Automated Investing

Fundrise Review: Real Estate Investing With $500+

By: Tony Phan | Last Updated: April 4, 2018 | This content is not provided or commissioned by the issuer. Opinions expressed here are author’s alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer. This site may be compensated through the issuer’s Affiliate Program. Please visit our Advertiser Disclosure for additional details.

Saving your cash has never been more prevalent and required, than it is in the world we live in today. Most of us, hopefully, have had it drummed into our heads as we grew up, that putting money away for a rainy day is important. Some of us stuck it in the bank, hoping that the interest rate would make it grow; others put it in that lovely glass jam jar or pink porcelain pig on the counter, ready for the day we needed to smash it up. And, some more savvy individuals, put their well-earned money and savings into proper investment vehicles.

Deciding what investment vehicles to use can be tricky. There are many out there all promising the world and more. Fundrise is one such option you can consider. They’re a rising firm featured on Forbes, Yahoo Finance, The Wall Street Journal and The New York Times, and we’ll review what strategy they use in the investing world.

Fundrise Features
Minimum Investment	$500
Fees	0.85% per year
Year Founded	2012
REITs	Yes
Property Types	Commercial

Start Investing With $500+

What Is Fundrise All About?

: Fundrise’s trademarked eREITs

From their start in 2012, Fundrise has evolved from the typical crowdfunding form of investment house, to providing their clients with a one-stop platform to invest in stocks and bonds. If you ever wanted to invest in property, here is a good place to do it, with less risk than actually buying property outright.

Fundrise has designed a unique process of getting your money into the real estate market. They call it eREIT, which is short for Electronic Real Estate Investment Trust. They also invest in eFunds or electronic funds.

If you know a bit about mutual funds or ETFs, then eREIT investing will sit better with you. For those not in the know, a mutual fund is where you invest into a program managed by professionals and where the funding comes from the shareholders. An ETF, or exchange-traded fund, allows funds to be invested and are spread across various vehicles, such as bonds, commodities, and other assets, such as you would find in an index fund. The price changes on a daily basis as they are sold and bought.

What Are eREIT’s Exactly?

With the eREIT there are some fundamental differences from mutual funds and ETFs – the fees are lower, and you do not deal with a broker or intermediary, but rather directly with Fundrise. And, as we all know, a broker would need to take their portion of fees, so this drastically allows Fundrise to reduce the fees due.

What Are eFunds?

Electronic Funds are also exclusive to Fundrise and also are investments in real estate. Unlike the eREIT, eFunds are not publicaly traded. They are also taxed very differently, and in fact, you make a savings here, by avoiding double taxation, as they are set up as partnerships, and not as corporations. As with their eREIT’s, you do not accrue broker fees or commissions. The eFunds are generally used for the Growth packages, as they are built better for this goal.

What Are The Fees?

Fundrise charges an annual asset management fee of 0.85% for the eDirect funds (eREITs and eFunds). Clients of the investment services and management system will pay an additional 0.15% annual investment advisory fee.

The founders, among having very strong ideas about providing an investment vehicle for the everyday man, also strongly disagreed with a high fee structure, which oftentimes, ate into the investment.

Fundrise Pros And Cons

PROS	CONS
Low minimum investment contribution ($500)	Lack of liquidity as they are not traded on the markets. However, they do offer quarterly distributions and redemptions (they are unfortunately not guaranteed)
Less risky than investing directly in real estate	Tax liability – distributions are taxed as regular income, as opposed to the 15% charged on qualified dividends
Low fees	In comparison to Index Funds, their fee structure is higher
Pre-funded with their own capital	The average investment is less than $10,000, in comparison to other crowdfunding sites like Realty Mogul, which edges on $60,000
Big players in the industry back the Fundrise way of investing	Not open to non-U.S. citizens (at least not yet – although they suggest you can make a request if you’re an international client)
The deals are quality (and Fundrise only approves 2% of their deals)
Their track record is one of the best in the investment industry
There is no minimum criteria in terms of your own credentials (i.e. experience, gender, area code, income, etc.)
90-Day Guarantee is given to all new investors. What this means is that if you are not satisfied with the rewards gained in the first 3 months, you can close your account and Fundrise will buy your investment back at the original price you paid for it. Please note that there are certain limitations, terms and conditions.
Diversity – their spread of real estate options allow you to ensure you smooth out any risk you are not happy with in the mix
Accountability Policy – explained in detail below. In short, this is a guarantee that Fundrise offers each and every investor

Why Fundrise?

Fundrise was developed by the founders, Dan and Ben Miller, wanting to create a platform for the man on the street to invest in property. Bringing the real estate to the investor, instead of them going to the real estate. The upliftment of communities was key to their idea.

While most of their projects are based in Washington, D.C. where they started, they have branched up into the New York state area and are starting to venture further up the East Coast. Other areas, including Chicago, Dallas and the West Coast, are also on their geographical map.

What Properties Does Fundrise Invest In?

Fundrise investment packages are made up of their unique eREIT’s and eFunds. Depending on which strategy option you choose (see next section) your investment basket will form a mix of these two types of funds.

As for the types of properties that Fundrise invests in, they do not want to rule out any forms of property into their fund, and have a good mix of condominiums, single and multi-family homes, industrial buildings, retail developments, and many other multi-use properties. They look at both complete projects and those in the construction phase, urban infill, and those needing rehab.

Stats show that in 2015, Fundrise was investing in over $525 million of real estate assets, and more impressively, they were giving their investors an average annual return of nearly 13% net. Those figures are what make Fundrise a very good option for many investors, and it appears they are only showing more growth year in and year out.

Fundrise Investment Options

Every good investment decision begins with a strategy. And, Fundrise has made it easy for you to decide which strategy of theirs will be the best option.

They realize that many of their potential investors will not have the know-how around real estate or even around investing, so they have provided a nifty and easy to use calculator. All you have to do is answer the questions posed to you and the calculator will give you the best strategy package based on those questions.

In addition, Fundrise promotes Goal-Based Investing:

Income Only
Income and Growth
Growth Only

Then, you apply the strategy option that best works for you, open your account after the simple registration process, start depositing funds, and see how your money grows.

The portfolio strategies on offer are three great choices, giving you real diversity:

Supplemental Income (Create an attractive, consistent passive income stream)

Objective: Income

Should you be looking to supplement your income, this is a great way to do it. Targeted at those getting near to retirement, or for those just wanting an additional income, the Supplemental Income package is perfect.

With a low variability, a decent time horizon for growth, and a passive income offering, you will find it in this package.

Balanced Investing (Build wealth confidently with the maximum level of diversification)

Objective: Income & Growth

If your aim is to build on what you already have, wanting to see results can increase your wealth basket, the Balanced Investing package is ideal.

Expect to leave your investment in for a moderate to long term period, and be open to many diverse avenues on the investment pickings. There are minimal risk factors with this investment package.

Long-Term Growth (Pursue maximum overall returns over the long term)

Objective: Growth

This is the package where you need to leave your money and not think about it. The Long-Term Growth package is built for the person that only wants to withdraw after many years. The results over this time will be great, but patience is the key here. Your investment is gauged into aggressive risk portfolios in the real estate market, and you will see many ups and downs as the years go by.

The Accountability Policy

Now, this is a real rare addition to any investment company’s modus operandi. Fundrise, having such confidence in their real estate mix, has added in an Accountability Policy for those clients investing in the Income and Growth packages. (The Supplemental Investing and the Long-Term Growth options, as mentioned above)

Those investing in the Growth package will find that Fundrise will pay a penalty up to $500,000 should they not perform more than a 20% non-compounded return in any given annual period.
The Income package investors – should you not earn at least a 15% annualized return, Fundrise will not charge you the asset management fee. This pertains to those in the first 2 years of investment, and expires at end of 2017.

How Accessible Is Fundrise?

While they are a growing company, they pride themselves on being available to potential investors and those already investing in Fundrise. They are also firm believers in educating their investors, and if you look on their website, they have a neat drop-down menu where you can source a great deal of information. From advanced investing, to just how real estate investing works, you can have a good read. The reading is simple and in layman’s terms in order to assist all levels of investors.

Their email contact link is managed quite closely, and replies back can be expected anywhere between 24 and 48 hours.

The team is clearly outlined on their website, giving you all the credentials of each and every person involved, down to their Office Administrator (who happens to be a dog called Zappa) – clearly a joke, but we like their humor.

Final Thoughts

In conclusion, given all the facts, we are quite impressed with Fundrise’s formula and unique offerings.

Are you the right candidate for investing in Fundrise? Well, if you can afford a minimum of $500 to invest, are a U.S. resident and are over the age of 18, you can certainly get started. Their typical investor is in the 30 to 40 age bracket and invests around $15,000 on average. If you do live outside the U.S., you can certainly contact Fundrise to determine eligibility. Simply pop them an email to see what they can do for you.

With their Accountability Policy and other fair fee spreads, the investment is pretty sound and easily managed.

We suggest you take some time in reading about Fundrise online. Sip some coffee while you go through a few of their interesting articles, and then give them a try when you’re ready.

We wish you good luck and leave you to make the right decision for your hard-earned income and/or savings.

Start Investing With $500+

Disclosure:

The information contained herein neither constitutes an offer for nor a solicitation of interest in any securities offering; however, if an indication of interest is provided, it may be withdrawn or revoked, without obligation or commitment of any kind prior to being accepted following the qualification or effectiveness of the applicable offering document, and any offer, solicitation or sale of any securities will be made only by means of an offering circular, private placement memorandum, or prospectus. No money or other consideration is hereby being solicited, and will not be accepted without such potential investor having been provided the applicable offering document. Joining the Fundrise Platform neither constitutes an indication of interest in any offering nor involves any obligation or commitment of any kind.The publicly filed offering circulars of the issuers sponsored by Rise Companies Corp., not all of which may be currently qualified by the Securities and Exchange Commission, may be found at www.fundrise.com/oc.

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Wealthfront Promotions: $5,000 Managed Free + $5,000 Per Referral

Find the latest Wealthfront promotions, bonuses and offers here. Similar to Betterment (another popular option) and Motif (great customized portfolios), Wealthfront is another robo-advisor that sets you up with automated investing. Wealthfront is our editor’s pick for automated investing and we currently have an actively managed account open with this provider.

For more in-depth reviews of Wealthfront, we like the sources below:

See current Wealthfront offers below.

First $5,000 Managed For Free (Previously $15,000)

Wealthfront trusts that you’ll like their service so much, they have an offer to manage your first $5,000 for free. Their previous promotion prior to April 1 of 2018 was for $10,000 to $15,000 managed for free. The decision to lower this amount was due to Wealthfront investing heavily on new features and services to grow their service even more moving forward. Luckily, you can still make referrals and receive an additional $5,000 managed for free per eligible referral.

Promotion has no set expiration date.
Get your first $5,000 managed for free
Once you become a Wealthfront client, you can also participate in the invitation program and refer your friends where each of you will receive an additional $5,000 managed for free.
If you participate in the invitation program, you can reduce your account fees for every person you invite who funds an account with Wealthfront.

Get $5,000 Managed Free

*Update: Wealthfront will no longer manage $10,000 for free for new clients starting April 1st, 2018. If you already have an account with Wealthfront, this will have no effect on your account. You’ll still maintain your original sign-on benefit, along with the referral benefits you’ve earned. They will continue to offer everyone the ability to get an additional $5,000 managed free for every referral who funds a new account (see details below).

Unlimited Referral Bonuses (Get An Additional $5,000 Managed Per Referral)

Feel free to post your referral links in the comments section below!

Once you have an open and funded Wealthfront account, you can then start making referrals. Just like when you use our referral link above, your referrals will receive the offer for $5,000 managed for free.

For every person you refer that opens and maintains a funded account, you’ll receive an additional $5,000 managed for free. Thanks to our readers, we’ve received numerous successful referrals since posting our link. Again, thank you!

*We encourage anyone who opens an account with Wealthfront to return to this page and post your personal referral link in the comments section.

Get $5,000 Managed Free

Here Are More Top Brokerage Promotions To Consider:

We keep all stock broker promotions updated here.

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Check back for the latest promotions and bonuses from Wealthfront here.

Schwab Intelligent Portfolios Review: $100 Sign-Up Bonus

By: Tony Phan | Last Updated: March 22, 2018 | This content is not provided or commissioned by the issuer. Opinions expressed here are author’s alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer. This site may be compensated through the issuer’s Affiliate Program. Please visit our Advertiser Disclosure for additional details.

Charles Schwab is considered to be one of the market leaders in the field of robo-advising with their Schwab Intelligent Portfolios. Why? Because they have stuck with their promise not to charge account management fees.

The Charles Schwab Corporation was founded in the mid-1970s and today has almost $3 trillion in assets and just over 1.5 million corporate retirement plan members. They launched their Schwab Intelligent Portfolios service in Q1, 2015.

With a low account minimum of just $5,000, it opens the door for many individuals to get started with robo-advisor services with ease (competitors like Wealthfront and Betterment also have low minimums). Signing up is straightforward and quick to do. You just need to answer 12 simple questions, the answers to which will then assess your tolerance to risk and your overall confidence in making decisions of a financial nature. They prefer to use the term ‘”automated investing” as opposed to robo-advisor, but it is the same thing.

The standout feature of Schwab Intelligent Portfolios is their internal ETFs which they select from their own services. This is different from other robo-advisor services like Wealthfront and Betterment, as they are brokers. Whereas, with Intelligent Portfolios, Schwab is self-clearing and uses its own ETFs. This does give them an advantage because they are not just a platform, such as is the case with Betterment and Wealthfront.

Schwab Intelligent Portfolios $100 Sign-Up Bonus

Just like how you can earn $100 sign-up bonus for opening a new Checking Account, their Intelligent Portfolios product also is eligible for the $100 bonus opportunity.

Just use the offer page and click on the “Open an Account” button and you’ll see Intelligent Portfolios as an option to open.

A minimum deposit of $1000 is required to open most Schwab brokerage accounts.
New clients who do not have a Charles Schwab & Co., Inc. (“Schwab”) account (other than a Stock Plan Services account), open an eligible retail brokerage account, and enroll in the offer can earn a $100 Bonus Award.
The Bonus Award will be credited to the enrolled account within approximately one month of account open.
For taxable accounts, the account must be maintained at Schwab for at least one year or Schwab may charge back the Bonus Award.
Schwab reserves the right to change the offer terms or terminate the offer at any time without notice. The offer is limited to one per account, with no more than one account enrolled per client.
The offer does not apply to accounts managed by independent investment advisors, the Schwab Global Account™, ERISA-covered retirement plans, certain tax-qualified retirement plans and accounts, or education savings accounts.
The offer is not transferable, saleable, or valid in conjunction with certain other offers and is available to U.S. residents only. Employees, contractors, or persons similarly associated with Schwab or a Schwab affiliate; their spouses; and employees of any securities regulatory organization or exchange are not eligible. Schwab may decline requests to enroll in the offer at its discretion.
Other restrictions may apply.
Consult with your tax advisor about the appropriate tax treatment of the Bonus Award before enrolling in the offer.
Any related taxes are your responsibility.
For taxable accounts, the value of all Schwab offers received will be reported as Other Income on your Form 1099-MISC if, when combined with Other Income earned, the value totals $600 or more during the calendar year.
Recent IRS guidance may impact your ability to make more than one IRA to IRA rollover in a one-year period.

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Who Is Schwab Suitable For?

Those who are new to investing
Anyone who wants to invest with the support of a well-established business
IRA Investors
If you do not want to pay out for Financial Advisor fees, accounts service fees or commissions
Those who don’t have a lot to invest
Those who want to invest and trade with a large number of ETFs and asset classes

The overriding plus factor for Schwab Intelligent Portfolios is the fact that it is part of the Charles Schwab business. The ability you get to customize your portfolio, the large range of investments you can select from, the low account minimum, and the free account management makes it ideal for many.

However, the high cash allocation and tax-loss harvesting minimum bracket of $50,000 does not make it suitable for all.

How Do You Open An Account With Intelligent Portfolios?

You will be taken through a 12 point questionnaire which will ascertain your risk profile, time frame and objectives. Each answer you give to the questions asked will determine your stock to bond ratio, producing an overall asset allocation at the end.

In order to open an account with Schwab Intelligent Portfolios, you will need to have a minimum of $5,000 to invest. They support both retirement and taxable accounts. If you have more than $50,000 in taxable investments, you will be granted access to their tax-loss harvesting services.

There are a total of 37 portfolios that Schwab Intelligent Portfolios will select from, with 54 ETFs. This is a very comprehensive selection compared to most competitors.

Something that is important to note is that your investments are not insured under FDIC. However, Charles Schwab does have SIPC insurance.

Pros And Cons Of Schwab Intelligent Portfolios

Pros

Overall Cost of the Service

There are no account fees, commissions, or advisory fees to pay for with this service. The only cost that clients will need to pay for is the net expense ratio which is determined by the ETF holdings within the portfolio. These fees are typical and considered to be commonplace for robo-advisor services. These fees range from 0.08%-0.24%.

As of 2017, Schwab Intelligent Portfolios is the only robo-advisor service not to charge their clients an annual fee for management. Overall, they appear to be the lowest cost robo-advisor service on the market right now with respect to their advertised fees.

Customizable Portfolio

As with all robo-advisor services, you will get a tailored portfolio that fits your profile. However, you do not have to accept the suggestions made, and you can easily customize their pre-selected choices by selecting up to three ETFs to take out and replace with other investments which you might prefer.

Scope of Investment

Schwab Intelligent Portfolios has a solid array of more than 50 ETFs over 30 alternative classes. As you would expect from a company that has been in business for as long as they have, they have a great reach, some of the options are emerging markets, stocks, real estate investment trusts, bonds, and commodities.

Looking at two other major players; Betterment has 12 different asset classes, and Wealthfront has just 11. This is a real plus for Schwab Intelligent Portfolios customers.

Tracking your Objectives

If you are saving for something that requires a significant amount of capital, you need to be patient and disciplined. However, being able to track your performance against your objectives clearly is a great motivational tool. The goal tracker from Schwab Intelligent Portfolios gives you a daily overview of how you are tracking against any goals that you may have set.

This nifty tool will report on a number of different factors. It will show you if you have a more than 50% chance of attaining your goals. It will flag them up as being at risk if you fall between a 25%-50% chance of attaining your objectives, and it will show you as off-target if you fall under the 25% chance mark.

It doesn’t just stop there, the goal tracker will make recommendations for adjustments which will enhance the likelihood of you attaining your objectives. These could be by making a one-off contribution or by altering your monthly payments. It might also suggest that you change your risk profile.

It is also a great tool for those who are no longer building wealth and who might soon be looking to take an income from their investments.

Cons

Tax Loss Harvesting

Although Schwab Intelligent Portfolios does indeed offer this service, we don’t like the fact that is in only available on balances of more than $50,000. After all, this element of the service is where other robo-advisors really do offer something useful to Investors. With all the complexities that can arise from selling, if it a function that is much-loved by those who use robo-advisor services. If you don’t have the minimum they require, it can be a real turn-off and is probably why Schwab Intelligent Portfolios will lose some business to their competition.

Cash Positions in Portfolios

This is perhaps one of the major flaws in the services offered by Schwab Intelligent Portfolios. The fact that the underlying principals of their strategy are to place a large percentage of that pot in cash is a little unnerving for some. It is between 6%-29.4% of their total portfolio holdings. Essentially, the cash is placed into a deposit account which will accumulate interest based on the average money market rates nationally. For some Investors, it means that their asset allocations are a little too conservative. The main challenges this approach presents are below:

Schwab Intelligent Portfolios will make money from your cash. These funds are held within an FDIC insured bank account belonging to Charles Schwab. This cash is then used to make money based on the spread. This is the difference between the amount of interest you will earn and what they will earn themselves by investing it elsewhere or loaning it out.
If cash sits in the same place, without being put out on the market, it is called a “cash drag”. The overall portfolio returns can be brought down by this low return of money that sits stagnant in the cash pot.

This approach might work for some, but for those who are serious about investing with an element of risk Vs. reward, it is a little too dull for their liking.

Customer Service

Although there are many positive aspects to the customer service team at Schwab Intelligent Portfolios, there are some majors flaws with it as well. You have the choice to get in touch with the team via the phone or through a live chat function. The biggest complaint is typically related to their live chat function. In some cases, there was no response received whatsoever. At other times the service was considered to be a little patchy with frequent error messages, and on other occasions, no connection to an advisor was able to be made. This would be a little frustrating if you were a customer and had limited time available in order to resolve your queries.

Email is a preferred method for most who are limited with their time and need to send a question there and then. Not only was it very difficult to locate an email address for the business, when one was found, it also took several days just to hear back, if at all. This is something we feel they really need to get to grips with, quickly. Having a robust live chat and email support option is crucial.

Summary Of Schwab Intelligent Portfolios

Having an independent site for Schwab Intelligent Portfolios is a good thing in our opinion. The site looks good, and it is easy to find your way around. Knowing that you are investing in a business that is as well-established as Charles Schwab is, makes for a comforting investment proposition. Their wide range of portfolio options and the added benefit of the flexibility offered by this robo-advisor service is also reassuring.

The low cost of using the service is a key feature, along with the low account minimum requirements.

If you are looking for help with tax harvesting, we feel their minimum of $50,000 is a little too high, and when compared with the likes of Betterment and Wealthfront, this is definitely an area where they fall short. Another real sticking point for us is the customer service element too. You need to be able to reach someone by email or live chat in a time-efficient manner, and this is not reported upon well by those who have tried to use these services.

However, they have created a good investment management service that is both low-cost and innovative, allowing investors of all levels to confidently invest in the market with a determined and informed approach.

It is also ideal if you are an existing customer of Charles Schwab.

There’s one other important point to bring up. At first glance, Schwab Intelligent Portfolios would appear to be the lowest cost of all robo-advisors, but it is not. Once you take into account the ETF fees along with any returns lost from the 6%-24% cash allocation, their fees are actually inline or worse than other robo-advisor services. When something is stated to be free, it is always worth a further investigation to ascertain the true validity of that statement.

Despite being one of the first players in the robo-advisor space, other options have come out which are more cost-effective and also offer a more reliable customer support structure for their customers.

Learn More at Schwab

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Personal Capital Review 2018 | Legit Or Not Worth It?

By: Tony Phan | Last Updated: March 20, 2018 | This content is not provided or commissioned by the issuer. Opinions expressed here are author’s alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer. This site may be compensated through the issuer’s Affiliate Program. Please visit our Advertiser Disclosure for additional details.

Personal Capital was founded by Bill Harris, the former CEO of PayPal and Intuit. They provide a managed service that is primarily targeted towards clients with large balances. They also offer a range of free financial management tools.

Their managed approach is a blend of professionally certified human advisors combined with robo-advisors. If your account has a balance of $200,000+, then you will have the pleasure of two dedicated Financial Advisors. If your balance is between $100k-$200k, then you still get access to this support, however it is provided by a team of Financial Advisors, as opposed to dedicated and named individuals.

Learn More at Personal Capital

What Are Personal Capital’s Credentials?

With more than 1.6 million users and managed assets of more than $6.5 billion, they operate a successful business in this market.

Personal Capital delivers a host of free products, such as their investment management tools which can also be accessed via a handy app. Their free financial tracking tool is pretty good. It is quick and painless to link-up numerous accounts to this service and well worth a try. As a user of this service, you can link any existing accounts which will then allow you to keep track of your overall portfolio performance, net worth, overall retirement progress and fees. You can add bank accounts, IRA, 403(b), 401(k), taxable investments, mortgage, credit cards, and other investments such as the peer-to-peer lending services offered by Lending Club.

One of the first points to note about Personal Capital is the rather high account management fees that come with the service. They charge 0.89% annually, which is much higher than robo-advisors like Wealthfront and Betterment. It’s only when your account balance is at least $1 million do you get discounted rates.

Who Is Personal Capital Suitable For?

If you are an investor with lots of capital, Personal Capital may be a good fit. The service also lends itself to those who prefer a hands-off approach to the management of their Investments, and for those who are looking for assistance with tax optimization strategies.

On the other hand, if you are a DIY Investor who is looking for free tools to use to help you with your financial management strategy, the range of free services they offer are pretty impressive as well.

Personal Capital is suitable for high-net-worth individuals who through a large amount of invested capital, can access dedicated personal Financial Advisors. It also delivers a comprehensive range of tools to help DIY Investors analyze their own portfolios without needing to buy-in, or pay for portfolio management services.

Pros And Cons Of Personal Capital

PROS

Financial Advisors

This service is one which attracts investors with large balances. If you have $200k or more, you are provided with two Financial Advisors that will help you with every element of your financial life. Whether you want to ask questions about your mortgage, planning for retirement, refinancing or anything else that may fall into the realms of their financial capabilities, they are there to help you with all of those matters.

If your balance is between $100-$200k, you still get the same expertise. However, it is provided by a team of advisors, as opposed to dealing with the same two individuals. You can access the support from these professionals in a number of ways such as over the phone, by email, or even by a video chat for your added convenience.

Investments

As mentioned in the first point, the managed services from Personal Capital come in two different levels. The lower tier from Personal Capital covers investors who place between $100-$200k with the company. These assets are then invested into an Exchange Traded Funds portfolio which carries an average expense ratio of 0.09% that is weighted.

The upper tier covers those with $200k or more in investments. For customers in this category, they get a completely personalized portfolio that is inclusive of individual securities via a process of Smart Indexing. Essentially, the Smart Indexing process from Personal Capital will equally invest across all sectors; it will not copy an index such as the S&P 500. This approach is also used by other businesses and is otherwise referred to as smart beta.

The people at Personal Capital state that this method of Smart Indexing lessens the risk while providing larger returns for investors. Which, as we know all too well, is the ideal goal for any investor. Personal Capital conducted rigorous tests of this strategy versus the S&P 500 which resulted in demonstrable figures showing that over a single year, Smart Indexing outperformed the S&P 500 by more than 1.5%, with lesser volatility.

What we also like about Personal Capital’s method is the ability for the company to locate individual opportunities for tax-loss harvesting. Through their utilization of individual securities, they are more easily able to select and sell these as required. Another service competing with Personal Capital, Wealthfront, is also able to do this with their direct indexing service.

Security of the Service

Each time you register a new device with Personal Capital, you need to verify either by email or phone that it is genuinely you who is doing this. We rate their overall security as very efficient and more than adequate, which is exactly what you need when you consider how sensitive the data is.

All data contained within the site is fully covered by an encryption service called AES-256. They have stringent internal access controls along with two-factor authentication in place. It is also quite reassuring to know that Personal Capital uses an established company called Yodlee to store all of your brokerage login details. They are also fully governed by the Securities and Exchange Commission (SEC) and regularly undergo compliance related audits to meet with their strict regulations.

One other important point about the security is that the encryption has been independently graded with an ‘A’ rating by Qualys SSL Labs. This rating is better than most in this industry.

Free to Use Tools

Personal Capital offers a comprehensive range of tools that are free to use. They include a 401(k) analysis tool and a spending tracker. They do request that you create an account with them to use this service. However, you do not need to enroll for their paid advisor service to get access to these tools. Once you have completed the sign-up process, you are then free to link any credit cards, bank accounts, and brokerage accounts. They will then analyze your asset allocation contained within your investment accounts and advise you precisely how much cash you need to add to your holdings of specific classes of assets to align to the recommended goal. It is a great tool for DIY Investors to be able to see clearly what adjustments are needed to be made.

Similar to Mint, Personal Capital also provides a full spending analysis. This service will carefully examine your cash flow and arrange expenses conveniently into lists that account for groceries, clothing, restaurants, and healthcare. It will then track any income sources and bills that might be due to the accounts that you have linked.

The retirement planner tool will also consider your investment accounts so that it can forecast whether you will meet your pre-set goals and income requirements for your retirement. This is something which can be adjusted, as can your forecasted income from social security, along with the investment return assumptions, tax, and life expectancy statistics too. This tool from Personal Capital will take into account your daily financial activities, and it will take real-time data from within your Personal Capital Account to deliver estimates of your retirement spending based on what your spending figures are currently.

The final part of the free tools we think is well worth a mention is the Dashboard. This nifty little tool allows you to view your complete financial outlook in a single place. Cash flow, net worth, portfolio allocation, and balancing are all viewable from the Personal Capital dashboard. There is a module which specifically focuses on your holdings and shows you the performance of your investments in either overall dollars or as a percentage of your portfolio. It also clearly indicates whether they are considered to be winning or losing.

CONS

High Account Minimum

The lowest amount you need in order to open an account with Personal Capital is $100,000. Previously, this had been set at $25,000 which although a little high for some, it was competitive and reasonable. However, with the $100k minimum introduced, it is clear the type of customers that Personal Capital is after. Unfortunately, this leaves many unable to take up the wealth management services offered by Personal Capital. Luckily, many other robo-advisors like Wealthfront and Betterment are available without such high minimum balance requirements.

High Management Fee

Compared with the cost of hiring a Financial Advisor, Personal Capital is still very competitively priced. As of 2017, the average advisor would typically charge 1% of your overall managed assets. So, looking at it from this perspective, paying these higher fees and getting a Personal Financial Advisor will still work well for you.

However, when we compare Personal Capital to the competition; others such as Vanguard are much more price competitive with their management fees. Their fees are only 0.30%, regardless of the value of the investments held. However, if you place funds with Vanguard and you want a dedicated Financial Advisor, then you would first need to put up around $500k worth of investments.

If we compare Personal Capital to other robo-advisors who charge on average, around 0.25%, then you start to understand why we feel the management fees are just not competitive at all. We mentioned earlier in this review that there are discounted rates available for those uber-high investors. Well, you would need to invest at least $1 million before you see any kind of reduction from the 0.89% fees they charge.

Summary Of Personal Capital

First of all, the free services are actually quite good. For the comprehensive level of analysis you get, albeit, by a computer, it is fantastic value.

Comparatively speaking, when you compare their somewhat higher than average management costs to those of a qualified Financial Advisor, you are still getting a great deal. That said, there are other providers who can provide you with this same service at a fraction of the cost.

The tool they offer for retirement planning is great. It is easy to use, and you can play out a number of different scenarios with ease. If you are a DIY Investor, their investment checking tool is also very handy for getting high-level recommendations as well. The retirement planner is second to none; we found it very useful to perform a number of role-playing situations.

With regards to their somewhat expensive Wealth Management Services, it would probably suit those who need regular Financial Advisor Support, in order to make it worthwhile in terms of your return on investment where the fees are concerned. Looking at the robo-advisor scene alone, they are a little less competitive.

Learn More at Personal Capital

Our Other Reviews Of Top Robo-Advisors:


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Betterment Review 2018: New Promotions & Bonuses

If you’re looking to do some investing in stocks, but simply don’t have time to learn the ins and outs of the market, consider learning about Betterment’s services.

In this write-up we’ll go over the current special promotions and offers available from Betterment, as well as do a full review of this market leading robo-advisor/automated investing firm.

Betterment is pretty much a lower cost alternative to hiring an investment advisor. The thing is, investment advisors typically only work with people with high net worths anyway. Basically, Betterment gives you investment advice in an automated fashion, which saves them money and this in turn saves money for you.

Using automation, they are able to maximize your return on investments, all while minimizing a lot of the risk associated with investing in the market.

Betterment is a reputable service and has been featured in The New York Times, The Wall Street Journal, Forbes and Bloomberg.

They are pretty much the leaders in the automated investing sector currently.

Betterment Investing Promotion: 12 Months Of Free Service

Up to 12 months of free service

Right now you can receive up to 12 months of free service from Betterment with an initial deposit of at least $15,000.

This offer is valid only for new individual accounts with Betterment
You must fund at least the $15,000 initial deposit within 45 days of signup

Deposits	Bonus Free Management
$15,000 – $99,999	1 Month Free
$100,000 – $249,999	6 Months Free
$250,000+	1 Year Free

See Offer

Betterment Referral Bonus: Extra Free Year

Get another free year with referrals

You can earn an extra free year of Betterment service with their referral offer, on top of the initial free service promotion above.

For every referral who funds, you get 30 days free, and each referral gets 3 months free
When your first 3 referrals fund, you get an extra free year.
Once you have referred five Qualifying New Accounts (and received the associated fee waivers), you will no longer be eligible for future fee waivers. Even when you are not eligible to receive a fee waiver, you will be permitted to send invites to friends and they will be eligible to receive fee waivers through the Betterment Refer a Friend Program.

If you already have a current Betterment account, find your referral link using the interface after logging in. If you don’t yet have an account with Betterment, be sure to get some referrals going after signing up.

See Offer

Fine Print

Subject to the limitations above, a “Qualifying New Account” is a new individual Betterment account opened by your Betterment referee friend using the special designated link from your invitation, which your referee friend funds with an initial deposit, provided that the initial deposit is not withdrawn for 90 days. Betterment is not responsible for incorrect entry or other failure on the part of your referee to meet the standards of a Qualifying New Account.
Employer-sponsored retirement accounts provided through Betterment for Business are not Qualifying New Accounts. If you are a participant in your employer’s retirement plan through Betterment for Business, and also have a personal Betterment account, only your personal account will receive fee waivers under the Betterment Refer a Friend Program. Accounts advised through the Betterment for Advisors platform are also not Qualifying New Accounts or eligible for fee waivers through this program, and if you become advised through the Betterment for Advisors platform during a period in which Betterment is waiving the fees applicable to your account under the Refer a Friend program, Betterment will not waive any fees following such date. This promotion does not apply to any fees charged by an advisor you are matched with through the Betterment Advisor Network.
This promotion is not valid with any other offers and is non-transferrable. Offer available to U.S. residents only. Betterment reserves the right to terminate this offer at any time for any reason, to limit the amount of account bonuses you are eligible to receive, and to refuse or recover any promotion award if Betterment determines that it was obtained under wrongful or fraudulent circumstances, that inaccurate or incomplete information was provided in opening the account, that any rules or regulations would be violated, or that any terms of the Betterment Account Agreements have been violated.

*Be sure to check out all the Stock Broker promotions and bonuses here.

Betterment Review: Market Leading Robo-Advisor

Several players have emerged on the robo-advisor scene and prominent among them is Betterment (Wealthfront is the other major player). Perhaps one of the best automated investing services out there today, it provides catered options based on your individual statistics and goals. The average person struggles with making sound investments because they are considered to be complicated and often not practical in terms of cost and use.

Betterment presents an easy to use, ‘set-and-forget’ type of platform which absolutely anybody can use. Regardless of their financial knowledge or investment background and with no minimum deposit amount. Betterment offers a super-straightforward interface that shows a snapshot of everything on one screen; it is no wonder they already have more than $9 million in invested assets and over a quarter of a million clients worldwide.

Why Consider Betterment?

Saving money with your bank is one thing. However, the majority of options are low-interest, and as most investors already know, there is almost a certainty that by sticking cash in the bank, you will lose out in one way or another, mostly due to inflation. There is also the temptation of impulse buying when one has excess cash they do not need.

Couple this with the element of risk that people frequently associate with investing and there are two very compelling reasons why many don’t consider investing in the stock market.

Solutions like Betterment and other robo-advisory firms have sought to tackle this problem. A robo-advisor platform like Betterment essentially uses computer algorithms to automatically manage investment portfolios. While these platforms rely heavily on human experts for their development, they do not need a large human presence for them to work. This reduction in the cost of human interaction has made investment management and advice cheaper and more accessible to the masses.

In the past financial advisors were the reserve of the wealthy, leaving the common man to make ill-informed and often poor investment decisions. Betterment has this problem solved. It offers a great alternative; it creates a tailor-made investment portfolio, that is both diverse and reduces the risk for investors. Betterment also tries to create a platform that meets the expectations of both novice and expert investors. It truly does offer something for everyone and cater for all deposit and investment budget options.

How Does Betterment Work?

Rating	Feature	Details
	Account Management Fee	Betterment Digital: 0.25% Betterment Plus: 0.40% Betterment Premium: 0.50%
	Account Fees (Annual, Closing, Transfer)	None
	Account Minimum	Betterment Digital: $0 Betterment Plus and Betterment Premium: $100,000
	Accounts Supported	Individual and joint nonretirement accounts Roth, traditional, SEP and rollover IRAs Trusts
	Automatic Rebalancing	Free on all accounts
	Customer Support	Email and Live Chat support. Phone support Monday-Friday 9 AM -8 PM Eastern, Saturday-Sunday 11 AM-6 PM Eastern. Betterment Plus and Betterment Premium customers get financial advisor access.
	Investment Expense Ratios	ETF expense ratios range from 0.09% to 0.17%.
	Portfolio	ETFs from up to 12 asset classes
	Tax Strategy	Daily tax-loss harvesting on all taxable accounts. Tax-Coordinated Portfolio tool allocates assets across tax-advantaged and taxable accounts according to tax impact.

Betterment offers the investor a choice of varied percentages in EFT allocations. Depending on this allocation between stocks and bonds, Betterment will adjust the allocation to provide the optimum performance of the investment. For instance, one may opt to choose to invest 25% in stocks, while 75% will be invested in bonds. By following respective indexes associated with the clients EFT’s closely, it ensures these investments are sound choices. This in the past would have to be done by a potential investor or a financial advisor themselves, and in the case of the latter, would also come with a potentially significant management fee attached to the time taken to calculate this.

As an automated robo-advisory service, Betterment enables clients to open an account easily within just 5 minutes. An initial profiling of who you are, income, goals initial deposit and other information allows the platform to advise you on various investment decisions. The intelligent algorithms will instantly report back to let you know if they are sound and attainable.

An investment strategy is created for you, and in a few minutes, you have achieved what would have in the past, cost you thousands of dollars and many hours of research, going back and forth, and avoids a complex, somewhat stressful decision-making process. For those still in the early stages of their career, most of the stock will be held in growth-oriented stocks while for the elderly it will lean more towards bonds and more stable stocks. This is based on the assumption that younger investors have a lot more tolerance for risks than more elderly ones.

Betterment’s Top Features

Easy Sign-up Process. Signing up with Betterment is an easy and straightforward process, taking only a few minutes in total. It consists of answering a few questions about your investment needs and the setting of preferred investment allocation of funds. Once this is done, you can then link a personal checking account and transfer money to the Betterment account either manually or by using the deposit feature. The funds are then automatically used to purchase exchange-traded funds (EFT’S).
Goal Focused Approach. Users of the Betterment service report just how much they love the object orientated approach of the site. When you first sign-up, Betterment will take certain details from you that then allows it to create goals for you. Adding goals to the site will then determine which types of account are used and also dictate the manner in which your money gets invested too. You are able to create auto-deposits that pay into each goal you set. Also, each goal will have a specific asset allocation and suggested target set-up for it as well.
Fee Structure. Betterment offers a very clear pricing strategy. The fee you pay depends on the plan you choose and ranges from 0.25%-0.50%. Unlike some of the other players in the robo-advisor market, there are no additional transfer or trading fees.
Great Accessibility. Betterment has made it easy for their users to access the service. They provide an app to allow you to log in on both IOS and Android.
Smart Deposit. Betterment has an automatic feature that will invest excess cash into your checking account. After setting a maximum amount as a buffer for emergencies and loss of income that will last a couple of months, an amount that is automatically taken out is set. Smart deposit will frequently monitor your account in terms of usage of the funds set aside and will only automatically take out what it has been set to.
RetireGuide. The ability to link several of your retirement accounts into the Betterment platform will mean you will have a full picture of all your savings and investments. This is a really popular feature of the Betterment platform. Linking your 401k account to the platform as well as other is a feature that will make this 360-degree investment view possible.
Tax Loss Harvesting. Improve tax returns by capitalizing on investment losses. This fully automated service will mostly benefit users who can write-off losses against capital gains. Individuals with a high taxable income should see benefits of this over a long period of time. In the past, you would have needed upwards of $50,000 to gain access to tax harvesting. With Betterment, there is no minimum balance required meaning all investors across any of the three plans can benefit from this feature.

Other Features

Fractional Shares
Ongoing Promotions
Human Advice
Portfolio Rebalancing
Live chat, email, and telephone support
Two-Factor Authentication
Index Tracking Funds
Customized Asset Allocation
Read-Only Access to apps such as TurboTax, Personal Capital, and Mint

Betterment Membership Levels

The Three Service Levels which are offered on the Betterment site.

Plan	Annual Fee	Details
Betterment Digital	0.25%	Betterment Digital is suitable for beginners and entry level investors. There is no minimum deposit, and it has a flat management fee of 0.25%.
Betterment Plus	0.40%	Betterment Plus is suitable for mid-level investors with a minimum deposit of $100,000. There is one annual planning call with a financial advisor, and monitoring of the account is undertaken by experts at Betterment. It has a flat management fee of 0.40%.
Betterment Premium	0.50%	Betterment Premium is suitable for high-level Investors with a minimum deposit of $100,000, and it has a flat management fee of 0.50%.

Betterment Pros And Cons

PROS

Low fees. Betterment boasts the most competitive rates in the robo-advisor sector. These low rates include features like rebalancing and trading. Fees which all weigh heavily on investing in other platforms. Management fees are between 0.25-0.50%.
Excellent Industry Reputation. If you are looking for some assurance that Betterment does what it claims, then you will not have to search too far. Betterment has had pats on the back from major institutions such as Goldman Sachs, Vanguard, and Fidelity. Uber has recently partnered with Betterment to provide retirement planning services for their drivers.
Customer Support. Betterment offers customer support via email, phone and through a live-chat function on their site. They respond seven days a week, from 9-8 Monday through Thursday, 9-6 on a Friday, and speak via live chat only from 11-5 over the weekend. All times are in ET.
Human Advice. For Betterment Premium and Plus customers, you can pay a little more for advice through a Fiduciary Advisor. Betterment does not charge excessive management fees like other robo-advisors such as Vanguard or Fidelity professional advisory services that are also classified as broker-owned.

CONS

Direct Tax Indexing. Betterment falls a little bit short in the taxable account area of tax-loss harvesting. However, the platform performs automated reviews investments on a daily basis to reduce tax exposure. Unlike other platforms, it does not have direct indexing tool like other platforms such as Wealthfront who offer direct tax indexing on accounts with balances of $100,000 or more. (Direct indexing allows investors to buy single securities held by an index rather than the EFT tracking. This method helps to segregate tax loss harvesting opportunities and saves investors with taxable accounts a lot of money).
Structure for Pricing. Although Betterment has recently introduced a lower fee, it is still a little higher than one of their foremost rivals – Wealthfront.
How much you are investing is key. There are some other players who offer management of investments up to $15,000 for free, whereas with Betterment, you will pay at least 0.25%.

Who Is Betterment Best For?

Betterment is very well suited to investors that match the criteria set out below:

If you prefer an investment with minimal research and decision making required.
For people with small initial deposits will appreciate this service, due to having a no minimum deposit rule
If you want to invest but don’t have the time to perform lengthy reviews or spend time managing or updating
For Investors who are preparing for retirement or those who would like advice on their investment strategy or the feasibility of their plan
For those who are looking ahead to a goal and want a goal-focused platform
If you want to benefit from a modern portfolio theory that diversifies investments with EFT’s
For those who want to benefit from the automated rebalancing of their portfolio
If you enjoy being in control of the risks taken but keep a firm eye on your goal

Final Thoughts

Betterment should be commended for bringing a great service that is accessible for all income brackets and investment objectives. It’s solid reputation and growing client base are a testimony to the fact that robo-advisory services are appreciated by the market.

They are a reasonably priced product, easy to use, accessible and all-encompassing. We feel that Betterment is certainly one of the best robo-advisory services on the market. If you’re a high capital investor with at least $100k to invest, you may want to consider Personal Capital, which has a robo-advisory service along with industry leading human financial advisor services.

Also, Take A Look At These Offers From Other Investment Services

Vanguard Personal Advisor Services Review (Automated Investing/Robo-Advisor)

By: Tony Phan | Last Updated: March 2, 2018 | This content is not provided or commissioned by the issuer. Opinions expressed here are author’s alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer. This site may be compensated through the issuer’s Affiliate Program. Please visit our Advertiser Disclosure for additional details.

Vanguard, a leader in the low-cost index funds market, has now set its sights on the automated investment advisory market with their Vanguard Personal Advisor Services^®. Robo-advisors, as they are known, have become a popular service for both small and large investors looking to build a diversified portfolio to maximize their investment returns while minimizing their risks. With the success of robo-advisors like Wealthfront and Betterment, all of the biggest investment firms and brokerages are starting to roll out their own automated investing services.

Vanguard Quick Facts
Began Operations	May 1, 1975
Oldest Fund	Wellington Fund (July 1, 1929)
Total Assets	About $4.5 trillion in global assets under management, as of September 30, 2017
Number Of Funds	About 175 U.S. funds (including variable annuity portfolios) and about 195 additional funds in markets outside the United States, as of September 30, 2017
Number Of Investors	More than 20 million investors, in about 170 countries, as of September 30, 2017
Average Expense Ratio	0.12% (U.S. asset-weighted fund expenses as a percentage of 2016 average net assets)
Chairman	F. William McNabb III
CEO	Mortimer J. Buckley
Number Of Employees (Crew)	About 15,000 in the United States and abroad, as of September 30, 2017
Core Purpose	To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success

Where Vanguard Personal Advisor Services shines is in its investment mix, its high performing minimal fund expense ratios with Vanguard’s branded ETFs, and its offering of unlimited access to human financial advisors.

Vanguard entered the financial industry in 2013 with ETF investment offerings. Since then they have enjoyed a meteoric rise to overtake State Street at the second spot in the ETF market. Moving forward they are set to continue their market dominance and are likely to challenge industry behemoth BlackRock for the top position. Recently, Vanguard’s ETF total assets were valued at over $890 billion.

Vanguard is set to continue its tradition of disruption in the financial market space with its foray of Vanguard’s Personal Advisor Services into the burgeoning robo-advisor market. With over $93 billion in assets under management as of September 30, 2017, Vanguard already has a stable foundation for future growth in this area.

We review Vanguard’s service offerings along with their advantages and disadvantages below.

About Vanguard Personal Advisor Services

Vanguard Personal Advisor Services Features
Minimum Investment	$50,000
Fees	0.30% Per Year
Accounts Available	Joint Rollover IRA Roth IRA SEP IRA SIMPLE IRA Taxable Traditional IRA Trusts
401(k) Assitance?	N/A
Current Promotions	N/A

Vanguard provides a premium financial robo-advisor service. The minimum “buy-in” for a Vanguard Personal Advisor Services account is $50,000. While this will be a deterrent for entry-level investors, Vanguard has chosen this route because their investment portfolios are developed by real live human Financial Advisors and not just by some computer algorithm.

New customers are required to fill in Vanguard’s detailed questionnaire, which is designed to get a comprehensive snapshot of their financial position and needs. A human Financial Advisor then examines this information and uses it to make an investment portfolio tailor-made to meet the individual client’s needs.

In fact, one of the greatest features of Vanguard’s robo-advisor service is the provision of comprehensive financial advice suited to each client’s investment goals. So, while Vanguard does not offer 401K plans, 529 plans, or college savings plans, their Financial Advisors will take these matters, as well as accounts held with other providers, into consideration when designing the best portfolio mix and account development strategy to suit each client’s financial goals.

Investors with between $50,000 and $499,999 get unlimited access to a pool of over 100 Financial Advisors. Investors with greater than $500,000 get unlimited access one or two dedicated Financial Advisors. Vanguard has catered to almost every conceivable preferred method of communication with its financial advisors and offers contact via SMS, phone, email and video conferencing. It does not, however, offer face to face meetings with its Financial Advisors.

The account management fee for Vanguard Personal Advisor Services is 0.30% annually. That’s less than one-third the industry average of 1.02%.

When you take into consideration the whole cost of investing, the meager fees charged by Vanguard’s branded ETFs make investing through this company quite competitive. In fact, when you compare Vanguard to Betterment, which we consider has the closest service offering to Vanguard, the total cost of investment stacks up quite well. For example, account management fees on Betterment’s Premium Account (unlimited calls with a team of licensed financial experts) are a flat rate of 0.40%, which is higher than Vanguard’s rate. However, Betterment gives an option to entry-level investors with their “Digital” account, which has a $0 minimum balance and an annual fee of only 0.25%.

Also, Personal Capital clients with under $1 million invested, who want to get access to real Financial Advisors, have to pay 0.89% for the privilege. While this is a good rate compared to the 1% or more charged by traditional Financial Advisors, it does not beat the whole cost of the service offering provided by Vanguard.

The net result of Vanguard Personal Advisor Services’ blended offering is a unique financial product which combines the inherent efficiency savings generated from automated services with the reassuring and personal touch of a finance professional, without the exorbitant price tag.


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How Vanguard Makes Its Money

Vanguard has a reliable income stream from its robo-advisor business model. It provides a premium service, and as such, requires a high buy-in cost to invest. The company charges a flat rate for account management fees at 0.30%.

As noted above, Vanguard currently enjoys a prominent position in the huge ETF market. Vanguard ETFs usually form part of their client’s investment portfolios. While the fees on Vanguard’s ETFs are meager compared with other ETFs, these charges are a good income stream for Vanguard, whose clients purchase their ETFs.

We think Vanguard’s Personal Advisor Services has a strong business model which will probably see it survive in the highly competitive financial marketplace and be around for its clients in the long term.

Pros and Cons of Vanguard

Pros

Outstanding Investment Pedigree. Vanguard’s investment pedigree is excellent. Its ETFs are some of the best performing and lowest cost on the market. In fact, Vanguard’s ETFs are so good their robo-advisor competitors use them in their service offerings.
Diverse Range Of Investment Options. Vanguard follows modern investment practices by diversifying its investments as much as possible to increase investment returns and decrease losses. Vanguard’s impressive investment mix includes bonds, to give its clients fantastic portfolio diversity and a broad mix of investments.
Unlimited Access To Live Human Financial Advisors. Unlike most other robo-advisor services, Vanguard provides its clients with unlimited access to human Financial Advisors, which gives their clients the peace of mind that comes from knowing a person is assisting the robo-advisor algorithm to manage their investment portfolio. Investors with over $500,000 enjoy the dedicated services of one or two financial advisors. As such, premium investors get continuity of contact and the ability to build rapport with their advisors over time. Premium investors enjoy a personal relationship with their advisor who will get to know their client’s investment portfolio intimately. Such in-depth knowledge means premium clients enjoy dynamic portfolio management which is updated and amended according to their needs. It also creates a situation where the financial advisor can predict and recommend investment options they know would benefit their clients.
Individual Taxation Optimization And Minimization Plans. It is tempting for robo-advisor services to include tax optimization and minimization into the algorithms of their automated service offering. However, one size does not always fit all. Vanguard designs tax harvesting packages on a client by client basis which has the effect of maximizing the savings on each account. Vanguard will also create a portfolio which strategically allocates assets among tax-advantaged and taxable accounts.
Accounts Are Insured. Vanguard’s accounts are covered up to $500,000 via SPIC insurance and up to $50,000,000 through Lloyds of London, to give their clients peace of mind.
Automatic Deposits. Vanguard allows its clients to make automatic deposits weekly, bi-monthly, or monthly. Automatic deposits make for great convenience and helps the investment account to continue to grow.
Access To Admiral Class Share Without The Usual Minimum Buy-in. Vanguard’s clients can purchase Admiral Class shares of all Vanguard mutual funds without having to meet the normal $10,000 per account threshold. This is a great benefit as Admiral funds are usually charged 0.10% lower than other comparable investor class shares.

Cons

Not Accessible To Small Investors. Anyone with under $50,000 is locked out of this service. Other robo-advisors, such as WiseBanyan, Wealthsimple, Wealthfront and Betterment have low or no account minimums and are better suited to small investors with a limited pool of capital.
Vanguard Charges Account Management Fees On All Accounts. Individuals with up to $5 million invested with Vanguard are required to pay a flat rate of 0.30% in account management fees. Other robo-advisors, such as Schwab’s Intelligent Portfolios, do not charge any account management fees at all. Wealthfront, which does not charge account management fees for deposits under $10,000 (they will no longer manage $10,000 for free for new clients starting April 1, 2018), does charge a flat rate of 0.25% for accounts over that amount. When you compare these fees with Vanguard’s rate of 0.30%, most would think Vanguard’s fees are higher than average market rates. However, as with all things, it is important to make sure you are not comparing apples to oranges. In the cases of Wealthfront and Schwab Intelligent Portfolios, investors do not enjoy the services of a human Financial Advisor, which is the very feature of Vanguard’s service which makes it a standout performer in this market. Investors are not allocated one or two personal financial advisors until their accounts are greater than $500,000. This information is not readily clear on Vanguard’s website. Smaller investors need to be aware that while this service will give them unlimited access to real financial advisors, their access is to a pool of over 100 such advisors and there will be no continuity in their point of contact.
High Buy-in To Get Discounts On Account Management Fees. Vanguard does not offer discounts on account management fees until you have more than $5 million dollars invested. This target is well and truly out of reach of the majority of investors. Clients need to be proactive and self-disclose financial aspects which should be considered by Vanguard’s financial advisors when creating advice to suit their client’s financial situation. Failure for clients to disclose important considerations, such as 401K plans or college savings plans could result in a mismatch between the investor’s savings goals and the ability of their portfolio to meet those goals.
You Could Be Charge Transaction Fees. Vanguard’s robo-advisor competitors often cover the cost of any transaction fees charged on their client’s accounts. Vanguard does not. While this would not be a problem if Vanguard was restricted to its own branded ETFs (which come at very little cost), one of the great features of investing with Vanguard is its access to an incredibly diverse investment mix which, for example, includes bonds. All in all, we think these fees should be considered as part of the cost of the wide range of investment offerings Vanguard has on hand. However, it is worth mentioning Vanguard reports it usually recommends no-load mutual funds and Vanguard funds to its clients (presumably to keep total portfolio costs down).
No Fractional Shares. Unlike some of its competitors, such as WiseBanyan, Vanguard does not allow for fractional shares. This means any funds remaining after the purchase of whole shares will not be working to get a return for their owners.
No Face To Face Meetings. While Vanguard offers a myriad of methods to communicate with its financial advisors, face to face meetings is not one of them. Some might see this as a negative, (hence why we have mentioned it here), however, we think people should think of it as a concession to the provision of such a low-budget, yet premium financial advice service.

Bottom Line

Vanguard’s Personal Advisor Services is at the premium end of the robo-advisor spectrum. It is an excellent choice for medium to large investors who want the cost-effectiveness of robo-advisor portfolio management, with the comfort and peace of mind which comes from knowing there are real human advisors on hand to help them reach their investment goals.

Unfortunately, Vanguard is not accessible to individuals with under $50,000 to invest. For those with over $50,000 to invest, it is a great option.

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Compare To These Robo-Advisors/Automated Investing Services:

Blooom Review: A Robo-Advisor For Your 401(k)

By: Tony Phan | Last Updated: February 15, 2018 | This content is not provided or commissioned by the issuer. Opinions expressed here are author’s alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer. This site may be compensated through the issuer’s Affiliate Program. Please visit our Advertiser Disclosure for additional details.

Blooom’s robo-advisor service manages your 401(k) plan on your behalf. It is relatively easy to use, working with any retirement accounts you hold that provide online access. Overall, they are low-cost, charging just $10 per month in management fees. However, Blooom will not take into account your individual tolerance for risk.

They are a fully registered and reputable Investment Advisor business that specializes in both 403(b) and 401(k) plans. Blooom analyzed more than 25,000 401(k) plans, stating that after careful and intricate analysis, over 80% of these plans were not being managed correctly. They won’t get involved where IRAs or taxable investments accounts are concerned.

Their standpoint is clear on what they offer, and they stand by their statement that through professional management, they can grow your 401(k) by twice as much compared with a self-managed approach. We think that’s a pretty bold statement, but one they can stand by firmly.

The business first started its operations in 2013, and they have offices in Leawood, Kansas and Kansas City, Missouri. The 401(k) market is not overly crowded, and one of the significant benefits of what they offer is their ability to manage almost any 401(k) plan, regardless of with who or where it is held. Above all else, because Blooom is a fiduciary, they are obliged by law to always act in your best interests.

The challenge that their services resolve for clients is that the majority of employer-sponsored plans will be quite random in the range of investment options which can be a little bit challenging to understand. Investors are left confused and uninformed of what is happening with their funds. Moreover, the likes of Betterment and Wealthfront will not manage plans that are provided by employers – enter Blooom.

With the majority of retirement assets being held in 401(k) plans, Blooom’s specialist approach to this sector of investment management has given them more than $500 million in assets in just four years. Their attractive flat-rate fee of just $10 per month means they are also extremely affordable.


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Earn A $10 Amazon Gift Card Per Referral

Once you’re a member of Blooom, you can start making referrals to earn a $10 Amazon gift card per referral. Your referrals don’t even need to become clients, they just need to use Blooom’s service to analyze the health of their 401k. If your referrals signup, they’ll get the first 30 days of Blooom service at no charge.

You’ll be able to refer via Email, Facebook, Twitter, LinkedIn, or with your own personal referral link.

Start Referring

How Does Bloom Work?

Using a combination of human advisors and automation, they deliver on their promise of maximizing a client’s plan. Every 90 days they will check for opportunities to re-balance. Customers of Blooom can access financial advisors at the company through a live chat function or contact them via email – you cannot contact them by phone.

Once you have signed up to the service, you retain absolute control of your account, but you give Bloom Legal power of attorney to act on your behalf. They will not be able to remove any funds from your retirement account, but they will be able to invest it on your behalf. You do not need to transfer your account or open up new ones. As long as your account has online access, they can manage it on your behalf.

Signing up is easy and straightforward. After just 30 days, they will adjust your 401(k) as required for you.

So, how do they do this?

They will look at your expected retirement age and your current age. In the earlier stages of your retirement plan, they will weigh more heavily in favor of stocks. Then, as this plan matures and you come closer to your retirement, they will orientate this more towards bonds. They follow four key stages in order to analyze your 401(k) plan effectively:

Step 1 – Elimination of funds and the realigning of options within your 401(k) plan.
Step 2 – Preference is shown for the utilization of index funds, with occasional actively managed funds in order to get the desired investment exposure where required.
Step 3 – Identification of suitable funds to get you nearer to your target allocation. Their algorithm will choose the optimum investments.
Step 4 – Results are checked by a human advisor at Blooom and are then cross-referenced with any allocations that have been recommended for your 401(k) plan.

The first three stages in this process are all fully-automated by Blooom, with the final one being manual and fully overseen by a fully licensed Blooom specialist. All of the above stages can take place over a 30 day period. Blooom will keep you fully informed about any alterations that occur, even if these changes have been made by you.

How does Investment Selection Work?

As outlined above, Blooom tends to favor index funds with actively managed funds added where needed to give exposure. A target allocation is created which is made up of the funds within your 401(k) plan that meets your desired allocation requirements. The foremost proprietary algorithm is what determines this, and this is the robo-advisor element from Blooom working at its finest.

However, something you don’t often see with other robo-advisor services is the ability to make alterations to your mix of investments. This means that even after your application has been put in place, you still retain control to make alterations as required. Blooom makes this super-easy to do. There is a button marked with ‘adjust allocation’ which you need to select in order to make any changes. It’s that simple. Any re-balancing that occurs in the future will be done in line with those changes. Moreover, you can easily change your expected date of retirement too by selecting a button titled ‘adjust retirement’.

As mentioned earlier, Blooom with look to re-balance every 90 days and any changes they make are automated. This ensures that your account will be altered in line with any changes to market values. Routine re-balancing has proven to add 0.5% to your return annually with Blooom. We think that’s a very compelling reason to consider using Bloom’s robo-advisor service for your 401(k) plan.

Who Is Bloom Suitable For?

Ideal for investors who prefer a hands-off approach
Perfect for those who have employee-sponsored retirement plans
Those you prefer a greater than average tolerance to risk
Those who want a specialist and comprehensive approach to employee retirement plans

Pros and Cons of Using Bloom

PROS

Flexibility and Freedom. You can cancel the service at any time. Moreover, as you retain full control over your investments, and as your 401(k) plan stays exactly where it is, it makes this process easy and straightforward.
Free-Analysis Tool. This clever little tool gives anyone the opportunity to take the service for a test drive first before committing to anything. It is easy to create a Blooom account for free and link your 401(k) plan up. They use a symbol of a flower to depict the health of your plan and suggest ways in which you can improve it overall. If you want to do it on your own, you can take their suggestions and implement them independently if you so wish. However, if you can afford the $10 per month fee they are asking, why wouldn’t you let Blooom take over management of your 401(k) and while they are at it, take care of the re-balancing too?
Professional Investment Management of your 401(K). For the majority of individuals, their 401(k) plan is probably going to be their largest asset. Generally speaking, there isn’t always a lot of choice when it comes to who manages that asset on your behalf. Blooom offers professional investment management specifically for your 401(k) plan. Although there are services provided by Personal Capital and Vanguard Personal Advisor Services which offer guidance, they do not provide direct management. The other important point to note here too is that you don’t need to inform your employer or get them involved in any way.
Predictable and Affordable Management Costs. Blooom is an exceptionally affordable option for your 401(k) plan. They charge a flat rate of just $10 per month, which if we look at a base amount of $100,000 being managed for just $120 annually, that works out to be just 0.12%. This fee is way below anything that you would see traditional investment businesses charging for their professional services. All fees are taken from a credit or debit card and are not taken from your 401(k) funds.
No Minimum Requirements. With Blooom, there aren’t any minimum requirements for their services. This allows anyone who has a 401(k) plan, at any stage, to enlist Blooom’s expertise to manage their employee retirement plan for them.
Accepts all Plan Providers with Online Access. Unlike other Investment Services, Blooom provides an all-encompassing approach to 401(k) management. As long as you can manage your account online, they are able to manage this plan on your behalf.
Financial Advisor Support. Although normally, we wouldn’t view email and chat only support as a good thing, Blooom has actual financial advisors on the end of the line, and not just customer support personnel. The other added bonus that they offer through these advisors is that they will offer support to their customers that generally falls outside of the 401(k) management realms. So, if you need advice with regards to budgeting, debt repayments or anything else along those lines, for just $10 per month, you can also utilize these advisors help to provide guidance on a whole range of other financial areas.
Auditing of Investment Expenses. Generally speaking, 401(k) plans will provide limited options that often include above-average fees. Blooom will carefully classify each of the investments into 1 of 14 different categories. Their algorithm will then sort the funds in each of those categories with the lowest internal expense ratio. Although there might be cases where there is only a single fund in each category – meaning expenses cannot be reduced. In many cases, this approach can enable an investor to reduce their overall expenses while keeping an appropriate allocation of their assets over a diverse portfolio.

CONS

Only Available with 401(k)s, 403(b)s, 457s, 401(a)s. Blooom’s service will cover a large proportion of plans with online access. However, it is important to highlight that at the time of this writing, their services are only available for employer-sponsored retirement accounts, such as 401k, 403b, 401a and 457 accounts. Currently, they do not work with taxable investment accounts or IRAs.
Basic Risk Profiling. Your overall asset allocation is only determined by using two metrics; these are your stock to bond ratio and your age. This approach could be deemed as too simple because no consideration is given to your overall tolerance for risk.
Investment Assessment is Limited. Obviously, the overriding goal of any retirement plan is retirement. The questions that Blooom asks with regards to your investment goals are therefore limited. By only using your ideal retirement age and your date of birth, it reduces the overall investment assessment.

Bottom Line

Blooom provides a superb, hands-off solution for those who need help to manage their employee-sponsored retirement plan. It makes it easy to sign-up and test the waters with a free, no obligation analysis tool. They also provide clear and upfront pricing that is competitive with no surprises in terms of hidden fees or charges.

Overall, their approach to managing retirement plans is spot-on. The algorithm they use places a particular emphasis of low-cost investments and diversification; both of these principles have been firmly supported by countless years of research.

With no minimum amount required to open an account, along with the added assurance that not only can you make your own adjustments, but you can cancel the service at any time without any penalties, we feel that Blooom has an excellent offering in a not so-crowded marketplace.

More Reviews Of Robo-Advisors To Consider:

Fidelity Go Review: Robo-Advisor With Low Management Fees

By: Tony Phan | Last Updated: February 12, 2018 | This content is not provided or commissioned by the issuer. Opinions expressed here are author’s alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer. This site may be compensated through the issuer’s Affiliate Program. Please visit our Advertiser Disclosure for additional details.

Brought to you by the well-known firm, Fidelity Investments, Fidelity Go is a robo-advisor that offers a clear pricing structure that is somewhat different to its rivals, giving you an all-inclusive fee that impressively covers all investment expenses too. This is one of its most significant benefits as it gives you access to all of the services offered by Fidelity. However, at the time of this review, it is a little lacking in additional features that are already provided by some of the more established robo-advisor services in the marketplace, such as Betterment and Wealthfront.

The vision for Fidelity Go is to help transition those who save money, to those who invest money. They are trying to target millennials with this service in a bid to change their somewhat conservative company perception that has so far failed to attract people who are below 35 years old. They have labeled their target market as “Emerging Investors.”

Their goal is to be viewed as a one-stop investment shop. By enticing a new, younger demographic of clients with Fidelity Go, they then imagine being able to offer them credit cards, banking and other advisory related products. As a whole, they do offer a great range of products in their portfolio which could give them the edge in this respect. However, there is still some work to do in terms of bringing this robo-advisor service up to the levels of others who have been at it for some time already.

How Does Fidelity Go Work?

Primarily, it uses its own index funds to create portfolios. They also utilize iShares, that are a group of ETFs managed by BlackRock, who then track a stock market index. The idea behind this approach means you don’t have to pay the active management fees, but still get a return in line with that of the market.

Fund-tracking figures released by Morningstar Inc, show that around 80% of the core ETFs through Blackrock have actually outperformed mutual funds.

These portfolios are managed by people within an investment management team who periodically rebalance them. The portfolios are created by Geode Capital Management who perform sub-advisory duties on a range of funds that Fidelity offers.

Who Is Fidelity Go Suitable For?

Existing Fidelity Customers as it serves as a one-stop-shop for their suite of products
Investors that prefer a hands-off approach
Investment Management that has a fairly low entry level of investment
Those who wish to negate or reduce human oversight
People who want to try out robo-advisor services with an established and trusted broker
Investors who are looking for competitive fees

Pros and Cons of Fidelity Go

Pros

Human Involvement. This two-pronged approach of blending complex algorithms with professional financial advisors is a real plus for Fidelity Go. Although this approach is not uncommon with the latest players to the robo-advisor market, Fidelity Go has a slightly different twist which makes it stand out above and beyond the competition. Advisors from the institutional investment advisor Geode Capital Management, both create and monitor the portfolios, and rebalance them when necessary. For those who are a little hesitant to jump into the robo-advisor space, this gives the added assurance that not all control is being handed to a computer. If needed, you can talk to an advisor at Fidelity any time of the day as they offer 24/7 customer support.
Understanding of Your Goals. Ok, so this is fairly standard in the robo-advisor space. However, it is important to recognize the fact that they take a goal orientated approach. This allows them to understand your individual needs and gives you a tailored plan that fits your individual requirements. There is a short questionnaire to complete with the purpose of ascertaining tolerance to risk, financial standing, and any goals you may have. This will then match you to a suitable portfolio. Before you go ahead and sign-up, you will have visibility of your recommended portfolio along with a clear and concise estimation for the future value of the portfolio that is being recommended.
Low-Cost Robo-Advisor Service. For retirement accounts, an account with Fidelity Go will set you back just 0.35%. For taxable accounts, it will be 0.40%; this also includes exchange traded funds and Fidelity index funds. Fidelity Go offers an all-inclusive fee which is a fairly new concept from online advisors. They are one of the first to market with this idea. It’s a real plus point for the service and something which we believe is going to bring them a lot of new business. You know exactly what the fees are going to be when you sign-up for Fidelity Go. Unlike others in the robo-advisor space who will charge advertised management fees and investment expenses, it is refreshing to see this option. A large segment of revenue from the BlackRock funds, along with all of the revenue from the Fidelity funds are returned to customers via a variable fee credit which is how it achieves the all-inclusive cost of investment expenses.
Competitive Account Minimum. When compared to other online robo-services, Fidelity Go’s account minimum requirement of $5000 stacks up well against the competition. There are many other notable options such as *E-Trade Adaptive which has a minimum input of $10,000 and Vanguard PA that needs at least $50,000. Of course, there are options out there which have a $500 or $1,000 minimum investment option. Betterment and WiseBanyan have a zero investment requirement. However, we feel that $5000 is a very competitive account minimum.
Existing Fidelity Customers. With almost half a million customers already, this service could appeal not only to existing Fidelity clients but also to new acquisitions for Fidelity who are looking for an easy way to view and manage their entire portfolio in one place. Moreover, if you sign up to Fidelity Go you will not only get access to their wide array of financial planning tools, you also get to take advantage of their educational and customer support resources.

Cons

Planning Functionality Falls Short. When compared to other players in the robo-advisor niche, Fidelity Go falls a little short on the planning side. Sure, at the start when you sign-up there is a questionnaire that asks you about your goals. However, regarding retirement planning and achievement of goals, there is a lot left to be desired. Both Wealthfront and Betterment do a much better job in this respect.
Lack of Tax-Loss Harvesting. Quite simply put, in terms of having a tax strategy, there just isn’t one with Fidelity Go. Although Fidelity uses tax-advantaged municipal bond funds that can aid to reduce taxes, they do not specifically undertake tax-loss harvesting. Compared to its rivals like Wealthfront, Betterment, and Charles Schwab, it falls short here. The reason why tax-loss harvesting is such an appealing option to those who hold taxable accounts is due to the ability to reduce capital gains taxes. Essentially, they sell or “harvest” investments which are losing, then, from any winning investment the gains are offset against them.
No Transfers of Securities. Fidelity Go will not permit any transfers of securities of any kind. Even as a current Fidelity client, who may already hold funds that are utilized in the Fidelity Go portfolio, cash funding only is a strict policy that is enforced by Fidelity Go. If you plan to sign-up to the Fidelity Go service, then it needs to be done with cash as there is no option to transfer assets from within Fidelity or from other providers.
Unpredictable Rebalancing. The management at Fidelity Go will decide when portfolios are rebalanced so this is completely out of your hands and outside of your control. For those investors who prefer to be a bit more hands-on, this aspect of Fidelity Go’s service can be somewhat frustrating.
Customer Support. If you choose to look through the frequently asked questions section, you might be left somewhat confused at some of the responses. One in particular that we feel is crucial is the explanation of the pricing. It is not entirely clear and can cause quite a bit of confusion with the average or emerging investor. Their live chat is also a bit clunky and certainly not something their target “millennial” will have the patience to endure for longer than a few minutes.

Final Thoughts

Fidelity has been in business since the mid-1940s. They are a trusted and established broker with more than two trillion dollars in managed assets. While they are the biggest retirement provider, they are fairly new to the robo-advisor scene, entering this realm in the second half of 2016.

One of the biggest drawbacks to the service is the very basic functionality regarding setting goals. You type in how much you want to have when you retire or how much you want to save, and it will only tell you if you are on or off track. There is very little in terms of educational tools or features that help you realize what your goals should be. Giving investors terms such as “target not likely” is not all that useful. Other robo-advisors such as Schwab, Wealthfront, and Betterment all outperform Fidelity in this respect. We believe they will enhance this as their product matures and catches up to others, but right now, this is a major drawback. We also feel that their explanation of fees needs to be defined more clearly which would enhance the overall customer experience.

With that said, one of the most significant benefits of Fidelity Go is the access-all-areas you get to other Fidelity services. Knowing that your important assets are in the hands of the foremost retirement provider in the US at such a low cost is something that is more than enough of a compelling reason to trust your hard earned cash with this institution. If you are an existing customer with Fidelity, then it is probably the best robo-advisor service to choose. Their low all-inclusive fees are also a great reason to choose Fidelity Go.

A final point to note about Fidelity Go is that unlike other robo-advisors, Fidelity Go will not allow you to invest in assets that are considered to be overly risky based on your overall profile. If you do not have a huge amount to invest, this is a good element of their service. For others who, for example, have cash in other accounts, they might consider this approach a little too conservative.

We, therefore, believe that this offering is good, but with much room for improvement. The added functionality that you get from other robo-advisors certainly leaves Fidelity Go a little short. The saying “you only get what you pay for” certainly applies here; you don’t have to pay a lot for the service, but then, you don’t get a whole lot in return in terms of service and features.

We don’t feel at this point that Fidelity is better than Wealthfront or Betterment. Mostly, this is because of the lack of a tax-loss harvesting feature and the in-depth goal setting functionality that these two specific robo-advisors offer.

However, the two other firms mentioned above do not offer the same one-stop-shop approach that you get with Fidelity, and the added assurance you are dealing with a firmly established business. If you are already a Fidelity customer or you are attracted to low annual fees, this could be the ideal solution if you want to enter the robo-advisor market.

Robo-Advisor/Automated Investing Reviews For Comparison:

FutureAdvisor Review 2018: Promotions And Offers

FutureAdvisor was first launched in 2010 and is driven by a team of software engineers, data scientists, and licensed financial professionals. Notably, it is also backed up with investment from the same team who backed Google. To date, FutureAdvisor manages more than $900 million in assets. For clients who choose to use their Premium paid service, accounts are held with two well-known and highly trusted brokers, TD Ameritrade and Fidelity. The major drawback to this service comes with the fees that are charged. In addition to the FutureAdvisor fees, both Fidelity and TD Ameritrade may also add on their individual transactional fees.

The first thing to mention about FutureAdvisor is that if you want to try out the service, you can do so completely free of charge. It isn’t overly feature-rich, but it does come with some convenient integrations that allow you to manage accounts which are held with TD Ameritrade and Fidelity centrally from within its platform. It also offers a range of basic features which are free to use or low cost, comparatively speaking, such as the 401(k) management and its 529 college savings plan. That said, other providers in this space such as Wealthfront and Betterment offer more features than FutureAdvisor. Moreover, the fees with FutureAdvisor are somewhat higher than its robo-advisor competitors.

A good match for TD Ameritrade and Fidelity customers

As an online investment advisory service, FutureAdvisor will manage your investments automatically. It uses something called Modern Portfolio Theory that is otherwise referred to as MPT. The service will help you to create and retain a portfolio that optimizes the return on investment based on the levels of risk you indicate that you are comfortable with in your profile when you sign up. You can also change these preferences at any point in time, and it is fairly easy to do this on the FutureAdvisor site.

Overall, it is a solid competitor against other similar services that are provided to you by companies such as Wealthfront, Personal Capital, and Betterment. It depends entirely on the individual services you are looking for as to whether it competes well against others in the marketplace.

QUICK FACTS
Management Fee	0.50% for Premium (several services are free to use)
Account Minimum	$10,000
Promotion	Use their Retirement Advice services for free
Year Founded	2010
Supported Account Types	Taxable Accounts, 401k Plans, IRA Accounts, Roth IRA Accounts, Trust Accounts, 529 Plan Accounts
Tax Loss Harvesting?	Yes, for paid Premium accounts

How Does FutureAdvisor Work?

The FutureAdvisor paid Premium service delivers management of IRAs and taxable investment accounts. This includes traditional, rollover, Roth and SEP IRAs. Essentially, you give the service permission to trade within your accounts (TD Ameritrade or Fidelity) on your behalf. As mentioned in the introduction, this robo-advisor firm does offer some of its services for free. One of these free-to-use services is an in-depth retirement analysis. This feature enables its users to link accounts and receive specific recommendations that are tailored to the respective portfolios along with the individual goals of the client that are set out when you sign-up and create a profile.

Outside of this, the paid Premium service charges a management fee of 0.50%, which is a little higher than some other automated investing services. FutureAdvisor also requires a minimum balance of $10,000. It offers tax-loss harvesting, flexible access to a team of licensed Financial Advisors and investment management with the added bonus of automated rebalancing.

Once you sign-up for the FutureAdvisor service, you are able to easily link together any other investment accounts, or you can also report any of your other holdings manually. The robo-advisor service will then review everything and analyze this through the dashboard. Their recommendations are then offered, which are completely tailored to your individual goals and your unique portfolio.

Once they have crunched the numbers, the retirement plan recommendation will be broken down into nine stages. This will then be periodically updated, and advice will be given as to whether there is a better option or room for improvement. The good element of this service is that FutureAdvisor will explain its rationale and show you the ‘why’ behind their recommendations. This extra bit of detail is something that investors quite like, along with the fact the updates are available in real-time. This is a real plus to their services and an area that some of their competitors fall short in.

Who Is FutureAdvisor Suitable For?

Anything that is free is surely worth a go. When you consider the level of detail that FutureAdvisor goes into here, it’s an impressive offering that you pay nothing for at all. Based on this, it is worth a look for sure. You can get a really good insight into the best way to manage your portfolio using their in-depth account analysis, and the rebalancing reminders are pretty useful too. Even if you don’t sign up for their Premium service or if you are currently with another broker and don’t want to switch over, you can use their free tools to then make decisions with your own broker.

FutureAdvisor is ideal for clients who already have accounts with TD Ameritrade and Fidelity. If you want to use a robo-advisor service without the hassle of moving funds out of Fidelity or TD Ameritrade, it is a good choice.
Those who have at least $10,000 to invest or transfer
Investors that prefer a DIY approach
Those who would like access to licensed financial advisors

Pros and Cons of FutureAdvisor

Pros

Free Services. The portfolio analysis is a great freebie and something which can be used whether or not you intend to use their paid service. This free service will also provide you with an system alert when it is rebalancing time. DIY investors who might want to get a second opinion will find the tailored recommendations and advice extremely useful. This advice can be used with any account, regardless of where it is being held. The trading recommendations that are provided completely free of charge are founded upon MPT, which is the same methodology that is widely used by many other robo-advisor services. So essentially, you can take what they are recommending and initiate that with any other broker that you might be using.
Tax Loss Harvesting. If you are a premium customer, then tax-loss harvesting is included in your list of benefits as well. Understandably, this is not available with the free version.
Linking Accounts. FutureAdvisor makes it really easy to link up with eligible broker accounts. Currently, this only applies to TD Ameritrade and Fidelity. This nifty feature allows them to access your account and perform trades on your behalf. It’s a real plus for those who prefer to have everything taken care of for them with minimal input required.
Flexibility. Unlike some other robo-advisor services such as Wealthfront or Betterment, FutureAdvisor will give you advice based on your existing portfolio, without the need for you to first transfer the assets across to them. This is a significant feature and one which many other firms do not currently offer.
Review Your Trades Prior to Adjustments. Another great feature of the FutureAdvisor robo-advisor service is that it will let you fully review your existing investments before it makes the recommendations for adjustments. This means that any implications such as taxes will be fully considered before you sell what you have.
Fidelity and TD Ameritrade Customers. If you already hold accounts with either of these brokers, then you are in a real win-win situation. FutureAdvisor will not request you to move these accounts. All you need to do is to provide FutureAdvisor with permission to manage the assets for you, and they will then be able to trade on your behalf. It provides a risk-free way to use robo-advisor services to your advantage, and there is no hassle with transferring anything over to them from either of these companies.
Licensed Financial Advisors. As a customer of the FutureAdvisor Premium service, you get access to a team of advisors that you can access in a range of methods that suit you. Talk to them on the phone, via live chat or send them an email. It is even possible to pre-arrange an appointment time with a licensed Financial Advisor. Each and every trade that occurs within an account is backed-up by a human advisor. This means you get the complex and meticulous methodologies of the robo-advisor service as well as the safety net of a real person who monitors all that occurs within your accounts as well. The best of both worlds and for some, this completely justifies the slightly higher than average management fees that are charged by the FutureAdvisor Premium service.
Clean and Easy Viewing. The interface offered by FutureAdvisor is clean and straightforward to navigate around. Especially when compared to the likes of Wealthfront. Users report it takes no time at all to find their way around the system.
529 Account Management. This is another plus point of the FutureAdvisor service. Offering management of your 529 college savings plan is another good element to their offering and not something many of the other robo-advisor services currently offer.

Cons

The Management Fees. When compared side-by-side with other robo-advisors that are operating within the same space, the Premium plan offered by FutureAdvisor comes with an annual management fee of 0.50%. Not to mention, this is on top of the investment expenses that may be charged by Fidelity and TD Ameritrade. They have noted that, where possible, they prioritize the use of funds that are commission-free.
The Account Minimum. If you want to use the Premium service at FutureAdvisor, you need to have a minimum of $10,000. Compared to others who offer this service, this is a relatively high amount. Although to be fair, we must note that there are a lot of others out there who have a higher account minimum such as Vanguard Personal Advisor and Personal Capital ($50,000 and $100,000, respectively).
Upper Age Limits. The FutureAdvisor service will help you up to the point of retirement, but not after. New premium clients are not accepted over the age of 68 years. The company states that this is because their allocations focus on return on investment as opposed to generating income.

Other Accounts. If you hold accounts outside of TD Ameritrade or Fidelity, then you’ll be a little inconvenienced here. This is because their focus has been on making it easy for clients of these two particular brokers to use the service. FutureAdvisor will help you move any accounts or assets you might have, though, if needed.

Bottom Line

The range of free services offered by FutureAdvisor is plentiful, and we must applaud them for this. The management of the 529 college plan along with the in-depth analysis and portfolio recommendations make this a great service to use, irrespective of whether you choose to move your assets to them under their Premium service.

FutureAdvisor is particularly beneficial for current customers of Fidelity or TD Ameritrade due to the fact there is a hassle-free approach to syncing accounts, allowing you to benefit from their robo-advisor service almost instantaneously.

The higher than average account minimum of $10,000 is a drawback to the service, as is its higher management fee, which comes in higher than others in this space.

In summary, there are a lot of positives to the service, and the FutureAdvisor website and platform is very straightforward and simple to use. If you want to get involved with a robo-advisor but are perhaps a little tentative about handing everything over to a computer driven process, this makes for a good option due to the human involvement of licensed Financial Advisors. We also feel it is a real thumbs-up for the customer support element of the FutureAdvisor business as they make it easy to speak with their team of skilled Financial Advisors either by phone, by email or by live chat. We also love the fact you can arrange a pre-booked appointment to talk with them if needed.

Overall, some really good pluses, but the minimum investment requirement and higher annual management fee can be a bit of a sticking point depending on your particular situation.

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Motif Investing Review: Current Promotions And Bonuses

By: Tony Phan | Last Updated: March 12, 2018 | This content is not provided or commissioned by the issuer. Opinions expressed here are author’s alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer. This site may be compensated through the issuer’s Affiliate Program. Please visit our Advertiser Disclosure for additional details.

Get the latest Motif Investing promotions here, including the free month offer, $100 bonus and $150 bonus.

Motif Investing basically specializes in stock picking and index investing. They will create portfolios called “motifs” that contain up to 30 stocks or ETFs that become a nice investment package. You can choose from over 150+ professionally built motifs or select from 75,000 motifs created by other investors like you.

If you want to learn more about the company, read our full review further down below.

Other brokerage bonus promotions can be found here.

Free Motif Subscription Referral Offer

You and your referrals can earn free Motif subscription periods with this offer.

- You will receive 1 month of free Motif BLUE for each friend that opens an account and is approved.
- To ensure you receive the offer, each friend must use the link in your Motif invite to open their accounts.
- The link creates a unique electronic cookie as an identifier.
- Therefore, your friend’s cookie setting must be enabled.
- For your referral to qualify for the offer, your friend cannot be an existing Motif member or trading account holder.
- This offer cannot be combined with any other offers from Motif Investing.
- Motif Investing reserves the right to terminate this offer at any time and to refuse or recover any promotion award if, in Motif Investing’s sole opinion, it was obtained under wrongful or fraudulent circumstances, that inaccurate or incomplete information was provided in opening the account, or that any terms of the Account Agreement have been violated.
- This offer is not applicable to associates or affiliated associates (including contractors, interns, and temporary employees) of Motif Investing and their immediate family members.
- You are not required to provide your credit card to start your month of free Motif BLUE.

*Click the link below to see an example of the referral form, but you’ll need a Motif account to create your own referral link to earn bonuses.

Learn More

Best Brokerage Promotions Currently

Be sure to check out the top offers from FutureAdvisor, TD Ameritrade, and more below.


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Motif Investing 1 Month Free Offer

*Update: check the link below for updates, but it appears as though this offer is no longer available

You’ll get 1 month for free when you sign up for a new Motif Investing Impact Account.

No stated expiration date for this offer
Impact Account is eligible for the offer
Impact Account:
- Fully-automated portfolio
- Align your financial goals with your values
- Tax-aware automated investing
- After award period, one flat subscription of $9.95/month
- No Compromise Guarantee: 100% fee-refund if your portfolio underperforms

How To Get The Offer

Use the link below to go to the Motif Investing website
Click on “Open Account” at the top right corner
You’ll see the screen where you choose the type of account you’d like to open, with a message stating “Your first month FREE” under the Impact Account heading.

1 Month Free

Full Review Of Motif Investing

Motif Investing was founded by Hardeep Walia. He created the business in order to aid investors to get more control over what they were able to invest in. By offering this service in a low-cost manner, it allows those who do not have a lot of initial capital to get started and get onto the investing ladder.

Motif is tax efficient; it’s cost-effective and cost-competitive too. With a somewhat unique offering, Motif Investing delivers a service that allows investors to trade exchange-traded funds and stocks. For a fee starting at $4.95 per month, users can create and trade themed collections known as “Motifs” of up to 30 stocks or ETFs.

This theme-based approach of investing is completely unique to the platform and is a great way to diversify your portfolio; it is also pretty cost-efficient too. Motif Investing is a discounted brokerage service which enables the user to dictate their preferred areas for investing. For this service and others in their arsenal, Motif Investing has been featured in the CNBC Disruptor 50 listings for 2016.

Motif Facts
Commission	$4.95/Share; $9.95/Motif; Automated Investing starts at $4.95/month
Account Minimum	$0
Promotion	1 free month of Motif Blue
Options Trades	N/A
Mutual Funds	N/A
Accounts Available	Traditional IRA, Roth IRA, Rollover IRA, Trusts, Individual and Joint
Mobile App	Apple iOS, Apple Watch and Google Android
Customer Support	Phone, Text and Email
1 Month Free

Who Is Motif Investing Suitable For?

If you want control over what stock is being chosen for your portfolio
Those who want to buy fractional shares of stocks or ETFs
Those who want to invest in IPOs
Those who wish to see what other people are trading before committing themselves
Those who do not have a lot of capital to invest
People who are new to trading
If you need a low-cost option

Opening An Account With Motif

If you want to open a new account with Motif Investing, the process is easy to initiate. You will need to complete an online form that will ask for your Social Security Number and some other personal information. There is then a range of different account types for you to choose from. Don’t worry about doing everything on day one, as you can open other accounts later on if you need to.

You will then be requested to add funds to your account, and there are a number of different options available for that.

If you wish to transfer an account from another broker, this is also referred to as an ACAT. This process can take up to 10 working days to go through, and you are limited to cash, ETFs, and listed securities.
ACH, Bank, and Wire transfers usually take 24-hours and are the quickest deposit option.
Using a check to fund your account is still possible – it generally takes four business days from the date is gets cleared with the bank.

Motif Investing Pros

Themed “Motifs.”

These are the essence of the offering that Motif Investing provides and the standout feature that sets them aside from others in this space. There are essentially two different categories that these “Motifs” fall into. Community Motifs are created by Investors who then choose to share them with the wider audience of customers on the Motif Investing platform. Then, there are the Professional Motifs which are created by Motif Investing themselves.

The extensive catalog displays a hugely in-depth array of data which includes the highest dividend yielded, performance, most purchased, as well as a ranking table which details the 30-day winners and losers respectively.

If you wish to purchase Motifs that are from an existing model, which has already been created in either the professional or community categories, you can use a range of nifty tools in order to filter through the different options that are available. These are Financial Services, Green Technologies, Healthcare, Social Causes, and Energy and Natural Resources.

Performing a search using the term “technologies” results in more than 40 different professional Motifs and over 5,000 different community Motifs. Motif Investing lists crucial information that is neatly contained within the search results to make it easy to see what might be the right option for you. They show a quick overview that incorporates a one-month trend viewpoint.

Supports A Range Of Account Types

With Motif Investing, a range of account types are supported. These include IRA, Standard Taxable Accounts, and Roth IRAs.

Low Cost and Transparent Fees

With Motif Investing you know exactly what you are paying, and there are no hidden charges or fees. Their fee structure is clearly displayed and easy to understand. What’s more, it is competitively priced when you compare that with traditional purchasing of ETFs or buying individual stocks. Choose from either the $4.95, $9.95 or $19.95 plan depending upon your individual needs.

Minimal Deposit Required

Motif Investing is a great way for those who have minimal funds to invest. Because a dollar buying approach with fractional shares is available, they make it easy for people with all different scales of budgets to invest and use their platform. You only need to have $300 in order to start investing in a motif.

Great Accessibility

Motif Investing is easy to use and easy to access. Their platform is available across a range of different devices. You can access it via any Android or Apple Device, via a web browser, or on any tablet device. Whichever way you choose to access their services, the interface is clean and simple to navigate around.

Adaptability

If you want to trade ETFs or individual stocks, this platform will allow you to do that as well. It gives full access to the entire suite of US-listed securities. In fact, Motif Investing will meet the requirements of a whole host of different investors. Another great feature we love about Motif Investing is that investors can also trade in dollars rather than in shares. This means that fractional shares can be purchased and it opens the gates for investors with smaller amounts to invest too.

American depository receipts are also available through Motif Investing. These typically serve to represent shares in international businesses. Because these shares are issued by a US brokerage or banking institution, they can help investors who want to invest or buy foreign stocks who prefer not to be faced with the complexities that can sometimes occur from buying shares in companies that are located outside of the US.

Royalties for Motifs

If you create a Motif that is purchased by someone else within the community, you will then earn royalties on that purchase. This adds an extra element and a new dimension to their offering. It is best to check the latest royalty levels direct on their website as these can occasionally fluctuate.

Motif Investing Cons

No Reinvestment for Dividends

Any additional shares which come as a result of one of your Motifs paying-out will be credited to that Motif. However, if you get cash dividends back into your account, you are then required to reinvest them manually. Not only is this a bit of an inconvenience, but you will also then probably have to pay an additional commission as well.

Limited Trading Tools

There are certain features which traders typically expect to see that are lacking from the Motif Investing offering. Although they seem to be looking to bring active traders to their platform, their range of features does not offer a full set of tools. This includes a range of ordering options, diverse research, and key analytical tools. One clear missing feature is that traders are able to utilize stop and stop-limit orders only on their sell orders.

Motif Investment Subscription Model

This new model was launched in the last part of 2016 and brought Automated Investing (Betterment and Wealthfront are leaders in Automated Investing) to Motif Investment’s range of online offerings. This added functionality means that customers are able to buy into Motifs on a regular frequency. The options are annual, quarterly, monthly or bi-weekly. The major plus to this service arrangement is that investors do not need to pay a commission each time money is invested. The fees are charged as an overall fixed monthly subscription amount, depending upon the particular level that is selected. There are three different levels, details of which are below:

BLUE Starter – The cost of this service is just $4.95 per month. This includes the option to invest, and to Auto-rebalance a single Motif.
BLUE Standard – The cost of the standard service is $9.95 per month. This includes the option to invest in three Motifs and Auto-rebalance any professional Motif. With this plan, you also get Capital Market Reports from Motif, and you are able to make one commission-free trade of either a stock or a Motif each month.
BLUE Unlimited – The cost of the unlimited service is $19.95 per month. This includes the option for auto-investment into three Motifs along with the ability to rebalance any professional Motif automatically. There are three trades of either stocks or Motifs that are free of any commission. As with the standard plan, you get the Motif Capital reports. However, you also get the added benefit of stock quotes in real-time across all pages.

On Monday mornings at 09:30 ET, Motif Blue will rebalance portfolios automatically across all professional Motifs only.

With this service, there are a lot of fine details to go through. One of the standout points we feel is necessary to highlight about Motif Blue is that at present, you are only allowed to reinvest in Motifs that you have created yourself, or the professional Motifs which are created by Motif Investing themselves.

Final Thoughts

Motif has certainly been able to differentiate themselves through their unique creation of Motifs that allow investors to fully align themselves with chosen investments in fields or areas which are particularly meaningful to them. All this along with the added benefits of auto-rebalancing and the hands-on investment approach gives customers something to really sink their teeth into. The other huge plus point with Motif Investing is the flexibility of the service and the ability to buy fractional shares.

The service allows investors who prefer a hands-on approach; it also offers a relatively low-cost way to create customized portfolios with ease. The fact that you can trade ETFs or up to thirty different stocks, for a very low commission comparatively is a real plus to their offering.

However, for those who really don’t want to get into all the detail and prefer a hands-off approach to managing investments, perhaps one of the other true Robo-Advisory services like Betterment or Wealthfront would be much more suited to their needs.

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