Vanguard pairing 401(k) investors with CFPs

Vanguard pairing 401(k) investors with CFPs
Participants in some 401(k) retirement plans managed by Vanguard Group Inc. now have access to advice from certified financial planners.
JAN 10, 2011
Participants in some 401(k) retirement plans managed by Vanguard Group Inc. now have access to advice from certified financial planners. The service is available free of charge to savers 55 and older who participate in a company plan that includes Vanguard Financial Planning Services. Almost 200 plans have adopted the service since the Valley Forge, Pennsylvania-based mutual-fund company first made it available in September, the company said in a statement. “The beauty of this service is that people can call and just ask one question,” Linda Wolohan, a spokeswoman for Vanguard, said in a telephone interview. “They don’t have to do a complete financial plan if they don’t want that.” There’s no additional charge to plan sponsors, she said. Vanguard is the world’s largest fund company. About 60 percent of the questions for planners have been related to asset allocation and mutual-fund selection since the program began, Wolohan said. “Adviser services have been shown to be particularly helpful to people with undiversified portfolios,” she said. Certified financial planners provide advice on investments, insurance and taxes, and must pass an examination and hold at least three years of related work experience, according to the website of the Certified Financial Planner Board of Standards Inc., based in Washington. --Bloomberg

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