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Has anyone tried this service where they tailor an asset allocation to your specific needs and adjust it every 90 days? They charge .3% of your invested amount each year and you could drop out at any time to terminate the service.
I have a Vanguard account, but I haven't tried this. I don't think it's necessary though and I personally would worry about someone else controlling my money. If you were going to try it, I think Vanguard would be one of the best choices though.
I agree that calendar based rebalancing is excessive. Use percentage based rebalancing. Easy to do it yourself. No need to pay anyone .3% per year. That's about 3% of your saving gone every 10 years.
I agree that calendar based rebalancing is excessive. Use percentage based rebalancing. Easy to do it yourself. No need to pay anyone .3% per year. That's about 3% of your saving gone every 10 years.
While rebalancing is easy to do yourself most never do it so your calculation of what the service cost you every ten years is flawed seriously
I met with them via Skype (equivalent) several times, discussing their service. .3% is very, very good for the service, providing you want the service.
My biggest issue is the initial rebalance -- I would incur massive cap gains by selling equities to then purchase bond portfolios that in the real world would then decline in value as interest rates inevitably go up. I'm not willing to go write that big a check to Uncle Sam.
Last edited by SportyandMisty; 10-07-2015 at 04:47 PM..
I agree that calendar based rebalancing is excessive. Use percentage based rebalancing. Easy to do it yourself. No need to pay anyone .3% per year. That's about 3% of your saving gone every 10 years.
I should have clarified, they review the portfolio every 90 days and if it substantially changed, they adjust it accordingly to stick with the allocation. Very similar, if not exactly what Rick Edelman advises in all of his books.
I don't think its as easy as just pure allocations, after all there are all types of different bond funds so some thought needs to be given when selecting within the various sectors. You can drop out of this at any time and the fee get pro-rated so I am thinking it might be a learning experience and worth a try.
Not a matter of being retarded. Who is that Balanced Fund balanced to suit, a 20 year old, 40 year old or a retired person and all individuals have a different risk value. Vanguard does spend several hours discussing you individual situation, needs, risk tolerance and time horizons. It's all important and tailored for a specific person.
The real alternative are the Date Balanced Funds, but it still is a general category and not tailored to individual needs.
I'm not sure there is a need for your childish reaction, most investors won't review asset allocation and rebalance, thus the 30 bps may be more than worth it
Vbinx might not meet said investors investment objects and it cost 23 bps so don't get carried away with you comparision
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