Vanguard starts investment advice series

Vanguard has launched Financial Planning Perspectives, a new series of white papers designed to distill complex financial planning and wealth management topics into actionable investment strategies for investors and financial advisors. Balancing theory and practice, the series provides objective research-based information that helps individuals make the optimal decision when facing an intricate financial situation. The papers explore a variety of retirement, estate planning, and investment topics, providing information that individual investors can use to inform their investing strategy or advisors can employ to educate their clients.

Vanguard has posted the first two publications in the series online:

• Tackling the tuition bill: Managing higher education expenses

College tuition is one of the most expensive investments most families will make and it comes with distinct financial challenges. The first paper in the series goes beyond the basics of 529 plans, helping parents and students understand how financing college using a variety of sources and accounts can affect their broader financial situation. The report also addresses how investments and income are factored in to financial aid eligibility, tactics for maximizing tax incentives, and how these decisions can impact the ability to meet other financial goals, particularly retirement.

• Roths beyond retirement: Maximizing wealth transfers

Many investors hold substantial tax-deferred retirement accounts, such as traditional IRAs and 401(k)s. Although discussions around converting these tax-deferred accounts to Roth accounts are typically targeted at pre-retirees, conversions in retirement can serve as a valuable wealth transfer tool in an investor’s overall estate plan. The second paper in the series details how retirees can take advantage of the tax treatment of Roth IRAs to avoid required minimum distributions and “prepay” income taxes for their beneficiaries.

Two additional papers will be available in the coming weeks that will focus on the topics of cash implementation and charitable giving.

Financial Planning Perspectives can be found on Vanguard.com and on Vanguard’s Pressroom.

Vanguard is based in Tredyffrin.