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Let’s Talk about Financial Advisor Fees: Vanguard Advisor Alpha
When it comes to managing your finances, working with a financial advisor can be invaluable in helping you make informed decisions and achieve your financial goals. However, it’s important to understand the fees associated with hiring a financial advisor and what you can expect in return for your investment.
One of the most well-known and respected names in the financial industry is Vanguard. Vanguard is a company that offers a range of investment products and services, including financial advisory services. With their reputation for low fees and high-quality investment options, Vanguard has become a popular choice for those seeking professional financial advice.
Vanguard Advisor Alpha is the company’s proprietary framework for wealth management, which aims to add value to clients through a combination of financial planning and investment management. The approach focuses on identifying opportunities for improving a client’s overall wealth through a value-added investment strategy and holistic financial planning.
So, what are the fees associated with Vanguard Advisor Alpha? Vanguard’s wealth management services typically charge a fee based on a percentage of assets under management. The fee structure is tiered, meaning that the percentage charged decreases as the amount of assets under management increases. This fee structure is relatively standard in the financial advisory industry, and it allows clients to pay for the services they need while aligning the advisor’s interests with the client’s goals.
In return for the fees, clients can expect a range of services that go beyond traditional investment management. Vanguard Advisor Alpha offers comprehensive financial planning, ongoing portfolio management, and regular check-ins with your advisor to review your progress and adjust your strategy as needed. Additionally, clients have access to Vanguard’s suite of investment products and tools, which are designed to help them achieve their financial goals.
It’s important to note that while the fees associated with Vanguard Advisor Alpha may seem high at first glance, the value of the services provided can often outweigh the cost. A skilled financial advisor can help you navigate complex financial situations, make informed investment decisions, and provide personalized guidance tailored to your unique financial situation.
Ultimately, the decision to work with a financial advisor and invest in their services is a personal one. However, if you’re considering hiring a financial advisor and are interested in the Vanguard Advisor Alpha framework, it’s recommended to carefully review the fee schedule and discuss the potential value-add with a Vanguard representative. By understanding the fees associated with working with a financial advisor and the services offered in return, you can make an informed decision about whether Vanguard Advisor Alpha is right for you.
I don't believe that Vanguard or any CFP could add 35 bp no better than self-managed. The study is based on one firm's opinion.
I left my Edward Jones advisor, and all she wanted was to sell me her insurance products. I was in a meeting with her where she was trying to sell me long-term care insurance. I asked her what my investments were costing me, and she blow me off and kept trying to push the long-term care insurance. I moved my investments to Vanguard and could not be happier with my decision.
Great video and information.
That was pretty good.
How can I reach out to you?
That was an interesting discussion about fee only, fiduciary fees and how someone might benefit from using these services. I like how you stepped through key points in the Vanguard study. Thanks for breaking this down.
Sadly, many investors simply do not know the difference between an RIA (comprehensive advice / fiduciary) and Broker-Dealer (product sales / non-fiduciary). The industry needs to inform investors of this different business model. Assuming clients already know the difference keeps the industry at risk of continued criticism.
When I retired I decided to quit being a cash cow for commission salesmen. Fed up with worrying about money I decided to consolidate my investments and handle all mine by myself. So, for the past 6 years every month I invest in two separate things that give great and immediate returns.
I invest in one bottle of Jack Daniels and Harley parts.
Best answer to this highly nuanced question I've seen on-line. Subscribed!
The thing with advisors if they are good they can help keep you from buying and selling things when you shouldnt. I also read somewhere that 98% of the ultra rich use a fiduciary advisor. I think an advisor is a good choice unless finance is your passion or hobby and you study it well.
If you hire a fiduciary advisor how do you know if they are acting in your best interest? Thanks!
I would love to go fishing every day, maybe I need to make that one of my goals
I have spoken to Ric Edelman people. They wanted 1.75% on 400k per year that's 7k. That's win lose or draw. So if inflation is 2.5% that's a total of 4.25%. You need just to break even. Now we haven't even talked about taxes on that money when withdrawn from an IRA. You firm charges 1% or less that's 3.5 total with inflation. Vanguard is predicting a maximum of returns of 4 to 5% over the next 10 years. I'll be retiring next December. I can't tell you how scary it is now. So the question is will I lose less during this time using an advisor?
Great video, Awesome job… I do agree with Tom's question. Tons of the talk shows on finance SHY away from the subject of fees and long term cost. Your answer was very solid. Was very well thought out. Was researching Vanguard advisor when I ran across this video. I am subscribing to see more. Thanks…
I think its important to keep in mind that as stated in Vanguard’s Advisor Alpha, advisors can add value for the reasons you mentioned from the study- particularly not making poor decisions in up or down markets. Jack Bogle, founder of Vanguard, strongly advocates low annual fees- specifically less than 1% a year. Just like compound interest helps an investor, the compound effect of fees will greatly affect the long term balance of a portfolio. https://investor.vanguard.com/investing/how-to-invest/impact-of-costs