I don't actually, mostly because I have been in school since I learned about it and haven't made any money since then to put in an account. Realistically, my understanding is that they are essentially using Vanguard ETFs. Their trick is that they actively manage your portfolio. If you are willing to spend the time to constantly rebalance your holdings (and have a good knowledge of ETF betas so you choose them correctly from the outset), then it is definitely better for you to do it yourself. The fact is that most people don't do this -- I know I won't. Not rebalancing can have a MAJOR negative effect long term on your portfolio, so I would rather be guaranteed to give up a small percent of returns than have exposure to future economic/market downturns as I get older.
gjmulhol|12 years ago