I wrote "Looking Ahead With Vanguard" last month describing their Personal Advisory Services and concerns that I have about customer service.
https://www.mutualfundobserver.com/2023/08/looking-ahead-with-vanguard/As part of this process, I had several phone calls and appointments with Vanguard. My first phone call took Vanguard representatives around 45 minutes to answer which was disheartening. A second phone call took about fifteen minutes. One lesson learned is to call earlier in the day rather than at the end of the day when they probably have a surge in calls, especially on a Friday.
Once I went with their Advisory Services, I received a couple phone calls from the Advisor and when I returned his call, it was answered immediately by the Team of Advisors if not the Advisor. I now have access to schedule appointments with the Advisor, and additional web tools that I will explore.
I made a request through the Advisor and received a follow up email from Technical Support. When I called that number, it was answered immediately.
I especially like the quote by someone on the Bogleheads website, "I will never understand the willingness of some of my fellow Bogleheads to put all their life savings in just one basket, i.e., brokerage firm. It seems like a sucker bet. So, yes, I still favor Vanguard as well as Fidelity, Schwab, and…"
I have reduced brokerage firms and continue to consolidate accounts through Roth Conversions. At this point, I am satisfied with my choices at Vanguard. I will monitor the performance of advisory services at Fidelity and Vanguard.
Comments
https://corporate.vanguard.com/content/corporatesite/us/en/corp/who-we-are/pressroom/Press-release-Vanguard-Personal-Advisor-Services-Introduces-Five-Fund-Active-Equity-Offer-110921.html
I disagree with the idea that one should never use a single brokerage firm.
One can achieve diversity of advice (if that's an objective) with independent advisors who happen to use the same brokerage platform. (I don't seek advice and actively discourage brokers who want to "touch base" with me.)
SIPC and excess coverage takes care of the possibility the brokerage might abscond with your securities. Bernie Madoff aside, that's a low probability event, even lower at major brokerages.
I use multiple brokerages, but that's because I can get cheaper access (lower mins, lower fees, or cheaper shares) at different brokerages for different securities. Otherwise, I'd be looking at consolidating further.
FWIW, I have not had any unexpected difficulties working with Vanguard. Expected difficulties have included Vanguard's rigid adherence to rules (make sure you understand them carefully), and as you've discovered, long wait times and limited hours. PAS service is indeed better than self-directed investor service.
Vanguard did put me in into VADGX, VAGVX, VAIGX, and VHCAX, along with six more funds.
Thanks again for the hard work on all this.
Am I correct that you have advisory accounts at both Fido and Vang?
Do you still have significant % in the other fund strategies you have written so much about? If so I assume those accounts are completely separate from the PAS
It appears Fido wants you to pick an individual advisor to use from their long list, while Vanguard assigns someone to you after you go through their allocation questionnaire. Is this accurate?
Have you found their "financial planning " process useful?
Yes, I use both Fidelity Wealth Services and Vanguard Personal Advisor Services. I have been with both for decades and want to continue with both. I also have DIY accounts at both.
I financed the Vanguard PAS with mixed asset and bond funds. I still own bond funds, IAU, AVGE, PQTAX, CTFAX, REMIX, and GPANX. Each month as bonds in ladders mature, I re-evaluate whether to invest in equity funds or bonds.
Hi @BaluBalu
Yes, you may have non-advisory accounts at Vanguard. I discuss the fees and minimums in this post:
https://www.mutualfundobserver.com/discuss/discussion/61416/charles-s-vanguard-article#latest
Is the process of picking investments totally automated? do they make all the decisions and choices in the advisory accounts?
Vanguard has a two-step process, as I understand it. Behind the scenes:
First, the estimate the returns over the next ten years using the Vanguard Capital Markets Model.
https://static.vgcontent.info/crp/intl/auw/docs/resources/Vanguard_VCMM_brief.pdf?20150814|091500
Second, the run the Vanguard Asset Allocation Model to create a model portfolio.
https://advisors.vanguard.com/insights/article/whats-behind-our-portfolio-construction-process
As part of the process of talking to the Advisor, I was asked what percent active and passive allocations that I favored. It was a fuzzy question, and I responded 50% active and 50% passive. I also derived with the Advisor that I wanted 50% stock and 50% bond portfolio.
The Advisor came back to me a couple of weeks later and presented a proposed portfolio. I went with that portfolio, although the literature says that clients have the option to propose different funds.
One more point, Vanguard provides you with an Advisor, and you do not have the option to select your own like at Fidelity. I did look up the credentials of the Advisor and was pleased with his knowledge and professionalism. It is an improvement over my experience from several years ago. I believe that it is part of Vanguard's effort to improve PAS.