Vanguard Financial Review

[Arc]

Any thoughts on the quality of a financial review with Vanguard. Father just moved significant $ there? Are they worth talking with?

[Alan]

I used them once my account was large enough to get the advice for free. It was an easy experience for me but I am experinced and know that I want to "be" the market and what AA I want etc. The advisors almost certainly use the same portfolio analysis tools availble to investors on their website since the only advice I got different to what I was doing is something I could have figured out myself. I checked the advice by using their tools, and yes, I was light on large cap growth if I wanted to mirror the market.

I did put a chunk of money in large cap growth with my next bonus check to get me better diversified. (VGRGX) Obviously they will only recommend VG funds but they did take into account both mine and DW's 401(k) funds in the analysis.

[LOL!]

The folks at Bogleheads :: View Forum - Investing - Help, Personal Issues and Advice seem to believe that they provide much better advice than the Vanguard CFPs. See for example: Bogleheads :: View topic - Vanguard financial planning

[growing_older]

Did this when I moved a chunk to Vanguard. Advice was pretty generic, but not bad. They do have a thing about "diversifying" between index and active management, so if you want to go all passive, or all active, you'll have to be prepared to make changes to their recommendations. Also, there should be quite a few older threads on this topic.

[Notmuchlonger]

If you have not taken anytime to educate yourself with some good reading then ya they are ok. However nothing substitutes some personal education.

[FinanceDude]

The big issue with CFP's with mutual fund families is you're not getting unbiased advice like you would with an hourly CFP in your local area. They HAVE to use their own software for fund allocations, but they probably have a "juiced up" version Vanguard gives them access to.

Most financial planning software is the same, the BIG thing is the INTERPRETATION of the data........

Bottom line, they will cover the basics, but that's it........

[Rich_by_the_Bay]

Quote:

Originally Posted by FinanceDude The big issue with CFP's with mutual fund families is you're not getting unbiased advice like you would with an hourly CFP in your local area. They HAVE to use their own software for fund allocations, but they probably have a "juiced up" version Vanguard gives them access to...

FD, is that also true of CFPs who have access to DFA or other specific families of funds?

I noticed how Scott Burns, Edelman and others whose columns and approaches seem reasonable are nudging their readers toward DFA (not accessible to individuals). It may be a great family of funds, but there goes the objectivity you allude to...

[FinanceDude]

Quote:

Originally Posted by Rich_in_Tampa FD, is that also true of CFPs who have access to DFA or other specific families of funds?

DFA is intriguing. DFA requires you to "qualify" for DFA,and attend their boot camps and ongoing CE.

I suppose a DFA CFP would do nothing but DFA........

Quote:

I noticed how Scott Burns, Edelman and others whose columns and approaches seem reasonable are nudging their readers toward DFA (not accessible to individuals). It may be a great family of funds, but there goes the objectivity you allude to...

DFA has a good track record, but I think it's overhyped to some extent. Much like Vanguard isn't the only choice out there, neither is DFA, stocks, etc..........

[Lagniappe]

Quote:

Originally Posted by FinanceDude DFA is intriguing. DFA requires you to "qualify" for DFA,and attend their boot camps and ongoing CE. I suppose a DFA CFP would do nothing but DFA........ DFA has a good track record, but I think it's overhyped to some extent. Much like Vanguard isn't the only choice out there, neither is DFA, stocks, etc..........

My DFA adviser has recommended a couple of funds that were not DFA to get me to my desired AA. They don't cover all areas (in particular commodities) and it wasn't worth selling some of my Vanguard funds and taking the capital gains to swap to a substantially similar DFA fund.

[mickeyd]

Quote:

Are they worth talking with?

I found it helpful as a second party to bounce my own financial planning ideas off of. I used the service a couple of years ago and I received a written follow-up plan this year. I was not particularly impressed with their suggestions the first year (2006) and told the planner so.

They evidently listened to me, and others, because the plan that they presented to me this year was much better and had a lot more room for my asset allocation ideas. The opportunity to get a second opinion on my financial ideas when speaking with the planner for about 30 minutes was the most productive part of the process.

Your father would be wise to consider it, especially if it will cost him nothing but the time involved.

[RetireeRobert]

Quote:

Originally Posted by mickeyd I found it helpful as a second party to bounce my own financial planning ideas off of. ........... The opportunity to get a second opinion on my financial ideas when speaking with the planner for about 30 minutes was the most productive part of the process. Your father would be wise to consider it, especially if it will cost him nothing but the time involved.

Good points and good advice.

[Arc]

LOL - thanks for the link to Bogleheads - I spent some time there over the past couple days and am getting some very good information. I'll play there for a while and then have father schedule a meeting with Vanguard Advisor. I'm sure that will give us what we need to restructure for future.

Thanks all for your help.