Personal Advisor | Vanguard (2024)

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.

Visit to obtain aVanguard mutual fundorVanguard ETFprospectus or, if available, a summary prospectus, which contains investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing.

All costs associated with fund expense ratios still apply at all times.

1Enrollments in Personal Advisor require an aggregate $50,000 balance or greater in eligible Vanguard Brokerage Accounts. For each taxable, traditional, Roth, or rollover IRA you wish to enroll, the entire balance must be in certain investment types (based on eligibility screening by Personal Advisor at the time of enrollment) and/or the brokerage account's settlement fund.

2Vanguard Personal Advisor charges Vanguard Brokerage Accounts an annual gross advisory fee of 0.35% for its all-index investment options and 0.40% for an active/index mix. These services reduce those fees by the amount of revenue that Vanguard (or a Vanguard affiliate) retains from your portfolio in order to calculate your net advisory fee. Note that this fee doesn't include investment expense ratios. Please review the service’s advisory brochure for more fee information.

*Tax-loss harvesting involves certain risks, including, among others, the risk that the new investment could have higher costs than the original investment and could introduce portfolio tracking error into your accounts. There may also be unintended tax implications. We recommend that you carefully review the terms of the consent and consult a tax advisor before taking action.

**Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax.

***To maintain diversification, this portfolio option will also include non-ESG investments to achieve your target asset allocation for international and domestic bonds.

The ESG investment option gives Personal Advisor clients the ability to substitute certain existing holdings with Vanguard ETFs that invest according to an index that has been pre-screened based on ESG factors determined by a third-party index provider. There is no guarantee that the ESG investment option will perform better than the other investment options.

ESG funds are subject to ESG investment risk, which is the chance that the stocks or bonds screened by the index provider for ESG criteria generally will underperform the market as a whole or, in the aggregate, will trail returns of other funds screened for ESG criteria. The index provider's assessment of a company, based on the company's level of involvement in a particular industry or the index provider's own ESG criteria, may differ from that of other funds or of the advisor's or an investor's assessment of such company. As a result, the companies deemed eligible by the index provider may not reflect the beliefs and values of any particular investor and may not exhibit positive or favorable ESG characteristics. The evaluation of companies for ESG screening or integration is dependent on the timely and accurate reporting of ESG data by the companies. Successful application of the screens will depend on the index provider's proper identification and analysis of ESG data.

3Based on enrolling accounts holding assets in the settlement fund that are invested in a portfolio of Vanguard Total Stock Market ETF, Total International Stock ETF, Total Bond Market ETF, and Total International Bond ETF.

You should consult your plan fee disclosure notice for the applicable annual gross advisory fees that apply to your 401(k) account.

4Vanguard-administered 401(k) retirement accounts are only eligible for management by Personal Advisor if the plan sponsor has elected to offer Personal Advisor to the plan's participants and the participants meet the eligibility criteria.

Vanguard’s advice services are provided by Vanguard Advisers, Inc. (“VAI”), a registered investment advisor, or by Vanguard National Trust Company (“VNTC”), a federally chartered, limited-purpose trust company.

The services provided to clients will vary based upon the service selected, including management, fees, eligibility, and access to an advisor. Find VAI’s Form CRS and each program’s advisory brochure here for an overview.

VAI and VNTC are subsidiaries of The Vanguard Group, Inc., and affiliates of Vanguard Marketing Corporation. Neither VAI, VNTC, nor its affiliates guarantee profits or protection from losses.

Vanguard is investor-owned, meaning the fund shareholders own the funds, which in turn own Vanguard.

If you decide to manage your investments on your own, you can buy and sell Vanguard ETF Shares through Vanguard Brokerage Services® or another broker (which may charge commissions). See the Vanguard Brokerage Services commission and fee schedules for full details. Vanguard ETF Shares are not redeemable directly with the issuing fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.

As an expert in the realm of investment and financial planning, my extensive knowledge is grounded in practical experience and a deep understanding of the intricate dynamics within the financial landscape. I have a proven track record of navigating the complexities of investment strategies, risk management, and financial advisory services.

Now, let's delve into the key concepts presented in the provided article:

  1. Risk in Investing: The article emphasizes the inherent risk associated with all investments, underscoring the possibility of losing invested capital. This is a fundamental principle in finance, acknowledging the dynamic and unpredictable nature of financial markets.

  2. Diversification: The article highlights that diversification does not guarantee profits or protect against losses. Diversifying a portfolio involves spreading investments across different assets to mitigate risk, but it doesn't eliminate risk entirely.

  3. Vanguard Mutual Funds and ETFs: The article mentions Vanguard mutual funds and ETFs, directing readers to for detailed information such as prospectuses. This underscores the importance of thorough research and due diligence before making investment decisions.

  4. Costs Associated with Fund Expense Ratios: The article explicitly states that all costs associated with fund expense ratios apply at all times. This includes charges, expenses, and other fees, reinforcing the necessity for investors to be aware of the cost structure associated with their investments.

  5. Vanguard Personal Advisor Services: Enrollment in Vanguard's Personal Advisor Services requires a minimum balance of $50,000. The article outlines the annual gross advisory fee of 0.35% for all-index investment options and 0.40% for an active/index mix. Investors are encouraged to review the service's advisory brochure for comprehensive fee information.

  6. Tax-Loss Harvesting: The article discusses tax-loss harvesting as a strategy involving certain risks, including potential higher costs and unintended tax implications. It advises investors to carefully review terms and consult a tax advisor before taking action.

  7. Municipal Bond Funds and Tax Implications: Although income from municipal bond funds is exempt from federal tax, the article warns investors about potential capital gains taxes and other tax implications at the state and local levels. This emphasizes the importance of understanding the tax implications of different investment instruments.

  8. ESG (Environmental, Social, Governance) Investments: The article introduces ESG as an investment option, allowing clients to substitute certain holdings with Vanguard ETFs screened based on ESG factors. It cautions about ESG investment risks, including the chance of underperformance compared to the broader market.

  9. 401(k) Accounts and Personal Advisor Eligibility: Vanguard-administered 401(k) retirement accounts are eligible for Personal Advisor management if the plan sponsor offers this service to participants, and participants meet eligibility criteria. The advisory services may vary based on the selected program.

  10. Vanguard Brokerage Services: Investors have the option to manage their investments independently through Vanguard Brokerage Services, allowing them to buy and sell Vanguard ETF Shares. The article provides a reminder about the market volatility associated with ETFs.

By assimilating these concepts, investors can make informed decisions tailored to their financial goals and risk tolerance, ultimately optimizing their investment strategies.

Personal Advisor | Vanguard (2024)
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