The Vanguard Group of Malvern, Pa. has announced that within the year it will start offering advisory services to its clients through Financial Engines of Palo Alto, Calif.
Vanguard will offer clients who participate in its employer-sponsored retirement plans, Financial Engines' Investment Advisor service, free of charge, the company said.
Vanguard will also offer the Investment Advisor service on taxable investments for individual retail investors, the company said. The service will provide personalized, tax-efficient investment advice on an investor's total household portfolio.
"Through the introduction of Financial Engines, Vanguard will provide the latest innovations in online advice to our clients from an independent, third-party source," said John J. Brennan, chairman and CEO of Vanguard. "Financial Engines utilizes an investment advisory methodology that emphasizes the value of long-term investing and the importance of consistency, taxes and costs - key components of Vanguard's philosophy."
