Anyone used Vanguard's Personal Advisor Services?

[Matthew J]

I just got done using Vanguard personal advisor services in February. I can't remember if they initiated the conversation or I did however the experience was good and I was very straightforward every single time I met with them that I was not going to pay a 0.3% fee to have my assets managed but that I just was using the service for the recommended asset allocations.

After about three or four meetings with their advisor we finally had some asset allocations set up for college savings, retirement savings, and my legacy savings. The retirement plan took into account my pension and my wife's type of retirement she will get as a teacher.

Overall, the experience let me know that I was investing pretty close to the way the Vanguard plan said I should be.

The biggest issue Vanguard resolved for me was helping me set up my asset allocations, which I have applied to non-Vanguard savings plans. So, for the price I paid (nothing) having another perspective to take into consideration was worth it for me.


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[MRG]

Quote:

Originally Posted by GolfingDuo In answer to your question target2019 is that is just the financial planning. No money or investments were made. There are fee and they do that. They explain that and since I am not investing with them I am not paying that. My daughter will get a new Roth paid for by us beginning today and I will learn the fees but as I remember them they seemed reasonable as he explained them. I believe that they amounted to less than 2% annually.

No offense intended but you really should learn more about fees. Two percent is highway robbery!

That's over 2.5 times the average ER of a fund according to the ICI! Many here pay .1% or less. Why would Ameriprise sold funds do any better? Truth is the same funds you can get at Ameriprise(or any other FA) you can buy directly yourself sans the 12B1 or loads.

Your friend may be a good guy. But he's not doing any of his clients any favors. I watched my conservative Christian DF sell annuities his whole life. He thought they were good investments, that's all he knew. After retirement he started DIY with Fidelity, he was very ashamed of what his career had been.


FYI my career was IT in the fund industry. I've been to many different fund companies and watched how they operate their businesses. There's exactly 3 fund companies, out of the 300 fund companies in the states that I would invest with. None of them sell through FA'S.

Google mutual fund fees and learn how to save your investments.

[Another Reader]

"FYI my career was IT in the fund industry. I've been to many different fund companies and watched how they operate their businesses. There's exactly 3 fund companies, out of the 300 fund companies in the states that I would invest with. None of them sell through FA'S. "

Can we get that list?

Seriously, doing it yourself is the only way to insure no one is taking advantage of you. All those folks out there with spouses that stick their heads in the sand would do themselves and their spouses a favor by insisting they learn about the family finances and investing. Make the first appointment with the estate planning attorney, not a financial "adviser."

[Amethyst]

I got a free VG plan in 2006. It came with a free 45-minute consultation with an adviser. I have kept the plan as an interesting snapshot of where we were in time, but intrinsically, it had little value. They told us to convert everything to Vanguard funds, and we would have been willing; but most of our assets weren't fungible, so converting would have been a big tax hit. They could not offer any advice on that!

[MRG]

Quote:

Originally Posted by Another Reader Can we get that list?

Sure it's normally referred to as the big three here. In no particular order Vanguard, Fidelity, and Schwab.

All have low fee index funds or ETf's. They all offer a hack gaurentee in case they are hit.

[GolfingDuo]

Quote:

Originally Posted by MRG No offense intended but you really should learn more about fees. Two percent is highway robbery! That's over 2.5 times the average ER of a fund according to the ICI! Many here pay .1% or less. Why would Ameriprise sold funds do any better? Truth is the same funds you can get at Ameriprise(or any other FA) you can buy directly yourself sans the 12B1 or loads. Your friend may be a good guy. But he's not doing any of his clients any favors. I watched my conservative Christian DF sell annuities his whole life. He thought they were good investments, that's all he knew. After retirement he started DIY with Fidelity, he was very ashamed of what his career had been. FYI my career was IT in the fund industry. I've been to many different fund companies and watched how they operate their businesses. There's exactly 3 fund companies, out of the 300 fund companies in the states that I would invest with. None of them sell through FA'S. Google mutual fund fees and learn how to save your investments.

First off I said I am sure it was less than 2% annually and I believe it is much lower than that. If we invest in the Roth for our daughter we will know up front. The reason I trust him is he did not ask me to transfer any money from my accounts or my wife's accounts for him to manage. I know that he told me that he does get a commission when a fund is sold but it was for him very little money. Again I don't have any of the funds that he is going to recommend because he will be here today.

As for everyone that has mutual funds you cannot get away without paying some fees. I don't remember the code number they are known by but I do know even someone who says to Fidelity I want X or Y fund you pay a commission to buy in and maintenance fees. You also pay transaction fees.

Quote:

Originally Posted by Another Reader "FYI my career was IT in the fund industry. I've been to many different fund companies and watched how they operate their businesses. There's exactly 3 fund companies, out of the 300 fund companies in the states that I would invest with. None of them sell through FA'S. " Can we get that list? Seriously, doing it yourself is the only way to insure no one is taking advantage of you. All those folks out there with spouses that stick their heads in the sand would do themselves and their spouses a favor by insisting they learn about the family finances and investing. Make the first appointment with the estate planning attorney, not a financial "adviser."

Anyone that has mutual funds you cannot get away without paying some fees. I don't remember the code number they are known by but I do know even someone who says to Fidelity I want X or Y fund you pay a commission to buy in and maintenance fees. You also pay transaction fees.

The point is what are you comfortable paying and how good of fund are you getting into. Does that money manager make money for his clients? If he doesn't or the fees are exorbitant then your investment is going to struggle. There are A shares and C shares. A shares are front end loaded where C shares are not. These are all within the same fund name. Again it is a matter of trust. Ask the questions and take it upon yourself to know. In the case of my friend in Ameriprise he may be unique and alone in the system. He may not. I just know that he has taken care of his customers as he was recommended by another friend who has him as his financial advisor as well.

I promise I will before we send any money to the fund we will ask the questions. I will also ask here when he leaves and see what you guys think. It might be a day or so before I can get it up here but I will put it out for you to see. It don't mean I am going to take your advice since advice here is free and free advice from anonymous sources are to be evaluated just as hard as those you pay for.

[GTFan]

LOL, yet another person here that is convinced that he can't do it himself even though it's really not that hard, requires little setup or management and lets you keep all those fees for yourself.
(Hint: see https://www.bogleheads.org/wiki/Lazy_portfolios and https://www.bogleheads.org/wiki/Vang...Strategy_Funds).

Good luck with Ameriprise, hope that your friend does well for you. I mean that sincerely, but would not advise anyone here reading this thread to go that route.

[RetireAge50]

Hey GolfingDuo-I'm pretty sure you are just joking around here about Ameriprise. But in case you are serious I hope you know what you are doing especially since you are leading your daughter down the same path.

To me 2% is a lot of fees. If you have $1M and plan annual withdrawals of $40,000 or so Ameriprise will be getting half of it. It makes me sick to think about it.

[GolfingDuo]

Quote:

Originally Posted by GTFan LOL, yet another person here that is convinced that he can't do it himself even though it's really not that hard, requires little setup or management and lets you keep all those fees for yourself. (Hint: see https://www.bogleheads.org/wiki/Lazy_portfolios and https://www.bogleheads.org/wiki/Vang...Strategy_Funds). Good luck with Ameriprise, hope that your friend does well for you. I mean that sincerely, but would not advise anyone here reading this thread to go that route.

Thanks for your input. Personally I don't think I will take advice from you.

Quote:

Originally Posted by RetireAge50 Hey GolfingDuo-I'm pretty sure you are just joking around here about Ameriprise. But in case you are serious I hope you know what you are doing especially since you are leading your daughter down the same path. To me 2% is a lot of fees. If you have $1M and plan annual withdrawals of $40,000 or so Ameriprise will be getting half of it. It makes me sick to think about it.

And you I would treat you as a used car salesman. You would not even get into my front door with any advice.




Just so that you know why I said that to the two of you. It is obvious you didn't read my entire post. If you had you would not be treating me as if I was stupid.

[GolfingDuo]

now I know why I didn't stay here for help. It would seem as if that if you do not agree with your ideas then you are shunned.

[Midpack]

Quote:

Originally Posted by GolfingDuo now I know why I didn't stay here for help. It would seem as if that if you do not agree with your ideas then you are shunned.

So you choose to shun us for having a POV that differs from yours? Interesting...

[target2019]

Quote:

Originally Posted by GolfingDuo now I know why I didn't stay here for help. It would seem as if that if you do not agree with your ideas then you are shunned.

In any public forum you will get lightly tossed, pummeled, or stoned. I say that with tongue in cheek. Understand that people here have very strong convictions. If you have a minority opinion, it will get challenged.

The way to discuss this is with hard facts. For example, you started a Roth for daughter. That's an excellent way to teach. I did that with mine at 14 or so, I think. She had earnings, so we took advantage.

I am trying to pass on to her what I've learned. So we agreed to:

VTSAX Vanguard Total Stock Mkt Idx Adm Fund VTSAX Quote Price News

I am convinced that is the only way to go. She doesn't need a higher expense fund than that, or much more complexity in her 20's.

You have a different opinion. That is fine with me.

[MRG]

GolfingDuo,

People here genuinely try to help, it's not about just different opinions. Please post your fund picks, if they perform better I'll look to your guy.

Meanwhile please do some reading. Search this site for other threads about Ameriprise or Edward Jones and the ilk. Here's one of a forum member that figured out who Ameriprise was helping out.

http://www.early-retirement.org/foru...ad.php?t=77796


I am sure if you poke around independently you will find all kinds of folks who figured out the same thing.

Good luck to you.

[GolfingDuo]

Quote:

Originally Posted by Midpack So you choose to shun us for having a POV that differs from yours? Interesting...

No I shun folks who think they are smarter than everyone.

[Another Reader]

Vanguard and Fidelity do not have Class A, B, or C shares. There is no commission to buy their funds. At both houses, a lot of ETF's are also commission free. Most of the index funds at both have fund fees of less than 0.10 percent.

If you feel you need your hand held, Vanguard will set you up for 0.35 percent. I have enough money at Fidelity that I can sit down with the person that handles my account to review things a couple of times a year - no charge.

Ameriprise will put you in loaded funds and charge an account management fee. There is nothing they will do for you that you cannot do yourself if you spend a little time looking into investing.

People here dislike both Ameriprise and Edward Jones because they have seen the results of working with these companies many times. Please do some research on Ameriprise before giving them your or your daughter's hard earned money.

[Fedup]

I put my daughter's Roth money at a Vanguard Capitol Opportunity, it's now closed. I don't know if this is good return or not, it shows close to 9% since investing, according to Vanguard. Before that her money was in Vanguard Star fund, she started when she was either 15 or 16.

[REWahoo]

Quote:

Originally Posted by GolfingDuo No I shun folks who think they are smarter than everyone.

Whether you choose to shun this forum or not, please, for you and your daughter's financial well-being, do some independent research on Ameriprise and their business practices.

[MichaelB]

Quote:

Originally Posted by GolfingDuo now I know why I didn't stay here for help. It would seem as if that if you do not agree with your ideas then you are shunned.

Please don't take this personally. I think you will find many members receptive to the idea that some people may benefit from advisors, just not Ameriprise. There are better options out there. And in the case of Ameriprise, it's not that members feel they are smarter, just more experienced.

[GolfingDuo]

Target I get that part but the original poster ask about one. I don't say any of you are wrong. I do know when I am being lied to and I know my friend a lot more than you do.

MRG I know that as well. In this case we are going to start the process. We are not transferring 1 million dollars to it. If the funds under perform we can fire him.

So bottom line here is I was not asking anyone here for help. I offered an alternative to the original poster.

[GolfingDuo]

Quote:

Originally Posted by MichaelB Please don't take this personally. I think you will find many members receptive to the idea that some people may benefit from advisors, just not Ameriprise. There are better options out there. And in the case of Ameriprise, it's not that members feel they are smarter, just more experienced.

Nothing personal but I have been with other companies and they have not done me anything that I would give a recommendation for. So with me being comfortable with this person and he is someone I can work with I will stick with it Ameriprise not withstanding.

I get it that some of you folks don't like Ameriprise. I don't like Putnum, Fidelity, Vanguard, and Charlse Schwabb so we agree to disagree.