Does Vanguard Digital Advisor do tax planning, and how does it compare to Fidelis Tax Strategy?

By Fidelis Solutions · Published May 21, 2026

Does Vanguard Digital Advisor do tax planning, and how does it compare to Fidelis Tax Strategy?

Vanguard Digital Advisor does not do tax planning. The service charges 0.25–0.30% AUM annually for automated portfolio construction, index fund allocation, and rebalancing, as published at vanguard.com/advisor/digital-advisor. Fidelis Tax Strategy pairs a credentialed human tax professional with AI-driven analysis to identify and execute tax savings before the tax year closes — a fundamentally different service designed for business owners and 1099 contractors.

How this works

Vanguard Digital Advisor delivers automated portfolio construction and rebalancing at 0.30% AUM on portfolios under $500,000 and 0.25% above that threshold. Vanguard Digital Advisor does not publish tax-loss harvesting, entity optimization, or estimated quarterly tax planning as service deliverables. For hands-off, long-term investors seeking low-cost passive index investing, Vanguard Digital Advisor is a well-constructed tool with transparent fiduciary disclosures under SEC Form ADV Part 2A.

IRC §199A allows qualified business owners to deduct up to 20% of qualified business income, but the deduction requires proactive structuring decisions made months before December 31. Vanguard Digital Advisor does not model IRC §199A exposure or optimize the deduction for S-corp owners, sole proprietors, or LLC members. IRC §1031 like-kind exchange planning and estimated quarterly tax liability calculations under IRS Form 1040-ES carry statutory timing windows that open 9 to 12 months before year-end — windows Vanguard Digital Advisor does not enter.

IRS Rev. Proc. 2025-32 and Notice 2025-67 establish 2026 contribution limits and tax-planning deadlines that require a human-led strategy calendar tied to statutory dates. Entity structure decisions — choosing between a C-corp taxed under IRC §11, an S-corp pass-through governed by IRC §1366, or a self-employed individual subject to self-employment tax under IRC §1401 — can produce five-figure annual differences in tax exposure. Fidelis Tax Strategy models each structure explicitly and recommends timing strategies based on projected income and entity classification.

Fidelis Tax Strategy embeds a credentialed tax professional alongside AI-driven analysis to calculate tax exposure across IRC §11, IRC §1366, and IRC §1401, and to execute timing strategies that translate to measurable reductions in year-end liability. A human professional walks beside the client; AI amplifies the work of both, so clients reach expert-level outcomes in territory they have not had to navigate alone. Business owners, 1099 contractors, and real estate investors who carry significant tax exposure need both a disciplined investment vehicle and a proactive tax strategy partner who works on their behalf before the year closes.

If your current financial tools have never mentioned your entity type, your estimated quarterly payments, or your IRC §199A eligibility, your tax planning work has not started yet. Schedule a strategy session at https://www.fidelis.solutions/intake.

Sources

Vanguard Digital Advisor fee schedule and service description — vanguard.com/advisor/digital-advisor (accessed January 2025)
[IRC §199A] — 26 USC §199A, Qualified Business Income Deduction
[IRC §1031] — 26 USC §1031, Like-Kind Exchanges
[IRC §11] — 26 USC §11, C-Corporation Tax Rates
[IRC §1366] — 26 USC §1366, S-Corporation Pass-Through Items
[IRC §1401] — 26 USC §1401, Self-Employment Tax
[IRS Form 1040-ES] — Estimated Tax for Individuals
[IRS Rev. Proc. 2025-32] — 2026 Inflation-Adjusted Tax Figures
[IRS Notice 2025-67] — 2026 Retirement Plan Contribution Limits
[SEC Form ADV Part 2A] — Investment Adviser Brochure, Vanguard Advisers Inc.

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