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Use Vanguard Advisory Service?

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  • Hatton
    Vanguard is an excellent choice.  I plan on using their Personal Advisor Service when I feel my capacity to manage money starts to slip.  One option you might consider is using the PAS until you feel comfortable with your asset allocation etc. When you accumulate 500K you will qualify for a Flagship account which means have access to a free finanacial plan and CFPs when you have a question.  I have used both since moving all my funds to Vanguard a couple years ago.

    1.  Good idea.

    2. I would invest every month.

    3. Yes we are in a correction.

    4. If PAS is like financial plan that I mentioned they will help you.

    5. Ask WCI about this.  I have a large SEP/IRA so I can't backdoor Roth.  This is an example how tax laws frequently change and planning on retirement accounts has to be reexamined from time to time.

    Leave a comment:

  • The White Coat Investor
    1) That's a great use of the Vanguard advisory service or a roboadvisor.

    2) Why not invest $10K every month? Although I'm impressed that you seem to be saving/wanting to save 50% of your gross income. No reason to wait until the quarter.

    3) Yes. If it feels too scary, do it with a less aggressive asset allocation and you can make that more aggressive after your first bear market.

    4) I think so. It's not that hard.

    5) No. But you now have a pro-rata problem with the SEP-IRA. If you have even a little 1099 income for 2016 you can open an individual 401(k) and roll the SEP-IRA money in there.


    BTW- I think you have too much cash sitting around. Why not set aside a 6 month emergency fund and invest the rest?

    Leave a comment:

  • The White Coat Investor
    started a topic Use Vanguard Advisory Service?

    Use Vanguard Advisory Service?

    This one came by email from someone having trouble posting:


    After many hours of reading WCI, bogleheads, and sitting with local advisors happy to charge 1-2%AUM, I have looked into fully investing with Vanguard. A little background info:

    Emergency funds: 6-12 months of expenses covered (separate checking account that covers mortgage for 1 year)
    Debt: Only liabilities are the mortgage $287k balance 15 yr fixed @3% (Home valued at $400k)
    Tax Filing Status: Married filing jointly
    Tax Rate: 28% Federal, 0% State
    Gross income: $220K
    Monthly expenses: $4,800(includes mortgage)
    Age: Me:35 Husband: 27
    Desired Asset allocation: Unsure
    Desired International allocation: Unsure
    SEP-IRA: 180k cash
    Money Market: 180k cash
    HSA: $6,500 invested through TD Ameritrade(VTI ETF)

    Our main dilemma is coming up with a solid portfolio allocation strategy. Most importantly, I am not experienced with re-balancing of a portfolio and tax-loss harvesting.
    1) Would it be wise to start with Vanguards personal advisor services at a AUM of 0.3%. Mainly to get us started on the right track and use their services until we 'catch on'.
    2) After reading through WCI, I noticed lump sum investing may be superior to dollar cost averaging. Since we have the ability to save $10-12K a month how should we go about investing on a timeline(ie quarterly/semi-annually...)?
    3) Would it be a good idea to invest all $360k in the upcoming months?
    4) I have switched from a 1099 to W2 with 401k and no match. Would Vanguard be able to correctly allocate our portfolio's taxable and tax-deferred accounts. It appears that are taxable account will be substantially larger since I can no longer contribute $50k to SEP-IRA.
    5) Is it too late to open a backdoor Roth IRA account for the 2015 year?

    Thanks for all your help and we value your input/suggestions!​