Perspectives : DC Retirement | June 11, 2026

Advice from Vanguard now integrates outside accounts

From day one, Vanguard has recognized that many participants build wealth in more than one place. Outside accounts have always been included in accumulation and cash-flow projections, but we recognized we were missing an opportunity to also reflect these outside assets in our investment recommendations. 

We’re excited to share that this capability is live: Outside accounts will now affect the investment recommendations participants receive with their Vanguard managed accounts. 

We approached this thoughtfully to create a consistent and user-friendly experience that represents a participant’s full financial picture and to control the risks inherent in relying on data with varying freshness and quality. 

"As we developed the methodology and technology over the last few years, we were consistently mindful of balancing the fiduciary considerations, the data quality challenges, and the participant experience," says Vanguard Senior Financial Well-Being Strategist Evan Wolf.

"We’re very excited to share it with plan sponsors and consultants and for participants to begin benefiting from the new feature."

The participant experience

Participants can opt in at any time and decide which accounts to include, ranging from self-directed Vanguard accounts to non-Vanguard accounts. These outside assets can be linked through our aggregation tool or entered manually. Vanguard then uses that information to adjust the managed asset allocation, bringing each investor’s total portfolio as close as possible to their target allocation. 
For illustrative purposes only.
For ongoing rebalancing, participants are periodically prompted to refresh or validate outside account balances and allocations. Vanguard uses this updated data to adjust the managed portfolio to align with the intended target asset allocation, if necessary. 

Built-in guardrails and controls for recommended allocations

To protect participants and sponsors alike, we added clear and consistent guardrails. Outside assets can flex a participant’s recommended equity allocation by up to 20% in either direction—enough to reflect meaningful differences in a household’s overall mix, while preventing extreme shifts driven by incomplete, inaccurate, or stale outside account data.
Target Asset Allocation
We flex the managed asset allocation up to 20% in either direction.
We also designed controls to keep recommendations relevant by requiring participant engagement to ensure data freshness.

What does adding outside accounts mean for participants?

17% of the Advice from Vanguard participant population¹ had already shared details about their nonmanaged assets, even before this feature elevated. We’re excited to see that number grow as investors learn about the additional portfolio management benefits of outside account integration. Evan Wolf Senior Financial Well-Being Strategist

Consider the participant shown in Chart A. They have $250,000 invested in-plan and another $250,000 held outside the plan. Based on the information they provided, their target asset allocation for their overall portfolio is 79% equities and 21% bonds. However, their outside accounts are 100% in equities.

To account for this overweighting, Vanguard will adjust the asset allocation in the managed portfolio. The “unconstrained” asset allocation for the managed portfolio would be 58% equities and 42% bonds.

But because this 21-point difference in equities falls just outside of the 20% guardrail, the final asset allocation for the managed portfolio will adjust to 59% equities and 41% bonds.

This recommendation reflects the participant’s complete financial picture, while ensuring any adjustments remain measured and predictable.

Chart A: Hypothetical example

Ready to see it in action?

Contact your Vanguard representative to learn about our holistic approach to participants’ portfolios.
Learn more about our advice offers for participants.
¹ Vanguard, as of December 2025.

Notes:

  • Advisory services are provided by Vanguard Advisers, Inc. (VAI), a registered investment advisor. Eligibility restrictions may apply.
  • All investing is subject to risk, including the possible loss of the money you invest.
  • Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.