Great review! However It looks like Vanguard fixed most of your criticisms of their product, I’m currently using it in 2023. It might be worth a revisit.
Do you see a future where financial advisors will start to be substituted by Robo-advisors? (Just like the mechanization of jobs). Even though we see some mistakes and errors made by these robots, do you think that in the future the financial advisor position will be threatened by robots doing their jobs? Or do you feel that the human interaction you have with your advisor is something that cannot be substituted? Great Video! Thank you! Rafael Fabra
My 401k is with Vanguard through my company. This is the 3rd company I've been with and so the 3rd 401k I've had and rolled over. I hate the Vanguard website. It's the hardest one I've had to navigate. I'm having a really hard time finding the investments I want. I have to flip through pages and it opens new pages. Ugg I'm loosing money because of this and I don't want to pay for a digital advisor.
Rob. Excellent review and I agree that the other “evaluators” probably didn’t actually use the service. I think Vanguard has gone a little too far in cost cutting and needs to work on customer service a bit more (even if we have to pay for it).
Thanks Rob. You do intelligent and fair comparisons in your videos. The financial planning industry needs a lot more of that integrity. Being an x adviser from Australia, I'm enjoying your perspectives on investing.
I was about to initiate a transfer from M1 to Vanguard robo and glad I joined the Monday show (always do) where you mentioned you would be releasing a video soon. Phew! - Ryan from Haymarket
This robo advisor tool seems to be in the beta stages. I have my 401k through Vanguard and when I need to make allocation changes it takes me to old website. Originally I had a target date fund but after a while it started getting too conservative by having almost 28% on bonds with about 16 years to retirement. So I would recommend to push back your retirement date for a more aggressive portfolio. Now, thanks to your free shared knowledge, I created my own portfolio the way I felt was best using Morning Star, Portfolio Analyzer and Personal Capital plus I opened a Roth IRA to diversify even further and take advantage of the tax free investments. Thank you Mr. Berger
I recently opened up a Vanguard retirement account about two months ago and after a few weeks my money rolled over from my employer retirement accounts, and I signed up for the digital advisor. I have since had a change of heart because after selecting the four different types of funds, I noticed that it left a couple hundred dollars just sitting in my settlement account, and a few weeks later they purchased some ETFs with it. I recently moved over some more money from my employer account and once again they left a couple hundred dollars sitting in the settlement account so after watching this video, I’m going to disenroll,
Honest and useful review! Isn't Vanguard still offering their Personal Advisor Service at 30bp? Yeah I know they have a $50K minimum, but that is another option and I believe it's much more flexible than this Digital Advisor.
Seems like I’m seeing more and more negative reviews about Vanguard. Wondering if it is related to the passing of a Jack Bogle and company having lost their way. I’m not a robo advisor customer, but I know the regular app and website are also not the best experience either.
Talked to a Vanguard rep today and it sounds like the Digital Advisor continuously adjusts the mix on your behalf based and your personal profile, unlike a Target fund. He said it is not "daily", but it sounds like it does make adjustments when appropriate.
Yeah, they recently changed my 401k’s interface, and I have a lot of the same complaints. Personally, I’m not comfortable just assuming the UI is the B team and the money coders are the A team.
Great review? I currently open the minimum with Schwab and learned to open the Intelligence portfolio they require 5k but than you can request a withdraw which I did and only currently have $1800
Thanks for the video. I don’t see the value in this. I own a vanguard TDF in my IRA. This adds costs and doesn’t offer the features (account aggregation) that could justify the price. I also think that if the digital advisor was appealing then VPAS is a steal.
Robo managed platforms may also be more susceptible to cyber attacks. I also experienced my first account lock-out after a hacking attempt, after VG went robo. This never happened before. And I had been with VG for several decades.
Almost same experience for me. Had to complete the enrollment on the phone with a human customer service rep. Also frequently experience the issue others have noted in comments that funds will just sit in the settlement account for a week or more before a transaction occurs. Also had to install the Vanguard app to view asset allocation.
Currently retired and have a managed Vanguard IRA. Considered the robo adviser route with them but after your review no way ! Appreciate your advice and reviews.
Really makes you wonder who is in charge of the development of that service. Seems they clearly rushed it to market and likely have, pardon the technical term, a crap load of future changes to make it better. Thank you for suffering thru that to save many others the agony. I'm sticking with Personal Capital for my data aggregator and doing my research legwork manually using Schwab account and their screening tools.
Too bad... I have used Vanguard for years and really like them but this problem with technology (read...website clumsiness) is ridiculous in this day and age. I recently set up a Schwab account to invest in their SCHD etf... WHAT A DIFFERENCE! Very well designed site.
Thank you. This is so helpful. I have a 2025 Target fund, but Vanguard keeps sending me emails promoting the digital advisor. I was unsure if that was a better option. After your video, I have decided against it. I am wondering now that I am close to 2025, can I transfer my account to one of the future targeted funds, such as the 2030 fund?
Wow! That is simply terrifying and absolutely UNACCEPTABLE! I would avoid this Vanguard Digital Advisor. I would NEVER agree or feel this is a good option for anyone!!!!!
Have considered Digital Advisor since I fired my Vanguard Personal Advisor. Thanks to this video I’m not going to use it. I like the idea of target date fund. Cheaper than paying their PA’s for bad advice after they claim to be your fiduciary. Thanks Rob, I’ve made my decision.
Rob, does one of your other videos go into more detail on why you don't want bonds in a taxable account (mentioned during glide path segment)? Thank you for your videos!
Rob, can you educate us on securities-based lines of credit (SBLOCs)? And preferred lenders/banks to establish a relationship to eventually take out a SBLOC? I see Schwab offers it (pledged asset line of credit) but would like to know your recommendation(s). Thanks!
Hi Rob: another outstandingly helpful video! Do you anticipate reviewing the new PAS Vanguard actively managed funds?> I think I read there are five? Also, what do you think of Vanguard PAS service?
Time value of money, opportunity cost, a comic interface without key info/dashboard, lack of control?! I would have difficulty being as content as GM Wesley So appears in the background. Asset allocation by total portfolio versus every account is where this breaks down the most for me.
Jack Bogle would roll over in his grave if he saw that hot mess his company put out. I am sure he would not like the inclusion of active funds either. Unfortunately, it is not Jack Bogle's Vanguard anymore.
Vanguard’s robo advisor lack of customization just screams, “we know better than you so you should just listen to us.” Very disappointed because I was thinking of recommending that to my Mother in Law if it turned out to be passing.
Yet another reason why "Morningstar ratings" of funds and service providers are next to worthless. It's just a cheerleader service for the financial services industry. Every large industry player always gets a trophy. These sorts of things and TDFs always remind me of prison jumpsuits. Sure, they "fit" everybody in the sense of covering your body and allowing movement. But they really aren't made for anyone in particular.
What??? Digital Advisor is obviously not ready for prime time. I can only imagine the reaction of someone who knows next to nothing about investing and after reading Vanguard's website on this and decides to go this route. This is just seriously mediocre!!
Hey Rob. Loved the video. You talk a lot about Personal Capital. Did you plan on trying them out? I use them currently and wondered what your thoughts were?
Yeah... The end really summed it up. The last part was the most important in this video, IMO. I was thinking about those target date accounts the whole time you were reviewing this.
Bravo, Rob, for you due diligence on this subject. Great insight as always. You are my "must watch" for all things Investing. I will still download and read the Morningstar report but you have given me an objective "eye" in which to evaluate their conclusions. Always great research with a laugh or two along the way......with some chess talk and Turkish Getup (what ? ) chatter as well.
You are Great! Thanks for reviewing this. I for one would never use a Robo advisor but I'm sure many others might and you have saved them a huge mistake. Thanks
I had a similar tech glitch with Vanguard when I was simply trying to open an IRA account. I got various error messages and a ticket needed to be opened to look into it. About a week later, I got a message saying my account was fixed and ready to go, but when I tried again --- still an error. I ended up going with Fidelity, whose customer service is excellent and whose website works great. I really wanted to use Vanguard, as I have many of their funds, but the problems in trying to set up an account just turned me off.
Hey Rob Berger: I know Target Date Funds are not good for taxable accounts, but what do you think about the Vanguard Life Strategy Funds for a taxable account? These don’t have TIPS and so are more tax efficient. The LifeStrategy Funds could be like a “Robo Advisor” for taxable accounts! (As a side question, you mentioned you had a Vanguard Target Date Fund in your taxable account, and I was wondering why?)
If I did I misspoke. I don't own a target date fund in a taxable account. LifeStrategy Funds are not ideal for taxable accounts if you have alternatives. The bond allocation is best in a traditional retirement account.
@@rob_berger Wow you take the time to respond to some of the comments. The reason I ask about Life Strategy Funds is my wife does not know anything about investing, and if something happens to me I'd like a 1-Fund Portfolio for her that she could manage without an advisor... The Tax Cost Ratio of VASGX (80% stocks 20% bonds) is only 0.87. Comparable Vanguard 3-Fund Portfolio's Tax Cost Ratio I calculated to be 0.64. The difference is only 0.23, which some may consider worth the simplicity no?
I had VFORX (target date 2040) and got dumped with capital gains end of last year. It was in a taxable account. Very frustrated with Vanguard that they distributed capital gains like this and impacted my taxes
Thanks Rob, if your analysis was not a genuine evaluation, it could have been a great proposal for an SNL skit, WOW. It's astonishing how badly they failed. I really appreciate the due diligence you did to try the service, make all of the timely phone calls when you ran into the dead ends online and stick with the service even after making an assessment, just to see if it improves. How much fairer could you be?
Here's my take on the best overall robo-advisors available today: robberger.com/best-robo-advisors/?RUclips&Video+Comment&Vanguard+Digital+Advisor
Great review! However It looks like Vanguard fixed most of your criticisms of their product, I’m currently using it in 2023. It might be worth a revisit.
Do you see a future where financial advisors will start to be substituted by Robo-advisors? (Just like the mechanization of jobs).
Even though we see some mistakes and errors made by these robots, do you think that in the future the financial advisor position will be threatened by robots doing their jobs? Or do you feel that the human interaction you have with your advisor is something that cannot be substituted?
Great Video!
Thank you!
Rafael Fabra
What a mess Vanguard has created. Wow.
Hi, great video!!Are you going to do an update to this video? I really would like to know if they have new features and your feelings on it. Thanks!
My 401k is with Vanguard through my company. This is the 3rd company I've been with and so the 3rd 401k I've had and rolled over. I hate the Vanguard website. It's the hardest one I've had to navigate. I'm having a really hard time finding the investments I want. I have to flip through pages and it opens new pages. Ugg I'm loosing money because of this and I don't want to pay for a digital advisor.
Rob. Excellent review and I agree that the other “evaluators” probably didn’t actually use the service. I think Vanguard has gone a little too far in cost cutting and needs to work on customer service a bit more (even if we have to pay for it).
Thanks Rob. You do intelligent and fair comparisons in your videos. The financial planning industry needs a lot more of that integrity. Being an x adviser from Australia, I'm enjoying your perspectives on investing.
I was about to initiate a transfer from M1 to Vanguard robo and glad I joined the Monday show (always do) where you mentioned you would be releasing a video soon. Phew! - Ryan from Haymarket
This should be embarrassing for Morningstar.
Hey Vanguard, it's Kodak and Blackberry calling. We are going down to Blockbuster to rent a VHS. Wanna come along? Call us back.
Vanguard will call you back on their Ericsson cell phone.
This robo advisor tool seems to be in the beta stages. I have my 401k through Vanguard and when I need to make allocation changes it takes me to old website. Originally I had a target date fund but after a while it started getting too conservative by having almost 28% on bonds with about 16 years to retirement. So I would recommend to push back your retirement date for a more aggressive portfolio. Now, thanks to your free shared knowledge, I created my own portfolio the way I felt was best using Morning Star, Portfolio Analyzer and Personal Capital plus I opened a Roth IRA to diversify even further and take advantage of the tax free investments. Thank you Mr. Berger
Vanguard requires $50,000 to enroll for Advisor Services, and you pay up to 0.30% (30 basis points) of your balance annually. I am happy so far.
I recently opened up a Vanguard retirement account about two months ago and after a few weeks my money rolled over from my employer retirement accounts, and I signed up for the digital advisor. I have since had a change of heart because after selecting the four different types of funds, I noticed that it left a couple hundred dollars just sitting in my settlement account, and a few weeks later they purchased some ETFs with it. I recently moved over some more money from my employer account and once again they left a couple hundred dollars sitting in the settlement account so after watching this video, I’m going to disenroll,
Honest and useful review! Isn't Vanguard still offering their Personal Advisor Service at 30bp? Yeah I know they have a $50K minimum, but that is another option and I believe it's much more flexible than this Digital Advisor.
Yes but a PA for a $50,000 investment will be one who’s getting on the job training. He will be cutting his teeth on your hard earned money!
The fact that MoringStar rated Vanguard's Digital Advisor number 1,
makes me question MorningStar
@Susan Colton stop spaminig you fool
Seems like I’m seeing more and more negative reviews about Vanguard. Wondering if it is related to the passing of a Jack Bogle and company having lost their way. I’m not a robo advisor customer, but I know the regular app and website are also not the best experience either.
Talked to a Vanguard rep today and it sounds like the Digital Advisor continuously adjusts the mix on your behalf based and your personal profile, unlike a Target fund. He said it is not "daily", but it sounds like it does make adjustments when appropriate.
Yeah, they recently changed my 401k’s interface, and I have a lot of the same complaints. Personally, I’m not comfortable just assuming the UI is the B team and the money coders are the A team.
What an awful product. Good to know!
Great review? I currently open the minimum with Schwab and learned to open the Intelligence portfolio they require 5k but than you can request a withdraw which I did and only currently have $1800
I am seriously considering using Vanguard because of fees but this is making me rethink things. Thanks for this video, Rob! Just subscribed
Thanks for the video. I don’t see the value in this. I own a vanguard TDF in my IRA. This adds costs and doesn’t offer the features (account aggregation) that could justify the price. I also think that if the digital advisor was appealing then VPAS is a steal.
Love when a company wants you to invest thousands of dollars with them and can't even spend $50 to pay someone to fix their website 😂
Robo managed platforms may also be more susceptible to cyber attacks. I also experienced my first account lock-out after a hacking attempt, after VG went robo. This never happened before. And I had been with VG for several decades.
Seems like it's just marketing. All they're using is the Target funds.
Jack Bogle would be profoundly unhappy with that.
Broadly speaking, Vangaurd has the best funds, but their platform is lacking in many ways. Makes sense when you consider the structure of the firm.
Almost same experience for me. Had to complete the enrollment on the phone with a human customer service rep. Also frequently experience the issue others have noted in comments that funds will just sit in the settlement account for a week or more before a transaction occurs. Also had to install the Vanguard app to view asset allocation.
😂Mostly all deal breakers for me. I'll pass until they know how to utilize technology.
Currently retired and have a managed Vanguard IRA. Considered the robo adviser route with them but after your review no way ! Appreciate your advice and reviews.
Boom! Roasted
Really makes you wonder who is in charge of the development of that service. Seems they clearly rushed it to market and likely have, pardon the technical term, a crap load of future changes to make it better. Thank you for suffering thru that to save many others the agony. I'm sticking with Personal Capital for my data aggregator and doing my research legwork manually using Schwab account and their screening tools.
Too bad... I have used Vanguard for years and really like them but this problem with technology (read...website clumsiness) is ridiculous in this day and age. I recently set up a Schwab account to invest in their SCHD etf... WHAT A DIFFERENCE! Very well designed site.
But Schwab is sneaky they want to keep 6% of your money in cash, that is 6% that is not being invested. For me it was a deal braker.
Thank you for doing the research for us! Very good analysis!
Wow, I agree with you, what a wonky system.
Can you also try out Fidelity’s FidFolios?
Thank you. This is so helpful. I have a 2025 Target fund, but Vanguard keeps sending me emails promoting the digital advisor. I was unsure if that was a better option. After your video, I have decided against it. I am wondering now that I am close to 2025, can I transfer my account to one of the future targeted funds, such as the 2030 fund?
Wow! That is simply terrifying and absolutely UNACCEPTABLE! I would avoid this Vanguard Digital Advisor. I would NEVER agree or feel this is a good option for anyone!!!!!
Thanks for making this video Rob. Great stuff here
Have considered Digital Advisor since I fired my Vanguard Personal Advisor. Thanks to this video I’m not going to use it. I like the idea of target date fund. Cheaper than paying their PA’s for bad advice after they claim to be your fiduciary. Thanks Rob, I’ve made my decision.
What are your thoughts about making changes now or waiting? to makes changes to 457 account. It’s already lost $11,000 since January 😬.
In August of 2023, vanguard’s robo advisor does offer tax loss harvesting. I appreciate your work. Big thank you.
Rob, does one of your other videos go into more detail on why you don't want bonds in a taxable account (mentioned during glide path segment)? Thank you for your videos!
Rob, can you educate us on securities-based lines of credit (SBLOCs)? And preferred lenders/banks to establish a relationship to eventually take out a SBLOC? I see Schwab offers it (pledged asset line of credit) but would like to know your recommendation(s). Thanks!
Hi Rob: another outstandingly helpful video! Do you anticipate reviewing the new PAS Vanguard actively managed funds?> I think I read there are five? Also, what do you think of Vanguard PAS service?
Time value of money, opportunity cost, a comic interface without key info/dashboard, lack of control?! I would have difficulty being as content as GM Wesley So appears in the background. Asset allocation by total portfolio versus every account is where this breaks down the most for me.
Jack Bogle would roll over in his grave if he saw that hot mess his company put out. I am sure he would not like the inclusion of active funds either. Unfortunately, it is not Jack Bogle's Vanguard anymore.
Vanguard’s robo advisor lack of customization just screams, “we know better than you so you should just listen to us.” Very disappointed because I was thinking of recommending that to my Mother in Law if it turned out to be passing.
Difference between VG Target Funds, VG Life Strategy Funds, and AOR?? Please!
Yuck! Curious if they do asset placement correctly. ie. if you have a taxable + ira, will they put the bonds in the ira.
Ok. I am a Vanguard customer and I know what not to do. Does anyone know which company offers the automatic (or intelligent) asset allocation??
Yet another reason why "Morningstar ratings" of funds and service providers are next to worthless. It's just a cheerleader service for the financial services industry. Every large industry player always gets a trophy.
These sorts of things and TDFs always remind me of prison jumpsuits. Sure, they "fit" everybody in the sense of covering your body and allowing movement. But they really aren't made for anyone in particular.
Great video, Rib! I saw from different video you own SCHD…what type of account do you hold it? And what percentage?
What??? Digital Advisor is obviously not ready for prime time. I can only imagine the reaction of someone who knows next to nothing about investing and after reading Vanguard's website on this and decides to go this route. This is just seriously mediocre!!
Hey Rob. Loved the video. You talk a lot about Personal Capital. Did you plan on trying them out? I use them currently and wondered what your thoughts were?
Wonder if the Vanguard robo advisor was more from marketing.
Hopefully they watch your channel
Why use digital advisory if you don’t care about TLH , just go with target date fund
I was about to sign up for Vanguard DA. Thanks for your video. I am staying away from this.
Rob, Avantis Investors ETF deep dive please. PS I miss the chess puzzles.
Yeah... The end really summed it up. The last part was the most important in this video, IMO. I was thinking about those target date accounts the whole time you were reviewing this.
I got a few good chuckles from your video. Thanks. A three fund portfolio with a simple spreadsheet meets my needs just fine.
Can you make a review video about schwab intelligent portfolios?
I just signed up for the 90 day free trial. Some issues are fixed but jury is still out
Bravo, Rob, for you due diligence on this subject. Great insight as always. You are my "must watch" for all things Investing. I will still download and read the Morningstar report but you have given me an objective "eye" in which to evaluate their conclusions. Always great research with a laugh or two along the way......with some chess talk and Turkish Getup (what ? ) chatter as well.
Even the basic functionality of the site is lacking; they need to get it together.
Excellent video and a very detailed review. Love the insight of this video.
Good video, thanks for the good quality content.
Rob, Extremely helpful review. Thank You
You are Great! Thanks for reviewing this. I for one would never use a Robo advisor but I'm sure many others might and you have saved them a huge mistake. Thanks
Fantastic review, Rob. Thanks for saving me time!👍🏼
What concerns me along with all the things you listed is, do they use ESG in their calculations? I only want profitability not politics.
I had a similar tech glitch with Vanguard when I was simply trying to open an IRA account. I got various error messages and a ticket needed to be opened to look into it. About a week later, I got a message saying my account was fixed and ready to go, but when I tried again --- still an error. I ended up going with Fidelity, whose customer service is excellent and whose website works great. I really wanted to use Vanguard, as I have many of their funds, but the problems in trying to set up an account just turned me off.
I opened my IRA pretty fast. The only thing that took time was the transfer of my money to them. This was last year.
Hey Rob Berger:
I know Target Date Funds are not good for taxable accounts, but what do you think about the Vanguard Life Strategy Funds for a taxable account? These don’t have TIPS and so are more tax efficient. The LifeStrategy Funds could be like a “Robo Advisor” for taxable accounts!
(As a side question, you mentioned you had a Vanguard Target Date Fund in your taxable account, and I was wondering why?)
If I did I misspoke. I don't own a target date fund in a taxable account. LifeStrategy Funds are not ideal for taxable accounts if you have alternatives. The bond allocation is best in a traditional retirement account.
@@rob_berger Wow you take the time to respond to some of the comments.
The reason I ask about Life Strategy Funds is my wife does not know anything about investing, and if something happens to me I'd like a 1-Fund Portfolio for her that she could manage without an advisor...
The Tax Cost Ratio of VASGX (80% stocks 20% bonds) is only 0.87.
Comparable Vanguard 3-Fund Portfolio's Tax Cost Ratio I calculated to be 0.64.
The difference is only 0.23, which some may consider worth the simplicity no?
I had VFORX (target date 2040) and got dumped with capital gains end of last year. It was in a taxable account. Very frustrated with Vanguard that they distributed capital gains like this and impacted my taxes
Great review, very thorough 👍
WOW what a mess
Thanks Rob, if your analysis was not a genuine evaluation, it could have been a great proposal for an SNL skit, WOW. It's astonishing how badly they failed. I really appreciate the due diligence you did to try the service, make all of the timely phone calls when you ran into the dead ends online and stick with the service even after making an assessment, just to see if it improves. How much fairer could you be?