Vanguard Personal Finance Tools Review

Services

Vanguard has one of the most comprehensive suites of investment services of any financial advisory company. It offers several retirement accounts, including IRAs, 403(b)s, individual 401(k)s, simplified employee pension (SEP) IRAs and SIMPLE IRAs. You can also open a 529 college savings account or a taxable brokerage account.

Vanguard is relatively unique in that it offers its own branded investment products, like mutual funds and exchange-traded funds, that have helped establish it as a leader in the investment advisory industry. It also sells annuities to clients interested in these.

Credentials

Vanguard is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation  (SIPC). These regulatory agencies ensure that financial advisors follow all industry rules and act in the best interests of their clients. You don't want to work with a financial advisory firm that's not a member of these organizations because you never know if you can trust their advice, but this isn't a concern with Vanguard.

Vanguard states on its website that all of its financial advisors are held to fiduciary standards under applicable regulations, which means that they will act in your best interest instead of making suggestions that earn them a little more money. The company doesn't state whether all of its advisors are Certified Financial Planners (CFPs) or carry a similar designation, but many of them are. CFPs must complete a rigorous education program and exam before they can claim that title, so you can feel confident that they're quite skilled at managing your money.

Fee structure

Vanguard doesn't state whether its investors have a fee-only structure or a fee-based structure where they can earn commissions when you purchase certain investment products, but given its commitment to fiduciary standards, you shouldn't have to worry about any possible conflicts of interest.

Vanguard is surprisingly transparent about its annual fee structure, which isn't something most other financial advisory firms can say. You need at least $50,000 in managed assets to work with a Vanguard financial advisor, so it's not the best fit for those with smaller portfolios. But its fees are pretty reasonable. Most people will pay 0.3% of their portfolio per year, which comes out to $3 in fees for every $1,000 in your account. If you're fortunate enough to have more than $5 million in managed assets, you could see these fees drop to as low as 0.05%.

Online resources

Vanguard is a leading authority in the industry and you can tell by its extensive library of help articles and online tools to help people of all backgrounds and skill levels learn more about investing and saving for retirement or college. Each article breaks down a complex topic in plain language that anyone can understand and these resources are free for anyone to read, even if you don't invest with Vanguard.

Unlike many other financial advisory companies, Vanguard doesn't have an online tool to help you locate a financial advisor, but these tools often just pair you with the advisor that lives nearest you rather than one with any special expertise working with clients like you. You'll have to call Vanguard to discuss your options and get paired with a financial advisor, but this extra time spent will likely result in a better match, which is important as you'll have a long relationship with your financial advisor.