Slide 9 of 11
Just going with a target-date fund: The Vanguard Target Retirement 2045 Fund VTIVX, +0.25% is a “reasonable place to start,” and the 35-year-old should know it is a long-term holding that “could really fluctuate,” said Catherine Hawley, a Monterey, Calif.–based adviser who is part of the Garrett Planning Network. Going with a Vanguard target-date fund isn’t that imaginative, but finance-industry commentators like Felix Salmon have argued that it has been a “gold standard.”
Not competing, but complementing? Hawley said robo advisers “can be a complement” to what she provides, and she has a client who has used Betterment for allocation recommendations. “I kind of view the portfolio as one part of the plan,” she said, adding that she also focuses on aggressively saving for retirement, avoiding credit-card debt, securing insurance coverage and other issues.
Fees : Hawley said she charges $220 per hour, so a client could expect to pay at least $440 for an initial appointment, and he or she might end up spending a total of $1,500 for the year due to follow-up meetings to address other money matters