16 January 2018
  • Featured Posts
    Health savings accounts (HSAs): The tax code’s next sleeper hit
    Andy Clarke
    Corporate Communications at Vanguard
    The tax code is a monument to complexity and tedium. Occasionally, however, a few lines of text buried deep in a subchapter can produce a sleeper hit—an account type or planning strategy that assumes an important role in our financial lives. The Health Savings Account (HSA) may be one.
  • Featured Posts
    Millennials: 3 Budgeting Styles to Get Your Financial Life in Order
    Erin Lowry
    It’s a rare person who just loves a budget. I see why. The idea of setting strict boundaries on your money isn’t nearly as alluring as just spending what you want when you want. Budgeting may feel particularly painful for millennials who might already be strapped for cash and barely scraping by.
    The 3 Types of College Savers You'll Meet
    Charu Chander Gross
    Vanguard Education Savings Group
    In this post, I describe the 3 types of college savers you’re likely to meet at day care, in the pediatrician’s waiting room, or at the trampoline park. In a perfect world, all parents are disciplined 529 savers. Realistically, we all have competing priorities and limited time and resources. Perhaps not surprisingly, just over a third of college savers fit into the disciplined-savers category. 
    Straight From Vanguard Retirees: 6 Retirement-Planning Tips
    Julie Virta
    In my last post, The coulda, shoulda, woulda behind every retirement story, I asked for comments. Who better than soon to be retirees and recent retirees to share lessons learned about preparing for retirement, right? (Exactly right.) The record setting number
    Rates Change, But The Role Of Bonds Doesn't
    Bill McNabb
    Chairman and Chief Executive Officer of Vanguard
    For many people, including me, falling interest rates have been the general trend in the bond market throughout our working lives. At the beginning of 1983, the year I graduated from business school, the yield of the benchmark 10-year U.S. Treasury note stood at more than 10%. It was less than 2.5% at the beginning of 2017. 
    The Benefit Of Buying Below Sticker Price
    John Woerth
    Vanguard's Spokesperson
    Youalready know that low costs are absolutely critical to long-term investmentsuccess, which is likely one of the reasons you invest with us. You’re not onlybuying at the low-cost fund shop, you’re also being frugal with your fundselections.
    Vanguard's Investment Tips For 2017
    Bill McNabb
    Chairman and Chief Executive Officer of Vanguard
    We’re living in unprecedented times, so we certainly can’t predict what 2017 will bring. And if you know Vanguard, you should know not to expect hot stock tips or “sure bets” from us either. But I do have four suggestions that I believe can help your clients reach their goals.
    Thinking Short And Long On Interest Rates: What We Expect From The Fed
    Joe Davis
    Vanguard's Chief Economist
     When the Federal Reservewraps up its December meeting Wednesday, Chairwoman Janet Yellen will mostlikely announce an increase of 25 basis points (0.25 percentage point) in itstarget for the federal funds rate. The bump in the benchmark interest rate will get the headlines, but it’sjust one piece of communication in a dialogue between the Fed and the markets.        
    The Benefits of Saying No
    Chris Tidmore
    CFA, Senior Investment Strategist, Vanguard Investment Strategy Group
    As an advisor, you likely manage your clients' investment portfolios according to your own set of investment principles. In doing so, you're bound to run into clients or prospective clients whose ideas conflict with your beliefs about investing and what's in their best interests.
    Why We Believe In Active And Passive - No Ifs Or Buts
    Tom Rampulla
    Managing Director of the Vanguard Financial Advisor Services™ Division
    I’m always a little surprised when people talk about active and passive management as if it’s an either/or question. At Vanguard, we believe the right conjunction¹ is not or. It’s and. Both active and passive strategies have earned spots in your clients’ portfolios. 
    “Take It Easy”
    Fran Kinniry
    Principal of the Vanguard Investment Strategy Group
    While the title may raise a few eyebrows given the equity market’s rocky start to 2016, its inspiration is Glenn Frey, the legendary singer-songwriter for the Eagles, who passed away on January 18, 2016. “Take itEasy,” cowritten by Frey, was the Eagles’ first single and one of their biggesthits. As an Eagles fan, I headlined this post with the song’s title both to pay tribute to the great Glenn Frey and to capture my thoughts about recent market turbulence and the danger of extrapolating too much information from a month of performance.
    Furnishing Your Portfolio with ETFs and Mutual Funds
    Jim Rowley
    Senior Investment Analyst of Vanguard Investment Strategy Group
    My colleague recently explained how he moved from a furnished apartment to an unfurnished one, requiring him to get some furniture.He thought about renting because there was a chance he might move back into a furnished apartment sometime in the future. He decided to buy instead. How long he planned to stay in this apartment was a deciding factor. He calculated that the monthly costs of renting the furniture would exceed the upfront costs of buying the furniture at some point in the future.
    Don’t Let Rising Rates Get You Down!
    Brian Scott
    Senior Investment Analyst of Vanguard Investment Strategy Group
    Recently, there’s been a lot of talk about rising interest rates and what that means for bond investors.One “solution” (suggested mostly by active fund managers) is to use active management for the bond portion of your portfolio. The argument goes that active funds are better in a rising-rate environment because they can shorten their duration, reducing losses from rising rates. What they don’t point out is, for this strategy to work, the manager has to get four things right: when rates go up, how much rates go up, the shape of the yield curve, and when rates stop going up. A miss on any of the four can turn a possibly successful strategy into a losing one. That’s a lot of things to get right or, looked at another way, a lot of things that can go wrong.
    5 Things Young Investors Should Do To Save For Retirement
    Colleen Jaconetti
    Senior Investment Analyst of Vanguard's Investment Strategy Group
    Reflecting on National Save for Retirement Week, my co-workers and I have been thinking a lot about those close to or in retirement. However, we shouldn’t ignore the fact that our advice might actually be more helpful to folks at the beginning of the journey than those approaching their retirement destination. There are more of these folks than you may imagine; millennials have surpassed the population of baby boomers,according to the U.S. Census Bureau. Yet too often this is a generation forgotten. So, I asked one of my colleagues, Zoe Odenwalder, a 20-something millennial herself, to provide a few suggestions to make the trip to retirement a more relaxing one. Read Zoe’s unique insight below.
    6 Financial To-Do’s To Check Off Before Year-End
    Anish Patel
    Senior Advisor of Vanguard's Personal Advisor Services
    As the holidays approach, I begin to evaluate my clients’ portfolios and look for year-end opportunities. Here’s a list of 6 financial to-do’s to check off before year-end to ensure that you’re not leaving anything on the table.