Vanguard PAS $

[Midpack]

Don’t know if it’s correct but according to a recent thread on Bogleheads, here are the fees Vanguard generates through their PAS basic financial management service.

At 0.3% of AUM, I am sure Vanguard is recommending the same portfolio for everyone just adjusting for AA and maybe a few tweaks.

And I assume the advisors are paid a salary, most of the fees go to Vanguards top line.

I went to investor.com to get a review of Vanguard Personal Advisor Service and found that the average client balance there is $377,050. So the original poster's account balance of about $4 million is more than 10X the average account size at VPAS, so their account will get a lot of attention from Vanguard. Altogether, Vanguard PAS manages $299.2 Billion and that is more assets than some mutual fund companies! Vanguard PAS employs 1,945 advisors. So they are a big player in the Advisory business.

Ok - let's do the math . . . according to your posted numbers . . .

Vanguard PAS manages $299,200,000,000 portfolio with the average client balance of $377,050:
299,200,000,000 / 377,050 = 793,528.7 clients

Vanguard PAS employs 1,945 advisors for 793,528.7 clients
793,528.7 / 1,945 = 407.9 clients per advisor

Average client balance is $377,050 and pays 0.3% annually for PAS service:
$377,050 * 0.3% = $1,131.15 paid annually by each client

If each advisor has 407.9 clients and each client is paying $1,131 a year for service:
407.9 * $1,131 = $461,334.90 fees earned each year per advisor

Sign me up! (as an advisor! :moneybag )

 

[Markola]

We’ve been VPAS clients since 2018 with 7 figures in their AUM. Your math seems reasonable but I have no info it. It’s been a helpful planning service for a relatively reasonable price, with a couple of complaints. One is, we’ve had 4 different advisors in our 6 years, one of whom left nearly as soon as we first met with him, which is disruptive. Another is, Vanguard has decided to stick its head in the sand and not offer the new ETFs, which are the best performing ETFs in history. We might be moving everything to Fidelity soon.

 

[teej1985]

We’ve been VPAS clients since 2018 with 7 figures in their AUM. Your math seems reasonable but I have no info it. It’s been a helpful planning service for a relatively reasonable price, with a couple of complaints. One is, we’ve had 4 different advisors in our 6 years, one of whom left nearly as soon as we first met with him, which is disruptive. Another is, Vanguard has decided to stick its head in the sand and not offer the new ETFs, which are the best performing ETFs in history. We might be moving everything to Fidelity soon.

What new ETFs?

 

[foxfirev5]

Rhymes with triptoe.

 

[DrRoy]

I just hire myself.

 

[Sunset]

Rhymes with triptoe.

I need more coffee

You can just name the ETF.

 

[foxfirev5]

One example - FBTC.

 

[MichaelB]

<Mod note> Let’s please leave crypto out of the discussion.

 

[Koolau]

I just hire myself.

Yeah, no matter how well they do, Vanguard still gets paid. If I screw up or if Vanguard screws up, its still my money. I'll just pay myself for my own advisory service, thankyouverymuch!


Heh, heh, they DO seem to be pushing their advisory service these days. YMMV