Vanguard; All-in regulated retirement saving advice @ 0.79%

[chip*]

Interesting news from Vanguard offering regulated financial advice from a dedicated in-house team of financial planners at 0.79%. Imo, a good move to capture the investors who found regulated advice too expensive with a low/medium size portfolio.

Vanguard said:

Vanguard, the world’s second largest asset manager, has launched a new low-cost retirement advice service for UK investors designed to appeal to millions of savers who lack guidance on pension planning.

Fewer than one in 10 UK adults has received financial advice, a gap that is fuelling fears that old age poverty awaits many workers with inadequate retirement savings that will leave them reliant on meagre state pensions.

Investors with a minimum of £50,000 will be able to obtain personalised retirement saving advice from Vanguard for an all-in annual cost of 0.79 per cent, which includes fund fees, transaction and platform charges. No other fees, such as entry or exit charges, will be applied by Vanguard which has built a reputation as a ferocious price competitor.

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https://www.ft.com/content/b2dffc4a-b105-482f-a3d3...

https://www.moneymarketing.co.uk/news/vanguard-unv...

https://ifamagazine.com/article/new-financial-advi...

[moles]

Does this come under the type of advise I have to take by law to remove my pension from a final salary scheme?.

[CarlosFandango11]

moles said:

Does this come under the type of advise I have to take by law to remove my pension from a final salary scheme?.

No.

[LeoSayer]

I assume this isn't independent in that they only give advice on funds available via their platform.

Will they include a spouse's plans if they're not on the platform?

Will this include inheritance and tax planning?

I'm not seeing the point of this service over an IFA.

[DonkeyApple]

LeoSayer said:

I assume this isn't independent in that they only give advice on funds available via their platform.

Will they include a spouse's plans if they're not on the platform?

Will this include inheritance and tax planning?

I'm not seeing the point of this service over an IFA.

They're looking to bridge the gap between wide spectrum advice that large portfolios would tend to need and the burgeoning micro investor world that is growing rapidly via the free share dealing services that are all heading into the 'robo' space under the rebranded term of 'neo banks'.

So targeting that £20k to £200k area which is a rich seam that tends not to want to pay an IFA but also doesn't want to go it alone or use social media for its tips.

[Heart and Soul]

LeoSayer said:

I assume this isn't independent in that they only give advice on funds available via their platform.

Will they include a spouse's plans if they're not on the platform?

Will this include inheritance and tax planning?

I'm not seeing the point of this service over an IFA.

I think it's for individuals with smaller sums to invest. Many IFAs these days are quite snooty about who they deal with, they want you to have a certain amount to invest with them.

[DonkeyApple]

Heart and Soul said:

I think it's for individuals with smaller sums to invest. Many IFAs these days are quite snooty about who they deal with, they want you to have a certain amount to invest with them.

It's just economics. The cost today of running an account under advisory conditions has gone up a lot and the amount of revenue generated has fallen a lot. All in that means it is loss making below quite a high level.

The average middle income savings pot has also shrunk dramatically meaning that the bulk of potential clients is shrinking fast and opening up a big pool of clients who fall below IFAs but well above the micro account free trade market.

[DoubleSix]

LeoSayer said:

I assume this isn't independent in that they only give advice on funds available via their platform.

To answer your question; yes, it is a restricted advice service.

[Spidersleg]

Is this just 0.79% to advise you to invest in VLS60 ?

[LeoSayer]

Vanguard are closing this service after less than 2 years.

https://www.ftadviser.com/companies/2023/03/01/van...

[Simpo Two]

'FTAdviser understands that Vanguard will be issuing a refund for all financial planning fees that clients have incurred from the service since they joined.'

That's decent of them; I'm sure most companies wouldn't have.