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Vanguard is an online brokerage serving all types of investors. See how it works here.
Vanguard; Gilbert Espinoza/Business Insider
Bottom line: Vanguard Personal Advisor Services is best for those who want a blend of portfolio management and advisor access. Since you’ll need a minimum of $50,000 to get started, it also best suits investors with higher account balances; users who hold more than $5 million can pay as little as 0.05% in annual advisory fees.
Overall rating
FeatureInsider rating (out of 5)Fees5.00Investment selection4.25Access4.18Ethics4.50Customer service4.75Overall score4.54
Is Vanguard Personal Advisor Services right for you?
Vanguard Personal Advisor Services is one of Vanguard’s key two managed accounts. The second option — Vanguard Digital Advisor — solely provides automated portfolio management.
Vanguard Personal Advisor Services takes that a step further by combining digital portfolio management with ongoing financial advice and wealth management services. The account has a $50,000 minimum requirement, and you’ll incur a 0.30% annual fee (in addition to applicable fund expense ratios). Users with higher balances may be able to pay less per year, though.
The account also relies on fiduciary advisors, who are legally required to place client interests above their own (removing potential conflicts of interest).
Vanguard Personal Advisor Services vs. Betterment
Vanguard
Betterment
Min. Investment
$50,000
Min. Investment
$0 or $100,000, depending on the account
Fees
0.30%
Fees
0.25%/year or 0.40%/year
Investment choices
Vanguard ETFs and mutual funds
Investment choices
ETFs
Vanguard Personal Advisor ServicesBetterment
Vanguard Personal Advisor Services and Betterment both cater to hands-off investors. But Betterment is the less expensive option for robo-advice. You don’t need to meet a minimum to use its most basic account, and even if you don’t have at least $100,000 for its advisor-managed premium account, you can still purchase CFP consultation packages.
When it comes to fees, you’ll pay more annually at Betterment if you want to utilize unlimited CFP guidance (it charges a 0.40% fee for this). But you’ll need less ($50,000) to work with a Vanguard Advisor.
Vanguard Personal Advisor Services vs. Fidelity Personalized Planning & Advice
Vanguard
Fidelity Investments
Min. Investment
$50,000
Min. Investment
$25,000
Fees
0.30%
Fees
0.50%
Investment choices
Vanguard ETFs and mutual funds
Investment choices
Fidelity Flex mutual funds
Vanguard Personal Advisor ServicesFidelity
Vanguard and Fidelity both offer an array of brokerage services in addition to portfolio management for higher-net-worth individuals (thanks to Vanguard Personal Advisor Services and Fidelity Personalized Planning & Advice). Both account types offer ongoing, one-on-one support from a financial advisor.
You’ll need more to get started with Vanguard, but you’ll pay less in annual advisory fees. While you’ll need half of Vanguard’s minimum to use Fidelity’s advisor-guided account, you’ll be responsible for a higher advisory fee (0.50%).
However, Fidelity makes up for this by offering expense ratio-free mutual funds as its primary investment choice. Vanguard’s ETFs and mutual funds have expense ratios.
Ways to invest with Vanguard Personal Advisor Services
Automated portfolios
Vanguard Personal Advisor Services is best for hands-off investors who want professional guidance. The three tiers of services it provides are based on your account balance:
$50,000+: Those with at least $50,000 get access to a Vanguard advisor, personalized financial plan, investment coaching, ongoing portfolio advice, goal tracking, and exclusive actively managed funds.$500,000+: Users with this balance can utilize all of the perks of the first tier in addition to trust services.$5 million+: This level gives you access to a wealth management team and multiple services, including tax-advantaged investing, personal trust services, wealth and estate planning, family legacy planning, and much more. Plus, those with higher account balances will pay less per year.
Vanguard Personal Advisor Services also accepts multiple account types. These include individual and joint accounts, trusts, IRAs, and certain employer-sponsored plan accounts. Plus, the account mainly uses Vanguard ETFs and index funds.
Its funds also have expense ratios (fees that represent the annual operating costs for investment funds). This is common amongst many robo-advisors — like Betterment and Merrill Guided Investing with Advisor — that use funds as a primary investment choice. For both Vanguard’s ETFs and mutual funds, its average expense ratio is 0.09%.If you’re looking to skip out on additional fund costs, you might be better off with an account, like Fidelity Personalized Planning & Advice, that uses funds without expense ratios.
Fees
The standard advisory fee for Vanguard Personal Advisor Services is only 0.30%. This is very competitive for the hybrid automated investing/advisor-managed account space. Plus, individuals with higher account balances can pay even less. See its tiered fee schedule below:
Balances less than $5 million: 0.30%Balances between $5 million and $10 million: 0.20%Balances between $10 million and $25 million: 0.10%Balances over $25 million: 0.05%
As mentioned earlier, those who surpass the $5 million threshold also gain access to a team of Vanguard advisors. A downside of Vanguard Personal Advisor Services, though, is that it doesn’t offer tax-loss harvesting, but its wealth management team still implements tax-efficient strategies within your portfolio. For instance, it works to position your assets in both tax-advantaged and taxable accounts, while selecting investments that lower your tax bill.
Account setup
You can set up your account over the phone or online, and you’ll initially need to provide information on things like time horizon, risk tolerance, non-Vanguard assets, and investing goals (such as paying off debt, purchasing a home, saving for college, and other objectives).
After this, you’ll have to schedule a time to speak with an advisor. That advisor will then build you a customized financial plan. This process can take a few weeks.
Prospective investors should also note that Vanguard won’t advise you on investment accounts/assets held outside of the brokerage, nor will it offer advice on UGMA/UTMA custodial accounts, ineligible 401(k)s or 403(b)s, i401(k) accounts, or 529 plans. However, it will still include such accounts and assets in your overall financial plan and offer tips on steps you can take with those accounts.
Vanguard Personal Advisor Services: Is it trustworthy?
The Better Business Bureau gives Vanguard a B rating. BBB ratings range from A+ to F, and this rating reflects the bureau’s opinion of how well Vanguard interacts with its customers.
The BBB also considers several other factors when evaluating businesses. These include type of business, time in business, customer complaint history, advertising issues, and licensing and government actions. But ratings don’t guarantee a company’s reliability or performance.
Vanguard has closed more than 300 complaints in the last three years and more than 200 complaints in the last 12 months. Its BBB profile shows that it currently has two unresolved complaints.
Vanguard Personal Advisor Services — Frequently Asked Questions (FAQ)
What is the annual fee for Vanguard Personal Advisor Services?
Vanguard Personal Advisor Services has a 0.30% annual fee. This fee doesn’t include the expense ratios associated with Vanguard’s funds.
What is the minimum you can invest with Vanguard?
You generally won’t have to meet account minimum requirements when it comes to Vanguard’s self-directed accounts. Its two automated accounts — Vanguard Digital Advisor and Vanguard Personal Advisor Services — have $3,000 and $50,000 minimums, respectively.
Can you make money with Vanguard?
Yes. Vanguard offers several account types that can help its users build wealth. These include self-directed brokerage accounts, IRAs, automated investing accounts, 529 plans, trusts, and more.
Related terms
Robo-advisor: Also known as automated investing portfolios, these accounts rely on computer algorithms and/or expert oversight to build personalized, self-managing portfolios for hands-off investors. ETFs: These funds usually contain a blend of stocks, bonds, and commodities. You can invest in two types of ETFs: index-based ETFs and actively managed ETFs. Mutual funds: Like ETFs, mutual funds contain a blend of several investment types, but they’re usually overseen by professional money managers.Brokerage account: Available through investment platforms and broker-dealers, brokerage accounts let you invest in stocks, ETFs, options, and other asset types.