Gyroscopic Investing

Courting suspicion from traditionalists, Vanguard is pushing ever deeper into financial advice, known internally as “Engine No. 2” of growth. It’s giving wealthier clients and advisory customers the velvet-rope treatment, in contrast to Bogle’s everyman ethos. With scant notice, it’s quintupled the minimum balance required for one personalized service to $5 million.
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Just this month, three investors filed a class-action lawsuit, saying changes to popular target-date funds saddled thousands of individual customers with “massive” tax bills, all for the benefit of big institutions.

“The ethics came from Jack Bogle, and I’m a little concerned they’re going in different directions,” said Allan Roth, founder of Colorado-based financial planning firm Wealth Logic, and a self-described Boglehead.

dualstow wrote: ↑Mon Mar 28, 2022 6:36 pm Probably true. Everything gets corrupted eventually.

Kriegsspiel wrote: ↑Mon Mar 28, 2022 7:51 pm

dualstow wrote: ↑Mon Mar 28, 2022 6:36 pm
Probably true. Everything gets corrupted eventually.

Yup. On one hand, I don't care about the fleecing of high net worth investors. If they want to pay Vanguard to manage their money for them, and it doesn't affect me? Fine. But I suspect that that kind of thing will start (probably already has) populating Vanguard with people that I'd rather not work there, doing things that I don't want them to do.