Vanguard Digital Advisor® is just a robo advisor in the purest sense of the word. Competitors offer services like automated tax strategies (tax-loss harvesting), virtual meetings with financial planners, and more. But, like most Vanguard products, Vanguard Digital Advisor® isn’t intended to be a full-featured robo advisor. For a bare minimum of expense, Vanguard will construct a portfolio of basic index funds that will be a good match to your investment needs.
That said, Vanguard also offers several personal finance resources that clients might find valuable. It has a debt payoff calculator tool that can help customers get on the path to paying off credit card and other types of debt. In short, Vanguard Digital Advisor® aims to keep investing simple, but focuses on its clients’ overall financial well being.
In addition to standard brokerage accounts, Vanguard Digital Advisor® is available in both traditional and Roth IRA accounts for retirement savers who want to put their investment strategies on auto-pilot.
It’s worth mentioning that the index funds used by Vanguard Digital Advisor® are essentially the same as Vanguard’s target-date retirement funds. A target-date retirement fund is one that invests your money in an age-appropriate asset allocation, and then gradually adjusts your investment allocation as you get close to your “target” retirement date.
Vanguard Digital Advisor® takes this a step further. It doesn’t only consider your age, it also uses other factors to construct your portfolio, like your personal risk tolerance. Essentially, Vanguard Digital Advisor® creates a custom-allocated Vanguard target-date retirement fund, which costs about the same as Vanguard’s standard target-date funds.
Access to financial advisors
Vanguard Digital Advisor® doesn’t include access to human financial advisors, which isn’t so surprising considering the ultra-low fee structure. Some of Vanguard’s competitors offer financial advisors, typically with a somewhat higher fee structure or a premium membership.
View more information: https://www.fool.com/the-ascent/buying-stocks/vanguard-digital-advisor-review/