Vanguard Advice invests to meet employees’ diverse needs

In early 2023, we implemented source-aware methodology, available in plans that allow source-level elections. Employees won’t ever see source aware as a “feature.” Where it is implemented, an enrolled employee’s total portfolio will be managed to their individual goals and risk profile while strategically maximizing long-term growth in tax-free vehicles. This strategy seeks to improve tax efficiency on withdrawals, extend portfolio longevity, and increase investors’ likelihood of success. The value of source-aware capabilities increases with the proportion of Roth in an employee’s plan.

Employees immediately see other Advice from Vanguard improvements when introduced, such as Goal Optimizer. Multigoal planning helps employees meet the financial goals that matter most to them, including saving to buy or repair a home, buying a car, or taking a vacation. Introduced in fourth quarter 2022, Goal Optimizer enhanced multigoal planning by enabling employees to explore scenarios for reaching their custom goals. They can see and adjust inputs (including contributions by account, retirement spending and age, goal target amount and date, current income, and expenses) and receive recommendations for improving their likelihood of success.

More new advice features were introduced over the last year to promote your employees’ financial wellness:

• Advice Decision Tool—Integrated with the retirement portal to help participants decide whether advice is a good fit for them.
• Rainy Day Tool—To help participants save for an emergency through guidance on how to hedge against the risk of unexpected expenses and income shocks while continuing to address long-term financial goals.
• Health Care Cost Estimator—A questionnaire that provides participants with an estimate of their health care and long-term care costs so they can more accurately plan for these expenses.
• Medicare Match—To help participants evaluate Medicare options, including Medicare, Medicare Advantage plans, and Medigap, providing the options that most closely align with the participant’s preferences.

Additionally, in mid-2022, we deployed our human-led Vanguard Personal Advisor® on the same discretionary advice technology platform as Vanguard Digital Advisor® to give plan sponsors and their employees a more powerful tool to support their financial well-being. Through Personal Advisor, we’re providing plan sponsors and their participants with:

• Higher-quality advisor interactions.
• Aligned advice methodologies and digital experiences.
• Synchronized feature rollouts and enhancements across Vanguard’s suite of advice services.

Our updates and improvements to Advice from Vanguard are ongoing. For more information, visit our Employee Advice and Financial Wellness resources, and contact your Vanguard representative.

Notes:

• All investing is subject to risk, including the possible loss of the money you invest.
• Vanguard’s advice services are provided by Vanguard Advisers, Inc. (“VAI”), a registered investment advisor, or by Vanguard National Trust Company (“VNTC”), a federally chartered, limited-purpose trust company.
• The services provided to clients will vary based upon the service selected, including management, fees, eligibility, and access to an advisor. Find VAI’s Form CRS and each program’s advisory brochure here for an overview.
• VAI and VNTC are subsidiaries of The Vanguard Group, Inc., and affiliates of Vanguard Marketing Corporation. Neither VAI, VNTC, nor its affiliates guarantee profits or protection from losses.