Vanguard High Net Worth

Vanguard applies sophisticated investment strategies and offers custom solutions to meet the needs of high-net-worth individuals. Anchored in value and stability over the long term, Vanguard’s services to high-net-worth investors focus on tailored wealth management and a holistic approach to financial planning. Vanguard uses its extensive resources and experience in the market to serve the unique needs and investment goals of its high-net-worth clients, ensuring the effective development and preservation of their assets.

Table of Contents

• Vanguard Review 2024: Pros and Cons
  • Pros and Cons
    • Pros
    • Cons
  • Compared to Similar Brokers
• Where Vanguard shines
  • Large mutual fund selection 
  • Leader in low-cost funds
• Where Vanguard falls short
  • Trading platform 
  • Investment minimums
• Where Vanguard is best
• Vanguard at a glance
• More about Vanguard’s ratings
• Who Should Choose Vanguard Personal Advisor?
  • Vanguard Personal Advisor
  • Vanguard Digital Advisor
• Vanguard Personal Advisor Services Pros and Cons
• How Vanguard Personal Advisor Works
• How Vanguard Personal Advisor Invests Your Money
• Ways to Invest with Vanguard Personal Advisor Services
• Vanguard High Net Worth Personal Advisor Fees and Costs

Vanguard Review 2024: Pros and Cons

Vanguard has been for a long time identified as a leader in low-cost investing, which is a great advantage to those saving for retirement—an area where the focus on minimizing fees for the company can be a great benefit since low-cost solutions can mean substantially higher returns in the long run. Vanguard’s investment structure offers huge benefits particularly to investors who adopt a buy-and-hold strategy—a methodology by which assets are bought and held for a relatively long period.

This dovetails well with Vanguard’s stable of low-fee mutual funds and ETFs and often holds special appeal to retirement savers. Investors inclined to put low-cost, diversified options into their investment mix often find themselves looking at Vanguard’s retirement funds or its family of broad-market index funds.

Vanguard’s appeal diminishes when it comes to catering to the needs of beginner investors and active traders. Vanguard often seems to lack in other key areas, despite such offerings as $0 stock trading commissions that make it attractive to a broad audience. First, the trading platform is not as competitive or sophisticated as the ones offered by other brokers, which really hone in on the active trader. For users who need real-time data, advanced charting tools, and the capability to execute fast, sophisticated trades, Vanguard’s platform might appear less intuitive. This could be a huge deterrent for most traders, who rely on technical analysis and constant buying and selling to exploit the volatility in the market.

Vanguard may have fewer easy-to-digest educational resources for new investors than other platforms. Some brokers offer great education tools that range from webinars and interactive courses to real-time coaching. Vanguard has much less to offer. This might be a bit intimidating for newbies in the investment game, because strong educational support can contribute to knocking down barriers for new investors.

Though Vanguard is one of the best low-cost, long-term choices for investors, it definitely does not meet every person’s needs in the market. Active traders and beginners who are looking for more from a brokerage than low cost will seek out those who will offer them improved trading firepower as well as a large number of educational resources. As such, Vanguard’s distinct advantages in one area do not necessarily translate into universal appeal, particularly for those whose investing strategies demand more than just low fees.

Pros and Cons

Pros	Cons
Extensive selection of mutual funds.No commissions on stocks, options, and ETF trades.	Only offers a basic trading platform.
Pioneers in offering low-cost funds.	Provides limited research and data resources.
Competitive interest rates on uninvested cash balances.
Superior quality in order execution.

Pros

Extensive selection of mutual funds

Vanguard offers over 190 U.S.-based funds, which cater specifically to meeting the diverse needs and desires of investors. Vanguard’s offerings run the gamut from sector-specific funds to index funds and from active to passive for both stocks and bond investments. This offers the investor a diversified range of funds, allowing for an investment strategy that corresponds to the investor’s financial needs, aversion to risk, and investment timeline. What sets Vanguard’s mutual funds apart from the rest is their outstanding track record, management experience, and management fees for investors, providing an edge for clients participating in a wide range of market sectors and asset classes.

No commissions on stocks, options, and ETF trades

Vanguard offers stock and option trades without commission, with the same quality as ETFs, to create a low-cost investment environment. This fee structure may appeal to active traders or those who want to diversify their portfolio, by not accumulating excess cost from too many transactions. Vanguard eliminates commissions, giving an investor a greater return on their investment, by eliminating the overhead associated with trading costs. This is a great advantage, especially for frequent traders or those who have large portfolios, since the transaction fees involved are likely to balloon very quickly.

Pioneers in offering low-cost funds

Vanguard has a reputation as a leader in low-cost investment funds as part of its core philosophy—to reduce investor costs so returns are enhanced. This, combined with their focus on low expense ratios, makes their array of mutual and index funds very attractive to the investor whose primary concern is cost. This emphasis on affordability enables clients to keep more of their investment returns, which in many cases is the key to long-term wealth accumulation. Where the cost is lower, there is better net performance, hence major institutional investors, along with individual investors, choose their low-cost funds with Vanguard.

Competitive interest rates on uninvested cash balances

Vanguard offers very competitive rates on customers’ cash balances, which are not invested in the market. This feature is of paramount value to those investors who hold large cash reserves as part of their overall investment strategy, ensuring safe liquidity that generates income. High interest rates on these balances can significantly enhance the total returns of an investment portfolio, especially in volatile or bearish market conditions where investors may prefer to hold more cash.

Superior quality in order execution

Vanguard prides itself on its quality in order execution—making sure to place those orders into the marketplace quickly and at the most favorable prices. High-quality execution is critical for reducing costs and slippage, which is the variance between an expected price and the actual price at which a trade executes. This is essential for active traders and, to a great extent, for traders dealing in big volumes. Even small differences in execution quality will impact overall performance. Vanguard’s commitment to superior execution helps investors achieve the best possible outcomes from their trading decisions, enhancing overall investment satisfaction.

Cons

Only offers a basic trading platform

The trading platform by Vanguard is very basic, simple in design, and really meant more for buy-and-hold long-term type traders rather than active traders. This core-level platform lacks advanced tools and features usually found in more sophisticated trading environments: the absence of complex charts, algorithmic trading, and customization features. This software, of course, has the advantage of simplicity, which may be better suited to beginners or people with simple strategies for their investments, but they do not serve more experienced investors whose trading decisions are based on the requirement of detailed analytic tools.

Provides limited research and data resources

The research offerings and data available through Vanguard are relatively modest compared to what is provided by some other brokerages that focus heavily on active trading. Resources from Vanguard might include stock and funds basic data, market reviews, and maybe some third-party research, but in general, it does not get into more intricate, sophisticated research, which may be fundamental to a more complex investment strategy. It is a limitation that certainly has the potential to turn off some investors. Those interested in comprehensive current market analysis—down to minute reporting—for their use in guiding their trading decisions may therefore look elsewhere.

Compared to Similar Brokers

Vanguard	Charles Schwab	Interactive Brokers IBKR Lite	J.P. Morgan Self-Directed Investing
Fees $0 per trade	Fees $0 per online equity trade	Fees $0 per trade	Fees $0 per trade
Account Minimum $0	Account Minimum $0	Account Minimum $0	Account Minimum $0
Promotion: no promotion available at this time	Promotion: no promotion available at this time	Promotion: no promotion available at this time	Promotion : Get up to $700when you open and fund a  JPMorgan Self Directed Investing account with qualifying new money.

Where Vanguard shines

Large mutual fund selection

Vanguard offers a broad choice of over 3,500 no-transaction-fee mutual funds for an investor to easily buy and sell shares without further costs. This ranges from traditional mutual funds to just about every variety of proprietary funds and ETFs that focus on socially responsible investing. These funds meet environmental, social, and governance (ESG) criteria, attracting investors who seek to combine their investment choices with ethical or social values. This allows Vanguard to respond to an expanding array of investor inclinations and financial aims with low-cost, socially responsible investment choices, hence providing investment options that suit the investor’s personal and financial aspirations.

Leader in low-cost funds

What has really set Vanguard apart as an investment community leader is a clear focus on funds with exceptionally low expense ratios—especially its index funds and ETFs. This low cost is a cornerstone of Vanguard’s philosophy: it helps the investor keep more of their returns, which can compound significantly over time. This makes Vanguard an attractive option for long-term investors with buy-and-hold strategies, who may find the low fees along with an incredibly large array of funds provided by Vanguard hard to pass up.

By focusing on cost efficiency, Vanguard not only improves the opportunity for higher net returns but also becomes the best choice for individuals who are interested in maximizing their investment earnings over many years. This approach has made Vanguard synonymous with affordability and value in the investing community.

Where Vanguard falls short

Trading platform

Vanguard’s trading platform is built for simplicity and ease of use, not necessarily for serious traders. It is well-suited for beginners or those not interested in the bells and whistles of “sophisticated” investing. The platform does not include the full range of analytical and educational tools that many brokers provide, such as the advanced interactive charting software, technical analysis capabilities, and real-time data feeds used by active traders who need to quickly make informed decisions based on the latest trends. The lack of these capabilities in Vanguard’s platform is a major limitation for individuals who want to go into stock trading in depth or may need analytical details to advise their investment strategies.

Investment minimums

Vanguard sets a relatively high barrier for entry, with its investment minimums ranging from $1,000 for most retirement funds and the Vanguard STAR Fund, to $3,000 for other funds. These minimums are designed to encourage serious investment commitments and support the fund’s management strategy. However, they can be prohibitively high for many beginner investors who may not have substantial capital to start investing. This is especially challenging in a financial environment where many other investment platforms offer lower entry points or even no minimum investment requirements, allowing new investors to start building their portfolios with much smaller amounts. For those just starting out or with limited funds, these high minimums might steer them away from Vanguard to platforms that are more accommodating.

Where Vanguard is best

Vanguard is very highly recommended for an investor seeking to build wealth over time and for an individual focused on retirement planning, putting Vanguard at the top of the list for a certain class of investors—besides the firm’s unwavering commitment to low-cost investing and its broad range of index funds and ETFs. Such features will align well with the goals of any individual who wants to grow their investments steadily, with minimal charges, and at the same time have their funds diversified.

Long-term or retirement investors

Vanguard’s philosophy and investment products are tailor-made for the long-term or retirement investor, who would benefit from Vanguard’s low fees and high-quality diversified investment choices, including mutual funds and ETFs designed for long-term growth. Vanguard attracts retirement investors because it provides a variety of target-date retirement funds where the asset mix automatically changes as the target date for retirement approaches. This makes investing easier and helps ensure that, given an investor’s changing risk tolerance and retirement timeline, portfolio risk is appropriately managed.

Those who prefer low-cost investments

Vanguard holds the leadership position in low-cost investing; it’s truly the natural platform for the most cost-sensitive investor. Low costs are very important as costs are related directly to net returns; that is, the lower they are, the greater the portion of investment gains that remains in the investor’s pocket. But ultimately, what has set Vanguard apart is its structure: being a client-owned company, it is in the clients’ best interest to focus on reducing fees, which has ultimately led Vanguard to maintain the lowest expense ratios for their funds across the widest variety of funds. And the benefit of this cost-saving is passed on to ensure the investor’s wealth accumulation.

Index fund and ETF investors

Vanguard probably stands for one thing: the greatest range of low-priced index funds and ETFs offering every possible form of diversified market access for its investors. Most investors turn to index funds and ETFs as investment vehicles that generate a return very close to either the larger market or individual segments of the market, without paying massive fees while avoiding active management that is synonymous with traditional mutual funds. Most interestingly, Vanguard products have historically strong returns with low volatility, which attracts passive investors. To add to the allure, many investors may be attracted to a variety of products that can be customized to suit their risk tolerance.

Vanguard at a glance

Account minimum	$0; however some fund minimums start at $1,000.
Stock trading costs	$0
Options trades	$0 + $1 per contract.
Interest rate on uninvested cash	5.27%.
Account fees (annual, transfer, closing, inactivity)	No closing, inactivity or transfer fees. $20 annual account service fee for all brokerage accounts and IRAs. Waived for clients who sign up for statement e-delivery.
Number of no-transaction-fee mutual funds	More than 3,400 funds from outside providers and 191 Vanguard funds charge no transaction fees.
Tradable securities	• Stocks. • Bonds. • Mutual funds. • ETFs. • Options.
Trading platform	Basic trading platform.
Mobile app	Trade mutual funds, ETFs and stocks; monitor account activity and analyze performance; follow market news and research investments.
Research and data	Average quality but free.
Customer support options (includes how easy it is to find key details on the website)	Phone support Monday-Friday, 8 a.m.-8 p.m. Eastern; email support.

More about Vanguard’s ratings

Account minimum: 5 out of 5 stars

One of the really cool things about Vanguard is there’s no required minimum balance to open an account with the company. Literally, with $0 at the account minimum line, Vanguard has its investing products available to investors of all sizes, even if it’s not catering to the absolute smallest ones out there. This means that there is room for every individual who wants to be a member of the investment community, even starting off with very minimal amounts or opening an account to just learn the platform before committing some funds.

It should be noted that, while an account has no minimum balance, most of the mutual funds offered do, in fact, require a minimum investment amount. Of those funds that catch the eye of investors, their minimums generally range from $1,000. These investment requirements at the outset are put in place to make sure that mutual funds have efficient managerial control keeping the strategic investment approach in place.

This is to say that although it is possible for investors to open an account without money down, actual investment into some of the more popular funds will require gathering a modest amount of capital. This is appealing to the human aspect of saving and investing, encouraging a commitment in line with Vanguard’s focus on long-term, growth-oriented investing.

Stock trading costs: 5 out of 5 stars

Vanguard has joined the broader industry’s movement toward significantly lowering the barriers to individual investing by eliminating all stock trading commissions. So, this is a strategic shift that puts Vanguard in line with its competition, increasingly pointing towards a more conducive fee structure for trading more often and accessing the market more regularly. Without the cost of trading equities, Vanguard becomes more attractive to more types of investors, and it can support a more dynamic trading environment.

This is of particular advantage to active traders and those willing to diversify their portfolios without having to bear additional costs. In other words, as more brokerages adopt this model, the competitive landscape does shift and pushes firms to innovate further in services and technology, wooing clients.

Options trades: 2 out of 5 stars

The firm offers commission-free options trading, which initially appears to be a significant cost advantage for investors. However, it’s important to note that while the commission may be waived, there is still a contract charge of $1 per trade. This fee is relatively high compared to many other brokerage firms, potentially making Vanguard less appealing for active options traders who execute a large number of transactions.

Nevertheless, Vanguard provides notable benefits for investors with substantial assets. Specifically, account holders who have between $1 million and $5 million invested with Vanguard qualify for 25 free options trades each year. This can significantly offset the higher contract charge for those who trade options moderately throughout the year. Furthermore, customers with more than $5 million in Vanguard assets receive an even greater benefit of 100 free options trades per year.

This tiered approach to rewards underscores Vanguard’s focus on catering to high-net-worth individuals, offering them valuable perks that can enhance their investment experience and reduce trading costs.

Account fees: 5 out of 5 stars

Vanguard’s fee structure is designed to be straightforward and investor-friendly, significantly reducing the common costs that erode investment gains. Notably, the company does not impose fees for account closure, funds transfer, or inactivity, which are often charged by other investment firms. This approach helps investors retain more of their returns by avoiding the nickel-and-diming that can occur with more fee-intensive brokers.

By eliminating these fees, Vanguard enhances the appeal of investing for both active and passive investors, ensuring that account maintenance costs do not deter individuals from managing or adjusting their investments as needed.

Additionally, Vanguard does charge a $20 annual account service fee for all brokerage accounts and IRAs, which covers the basic administrative expenses of managing these accounts. The easiest way to avoid this fee is to choose electronic delivery of statements. E-delivery clients will receive all their account statements and notices electronically, a green and secure choice, and quicker than delivery on paper.

This move from Vanguard speaks to fostering more effective and sustainable practices in finance management. The firm is giving investors a bonus that prompts them to move from paper to digital communication, which is a simple yet effective way to further reduce the annual costs of investment borne by clients at Vanguard, therefore rendering the investment service provided by the firm cost-effective.

Interest rate on uninvested cash: 5 out of 5 stars

The interest rate applied to uninvested cash in your Vanguard account can differ depending on how you’ve set up your account, particularly regarding your choice of settlement fund. For example, Vanguard automatically sweeps the uninvested cash into its Federal Money Market Fund. This fund was yielding 5.27%, as of August 31, 2023—evidently, one of the most competitive. This rate offers not only a great opportunity for an investor to earn returns on cash, which might otherwise be sitting idle, but also reflects a continued commitment to adding value to their client’s investment experience.

This notably competitive interest rate is among the highest noted by brokers in a review, making Vanguard an attractive option to those looking to get the most from the assets in their portfolios. The rate offered by the Federal Money Market Fund reflects broader economic conditions and Vanguard’s efficient fund management. It serves as a safe parking place for cash, ensuring that investors’ uninvested capital isn’t just secure but also working for them, accruing interest at one of the best available rates in the brokerage landscape.

Number of no-transaction-fee mutual funds: 4 out of 5 stars

Vanguard is renowned for its leadership in creating low-cost funds, a legacy that traces back to the firm’s founder, Jack Bogle, who is credited with inventing the index fund. This makes Vanguard stand out for any investor who wants to take advantage of such funds. Presently, through Vanguard, an investor can access over 3,500 non-Vanguard funds and 191 Vanguard funds. Vanguard’s mutual funds and ETFs charge low fees, and the fees are substantially lower than the industry average. Vanguard comes with an average expense ratio of 0.09%, whereas a report by Morningstar in 2023 stated that the average number for 2022 stood at 0.37% for all mutual funds and ETFs.

Vanguard consistently strives to lower costs even further. It does so with the help of its Admiral Shares, wherein the expense ratio is an outstanding 29% lower than that of any other class of mutual funds belonging to the company. The minimum investment required is $100,000, and the funds catered to higher account balances. However, in a manner that shows accessibility to the funds, Vanguard lowered the minimum investments of most of those funds to just $3,000 in 2018. That furthered Vanguard in its pursuit of more value and affordability for more investors.

Tradable securities available: 3 out of 5 stars

Vanguard gives its investors the possibility to trade a diversity of assets: stocks, mutual funds, ETFs, and even options. Vanguard offers a range of bond investment choices, including Treasury bills, U.S. government agency securities, municipal, corporate, and foreign government bonds, CDs, preferred bonds, and bond exchange-traded funds for the interested investors looking for fixed income.

Even though Vanguard has a solid lineup most appropriate for retirement investors, it is not a firm that can provide everything for active traders looking for the widest opportunity for trading, including forex and futures trading.

Also, the platform offers a good selection of Vanguard fractional shares, which allows an investor to buy high-priced stocks at a lower entry price. This is, however, allowed on Vanguard ETFs only.

Trading platform: 2.5 out of 5 stars

The Vanguard platform is really no-frills and easy. In fact, it’s one of those geared toward the retirement investor who has an eon for a long-time horizon. Other brokers would be more appropriate for users needing advanced features, such as IPO access or over-the-counter trading.

To open an account, it may take a little more effort with Vanguard than it does with some other brokers. For example, an attempt to transfer in money from a smaller credit union to fund an account seemed to get hung up in a way that could only be resolved by mailing a check to Vanguard—clearly, not ideal circumstances for a rookie raring to go trading yesterday.

For longer-term holders of an investment, they may be more understanding in that the setup and funding of an account has a time delay that is not such an inconvenience.

Once the account is active, Vanguard impresses with its robust performance. The platform boasts an execution quality rate of 99.2%, which ranks it among the leaders in this industry.

Moreover, what is unique about Vanguard is that it is among the few brokers who do not receive payment for order flow, whereby they are not paid in exchange for directing their orders through a certain market-maker. This practice really speaks volumes to Vanguard’s commitment to a “client-first philosophy,” making sure that the interest of their investors is always held as a priority.

Who Should Choose Vanguard Personal Advisor?

The world of robo-advisors can generally be categorized into two types: light touch and heavy touch. Light touch robo-advisors, such as Vanguard Digital Advisor, are known for their low minimum balance requirements, fully automated investment processes, and minimal fees, making them ideal for entry-level investors.

On the other end, heavy touch robo-advisors offer more personalized services with the availability of live financial advisors and tailor-made investment strategies but at a cost of a higher minimum balance and fees. The best example of such a kind is Vanguard Personal Advisor—a hybrid service that offers robo-advisory and consultancy by real human consultants.

Vanguard Personal Advisor requires a minimum of $50,000 of investable assets to open an account. Some sources that can contribute to these assets are existing monies taken from another Vanguard account, which can be a brokerage account or an individual retirement account (IRA). These assets should cumulatively value up to the $50,000 in Vanguard accounts. The service charges an annual advisory fee of 0.30%, wherein reduced fees apply to asset pools of larger sizes.

However, the minimum investment can put Vanguard Personal Advisor out of reach for newer investors. The very competitive fee structure certainly serves as bait for those looking for a sophisticated robo-advisor with a personal touch. Consider this: It takes a $50,000 minimum to open a Vanguard Personal Advisor account, and its 0.30% fee undercuts what Personal Capital or Betterment Premium would have you pay by about half.

Vanguard Personal Advisor

Vanguard Personal Advisor is designed for burgeoning affluent investors who are starting to build substantial savings across their investment accounts and seek guidance for their long-term financial planning. This service provides personalized financial advice, addressing both current and future financial aspects, and crafts a tailored financial plan to direct your investment strategies. Although the service requires a $50,000 minimum investment, this threshold is significantly lower than what many traditional financial advisors demand to manage your finances, making it more accessible for those beginning to accumulate wealth.

Moreover, using Vanguard Personal Advisor offers substantial cost savings compared to traditional financial advisors and even some of the top competitors in the industry. It costs about 25% less than Betterment Premium and nearly a third of what Personal Capital charges. While these competitors offer valuable services, the lower cost of Vanguard’s option means more of your money stays invested and continues to grow, enhancing your long-term financial growth.

Vanguard Digital Advisor

An investment in a fund may be subject to one or more of the following risks. Every prospectus contains all the required information about the investment objective, investment risks, fee and charge information, and all other required details of a fund. It is therefore very pertinent to read the prospectus before making an investment decision.

Vanguard Digital Advisor offers an all-digital advisory service with an annual net advisory fee target of 0.15% across your enrolled accounts. Actual fees may, however, vary depending on the exact assets held in each account. The service begins with a 0.20% annual gross advisory fee to manage Vanguard Brokerage Accounts. This fee is offset by crediting you for revenues that VGI or its affiliates earn from the securities in your portfolio managed by Vanguard Digital Advisor, specifically including the portion of the expense ratios from the Vanguard funds in your portfolio that VGI or its affiliates receive.

The net advisory fee can also differ based on the type of enrolled account. The total combined cost of the annual net advisory fee for Vanguard Digital Advisor, plus the expense ratios of Vanguard funds in your managed portfolio, comes out to be 0.20% for Vanguard Brokerage Accounts. This and other important information are included in Form CRS and the brochure “Vanguard Digital Advisor.”

Vanguard Personal Advisor Services Pros and Cons

Pros	Cons
– Provides both fiduciary advisory services and robo-advisor capabilities.	– Requires a high minimum account balance of $50,000.
– Offers a variety of portfolio choices.	– Lacks offerings in individual stocks, bonds, cryptocurrencies, and options.
– Includes an option for environmentally and socially responsible investing (ESG).
– Features automated tax-loss harvesting.

An integral advantage of Vanguard Personal Advisor Services is that clients can work with certified fiduciary advisors. These advisors are crucial in providing the expertise to help you maximize your return on investments, targeting your goals, and managing your portfolio’s performance. You can seek advice from an advisor on various topics including:

• Prioritizing your financial goals
• Strategies for tax optimization
• Managing healthcare expenses
• Handling debt effectively
• Planning retirement spending
• Coping with unexpected financial demands

Vanguard Personal Advisor Services include tax-loss harvesting. This is the selling at a loss of any kind of security, whether stocks, ETFs, or mutual funds, to cushion against the capital gains that might be realized in your investment portfolio. The goal of this approach is simple: to bring your tax liability down and thus allow you to increase your returns on investments.

How Vanguard Personal Advisor Works

The on-ramp into Vanguard Personal Advisor starts with a questionnaire on your financial situation. The first questionnaire should take about 15 minutes. This questionnaire has quite simple questions about your marital status, your desired age for retirement, your earnings, your expenses at this stage, your attitude to taking risks, and the amount of money you would like to invest. All these establish a starting point to providing you with a tailor-made investment strategy.

The strategy may consider other investments, like a 401(k) account, IRA, or a 529 education savings plan for your kid or grandkid, creating a holistic approach to every aspect of investment. Including these accounts allows Vanguard Financial Advisors to provide a big picture of all your assets and hence provide specific advice aimed at meeting your financial goals.

After you fill out the questionnaire and connect your external financial accounts, you will be required by Vanguard to meet with a financial advisor. During this consultation, the advisor evaluates the present state of your finances and helps in clarifying the milestones that need to be reached. Your advisor will use Vanguard’s advanced technology to build an investment portfolio designed for your precise needs and aspirations.

For clients whose investment amounts are between $50,000 and $500,000, you will be assured of access to a group of financial advisors, but none of them may be advising you on a continuous basis. For any amount more than $500,000, you will have access to a dedicated personal advisor to handle your financial planning.

What is important to realize is that each of the financial advisers at Vanguard is a fiduciary, and none of them is paid commissions from the recommendations they make. Therefore, their advice is unbiased and centers on what is best for you. They will handle your portfolio for as long as you are their client in Vanguard Personal Advisor, where putting your financial fitness first is their ethos.

How Vanguard Personal Advisor Invests Your Money

Vanguard Personal Advisor exclusively utilizes Vanguard’s own exchange-traded funds (ETFs) to build investment portfolios tailored to individual risk tolerances and goals. Depending on your personal investment profile, your assets might be allocated among four or five different funds. For example, let’s take a middle-aged client who has a moderate level of risk and therefore has such a portfolio recommended, comprising four specific ETFs:

• VTI, with an expense ratio at 0.03%.
• VXUS, with an expense ratio at 0.07%.
• BND, with an expense ratio at  0.03%.
• BNDX, with an expense ratio at 0.07%

The investor can further diversify by including Environmental, Social, and Governance (ESG) funds in their selection or opt for Vanguard’s newer “active equity” five-fund portfolio, which includes active ETFs that might promise higher returns at the expense of higher expense ratios.

This strategy aims to achieve comprehensive diversification while managing investments cost-efficiently, in very clear contrast to some robo-advisor strategies that can include double the funds or more in their strategies.

In managing your financial portfolio, Vanguard Personal Advisor will oversee all your enrolled Vanguard accounts, aligning them with your risk tolerance and financial goals. It also considers any non-Vanguard accounts you may have to ensure a holistic view of your financial landscape, although these external accounts are not directly managed by Vanguard.

While it is not mandatory to consult with a financial advisor directly—given that Vanguard can set up and manage your investments independently—it is recommended, particularly because the service incurs a higher fee than the streamlined Vanguard Digital Advisor.

Additionally, Vanguard Personal Advisor incorporates tax minimization strategies into its management approach. For example, during portfolio rebalancing or the sale of assets, the service identifies opportunities for preferential tax treatment. This could include selling assets at a loss to offset other gains and thus would add overall tax efficiency to your investment portfolio. That thoughtful strategy makes sure your investments are doing more than growing, to remain as tax-efficient as they can.

Ways to Invest with Vanguard Personal Advisor Services

You can easily set up your Vanguard taxable brokerage account. Information about you will be requested while opening a new account over the phone or online, regarding your investment time horizon, risk tolerance, other assets not at Vanguard, and your investment goals. Once you’ve supplied this information, the next step is to talk to the financial advisor and schedule an appointment. The investment consultant will guide you in creating a tailor-made financial plan that meets your needs. Note that this task involves very detailed work and may take a couple of weeks for completion.

Prospective investors, however, should bear in mind some restrictions regarding Vanguard advisory services. Vanguard does not provide advice on investing in accounts or assets not held through its brokerage services. Vanguard also does not provide advice on UGMA/UTMA custodial accounts, some retirement accounts including but not limited to, ineligible 401(k) and 403(b), and 529 educational savings plans. In simple words, you will be left on your own with these or have to find advice somewhere else.

Vanguard High Net Worth Personal Advisor Fees and Costs

Vanguard Personal Advisor Services has one of the most competitive fee structures, lower when compared to most of the competition. The service is charged on a tiered annual advisory fee system based on the assets under management:

Assets of less than $5 million, incur fees of 0.30% yearly.

Assets from $5 million to $10 million, have a 0.20% fee each year.

Assets between $10 million and $25 million will be charged a fee of 0.10% every year.

Assets of more than $25 million are charged at a non-moderate rate of 0.05% per year.

Besides advisory fees, there are charges that include the expense ratios of the funds in which you have exposure. These too, however, are relatively low and go a long way toward keeping your total investment costs in check.

Other firms’ advisory services charge relatively higher fees. Some of these include Betterment Premium, which includes Unlimited Access to Financial Advisors at a charge of 0.40% of the Advisory fee, with requiring a minimum account balance of $100,000.

Personal Capital will charge a minimum of $100,000 with a much higher advisory fee of 0.89%. For an investor whose ambition is to get advice from a professional without the bloat of costs associated with personal investment management, Vanguard Personal Advisor Services becomes the ideal and cheapest alternative.

Frequently Asked Questions