Is Vanguard a Good Company?
Is Vanguard a good company? For investors focused on low-cost growth and long-term savings, Vanguard has earned an exceptional reputation. The company pioneered the index fund and has become synonymous with affordable, disciplined investing. But when clients approach retirement, the question often shifts—from “How much can I earn?” to “How can I make sure I never run out of income?” That’s where working with an independent annuity broker like Diversified Insurance Brokers can reveal better options for safety, flexibility, and guaranteed lifetime income.
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See fixed and fixed indexed annuity rates side by side with personalized income projections.
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Vanguard’s Strengths and What It Does Best
Vanguard’s client-first philosophy and cost structure have revolutionized investing. Investors benefit from:
- Ultra-low costs: Vanguard’s expense ratios average less than 0.10%, maximizing net returns over time.
- Diversified product lineup: Index funds, ETFs, IRAs, and brokerage accounts allow easy global diversification.
- Mutual ownership model: Vanguard is client-owned, meaning profits are used to lower investor costs.
- Long-term stability: With over $8 trillion in assets, Vanguard is one of the world’s most trusted asset managers.
Where Vanguard May Fall Short for Retirees
Vanguard excels at accumulation, but it does not specialize in guaranteed income or principal protection. For retirees, that can be a blind spot. Here’s where a balanced plan matters:
- No guaranteed lifetime income: Investment accounts depend on market performance and sequence-of-returns risk.
- Limited annuity offerings: Vanguard only offers a few annuities through third-party carriers, with fewer customization options than independent brokers.
- No dedicated underwriting relationships: Complex medical or high-value cases benefit from direct underwriter access—something independent agencies provide daily.
- Market downturn exposure: Unlike fixed indexed annuities, Vanguard portfolios can lose value during major corrections.
Why Independent Comparison Matters
At Diversified Insurance Brokers, we review your Vanguard accounts and model alternatives that introduce guarantees, including:
- Fixed Indexed Annuities (FIAs) that protect principal and offer growth tied to market indexes without downside risk.
- Multi-Year Guaranteed Annuities (MYGAs) that lock in competitive fixed rates for 3–10 years.
- Retirement income ladders that provide predictable cash flow and inflation options.
Vanguard vs Independent Annuity Marketplace
- Vanguard: Great for investing and accumulation. Income depends on markets.
- Independent Annuities: Built for income and stability, often providing higher guaranteed payouts and stronger liquidity terms.
- Best Approach: Combine both—keep Vanguard for growth, add annuities for lifetime income and security.
Who Is Vanguard Right For?
- Investors in the accumulation stage who want low-cost exposure to markets.
- Clients comfortable with market risk and managing their own portfolios.
- Those who already have guaranteed income sources (e.g., pensions) and need additional growth.
For those prioritizing stable income, annuities can complement Vanguard holdings, offering reliable monthly payouts without market stress.
How Diversified Insurance Brokers Helps Vanguard Clients
We partner with clients who have accounts at Vanguard and are ready to transition into income mode. Our process includes:
- Reviewing your beneficiary and estate preferences.
- Comparing annuity options from 75+ top-rated carriers for rate and rider optimization.
- Designing tax-efficient income plans that coordinate with your existing investments.
Build a Smarter Retirement Income Plan
Let us compare Vanguard’s options to annuity carriers with higher guaranteed payouts and more flexibility.
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FAQs: Is Vanguard a Good Company?
Is Vanguard a good option for retirement income?
Vanguard is excellent for accumulating savings and reducing costs, but it does not inherently provide guaranteed lifetime income. That’s why many retirement plans pair Vanguard investments with annuities.
Does Vanguard offer fixed annuities or lifetime income products?
Vanguard offers investments through its platform, but it is not primarily a provider of fixed annuities with lifetime income guarantees. Independent brokers compare many carriers that specialize in those products.
Are Vanguard’s fees among the lowest?
Yes, Vanguard is known for industry-leading low fees on funds and ETFs, helping investors keep more return. However, low fees are one factor—not the only one—for retirement income success.
Should I switch away from Vanguard if I’m worried about income?
Not necessarily. You may keep your Vanguard account for growth while adding a portion of your portfolio to guaranteed income solutions. The key is balance, not necessarily replacement.
How do I decide how much to allocate to guaranteed income vs growth?
It depends on your age, risk tolerance, retirement income goals, and the size of your portfolio. We often model scenarios where 20-40% moves into income solutions while the rest remains growth-oriented.
Can I use Vanguard funds and annuities in the same plan?
Yes. Many clients keep Vanguard for diversified growth and add fixed or indexed annuities to secure dependable income and reduce exposure to market downturns.
What are the benefits of working with an independent broker rather than just using Vanguard?
An independent broker accesses many insurance carriers and product types, allowing you to compare rate and guarantees across multiple options instead of being limited to one provider.
