Wealth management services - Vanguard? Fidelity?

[PointBreeze]

Hello,

My question is for a dear friend. She was recently diagnosed with Parkinson's and is having some mild cognitive issues and feels overwhelmed by the diagnosis. She has been managing her own money until now (although not enjoying it) and she has it split between Vanguard and Fidelity. She wants to consolidate it at one of the two and get wealth management services because she wants someone else to take charge. She wants to go with Vanguard because she says they take a lower fee for the service. I'm concerned about that choice because of the complaints re: customer service I've read here.

I would like to present her with the best of the ER community's advice about which of the two firms to go with. She has $1.5 million to invest.

Thank you in advance for your wise counsel as to which firm to go with. I don't think she'd be open to something other than one of these two firms at this point.

 

[njhowie]

You need to stay out of it and let her make her own decision. She says she's comfortable with Vanguard and wants to go that way based on valid reasoning. Let her, step aside. You are setting yourself up to be the scapegoat if you convince her not to go with Vanguard.

She's an adult and clearly is willing to take responsibility for the decision, so you need to let her. All of the best ideas mean squat when you're putting your money on the line and have already come to a decision.

In the end, whether Vanguard customer service is better or worse is not going to make a difference in how the portfolio performs.

Again, step aside and don't insert yourself where you have not been directly asked to assist. You have nothing to gain and could potentially damage a good friendship.

 

[Dash man]

I would suggest either Fidelity or Schwab. Schwab has Trust services that are reasonable in cost if she wants to set up her assets in a trust and doesn’t have someone else she can rely on as a trustee. That’s who we’re using.

 

[Accidental Retiree]

Fidelity and Schwab both have branch offices you can visit to do business.

Vanguard does not (to my knowledge).

That difference alone would cause me to choose Fidelity or Schwab. With cognitive issues, I’d expect to need face-to-face customer service.

 

[donheff]

I have Parkinson's and was relieved to learn that I need to think in decades not years. So far no cognitive issues but they are probably lurking out there in my 80s. On one level I agree that stepping in can be problematic. If she is comfortable with Vanguards .3% or whatever it is for managed portfolio services I suspect she will do just as well as with the others -- for now. But, if she is on her own, the trust services Dash Man speaks of will soon be critical. While she is competent she needs to analyze who should control her finances and how. I don't know much about that because I have family I can rely on to boot my butt out of the checkbook. But, if I was on my own I would take a close look and let go of the reins to a competent service before I lost the competence to do so.

 

[jazz4cash]

If choosing between Fido, VG, and Schwab I think she’s in good hands and I would steer clear of getting more involved. I might go so far as to set up a checklist of features with a column for each shop.

 

[PointBreeze]

You need to stay out of it and let her make her own decision. She says she's comfortable with Vanguard and wants to go that way based on valid reasoning. Let her, step aside. You are setting yourself up to be the scapegoat if you convince her not to go with Vanguard.

She's an adult and clearly is willing to take responsibility for the decision, so you need to let her. All of the best ideas mean squat when you're putting your money on the line and have already come to a decision.

In the end, whether Vanguard customer service is better or worse is not going to make a difference in how the portfolio performs.

Again, step aside and don't insert yourself where you have not been directly asked to assist. You have nothing to gain and could potentially damage a good friendship.

To clarify, my friend explicitly asked for my advice about consolidating her finances at either Fidelity or Vanguard and said she was leaning toward Vanguard. I, too, have my portfolio split between Fidelity and Vanguard, but I am fine with that and manage my own finances.

I told her that I had heard a lot of complaints about Vanguard’s customer service on this forum. I posted my question here I order to get some responses to share with her.

 

[PointBreeze]

I would suggest either Fidelity or Schwab. Schwab has Trust services that are reasonable in cost if she wants to set up her assets in a trust and doesn’t have someone else she can rely on as a trustee. That’s who we’re using.

Thanks, Dash man.

 

[PointBreeze]

Fidelity and Schwab both have branch offices you can visit to do business.

Vanguard does not (to my knowledge).

That difference alone would cause me to choose Fidelity or Schwab. With cognitive issues, I’d expect to need face-to-face customer service.

Thanks, Accidental Retiree. Yes, I did share with her that there are two Fidelity offices in our area, and that Vanguard has no offices one can visit anywhere.

 

[PointBreeze]

I have Parkinson's and was relieved to learn that I need to think in decades not years. So far no cognitive issues but they are probably lurking out there in my 80s. On one level I agree that stepping in can be problematic. If she is comfortable with Vanguards .3% or whatever it is for managed portfolio services I suspect she will do just as well as with the others -- for now. But, if she is on her own, the trust services Dash Man speaks of will soon be critical. While she is competent she needs to analyze who should control her finances and how. I don't know much about that because I have family I can rely on to boot my butt out of the checkbook. But, if I was on my own I would take a close look and let go of the reins to a competent service before I lost the competence to do so.

I’m glad your PD is moving slowly, donheff. Unfortunately, my friend started having symptoms in November and is already using a walker much of the time and is having problems with memory, organizing things, and anxiety.

She does have a competent daughter who can step in when necessary, but wants to stay independent while she can.

 

[tulak]

I trust Vanguard more than Fidelity with managing my assets.

I would expect that wealth services, at either company, will get you better service. Hopefully a direct line to the management group bypassing standard customer service.

 

[Sunset]

Also of concern would be OP's friend needs to get a financial or overall POA set up with her competent daughter now while there is no question of competency.
Same with all the health directives and POA's.

With a POA, and even Authorization to view the account on the brokerage account, it would be mostly set.

 

[StillFiguringItOut]

I’ve used Vanguard’s advisor services for a number of years now, and overall am pleased. I’ve had no problems with long wait times when calling and prefer using the phone for any needs rather than going to a location. My mother was also using VG’s advisor services, and when she died, VG made the asset transfer very easy.

 

[Midpack]

I told her that I had heard a lot of complaints about Vanguard’s customer service on this forum. I posted my question here I order to get some responses to share with her.

You may be missing an important distinction. For decades Vanguard used to cater to DIY customers who did not need/want to pay for advisors. That stance has changed, they are now encouraging/promoting their Personal Advisor Service.

Most if not all the complaints about Vanguard’s customer service you read here are from customers who do NOT pay for Vanguard’s advisory services. You are asking about their Personal Advisor Service, that’s different. In fact, the decline in service for non PAS customers is due in part, maybe largely, to Vanguard promoting their PAS services. Makes sense, you can’t ask people to pay for customer service and give it away to those who don’t pay.

You can’t go wrong with Vanguard, Fidelity or Schwab paid advisors. I’d probably go with Vanguard for the lower fees and passive style. The last thing you want for your friend with cognitive issues is active investing. But someone is going to have to oversee her account eventually? But as others have noted, if you want brick-n-mortar locations, that would count out Vanguard.

 

[ImThinkin2019]

We have money in VG and Fidelity, which we manage ourselves.

We also have money at Personal Capital and Morgan Stanley Wealth Management in Boca Raton. In both those cases, we let them manage the funds. That way we can see who does better (us or one of them).

So far, after about a year, Morgan Stanley is way ahead of everyone else. By far.

FYI in case it's useful.

 

[Time2]

To clarify, my friend explicitly asked for my advice about consolidating her finances at either Fidelity or Vanguard and said she was leaning toward Vanguard. I, too, have my portfolio split between Fidelity and Vanguard, but I am fine with that and manage my own finances.

I told her that I had heard a lot of complaints about Vanguard’s customer service on this forum. I posted my question here I order to get some responses to share with her.

My last three calls to Vanguard were answered in a rather short hold time and my question was answer or problem was solved. While I have read the thread, it is not my experience.

 

[MRG]

I’ve used Vanguard’s advisor services for a number of years now, and overall am pleased. I’ve had no problems with long wait times when calling and prefer using the phone for any needs rather than going to a location. My mother was also using VG’s advisor services, and when she died, VG made the asset transfer very easy.

+1
On PAS. It's our plan if i predecease my wife. The customer experience is different from just calling the 800 number.

 

[PointBreeze]

Thanks, Midpack - very helpful distinction indeed.

 

[PointBreeze]

Thank you!

 

[PointBreeze]

Interesting!

 

[Texas Proud]

You may be missing an important distinction. For decades Vanguard used to cater to DIY customers who did not need/want to pay for advisors. That stance has changed, they are now encouraging/promoting their Personal Advisor Service.

Most if not all the complaints about Vanguard’s customer service you read here are from customers who do NOT pay for Vanguard’s advisory services. You are asking about their Personal Advisor Service, that’s different. In fact, the decline in service for non PAS customers is due in part, maybe largely, to Vanguard promoting their PAS services. Makes sense, you can’t ask people to pay for customer service and give it away to those who don’t pay.

You can’t go wrong with Vanguard, Fidelity or Schwab paid advisors. I’d probably go with Vanguard for the lower fees and passive style. The last thing you want for your friend with cognitive issues is active investing. But someone is going to have to oversee her account eventually? But as others have noted, if you want brick-n-mortar locations, that would count out Vanguard.

+1 on this...


I just move money to Schwab and have talked to a free consultant and am happy (main reason for me is if I pass my DW will need a lot of help).. but as mentioned all 3 will be good... not sure which is best...

 

[HarveyS]

I'd share the link
https://www.early-retirement.org/forums/f44/horrendous-customer-service-at-vanguard-116904.html
with her and let her see what the concerns posted are first-hand.

Then show her this thread.

Then she has the same info as you and can make her own decision.