About a year ago, my DH and I decided to take a "big picture" look at our investments, and as part of that process we consulted with both Vanguard & another company that I will refer to as "TRP" 
hehe
We explained our situation and why our risk tolerance is lower than what the "Average Joe's" might be, and what our target asset allocation is.
Vanguard took our information and gave us a very fine recommended portfolio based completely on what we told them.
TRP was a bit different. They asked us "Where do you think high-yield bonds fit in your investment strategy?" to which I repied "You mean junk bonds, right? They just aren't for us. We're not interested at all." They then proceeded to explain how their company's philosophy was that "high-yield" bonds had a place in every investor's portfolio, and then asked if they could go ahead and send us some information on them. I was starting to think "What part of 'no' don't you understand?" but just to keep the conversation moving along I told them fine, they could send the information. You can guess what I did with that info when it arrived --- straight to the recycling bin without a second glance!
After those conversations, DH & I decided that Vanguard is the company for us! It wasn't that TRP was overly pushy or sleazy, and I'm sure they do a bang-up job for lots of folks, but it was like they didn't really listen to what we had to say and tried to squeeze us in to a "one size fits all" plan. Vanguard on the other hand listened to us and believed us when we told them what we wanted!
This morning I was reading in the Business section of the paper about how investments in high-yield bonds are really taking a hit. I'm so glad we stayed true to ourselves and stuck with our conservative investments. In the end, we are the ones who have to live with the consequences. We've been sleeping just fine at night.
Don't ever let anyone else tell you how to invest! Listen to people's opinions and advice, certainly, but at the end of the day no one knows better than you what is right for you.
Don't Let Anyone Else Tell You How To Invest (or, Dear Vanguard, I Love You!)
August 12th, 2007 at 04:37 pm
August 12th, 2007 at 04:46 pm 1186937203
I'm sure this is just stating the obvious here, but there are some investment brokerages that are very much interested in selling certain types of asset vehicles only because they produce the most fees and loads for the brokerage in return. Sometimes, I get the feeling that fund performance that benefits the customers are only a secondary concern.
August 12th, 2007 at 05:18 pm 1186939091
August 12th, 2007 at 06:24 pm 1186943068
August 12th, 2007 at 10:09 pm 1186956581
August 13th, 2007 at 06:52 am 1186987961