Thoughts on Vanguard advice

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canon_shooter
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Thoughts on Vanguard advice

Post by canon_shooter » Tue Dec 04, 2018 8:27 pm

I have a 1M plus portfolio asset allocated at Vanguard and was eligible for a 'free' portfolio review and thought what the heck, I'd go for it and listen to the feedback of the professional advisors. I generally follow the asset allocation of their VTXVX (2015 target retirement fund) with total Bonds 33%, Total Stock 24%, Total International Stock 16%, Total International Bond 14% and TIPs 12%. The numbers may have changed slightly since last year and don't exactly add up to %100 because I left off the rounding, but you get the idea. What was really interesting was in the feedback as they did NOT recommend TIPS even thought its part of their target funds. I questioned them on this and they answered that they are required to offer TIPS in their target funds to be very conservative. However, they did not recommend that I hold TIPS with their personal advice. It seems rather odd to me that TIPS are ok for a target fund but not for an individual. Not clear to me why my personal situation is such that I wouldn't invest in TIPS, but to pick a target fund, then TIPS are ok. Anyone else have a similar experience or thoughts?

averagedude
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Re: Thoughts on Vanguard advice

Post by averagedude » Tue Dec 04, 2018 9:10 pm

I could be wrong, but i doubt that there is no portfolio that a person can have where they would tell you that you are doing great and you dont need their services.

6Pack
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Re: Thoughts on Vanguard advice

Post by 6Pack » Tue Dec 04, 2018 9:20 pm

They told me that because I had a lot of specific questions that I should consider having them manage my portfolio. Needless to say, I was unimpressed. They also won’t advise on anything other than Vanguard funds, so anything like insurance they won’t tell you. I thought I was over insured for life insurance, but they refused to offer an opinion.

After talking with them twice for my free annual meeting, I realized that only you will look out for your best interests.

delamer
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Re: Thoughts on Vanguard advice

Post by delamer » Tue Dec 04, 2018 10:34 pm

Are you already retired?

tibbitts
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Re: Thoughts on Vanguard advice

Post by tibbitts » Wed Dec 05, 2018 12:11 am

canon_shooter wrote:
Tue Dec 04, 2018 8:27 pm
I have a 1M plus portfolio asset allocated at Vanguard and was eligible for a 'free' portfolio review and thought what the heck, I'd go for it and listen to the feedback of the professional advisors. I generally follow the asset allocation of their VTXVX (2015 target retirement fund) with total Bonds 33%, Total Stock 24%, Total International Stock 16%, Total International Bond 14% and TIPs 12%. The numbers may have changed slightly since last year and don't exactly add up to %100 because I left off the rounding, but you get the idea. What was really interesting was in the feedback as they did NOT recommend TIPS even thought its part of their target funds. I questioned them on this and they answered that they are required to offer TIPS in their target funds to be very conservative. However, they did not recommend that I hold TIPS with their personal advice. It seems rather odd to me that TIPS are ok for a target fund but not for an individual. Not clear to me why my personal situation is such that I wouldn't invest in TIPS, but to pick a target fund, then TIPS are ok. Anyone else have a similar experience or thoughts?
What I think is that Vanguard can't win. Here the rep deviates ever so slightly from a target fund, and people wonder why. Other times reps don't deviate and they get hit for only offering "cookie cutter" advice that could be duplicated by a target date fund.

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canon_shooter
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Re: Thoughts on Vanguard advice

Post by canon_shooter » Wed Dec 05, 2018 1:28 am

Yes, I am retired.

I did not come to a conclusion on why the target fund was offering TIPS other than, to perhaps appear to be 'not too aggressive' and 'cover all bases'.

Overall, their personal advice to me for the portfolio was similar to what I have:

50/50 stock/bond
21% US large cap, 9% US mid/small cap, 20% international
12% US short term bond, 18% US Intermediate, 4% long term, 15% International

I didn't agree with everything but the general shape was ok. It was clear they were trying to sell their services and I don't fault them for that, but I did not need them and especially at the price. However, I did tell my wife, if I croak before her, then their services are fine since she's not interested in this particular aspect of our finances.

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nedsaid
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Re: Thoughts on Vanguard advice

Post by nedsaid » Wed Dec 05, 2018 2:16 am

tibbitts wrote:
Wed Dec 05, 2018 12:11 am
canon_shooter wrote:
Tue Dec 04, 2018 8:27 pm
I have a 1M plus portfolio asset allocated at Vanguard and was eligible for a 'free' portfolio review and thought what the heck, I'd go for it and listen to the feedback of the professional advisors. I generally follow the asset allocation of their VTXVX (2015 target retirement fund) with total Bonds 33%, Total Stock 24%, Total International Stock 16%, Total International Bond 14% and TIPs 12%. The numbers may have changed slightly since last year and don't exactly add up to %100 because I left off the rounding, but you get the idea. What was really interesting was in the feedback as they did NOT recommend TIPS even thought its part of their target funds. I questioned them on this and they answered that they are required to offer TIPS in their target funds to be very conservative. However, they did not recommend that I hold TIPS with their personal advice. It seems rather odd to me that TIPS are ok for a target fund but not for an individual. Not clear to me why my personal situation is such that I wouldn't invest in TIPS, but to pick a target fund, then TIPS are ok. Anyone else have a similar experience or thoughts?
What I think is that Vanguard can't win. Here the rep deviates ever so slightly from a target fund, and people wonder why. Other times reps don't deviate and they get hit for only offering "cookie cutter" advice that could be duplicated by a target date fund.
Yep, if they offered a 3 fund portfolio, critics would say that such a portfolio is too easy, anyone could do that. Why are we paying 0.30% for that? When VPAS offers 6 fund portfolios, critics cry that the portfolios are too complex. Who can follow such a complex strategy? If VPAS offers portfolios similar to Target Date or LifeStrategy funds, critics say VPAS are copycats. Why pay for what we can get for free? Well, one thing you can say for them, they don't sell annuities. Not yet.

I feel something coming over me, I can see into the future, Vanguard advisors suggesting "Income Solutions" or otherwise known as annuities. I can see it in my crystal ball. Then they will get criticized for being too much like Fidelity. I can see that too.
A fool and his money are good for business.

retiredflyboy
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Re: Thoughts on Vanguard advice

Post by retiredflyboy » Wed Dec 05, 2018 11:36 pm

Ok advice and very useful for many people. My personal preference is 50% total stock market index and 50% total bond market index. If you want to add some international stock, tips, reits etc. fine.
Facts are stubborn things. Everything works until it doesn’t.

retire2022
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Re: Thoughts on Vanguard advice

Post by retire2022 » Thu Dec 06, 2018 12:56 am

6Pack wrote:
Tue Dec 04, 2018 9:20 pm
They told me that because I had a lot of specific questions that I should consider having them manage my portfolio. Needless to say, I was unimpressed. They also won’t advise on anything other than Vanguard funds, so anything like insurance they won’t tell you. I thought I was over insured for life insurance, but they refused to offer an opinion.

After talking with them twice for my free annual meeting, I realized that only you will look out for your best interests.
I agree with 6Pack, I'm 58, and have 1.5 million portfolio with 93% equities and 6% bonds zero cash, and found them to be too conservative at the end of the video 50 minute interview, the advisor said "there is nothing we can do for you sir". My friend also had the same experience, cookie cutter investment advice. They don't advise for taxes, and their advice for asset allocation is no better than target funds I've seen.

Here is the morningstar life time allocation chart which Christine Benz recommends I think this is just as good as Vanguard free advisory service:

https://corporate.morningstar.com/us/do ... ummary.pdf

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nedsaid
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Re: Thoughts on Vanguard advice

Post by nedsaid » Thu Dec 06, 2018 3:52 pm

retire2022 wrote:
Thu Dec 06, 2018 12:56 am
6Pack wrote:
Tue Dec 04, 2018 9:20 pm
They told me that because I had a lot of specific questions that I should consider having them manage my portfolio. Needless to say, I was unimpressed. They also won’t advise on anything other than Vanguard funds, so anything like insurance they won’t tell you. I thought I was over insured for life insurance, but they refused to offer an opinion.

After talking with them twice for my free annual meeting, I realized that only you will look out for your best interests.
I agree with 6Pack, I'm 58, and have 1.5 million portfolio with 93% equities and 6% bonds zero cash, and found them to be too conservative at the end of the video 50 minute interview, the advisor said "there is nothing we can do for you sir". My friend also had the same experience, cookie cutter investment advice. They don't advise for taxes, and their advice for asset allocation is no better than target funds I've seen.

Here is the morningstar life time allocation chart which Christine Benz recommends I think this is just as good as Vanguard free advisory service:

https://corporate.morningstar.com/us/do ... ummary.pdf
The use of a Target Date or a LifeStrategy (Target Risk) fund as a model for your own asset allocation is something I have advocated for a long time. I like to look at the Target Date Retirement 2025 funds for guidance regarding my own asset allocation. Or you could just buy the fund and be done with it.

There are economies of scale that advisory services have to have in order to stay in business. They work off of a model and have an investment philosophy. They can't afford to personalize and customize each customer portfolio. Hence the criticism over the cookie cutter advice.

It sounds like your investment philosophy clashed with that of Vanguard and thus you are a candidate for managing your own portfolio. Pretty much, get with the program or do it yourself. That is hard to take but something that I have learned after dealing with several advisors. I mostly do it myself.
A fool and his money are good for business.

staycalm
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Re: Thoughts on Vanguard advice

Post by staycalm » Thu Dec 06, 2018 4:43 pm

You could do a straddle. Let them manage the minimum so you can get their advice. You manage the rest allowing you to use their advice as you see fit. After a year if you find them of value, continue as you were or turn it all over to them. If not, you could take it all over.

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canon_shooter
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Re: Thoughts on Vanguard advice

Post by canon_shooter » Thu Dec 06, 2018 5:08 pm

To retire2022 - fascinating information from Morningstar! They too recommend TIPS. Perhaps there is more to TIPS in an asset allocated portfolio than meets the eye. I'd be interested to see how a TIPS addition would do when compared to a 3 Fund solution or other models. Clearly both Vanguard and Morningstar are recommending some allocation to TIPS.

retire2022
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Re: Thoughts on Vanguard advice

Post by retire2022 » Thu Dec 06, 2018 6:11 pm

canon_shooter wrote:
Thu Dec 06, 2018 5:08 pm
To retire2022 - fascinating information from Morningstar! They too recommend TIPS. Perhaps there is more to TIPS in an asset allocated portfolio than meets the eye. I'd be interested to see how a TIPS addition would do when compared to a 3 Fund solution or other models. Clearly both Vanguard and Morningstar are recommending some allocation to TIPS.
Canon shooter

While I can not speak on behalf of why Vanguard or Morningstar recommends TIPs, it behooves you to know that it is Asset Allocation is based on Pascal's probabilty's bell curve.

I learned this from the following links:

the Monte Carlo simulation, a good PBS news hour on this concept:

https://www.pbs.org/newshour/show/world ... half-story

that video:

https://www.youtube.com/watch?v=gblX4Pzf3WU

How to figure out your risk tolerance:

https://retirementplans.vanguard.com/VG ... ggCalc.jsf

http://www.investopedia.com/terms/m/mon ... lation.asp

Monte Carlo/Asset allocation

Quincunx machine

https://en.wikipedia.org/wiki/Quincunx

or the bean counting machine

https://en.wikipedia.org/wiki/Bean_machine

video on bean counting machine

https://www.youtube.com/watch?v=AUSKTk9ENzg
Last edited by retire2022 on Thu Dec 06, 2018 6:20 pm, edited 1 time in total.

retire2022
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Re: Thoughts on Vanguard advice

Post by retire2022 » Thu Dec 06, 2018 6:18 pm

nedsaid wrote:
Thu Dec 06, 2018 3:52 pm

There are economies of scale that advisory services have to have in order to stay in business. They work off of a model and have an investment philosophy. They can't afford to personalize and customize each customer portfolio. Hence the criticism over the cookie cutter advice.

It sounds like your investment philosophy clashed with that of Vanguard and thus you are a candidate for managing your own portfolio. Pretty much, get with the program or do it yourself. That is hard to take but something that I have learned after dealing with several advisors. I mostly do it myself.
nedsaid obviously I did not drink their "Kool Aid" and for anyone, I strongly recommend speaking to accountant and DIY your investments yourself.

I think the investment advisory services are for folks who are not interested in learning, or DIY, the risk is of course, having one funds mismanaged.

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nedsaid
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Re: Thoughts on Vanguard advice

Post by nedsaid » Thu Dec 06, 2018 9:13 pm

retire2022 wrote:
Thu Dec 06, 2018 6:18 pm
nedsaid wrote:
Thu Dec 06, 2018 3:52 pm

There are economies of scale that advisory services have to have in order to stay in business. They work off of a model and have an investment philosophy. They can't afford to personalize and customize each customer portfolio. Hence the criticism over the cookie cutter advice.

It sounds like your investment philosophy clashed with that of Vanguard and thus you are a candidate for managing your own portfolio. Pretty much, get with the program or do it yourself. That is hard to take but something that I have learned after dealing with several advisors. I mostly do it myself.
nedsaid obviously I did not drink their "Kool Aid" and for anyone, I strongly recommend speaking to accountant and DIY your investments yourself.

I think the investment advisory services are for folks who are not interested in learning, or DIY, the risk is of course, having one funds mismanaged.
I used to think that everyone could do their own investing but I am continually surprised how uninterested and frankly clueless most people are about such things. I suppose none of us are expert in everything, I have had a passion for these topics but most people do not. Most people would benefit from an advisory relationship and one of the first places I would send them to is Vanguard.

Unfortunately, we live in a very imperfect world. Vanguard Personal Advisory Services is probably the best solution for lots of people.

I am looking to turn this over, I don't want to run my own money forever. I am looking into a couple of advisory services. One thing is that I realize that at some point, one gets beyond their mental peak. Taylor Larimore is still sharp at age 94 and there are others like him. But many folks in their 70's, 80's, and 90's suffer from dementia or at least are beyond the peak of their mental powers. The brain and the body just wear out over time.

The other day, my bank teller told me that my ATM card expired back in April. She ordered me a new card but I was pretty embarrassed. No wonder I wasn't able to deposit a couple of checks at the ATM. So I have gone to the teller whenever I have needed to make a deposit. It is just that I have had a lot of things to deal with, 2018 has not been a great year for me, and I missed this. Just let the mail stack up. You would have thought I would have looked at the expiration date on my card but I never did.

So pretty much, I let some more minor things slide because I just didn't want to deal with them. Fast forward 20 years and I wonder what things will be like. My parents don't have dementia but they are both well in their eighties and both are past their peak. One reason, I might annuitize a portion of my nest egg upon retirement.

So Taylor Larimore is right about some things, particularly simplicity. I am 59 and pretty new at being old. Taylor has a lot more experience at being old than I have. One thing is that I have started the process of simplification and will continue that as I get older.
A fool and his money are good for business.

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friar1610
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Re: Thoughts on Vanguard advice

Post by friar1610 » Thu Dec 06, 2018 9:15 pm

canon_shooter wrote:
Wed Dec 05, 2018 1:28 am
Yes, I am retired.

I did not come to a conclusion on why the target fund was offering TIPS other than, to perhaps appear to be 'not too aggressive' and 'cover all bases'.

Overall, their personal advice to me for the portfolio was similar to what I have:

50/50 stock/bond
21% US large cap, 9% US mid/small cap, 20% international
12% US short term bond, 18% US Intermediate, 4% long term, 15% International

I didn't agree with everything but the general shape was ok. It was clear they were trying to sell their services and I don't fault them for that, but I did not need them and especially at the price. However, I did tell my wife, if I croak before her, then their services are fine since she's not interested in this particular aspect of our finances.

I have a phone consult next week. They've already posted their preliminary recommendation on their web site and it's right in line with what you mentioned. (I'm also a retiree.) I plan to question them closely on the degree to which my non-VG assets that I want to keep (I-Bonds and CDs) would influence their recommendations on the VG holdings. Once a couple of years ago they basically said "not much". But a few recent posts here have lead me to think they may be paying more attention to them now (perhaps because they've found that's what people want?). It's possible that, like you, I may just continue to self-manage but leave the PAS phone number for my wife with my "upon my death" file.
Friar1610

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canon_shooter
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Re: Thoughts on Vanguard advice

Post by canon_shooter » Thu Dec 06, 2018 10:01 pm

Friar - It was clear from my conversation with them (and as pointed out in the comments on this post), that PVAS serves two purposes:
1. To generate revenue to Vanguard. The fee is non trivial at .3%/year. I figured that I could do the asset allocation myself. And, there are many ways to Dublin as they say; any reasonable asset allocation model (3 fund for example) will get you close to balancing risk/reward. I had my funds managed by a fee manager a few years back and his rate was very reasonable (3k/yr irregardless of portfolio). But I found that after the initial setup and a few questions, he/I did not tweak the funds much. I spent about 2 hours a year on the phone with him so his hourly rate was $1500. You might find yourself in the same situation with VPAS should you go that route. I have a suggestion at the end of this post.

2. To meet a customer need. Again, as pointed out in the comments, there are many people who would benefit from VPAS. Lots of folks don't have the interest or the discipline to manage their own money. Sounds like for both you and I, our spouses don't have the inclination to manage funds after our passing. In that case the .3% they would pay would be well worth the cost to ensure they don't make a mistake or worse yet, get taken advantage of by someone unscrupulous.

I do have one suggestion for money well spent (for me anyway). There is a broader financial landscape that you should consider before asset allocation and that is one of estate planning. This covers IRA to Roth conversions, benefits of Roths vs traditional IRAs, Social Security (when to withdraw money, tax consequences), charitable gifts and money for your spouse and children. The Roth discussion for me was particularly valuable and affected my conversions. Additionally, your assets may be tied up in financial accounts that don't make asset allocation easy. For example, I have to have bonds in both my wife's IRA and mine in order to achieve the correct balance. About 20% of my assets are outside IRAs so I have to be thoughtful as how to allocate and from what accounts to move things around. Good luck!

retire2022
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Re: Thoughts on Vanguard advice

Post by retire2022 » Thu Dec 06, 2018 10:08 pm

nedsaid wrote:
Thu Dec 06, 2018 9:13 pm

I used to think that everyone could do their own investing but I am continually surprised how uninterested and frankly clueless most people are about such things. I suppose none of us are expert in everything, I have had a passion for these topics but most people do not. Most people would benefit from an advisory relationship and one of the first places I would send them to is Vanguard.

Unfortunately, we live in a very imperfect world. Vanguard Personal Advisory Services is probably the best solution for lots of people.

I am looking to turn this over, I don't want to run my own money forever. I am looking into a couple of advisory services. One thing is that I realize that at some point, one gets beyond their mental peak. Taylor Larimore is still sharp at age 94 and there are others like him. But many folks in their 70's, 80's, and 90's suffer from dementia or at least are beyond the peak of their mental powers. The brain and the body just wear out over time.

The other day, my bank teller told me that my ATM card expired back in April. She ordered me a new card but I was pretty embarrassed. No wonder I wasn't able to deposit a couple of checks at the ATM. So I have gone to the teller whenever I have needed to make a deposit. It is just that I have had a lot of things to deal with, 2018 has not been a great year for me, and I missed this. Just let the mail stack up. You would have thought I would have looked at the expiration date on my card but I never did.

So pretty much, I let some more minor things slide because I just didn't want to deal with them. Fast forward 20 years and I wonder what things will be like. My parents don't have dementia but they are both well in their eighties and both are past their peak. One reason, I might annuitize a portion of my nest egg upon retirement.

So Taylor Larimore is right about some things, particularly simplicity. I am 59 and pretty new at being old. Taylor has a lot more experience at being old than I have. One thing is that I have started the process of simplification and will continue that as I get older.
My mother is 88, and I'm a young 58er, she has early signs of dementia, I totally get where you are coming from. None of my close friends or relatives are OCD or compulsive about personal financing as I. In fact at 26 most of them did not believe I could do this, my goal was 1million by the time I retire, I did it, someone from my neighborhood met up with me recently and asked if I had acheived my goal, and I said yes I did in 2013.

While this fund, Vanguard Managed Payout VPGDX is not perfect, it has been recommended as a way to guarantee 4% return, perhaps worth looking into

https://investor.vanguard.com/mutual-fu ... ed-payout/#/

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nedsaid
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Re: Thoughts on Vanguard advice

Post by nedsaid » Thu Dec 06, 2018 10:39 pm

retire2022 wrote:
Thu Dec 06, 2018 10:08 pm
nedsaid wrote:
Thu Dec 06, 2018 9:13 pm

I used to think that everyone could do their own investing but I am continually surprised how uninterested and frankly clueless most people are about such things. I suppose none of us are expert in everything, I have had a passion for these topics but most people do not. Most people would benefit from an advisory relationship and one of the first places I would send them to is Vanguard.

Unfortunately, we live in a very imperfect world. Vanguard Personal Advisory Services is probably the best solution for lots of people.

I am looking to turn this over, I don't want to run my own money forever. I am looking into a couple of advisory services. One thing is that I realize that at some point, one gets beyond their mental peak. Taylor Larimore is still sharp at age 94 and there are others like him. But many folks in their 70's, 80's, and 90's suffer from dementia or at least are beyond the peak of their mental powers. The brain and the body just wear out over time.

The other day, my bank teller told me that my ATM card expired back in April. She ordered me a new card but I was pretty embarrassed. No wonder I wasn't able to deposit a couple of checks at the ATM. So I have gone to the teller whenever I have needed to make a deposit. It is just that I have had a lot of things to deal with, 2018 has not been a great year for me, and I missed this. Just let the mail stack up. You would have thought I would have looked at the expiration date on my card but I never did.

So pretty much, I let some more minor things slide because I just didn't want to deal with them. Fast forward 20 years and I wonder what things will be like. My parents don't have dementia but they are both well in their eighties and both are past their peak. One reason, I might annuitize a portion of my nest egg upon retirement.

So Taylor Larimore is right about some things, particularly simplicity. I am 59 and pretty new at being old. Taylor has a lot more experience at being old than I have. One thing is that I have started the process of simplification and will continue that as I get older.
My mother is 88, and I'm a young 58er, she has early signs of dementia, I totally get where you are coming from. None of my close friends or relatives are OCD or compulsive about personal financing as I. In fact at 26 most of them did not believe I could do this, my goal was 1million by the time I retire, I did it, someone from my neighborhood met up with me recently and asked if I had acheived my goal, and I said yes I did in 2013.

While this fund, Vanguard Managed Payout VPGDX is not perfect, it has been recommended as a way to guarantee 4% return, perhaps worth looking into

https://investor.vanguard.com/mutual-fu ... ed-payout/#/
By the way, congratulations on your accomplishment. It isn't easy. Takes frugality and discipline.
A fool and his money are good for business.

pascalwager
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Re: Thoughts on Vanguard advice

Post by pascalwager » Fri Dec 07, 2018 3:38 am

retire2022 wrote:
Thu Dec 06, 2018 12:56 am
6Pack wrote:
Tue Dec 04, 2018 9:20 pm
They told me that because I had a lot of specific questions that I should consider having them manage my portfolio. Needless to say, I was unimpressed. They also won’t advise on anything other than Vanguard funds, so anything like insurance they won’t tell you. I thought I was over insured for life insurance, but they refused to offer an opinion.

After talking with them twice for my free annual meeting, I realized that only you will look out for your best interests.
I agree with 6Pack, I'm 58, and have 1.5 million portfolio with 93% equities and 6% bonds zero cash, and found them to be too conservative at the end of the video 50 minute interview, the advisor said "there is nothing we can do for you sir". My friend also had the same experience, cookie cutter investment advice. They don't advise for taxes, and their advice for asset allocation is no better than target funds I've seen.

Here is the morningstar life time allocation chart which Christine Benz recommends I think this is just as good as Vanguard free advisory service:

https://corporate.morningstar.com/us/do ... ummary.pdf
The mere 45% stocks for the aggressive portfolio surprised me. In her bucket articles she said that someone with a pension and SS should be more aggressive and I had the impression she was referring to at least 60% stocks, if not much more.

pascalwager
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Re: Thoughts on Vanguard advice

Post by pascalwager » Fri Dec 07, 2018 3:44 am

canon_shooter wrote:
Tue Dec 04, 2018 8:27 pm
I have a 1M plus portfolio asset allocated at Vanguard and was eligible for a 'free' portfolio review and thought what the heck, I'd go for it and listen to the feedback of the professional advisors. I generally follow the asset allocation of their VTXVX (2015 target retirement fund) with total Bonds 33%, Total Stock 24%, Total International Stock 16%, Total International Bond 14% and TIPs 12%. The numbers may have changed slightly since last year and don't exactly add up to %100 because I left off the rounding, but you get the idea. What was really interesting was in the feedback as they did NOT recommend TIPS even thought its part of their target funds. I questioned them on this and they answered that they are required to offer TIPS in their target funds to be very conservative. However, they did not recommend that I hold TIPS with their personal advice. It seems rather odd to me that TIPS are ok for a target fund but not for an individual. Not clear to me why my personal situation is such that I wouldn't invest in TIPS, but to pick a target fund, then TIPS are ok. Anyone else have a similar experience or thoughts?
The DFA TR income fund (designed by Robert Merton) is 80% bonds, mostly TIPS and the rest 0.88 years duration (highly inflation sensitive). Quite a different approach. The VG advisors don't seem to acknowledge or agree about the potential for unexpected inflation.

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canon_shooter
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Re: Thoughts on Vanguard advice

Post by canon_shooter » Fri Dec 07, 2018 1:43 pm

Wow. The DFA Target Fund 2020 is about 80% TIPS. As you say, there are many views of TIPS in the addition to an asset allocated portfolio.

I'd point out that nedsaid
While this fund, Vanguard Managed Payout VPGDX is not perfect, it has been recommended as a way to guarantee 4% return, perhaps worth looking into

https://investor.vanguard.com/mutual-fu ... ed-payout/#/
The 4% is not guaranteed. It's possible to lose value and see diminished returns under 4%. Also interesting is that there are impacts if you have RMDs which may affect one's choice of using this fund.

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friar1610
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Re: Thoughts on Vanguard advice

Post by friar1610 » Fri Dec 07, 2018 2:22 pm

Here's something I just learned - not a complaint, just passing on info others may or may not know.

The "next week" consult I mentioned above was originally scheduled for 12/5 with Advisor A. I had received a confirming email from him. Then I got an email from him that said due to the Bush Day of Mourning, VG would be closed that day I was rescheduled until 12/12, one week later at the same time. The rescheduling email certainly left the impression the appointment would still be with him. But the subsequent confirming email was from Advisor B. Confused, I called to find out who I would be dealing with since Advisor A had never sent an email saying I had been handed off to Advisor B. Then I was reminded of a medical appointment I had that conflicted with the rescheduled appointment on 12/12. I called VG and said I needed to reschedule but I didn't know who I had to reschedule with - Advisor A or Advisor B - since nobody had called me back from VG, as they said they would, to clarify. The guy I talked to today, a Flagship rep, told me we should just look for the date/time to which I wanted to reschedule and I would get whomever is free at that date/time. I got a rescheduled appointment, this time with Advisor C. So, it appears that the reps are totally interchangeable. The "preliminary recommendation" (on asset allocation) that popped up on the web site shortly after I filled out the profile form is quite obviously generated by a computer, not by any individual advisor since they are all interchangeable. I guess any one of them can argue the logic of the recommendation to me.

This is probably not Breaking News and most of us either already knew this or should have, but just thought I'd pass it on.
Friar1610

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