prototype
Recycles dryer sheets
I just completed the process of obtaining my free Vanguard financial plan and phone consultation and was curious what others who may have gone through this process thought about it and what (if anything) they used it for. Below is my assessment summary and action I am taking.
1. (+) I knew my basic AA of 60/40 was OK but that my sub-asset allocations were probably out of whack. The plan contained a good summary of current asset/sub-asset allocation and recommended asset/sub-asset allocations (confirming and quantifying my suspicions).
2. (Neutral) The performance of the “Integrated Portfolio” (which as they state minimizes changes to current portfolio) , and the “Consolidated Portfolio” (a significant rework in closing a lot of funds and opening some new ones - basically looked similar to a Bogle 4 fund mix). Plus there was lower average ER of about .05) was insignificant. However there was only a 1% difference (97% vs. 98%) in success rate when I cranked up my needed yearly income to the point where success rate dropped below 100%.
3. (-) Perhaps just a comfort level issue on my part. The Consolidated Portfolio had total elimination of my Wellington and Wellesley funds. I mentioned during my consultation that I had no plans to do this (tweaks were OK), and the Planner I was talking with mentioned that was a common response from many clients. So between this and my comment #2 above….I saw no reason to even consider the Consolidated Portfolio.
4. (+) Overall well worth the time and money (free). Gave me a good sanity check on what I get when I use Firecalc or other independent online retirement calculators. The only negative is that I wish the Retirement Outlook area displayed information on current portfolio in addition to the Integrated and Consolidated portfolio’s they supply. Also it would have been nice to have more (actually they don't have any of significance) knobs and buttons to change things like when I take SS. But I guess if they put too many knobs and buttons in, the Vanguard Financial Planning Services would have less business.
5. Actions on my part based on Plan - I am Ignoring the Consolidated Portfolio. I plan on making a couple of tweaks based on the Integrated Portfolio (one completed last night), but not fully implementing it.
1. (+) I knew my basic AA of 60/40 was OK but that my sub-asset allocations were probably out of whack. The plan contained a good summary of current asset/sub-asset allocation and recommended asset/sub-asset allocations (confirming and quantifying my suspicions).
2. (Neutral) The performance of the “Integrated Portfolio” (which as they state minimizes changes to current portfolio) , and the “Consolidated Portfolio” (a significant rework in closing a lot of funds and opening some new ones - basically looked similar to a Bogle 4 fund mix). Plus there was lower average ER of about .05) was insignificant. However there was only a 1% difference (97% vs. 98%) in success rate when I cranked up my needed yearly income to the point where success rate dropped below 100%.
3. (-) Perhaps just a comfort level issue on my part. The Consolidated Portfolio had total elimination of my Wellington and Wellesley funds. I mentioned during my consultation that I had no plans to do this (tweaks were OK), and the Planner I was talking with mentioned that was a common response from many clients. So between this and my comment #2 above….I saw no reason to even consider the Consolidated Portfolio.
4. (+) Overall well worth the time and money (free). Gave me a good sanity check on what I get when I use Firecalc or other independent online retirement calculators. The only negative is that I wish the Retirement Outlook area displayed information on current portfolio in addition to the Integrated and Consolidated portfolio’s they supply. Also it would have been nice to have more (actually they don't have any of significance) knobs and buttons to change things like when I take SS. But I guess if they put too many knobs and buttons in, the Vanguard Financial Planning Services would have less business.
5. Actions on my part based on Plan - I am Ignoring the Consolidated Portfolio. I plan on making a couple of tweaks based on the Integrated Portfolio (one completed last night), but not fully implementing it.