, which previously offered guidance only on large-balance accounts, announced Monday that it has developed a suite of services delivering streamlined financial advice at a rate affordable for small-scale investors.
The Vanguard Financial Planning Services
program encompasses an online questionnaire that is completed by the client and followed by telephone consultations with "Vanguard crew members with CFPs," said company spokesperson John Demming. The questionnaire will automatically be populated with the client's Vanguard holdings, allowing advisors to devise comprehensive, customized plans for individuals.
The financial planning program represents a less involved version of Vanguard's Asset Management Services, Demming said. Complete asset management is available to individual and institutional clients who have minimum investable assets of $500,000 and $1 million, respectively.
The new, simplified program is complimentary to customers with balances of $250,000 or above, and to clients bringing a minimum of $100,000 in new assets to a Vanguard account. All other clients can avail of the offering for a flat fee of $1,000.
"We are building on our ten years of experience in providing investment advice and responding to our clients' desire for a simple, low-cost financial plan," said John Brennan
, Vanguard's chairman and CEO, in a press release. "We want to dispel the notion that 'no load' means 'no advice'."
According to the release, consultant planners will help clients to allocate assets, minimize tax liability, choose investments, and gauge retirement and college savings needs. Annual check-ups are offered free of charge, and for an extra fee of $500 to $1,000, clients can receive a cash flow analysis and additional advice on estate planning and insurance.
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