Vanguard Offer - Enroll in Digital Advisor and enjoy no advisory fees for 90 days

[ItsTime]

Hello,

If I understand correctly, Vanguard is now offering a free (e.g. no fees) 90-day trial of their Robo service.

https://investor.vanguard.com/advice/robo-advisor

I am curious if any community members have signed up for this offer and if so, any thoughts on the experience?

Thanks in advance for any feedback.

ItsTime

 

[Koolau]

First I've heard of it. IF I were looking for an advisor, I'd consider it.

My problem is I've had access over the years to a couple of advisors and I refused to take their advice. Seem pointless to try another but YMMV.

 

[donheff]

So, the idea would be to enroll, digest the advice, then cancel before payments kick in?

 

[punkinhead]

As bad as Vanguard's website is I'd be concerned about how difficult it would be to cancel.

 

[DayDreaming]

From that web page: "For all-index investment options, you'll pay no more than $2 a year for every $1,000 Digital Advisor manages" <- that's a pretty hefty fee - you would pay $2,000/year to manage a portfolio of $1,000,000. No thanks!

 

[target2019]

It's $2 yearly on each $1,000 invested. There's a rebate of $.50, according to OP link.

I would decline this offer, because part of the menu they force on you includes international bonds and stocks.

Here's a page from NerdWallet, and you can compare features of different robo-advisors: https://www.nerdwallet.com/best/investing/robo-advisors

 

[ItsTime]

Thanks for the responses. I was thinking of a test run given the 90 day trial but probably not worth any potential issues in cancelling before fees are charged.

 

[Koolau]

Thanks for the responses. I was thinking of a test run given the 90 day trial but probably not worth any potential issues in cancelling before fees are charged.

Honestly, I wouldn't let that stop me if I thought this 90 day trial might be worth a look. It might be a little w*rk to get it cancelled, but if they say you can cancel within 90 days, they have to make that good. I don't think they want to lose your assets because they "trapped" you into a fee. In my case, I would't be interested because my track record is not following advice - even advice I've paid for. YMMV

 

[VanWinkle]

As bad as Vanguard's website is I'd be concerned about how difficult it would be to cancel.

-1

 

[VanWinkle]

From that web page: "For all-index investment options, you'll pay no more than $2 a year for every $1,000 Digital Advisor manages" <- that's a pretty hefty fee - you would
pay $2,000/year to manage a portfolio of $1,000,000. No thanks!

It's a bargain compared to most AUM models that would charge 8-12K for the same 1 million portfolio. I wouldn't do it either, but for those that are in need of reassurance, 2 k on a million portfolio sounds cheap.

VW

 

[target2019]

For a minimum of $3,000 in a Vanguard Brokerage Account, we'll monitor your investments and rebalance your portfolio as needed.

If you really want to see, just put in $3,000.

 

[Midpack]

I wouldn’t. Even if you avoid fees by getting out within 90 days, you’re almost certainly looking at a taxable event as they buy and sell to adjust your AA to their model, and taxes from rebalancing thereafter. I want to control what taxes I pay when to the penny.

If you have no intention of adjusting to their recommendations going in, I’d consider it ‘bad faith’ to enroll.

Sadly Vanguard used to provide a free complete portfolio review with very detailed recommendations once a year including a one on one phone review for Flagship accounts and above. Then IIRC Portfolio Watch did something similar without the phone call. Now Portfolio Watch is just a rote AA analysis with no recommendations…

However, we may recommend you sell down those or other investments before enrolling. Since there may be costs and tax consequences associated with selling your existing investments, we use a breakeven cost analysis to weigh the costs of transitioning the investments you hold before enrolling in Digital Advisor (see our Digital Advisor brochure for more details). We estimate the capital gains tax impacts compared to the expense ratio benefits from selling investments that aren't our lead recommendation (the investment we would typically recommend for you), but that still align with your recommended asset allocation. So depending on the outcome of the breakeven analysis, we may recommend that you continue to hold certain investments subject to our portfolio construction guidelines—or we may determine it's in your interest to sell down a particular investment during enrollment.

 

[Montecfo]

They are the only broker which does not participate in Kiplinger's and Barrons' annual rankings of brokers. That for me is ample reason to pass.