Vanguard Asset Management Services-For Individuals


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Vanguard Asset Management Services-For Individuals

  1. 1. The ongoing advice you want from a partner you can trust Vanguard Asset Management Services TM
  2. 2. Vanguard Asset Management Services’ respected principles and trustworthy service can help you meet your financial goals with confidence.
  3. 3. Is an ongoing partnership with an investment manager right for you? Keep in mind that while we manage As a concerned investor, you may have given serious thought and monitor your portfolio, you can to questions like: stay as involved as you want to be in each critical investment decision. • How can I spend less time worrying about my assets? • Where should I turn if I’m not comfortable managing my assets on my own? • What are the right steps to take as I prepare to retire? • How can I make withdrawals from my portfolio tax-efficiently? • How do I provide for my family and future generations? If you have investable assets of $500,000 or more, Vanguard Asset Management Services could be what you’re looking for. You’ll receive ongoing attention from a dedicated investment manager who understands you and your financial needs and will give your portfolio the care it deserves. Your investment manager will: • Partner with you to build a customized investment program for any life stage. • Focus on disciplined portfolio management, rather than market noise, to help keep your investments on track. • Create a tax-efficient asset withdrawal strategy to help meet your living expenses and achieve your financial goals. • Provide resources to address more complex financial planning issues, such as estate planning, tax-efficiency, charitable giving, and trust services. • Connect with you regularly through personal contact and in-depth quarterly performance reviews. Connect with us > > 800-335-2412 ® 1
  4. 4. What sets us apart? Here are some of the benefits that help Exceptional value make Vanguard Asset Management Our outstanding service, investment Services an industry standout: expertise, and low costs add up to one of the best values you’ll find for asset Ongoing personal attention management—a fact supported by our Your investment manager is extraordinary client retention rate. committed to serving your financial needs. You’ll build a solid partnership Expertise customized for your needs as you collaborate to discuss your Our advisory services are designed goals and create a plan to help you to provide you with tailor-made advice meet them. Plus our low client-to- from a salaried Certified Financial investment-manager ratio means PlannerTM professional, so you can be there is more consulting time sure your financial needs will be available for you. addressed by an expert. As much participation as you want Stewardship, not salesmanship While your investment manager will You’ll receive financial advice based oversee your portfolio, you can be solely on your needs. Because your as involved as you want to be. Your investment manager is salaried and investment manager will contact receives no commissions, there’s never you on a regular basis, but you’re any sales pressure. Our investment also encouraged to call at any time. managers focus on providing service for you—not selling to you. Vanguard’s disciplined approach Your investment program will follow Investing involves risk, and fluctuations in the a disciplined, long-term approach financial markets and other factors may cause declines in account value. There’s no guarantee that focuses on managing risk through that a particular asset allocation or fund mix will appropriate asset allocation and meet objectives or provide a given income. diversification. We adhere to proven Diversification doesn’t ensure a profit or protect principles rather than short-term against a loss in a declining market. strategies or the latest trends to create a plan based on a custom mix of low-cost, tax-efficient mutual funds. 2
  5. 5. Advisory services for less than the average cost of a mutual fund With Vanguard Asset Management Services, you’ll find management fees and fund costs that are among the lowest in the industry, allowing more of your money to remain in your portfolio, working for you. Fee schedule Assets under management (Minimum assets: $500,000) Annual fee1 First $1 million 0.75% Next $1 million 0.35% Subsequent amounts 0.20% Minimum annual fee: $4,500 Compare the costs Assets under management $1,000,000 $2,000,000 $5,000,000 Vanguard Asset Management Services fee1 0.75% 0.55% 0.34% Average cost of Vanguard funds 2 0.14% 0.14% 0.14% What you’d pay for both asset management and funds with us 3 0.89% 0.69% 0.48% What you’d pay, on average— for funds only—at other companies 4 1.19% 1.19% 1.19% 1 The annual service fee, payable quarterly, is based on the market value of assets under management at the end of each calendar quarter. Mutual fund holdings are subject to the normal management expenses associated with their ownership and disclosed in the prospectus. These fees are paid at the fund level and don’t reduce the portfolio-level fees described on this schedule. A minimum of $500,000 is necessary to establish an asset management relationship. A different fee schedule applies to qualified plans and relationships with $10 million or more. Additional fees of $2,500 per registration may apply for certain trust services. 2 Based on the weighted expense ratio of actual Vanguard Investor and Admiral Shares funds (index and managed) representing a typical 50% stock/50% bond portfolio allocation used by our asset management services in 2009. Admiral Shares, a class of Vanguard funds which require a minimum investment of $100,000, have expense ratios that range 18%– 50% below the already low expenses of Vanguard Investor Shares. 3 On a $500,000 portfolio, the minimum annual fee of $4,500 would be assessed. This represents 0.90% of the total portfolio, which—when added to Vanguard’s average expense ratio of 0.20%—would result in a total cost of 1.10%, which is less than the average mutual fund expense ratio of 1.19% (source: Lipper Inc., December 31, 2008). This hypothetical illustration is not intended to represent the actual cost associated with any particular investment. 4 Source: Lipper Inc., December 31, 2008. Connect with us > > 800-335-2412 ® 3
  6. 6. A strategy created just for you We recognize that when it comes to managing your assets, one strategy doesn’t fit all, and the approach we take with you depends on where you are in your financial life. Still building your portfolio? How can I invest wisely for several goals, I want my decisions to be the best for my like retirement and college? investments in the long run. We will . . . • Help you prioritize your goals. • Apply Vanguard’s time-tested principles to • Recommend appropriate types of accounts construct a strategy that mitigates costly (such as an IRA or 529 college plan). mistakes such as overlapping of holdings, • Establish a diversified asset allocation market-timing, and chasing returns. that fits your situation. Retiring within five to ten years? How can I stay on track to retire if I still I want my retirement assets in a trusted have major expenses like college and place that I can get to easily, if needed. a mortgage? We will . . . • Analyze your investments and projected • Help you consolidate your assets at spending to help you plan a suitable strategy Vanguard—a company known for stability for both your short- and long-term goals. and integrity—to give you one clear financial picture. • Design a plan for withdrawing assets tax-efficiently. Living in retirement? How can I preserve my investments and I need to create an appropriate retirement maintain my standard of living? withdrawal strategy. We will . . . • Establish an asset allocation and diversify • Help you determine how much you can your portfolio to help your assets grow safely withdraw from your portfolio annually. and last throughout retirement. • Identify the accounts to withdraw • Help set up a withdrawal plan to meet from, based on a tax-efficient and your needs in retirement. risk-management perspective. 4
  7. 7. I feel that I don’t have the time or ability to How can I reduce the effects of taxes and keep track of all my accounts. expenses on my returns? • Monitor your portfolio and see that your • Create a portfolio of low-cost, tax-efficient assets are working toward your goals, and mutual funds that’s designed for the make your outside accounts a part of your long term. overall plan. I want to develop a withdrawal strategy How do I know the best time to start taking so I’ll be prepared for retirement. Social Security? • Manage and readjust your portfolio as you • Identify pertinent factors, such as your health near retirement. history, family longevity, and your plans for • Assist you in the transition from working in retirement. accumulating assets to withdrawing • Evaluate strategies that may be appropriate tax-efficiently from them. for you. I want to provide for my heirs without I want to establish a trust and appoint a causing too much loss to taxes. trustee who can serve for the long term. • Set up a complimentary consultation with an • Act as a trustee to administer and manage estate planning and trust expert to discuss your assets in accordance with your trust your estate plan. document, and ensure a stable, continuous • Collaborate with your attorney and other trust relationship for your beneficiaries. advisors to develop an estate plan that can achieve your goals. Connect with us > > 800-335-2412 ® 5
  8. 8. Here’s how it works You’ll partner with your Before developing your financial plan, Your investment manager will consider investment manager your investment manager will become this information, as well as a review of to design a customized plan familiar with more than just your your income and expenses, to create based on Vanguard’s disciplined, financial information: We want to an appropriate investment portfolio and time-tested methodology. understand your concerns, your suitable spending plan that takes into visions for retirement, and many account your risk tolerance and goals. other factors critical to creating Once it’s established, your investment your plan. manager will review your plan regularly and make adjustments as your financial situation changes. Our investment 1. Evaluate your situation and management approach develop your plan • Conduct a thorough review of your current financial situation. • Determine your goals, time horizon, and risk tolerance. • Arrive at a mutually agreed-upon approach that becomes your 4. Perform an annual review starting point. 2. Implement the strategy • Revisit your financial planning needs. • Decide upon an appropriate asset • Review your portfolio based on your mix among stock, bond, and money Continuous evaluation objectives and goals. market funds. • Validate your overall strategy. • Diversify among the market segments within the asset classes. 3. Monitor and rebalance • Incorporate tax strategies and select your portfolio individual funds. • Conduct investment reviews and analyses. • Rebalance your portfolio, as needed. • Provide customized quarterly performance reports. 6
  9. 9. Access a team of experts Your dedicated investment You and your investment manager • Tax-efficiency. Keep up to date on manager will be your can get professional, in-depth input tax law changes, and learn about primary source of guidance, on a range of topics that includes: strategies to reduce income taxes, but some situations may call estate taxes, gift taxes, and more. for specialized advice. That’s • Estate planning. Discover how where our team of experts to help ensure that your family’s • College saving. Learn how to set financial needs are met and aside what you need for your child’s comes into play. your assets are distributed in a or grandchild’s education through proper manner to the people and 529 plans and other savings options. Our asset management organizations you want to benefit. services team includes • Charitable giving. Get details about 100+ salaried investment • Trust services. Understand the vehicles like charitable trusts and professionals who have value a trust can add to your estate donor-advised funds, and determine 130+ advanced degrees plan and the importance of selecting the most effective and tax-efficient and certifications.* a trustee who can provide an way to support your favorite causes. objective, continuous trust *As of June 15, 2009. relationship for your heirs. • Long-term care. Review long-term care options and develop a plan to help pay for your potential long-term care needs. Ask us to help manage your trusts You can also benefit from comprehensive trust services offered by Vanguard Asset Management Services. We can serve as your trustee now, step in as successor trustee later on, or handle just the investment management of your trust assets. Whatever your trust needs, we'll be there to help you and your family. Connect with us > > 800-335-2412 ® 7
  10. 10. Ready for the next step? Call 800-335-2412 on business days from 8:30 a.m. to 6 p.m., Eastern time, to talk with a specialist about Vanguard Asset Management Services. The specialist will help you determine whether an ongoing advisory relationship is right for you and will introduce you to your personal investment manager if you’re ready to get started. You can expect honest answers with no pressure. It’s the way we do business at Vanguard. 8
  11. 11. Personal attention from your dedicated investment manager—together with our reasonable fees and fund costs that are among the lowest in the industry—will add extraordinary value to your portfolio. Connect with us > > 800-335-2412 ®
  12. 12. Vanguard Asset Management Services P Box 709 .O. Valley Forge, PA 19482-0709 Connect with Vanguard® > > 800-335-2412 Vanguard Asset Management Services are provided by Vanguard National Trust Company, which is a federally chartered, limited- purpose trust company operated under the supervision of the Office of the Comptroller of the Currency. Investments in bond funds are subject to interest rate, credit, and inflation risk. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund. For more information about Vanguard funds, visit, or call 800-662-7447, to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing. © 2009 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor. BTFK 082009