Midpack
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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.
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 )