azanon » Thu Feb 13, 2020 3:01 pm

Select people are getting offers to pilot VDAS? That's interesting.

OP - Maybe consider VG managed Payout Fund for your wife - it has a nifty 4% constant percentage payout smoothed over 3 years. Sure, it has a couple of funds that most bogleheads really detest, but TBH, it doesn't really affect the performance that much. It's been slightly more volatile, and slightly under performing VG Lifestrategy Moderate over 10-years, but not by nearly as much as one might expect, given it's overweighting to international for several years now. Had either international matched or outperformed Domestic, OR commodities have done better than they have, it'd be right there with it, if not ahead.

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