Each member has his or her own account with Vanguard. You can allocate your own investments into any of Vanguard mutual funds. We encourage members to consider Vanguard’s low-cost index funds.
This page on the Vanguard website lists its main investment options. We encourage members to consider the “all-in-one” retirement funds (which allocate investments between asset classes based on years until retirement) or the “core” index funds.
The plan has been structured at very low cost to its members:
– The plan is covering its operating costs through donations and not charging any administration fees (although we may charge something modest in the future). At other plans, annual fees range from 0.20% to 0.35% of assets; that is between $200 and $350 a year per $100,000 of assets.
– Vanguard charges a $15 annual fee per fund you are invested in (although this fee is waived for anyone with assets over $50,000 at Vanguard)
– The only other fees are the underlying funds fees – which can be as low as 0.07% with Vanguard’s index funds.