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

By: | Last Updated: | 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. I 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.

Learn More at Blooom

Earn A $10 Amazon Gift Card Per Referral

Blooom $10 Referral Bonus

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?

Blooom Features

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.  I 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, I 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, I feel that Blooom has an excellent offering in a not so-crowded marketplace.

Learn More at Blooom

*My Investments Disclosure
I'm constantly tweaking my investment strategies as I gain more insight and as investment options evolve. Below is my current lineup.
  • Thinkorswim platform from TD Ameritrade. This is the desktop platform I currently use to trade Forex, Futures and Equities. I mainly swing-trade, entering and exiting positions over a period of days to weeks. For the most part, I base my trading on Technical Analysis, following the tips I've learned from the james16 Chart Thread on forexfactory. As this is a high-risk endeavor, I only use a small portion of my pot.
  • Vanguard funds. As the great Warren Buffet recommends, I invest a good portion into an S&P 500 index fund directly with Vanguard. Most of my investments here are in the VOO Vanguard S&P 500 ETF. With an Expense Ratio of just 0.04%, this is a great way to diversify and save a great deal on fees. I've also decided to diversify further with the total stock market, investing in the VTI ETF with Vanguard.
  • Wealthfront. If you're a good number of years before reaching retirement, many finance experts suggest going with a robo-advisor. I've set my risk tolerance at high for now, and split a good portion of my investment funds between my Wealthfront and Vanguard accounts. With so many good reputable robo-advisors on the market, I decided on Wealthfront based on their track record, client reviews, and because I've been able to waive all management fees through their referral program.
  • Fundrise. I wanted to have an alternative to stocks and bonds, and decided to dip my toes in the private real estate arena with Fundrise. I'm not all-in on this strategy just yet, and only have a small account open.
  • Online Savings. This is how I store my emergency funds. The best online Savings accounts will provide much better rates than your traditional big banks will. You'll be able to make up to 6 withdrawals a month for emergency situations. Click the link to compare the nation's best rates.
  • Bitcoin and cryptocurrency. This is simply for fun and I can't recommend this option to anyone with all the unknowns. My investments in cryptocurrencies are minuscule, but it's fun following the madness.

More Reviews Of Robo-Advisors To Consider:

See the list of the current best Robo-Advisors here.

Acorns Review 2018: Micro Investing With Your Spare Change

By: | Last Updated: | 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.

A father-and-son duo is the brains behind Acorns, an investment service that rounds your spending up to the next dollar and invests the difference. All you need is a linked credit card and checking account, and Acorns will take care of the rest. Although you’re only investing a handful of change at a time, this micro-savings service makes investing virtually painless.

Why It’s Hot

Why It’s Not
  • Pain-free way to save: The amounts taken are so small, you won’t notice they’re missing from your checking account.
  • Takes away most complexities of investing: You don’t need to understand portfolio theory to use Acorns.
  • No money, no problem: Acorns does not have a minimum deposit requirement in order to open an account.
  • Free for students: Acorns is free to use for any college student with a valid .edu email address for up to four years.
  • Tiny savings: Amounts are not big enough to save towards retirement or larger goals.
  • Flat management fee: Although $1 or $2 per month sounds cheap, it’s a high percentage for investors with small balances.
  • Small portfolio: Only 5 to choose from that cover 5 to 7 asset classes
  • Possible to lose money: You can lose principal with Acorns. If that’s of concern, you can choose the conservative portfolio with less risk.

Learn More at Acorns

Acorns Promotion: $5 Sign Up Promotion

Acorns Promotion

  • Offer: $5 Sign-Up Bonus
  • Expiration: September 31, 2018

$5 Sign-Up Bonus

All About Investing With Acorns

Acorns Fees

Account Type Fee
Under $1 million $1 per month
Over $1 million 0.25% per year
Under 24 and in college Free
IRAs +$1 per month

Acorns Features

The micro investing service was designed for certain kinds of investors: people who have a hard time saving, college students, and those that want to be hands-off with their investments.

Round-Ups

Round-Up transfers will take every purchase you make on your linked account, round the transactions up to the next dollar, and deposit the difference into your Acorns investment.

You can choose what kinds of purchases you want to Round-Up with, or set it to “automatic” which will apply to all eligible transactions. If you’re looking to invest at a faster rate, you can choose to go with Round-Up Multiplier, which will boost your Round-Up to 10 times the amount.

Purchase Amount Round-Up Difference Multiplier (x10)
$25.53 $0.47 $4.70

Besides Round-Up deposits, you can also invest cash reward bonuses from a rewards program, or lump sum amounts. To simplify the process, you have the option to schedule recurring daily, weekly or monthly deposits.

There are no deposit or account minimums, no commision fees, and no penalties for withdrawing funds. Acorns makes money by withdrawing them from your funding source, rather than taking it out of the money you invested.

Found Money

Every time you use your Acorns-linked debit or credit card at one of 100+ partner retailers, that retailer will invest a little bit into your Acorns account. In some cases, you’ll get your cash back automatically in 60 to 120 days, without having to complete any additional steps.

Acorns Later

For existing Acorn users, Acorns Later is an optional service which invests in specially-designed Individual Retirement Accounts (IRAs). These cost an additional $1 per month until your investment reaches $1 million. After that, the fee is $100 per $1 million.

Free For College Students

Acorns is reaching out to new, young investors by offering zero fees on any accounts of any size. To qualify, you must have a valid email address ending in .edu, with a “Student” employment status for up to four years from the registration date.

Educational Content

The website and app are treasure troves of information for the newbie investor. You’ll find keywords defined in layman’s terms, Grow Magazine which covers personal finance topics, and a free, five-step, financial literacy course from Udemy.com.

Opening An Acorns Account

Signing up is relatively quick and easy by going online or downloading the app. You start by entering a PIN access code, which will be your PIN for every time you log into the app.

Choose a bank account to Round-Up. If your bank is not listed, you can click the “Next” button and do a search for your bank’s name. You’ll get a prompt to log into your bank. Once in, click on which account you’d like to Round-Up. If you want, you can link Acorns to more than one account.

Choose a checking account to transfer funds. Different than the previous step, this account is where Acorns pulls money for investment. Just connect an existing checking account from the list and sign-in. If the account isn’t listed, you can input your routing and account information to connect the checking account of your choice

Create an investment account. You’ll need to input your first and last name, address, phone number, date of birth, and a security question and answer. You’ll then be prompted to answer standard questions required by the SEC when you open a brokerage account. The next screen will ask about your personal finances and your reasons for investing. This will help Acorns give you a good portfolio recommendation as well as customized advice. Lastly, you’ll need to fill in your social security number, which will be used for identity verification, tax reporting, and fraud prevention.

Portfolio Options

Once you’ve open your Acorns account, it’s time to check out your portfolio, where you’ll also see a list of tips, advice and ideas.

Acorns will recommend a portfolio for you based on your variable cash flow, median net worth, long-term investment reason, age and income. However, you have the freedom to choose whichever portfolio you want:

Portfolio Stock % Bond % Real Estate %
Conservative 18% 80% 2%
Moderately Conservative 36% 60% 4%
Moderate 54% 40% 6%
Moderately Aggressive 72% 20% 8%
Aggressive 90% 0% 10%

Once you’ve picked your portfolio, you can move on to exchange traded funds (ETFs). Select which asset class you want to invest in, click “Confirm Portfolio,” and you’re done!

My Impressions

If you’re new to investing, or if you don’t have much to invest, then Acorns may be a good option. Its micro-savings service won’t affect your lifestyle. On the flip side, the monthly deposits are such a small amount, that you can’t really count it as a way to save for your retirement.

If you want a more “serious” way to invest with larger deposit amounts, you should consider one of the popular Automated Investing services (a.k.a. Robo-Advisors) like WealthSimple, Personal Capital or Wealthfront.

Learn More at Acorns

*My Investments Disclosure
I'm constantly tweaking my investment strategies as I gain more insight and as investment options evolve. Below is my current lineup.
  • Thinkorswim platform from TD Ameritrade. This is the desktop platform I currently use to trade Forex, Futures and Equities. I mainly swing-trade, entering and exiting positions over a period of days to weeks. For the most part, I base my trading on Technical Analysis, following the tips I've learned from the james16 Chart Thread on forexfactory. As this is a high-risk endeavor, I only use a small portion of my pot.
  • Vanguard funds. As the great Warren Buffet recommends, I invest a good portion into an S&P 500 index fund directly with Vanguard. Most of my investments here are in the VOO Vanguard S&P 500 ETF. With an Expense Ratio of just 0.04%, this is a great way to diversify and save a great deal on fees. I've also decided to diversify further with the total stock market, investing in the VTI ETF with Vanguard.
  • Wealthfront. If you're a good number of years before reaching retirement, many finance experts suggest going with a robo-advisor. I've set my risk tolerance at high for now, and split a good portion of my investment funds between my Wealthfront and Vanguard accounts. With so many good reputable robo-advisors on the market, I decided on Wealthfront based on their track record, client reviews, and because I've been able to waive all management fees through their referral program.
  • Fundrise. I wanted to have an alternative to stocks and bonds, and decided to dip my toes in the private real estate arena with Fundrise. I'm not all-in on this strategy just yet, and only have a small account open.
  • Online Savings. This is how I store my emergency funds. The best online Savings accounts will provide much better rates than your traditional big banks will. You'll be able to make up to 6 withdrawals a month for emergency situations. Click the link to compare the nation's best rates.
  • Bitcoin and cryptocurrency. This is simply for fun and I can't recommend this option to anyone with all the unknowns. My investments in cryptocurrencies are minuscule, but it's fun following the madness.

Compare Top Robo-Advisors

Compare the best Automated Investing services here.


Fundrise Review 2018: Real Estate Automated Investing

By: | Last Updated: | 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 importnat 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 need 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 I’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 eREITs
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 bought and sold.

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 Team

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 Historical Performance Chart

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

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 some additional income, the Supplemental Income package is actually what I chose for my initial investment with Fundrise (more on this below). This package won’t yield the highest returns over the long term.

You’ll find low variability, a decent time horizon for growth, and a passive income offering 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, 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 a very long period of time.  The results over this time will typically be better, 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.

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, Zappa.

My favorite team member at Fundrise!

Fundrise Promotions?

fundrise referral offer
I’m not sure how long the offer will continue, but once you’re a customer you can start making referrals and earn 90 days of no advisory fees per referral. Just log into your account and you’ll see the option on the sidebar or under the menus.

My Update After Just 4 Months With Fundrise

As I stated above, I decided on the Supplemental Income investment plan. This plan will provide me a consistent passive income stream, albeit at a typically lower return than their other longer term plans. $10,000 was my initial investment in early April of 2018. I must say, I am fairly pleased with the results so far. With a rough calculation, I am getting a return a bit under 8% annually as of this update in August of 2018. If I do decide to invest further with Fundrise, I’ll likely change to either the Balanced Investing or Long-Term Growth package.

Final Thoughts

In conclusion, given all the facts, I am 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.

I 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.

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.

*My Investments Disclosure
I'm constantly tweaking my investment strategies as I gain more insight and as investment options evolve. Below is my current lineup.
  • Thinkorswim platform from TD Ameritrade. This is the desktop platform I currently use to trade Forex, Futures and Equities. I mainly swing-trade, entering and exiting positions over a period of days to weeks. For the most part, I base my trading on Technical Analysis, following the tips I've learned from the james16 Chart Thread on forexfactory. As this is a high-risk endeavor, I only use a small portion of my pot.
  • Vanguard funds. As the great Warren Buffet recommends, I invest a good portion into an S&P 500 index fund directly with Vanguard. Most of my investments here are in the VOO Vanguard S&P 500 ETF. With an Expense Ratio of just 0.04%, this is a great way to diversify and save a great deal on fees. I've also decided to diversify further with the total stock market, investing in the VTI ETF with Vanguard.
  • Wealthfront. If you're a good number of years before reaching retirement, many finance experts suggest going with a robo-advisor. I've set my risk tolerance at high for now, and split a good portion of my investment funds between my Wealthfront and Vanguard accounts. With so many good reputable robo-advisors on the market, I decided on Wealthfront based on their track record, client reviews, and because I've been able to waive all management fees through their referral program.
  • Fundrise. I wanted to have an alternative to stocks and bonds, and decided to dip my toes in the private real estate arena with Fundrise. I'm not all-in on this strategy just yet, and only have a small account open.
  • Online Savings. This is how I store my emergency funds. The best online Savings accounts will provide much better rates than your traditional big banks will. You'll be able to make up to 6 withdrawals a month for emergency situations. Click the link to compare the nation's best rates.
  • Bitcoin and cryptocurrency. This is simply for fun and I can't recommend this option to anyone with all the unknowns. My investments in cryptocurrencies are minuscule, but it's fun following the madness.

More Investing Offers You May Like

Read about the best online stock brokers here and get updated promotions here. See the list of the current best Robo-Advisors here.

WiseBanyan Review 2018: World’s First Free Robo Advisor

By: | Last Updated: | 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.

Established in 2013, WiseBanyan’s founders Herbert Moore and Vicki Zhou saw the apparent mismatch between the values of financial advisors and their clients, along with the unreasonable management fees and significant minimum account balances demanded by investment companies and decided something had to change. They decided to embark upon a new venture which would become the “world’s first free financial advisor“, and the financial robo-advisor WiseBanyan was born.

WiseBanyan, like most other financial robo-advisors (e.g. Personal Capital, Wealthfront, Betterment) uses specially designed software and algorithms to provide online financial advice and portfolio management with little to no human intervention. While robo-advisors have the advantage of being able to offer financial advice at a much lower price point than their human counterparts, most are not free. WiseBanyan changed the state-of-play in the robo-advisor market by offering an investment product which did not charge account management fees.

The company now boasts $100 million in assets under management and has around 25,000 users.

It effectively has democratized investing, by giving individuals who were previously locked out of the market, due to minimum account balance requirements, an opportunity to dip their toes in the investment pool without having to worry about losing all of their investment returns paying service providers account management fees.

WiseBanyan Featured In

WiseBanyan has been featured in these outlets

How WiseBanyan works

It only takes $10 for a new client to set up an account with WiseBanyan. While it can take up two weeks for the account to become funded, it is usually less than five business days. Once the account is funded, the new client gets access to tools and a dashboard which will show them their investments at a glance.

Clients are asked a few questions when setting up their WiseBanyan account. These questions are designed to rate and identify the client’s individual preferred investment “risk score”. This score is used by the company’s algorithms to create a recommended portfolio of passively managed exchange traded funds, (“ETFs”), designed to match the individual’s own risk tolerance. As noted above, clients maintain the ability to check and adjust their investments through the tools and dashboard provided by WiseBanyan’s user interface.

Investors can outline their desired goals, or milestones, by telling the service what financial goals they want and when. WiseBanyan’s algorithms will then go to work monitoring, recalculating and automating the client’s deposits in a way to maximize their chances of reaching their desired goals within the stated timeframe.  Clients may have multiple milestone portfolios, which include Rainy Day, Retirement, Custom and Build Wealth options. Investments can be deposited automatically into individual milestone portfolios.

Investment portfolios are largely made up of seven different types of ETFs. Not every portfolio will have all seven types of ETFs as the exact makeup will depend on the client’s individual risk profile. The common ETFs are:

  1. iShares TIPS Bond ETF
  2. iShares iBoxx $ Investment Grade Corporate Bond ETF
  3. Vanguard REIT ETF
  4. Vanguard Total Stock Market ETF
  5. Vanguard Intermediate-Term Government Bond ETF
  6. Vanguard FTSE Developed Markets ETF
  7. Vanguard FTSE Emerging Markets

It is important to note that while WiseBanyan does not charge account management fees, the underlying ETFs do charge fees. WiseBanyan has sought to keep these costs down by selecting a group of well-established, low fee funds to invest in.

If WiseBanyan Is The “World’s First Free Financial Advisor,” How Does It Make Money?

WiseBanyan Free

“World’s First Free Financial Advisor”

WiseBanyan does not charge account management fees. However, it does charge for premium or “a la carte” services, such as tax-loss harvesting (called “WiseHarvesting” in WiseBanyan’s language). While other robo-advisors charge account management fees, tax loss harvesting usually forms part of their basic service package offering and does not cost extra. WiseHarvesting is just the start of the paid service offerings to come from the company.

In addition to its free service, WiseBanyan does offer a customized management service with a personal touch for an annual fee of 0.50% to 1.0%.

WiseBanyan also keeps a keen eye on running costs in order to minimize the need to charge fees. For example, electronic statements are provided for free, however, if clients require a paper statement a fee of $10 per statement or $150 for a year of monthly statements applies. However, Fees are also charged for transferring money out of the account and for payments made via paper check.

As WiseBanyan was founded in 2013, it remains to be seen whether this is a business revenue model which can last in the long term.

Who Is WiseBanyan Suitable For?

WiseBanyan’s approach of not charging account management fees or requiring a minuscule minimum account balance means anyone can use its service, from individuals just starting to experiment with financial investment to experienced investors with large asset management requirements.

WiseBanyan is the perfect starting place for younger people and new investors to start out on their investment journey.  In fact, it is the only place for would-be-investors with less than $100 to start their investment portfolio. It may be one of the only opportunities for new investors to get some experience and grow their modest nest eggs without them being eaten away in management fees and other costs.

This model of service is also ideal for retirement investors who want free account management and investment guidance tailored to meet their stated milestones.

Pros & Cons Of WiseBanyan

Pros

  • $1 minimum account requirement and no account management fees. Clients only need $10 to open an account with WiseBanyan. The minimum account balance is $1. Further, Wisebanyan’s approach of not charging account management fees means most other robo-advisors on the market just cannot compete when it comes to fees and charges.
  • WiseBanyan investment portfolios allow for fractional shares. One of the reasons clients can start up an account with very little money is WiseBanyan has retained FolioFN as its broker-dealer. FolioFN is a stand-out in the marketplace because it allows fractional shares. So, while clients may not be able to buy a full share for $10 they can purchase a fraction of a share and still make returns on very small investments. It also means all of the client’s money is invested. There is no loose change lying around in WiseBanyan’s investment accounts. All of the money is invested and working hard making a return, no matter how small the amount.
  • Dynamic account management software. WiseBanyan’s service offerings include updated investment recommendations when clients choose to increase or decrease their risk scores.
  • Automatic weekly, monthly or quarterly payments. WiseBanyan offers a service to make automatic weekly, monthly or quarterly payments into their clients’ investment accounts to assist in making investing effortless.
  • WiseBanyan does not restrict clients to their own exchange traded funds. This is both a positive and a negative. Clients are not forced to use their advisor’s own funds for investment deposits. However, WiseBanyan misses out from this important revenue stream, whereas competitors such as Schwab with its Intelligent Portfolios product, are able to offer fee-free services because they are able to make money on the fees charged from investing in their own ETFs.

Cons

  • All of the client’s investment eggs end up in WiseBanyan’s basket. Clients are required to liquidate their investments prior to making a transfer of an account to WiseBanyan. This means clients are forced to put all their eggs in WiseBanyan’s basket.
  • There is currently not enough data to compare WiseBanyan’s market performance with its competitors. It is expected any long term difference between the performance of portfolios of WiseBanyan clients and their competitors is likely to be minimal because WiseBanyan’s portfolios are made up of ETFs which are equal to those used by every other robo-advisor. However, at this stage, it is worthwhile noting there is not enough data available to make a meaningful comparison.
  • Limited investment mix. Although WiseBanyan sports a wide investment mix, its portfolios do not include municipal or emerging market bonds or natural resources. Clients wishing to invest in such a space will need to find another service provider to meet their needs.
  • Does not allow for certain account types. Wisebanyan does not allow joint taxable or a custodial account for children, which is an exception to the service offerings provided by WiseBanyan’s competitors. At this stage, clients may only open Traditional & Roth IRAs, individual taxable accounts, Rollover IRAs or SEP IRAs. This means the pool of individuals who can take advantage of the company’s free service offering is necessarily limited. There may be an improvement in this space if we can rely on WiseBanyan’s reports of providing more account options in the future. Such a move would provide the company with the distinct advantage of increasing its marketable client base.
  • Not the best choice for taxable accounts. While WiseBanyan is a great place for small investors and new investors to start out, it does not provide the best service offering for individuals with a taxable account which would benefit from tax-optimization services. WiseBanyan’s tax optimization services form part of their paid service offering. I think there are other robo-advisors on the market which have better versions of tax-harvesting software than WiseBanyan at a same or similar price point and as such would be preferable.
  • Investors with over $500,000 may be better served by WiseBanyan’s competitors. Investors with over $500,000 of investable money tend to like using robo-advisors because they like to be independent in their investment decisions but they want a little guidance along the way. Unfortunately, on balance I think investors with more than $10,000 to invest may find they are better served by some of the more advanced, paid robo-advisor services, such as Vanguard and Betterment. Clients with at least $100,000 to invest should consider the services of Personal Capital.
  • WiseBanyan is suited to buy-and-hold, rather than regularly trading investors. WiseBanyan is also suited to buy-and-hold investors, rather than those who wish to trade regularly on the stock market. The product is designed to best suit those investors who don’t want to pay a lot in fees and who want to put their money into an investment account and know that it will be rebalanced according to their personal risk tolerance.
  • The company’s website interface is not user-friendly. Reviews indicate everything on WiseBanyan’s site feels clunky, from logging-in to using the site’s investment tools. One wonders whether the user experience has been sacrificed for WiseBanyan’s goal to provide fee-free robo-advice? Keeping in mind that many clients often invest all of their spare money into these services, the perception of value for money is likely to be high on their list of priorities. Even though WiseBanyan’s service is fee-free, clients are still charged fees in association with their ETFs so that perception will bite WiseBanyan in this space.
  • Question mark over the long-term sustainability of WiseBanyan’s revenue model. At this stage, it seems most competitors cannot compete with WiseBanyan’s free account management offerings. However, it remains to be seen if this is a model which can be sustained in the long term. It is currently not clear whether WiseBanyan has enough assets under management to cover the cost of its free service offerings. The long-term sustainability of WiseBanyan’s business model has not yet been tested and may be of concern to investors looking to develop a long-term investment relationship or those seeking to invest their money in a company they know will be around when it comes time for them to retire.

In Summary

It appears no one can compete with WiseBanyan’s minuscule minimum account balance requirements and their waiver of account management fees for clients with deposits under $500,000.

New players, such as Schwab with its Intelligent Portfolios product, have entered the market seeking to challenge WiseBanyan’s free service offering. However, there are pros and cons to the Intelligent Portfolios product, which still make WiseBanyan an attractive investment choice for small investors. For example, WiseBanyan allows for the ownership of fractional shares.  In contrast, Schwab’s Intelligent Portfolios requires clients to hold significant amounts of low-yielding cash. In this case, I think WiseBanyan is the better option of the two products as all of the client’s money is working hard for a return on the investment.

WiseBanyan is ideal for people looking to start investing or small investors. It is also perfect for the buy and sit investors who want to watch their portfolio grow over time, rather than those who want to trade-to-grow their investments.

While there is a question mark over the long-term sustainability of WiseBanyan’s revenue model, the other robo-advisor services on the market simply cannot compete with the free account management service offered by this company. WiseBanyan can, therefore, be recommended for small investors, those looking to start their investment portfolio and retirement investors who want free account management and investment guidance tailored to meet their stated milestones. At the other end of the spectrum, WiseBanyan is also a good consideration for those with over $500,000 to invest as their premium packages are very competitive.

*My Investments Disclosure
I'm constantly tweaking my investment strategies as I gain more insight and as investment options evolve. Below is my current lineup.
  • Thinkorswim platform from TD Ameritrade. This is the desktop platform I currently use to trade Forex, Futures and Equities. I mainly swing-trade, entering and exiting positions over a period of days to weeks. For the most part, I base my trading on Technical Analysis, following the tips I've learned from the james16 Chart Thread on forexfactory. As this is a high-risk endeavor, I only use a small portion of my pot.
  • Vanguard funds. As the great Warren Buffet recommends, I invest a good portion into an S&P 500 index fund directly with Vanguard. Most of my investments here are in the VOO Vanguard S&P 500 ETF. With an Expense Ratio of just 0.04%, this is a great way to diversify and save a great deal on fees. I've also decided to diversify further with the total stock market, investing in the VTI ETF with Vanguard.
  • Wealthfront. If you're a good number of years before reaching retirement, many finance experts suggest going with a robo-advisor. I've set my risk tolerance at high for now, and split a good portion of my investment funds between my Wealthfront and Vanguard accounts. With so many good reputable robo-advisors on the market, I decided on Wealthfront based on their track record, client reviews, and because I've been able to waive all management fees through their referral program.
  • Fundrise. I wanted to have an alternative to stocks and bonds, and decided to dip my toes in the private real estate arena with Fundrise. I'm not all-in on this strategy just yet, and only have a small account open.
  • Online Savings. This is how I store my emergency funds. The best online Savings accounts will provide much better rates than your traditional big banks will. You'll be able to make up to 6 withdrawals a month for emergency situations. Click the link to compare the nation's best rates.
  • Bitcoin and cryptocurrency. This is simply for fun and I can't recommend this option to anyone with all the unknowns. My investments in cryptocurrencies are minuscule, but it's fun following the madness.

Compare Robo-Advisors

As a full disclosure, I currently use Wealthfront for my automated investing needs, but this market is very competitive and I wouldn’t say any one provider stands above the rest. You’ll have to weigh the fees vs. your initial and projected investment needs. You can always decide to change at a later date. Whoever you decide to go with, you’ve made a great choice in planning for your future and retirement. See the list of the current best Robo-Advisors here.

Schwab Intelligent Portfolios Review: $100 Sign-Up Bonus

By: | Last Updated: | 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. See the list of the current best Robo-Advisors here.

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

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.

Learn More

Who Is Schwab Suitable For?

Schwab Intelligent Portfolios

  • 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

Schwab Intelligent Portfolios Tax Loss Harvesting

Tax Loss Harvesting

Although Schwab Intelligent Portfolios does indeed offer this service, I 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:

  1. 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.
  2. 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 I 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 my 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, I 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
*My Investments Disclosure
I'm constantly tweaking my investment strategies as I gain more insight and as investment options evolve. Below is my current lineup.
  • Thinkorswim platform from TD Ameritrade. This is the desktop platform I currently use to trade Forex, Futures and Equities. I mainly swing-trade, entering and exiting positions over a period of days to weeks. For the most part, I base my trading on Technical Analysis, following the tips I've learned from the james16 Chart Thread on forexfactory. As this is a high-risk endeavor, I only use a small portion of my pot.
  • Vanguard funds. As the great Warren Buffet recommends, I invest a good portion into an S&P 500 index fund directly with Vanguard. Most of my investments here are in the VOO Vanguard S&P 500 ETF. With an Expense Ratio of just 0.04%, this is a great way to diversify and save a great deal on fees. I've also decided to diversify further with the total stock market, investing in the VTI ETF with Vanguard.
  • Wealthfront. If you're a good number of years before reaching retirement, many finance experts suggest going with a robo-advisor. I've set my risk tolerance at high for now, and split a good portion of my investment funds between my Wealthfront and Vanguard accounts. With so many good reputable robo-advisors on the market, I decided on Wealthfront based on their track record, client reviews, and because I've been able to waive all management fees through their referral program.
  • Fundrise. I wanted to have an alternative to stocks and bonds, and decided to dip my toes in the private real estate arena with Fundrise. I'm not all-in on this strategy just yet, and only have a small account open.
  • Online Savings. This is how I store my emergency funds. The best online Savings accounts will provide much better rates than your traditional big banks will. You'll be able to make up to 6 withdrawals a month for emergency situations. Click the link to compare the nation's best rates.
  • Bitcoin and cryptocurrency. This is simply for fun and I can't recommend this option to anyone with all the unknowns. My investments in cryptocurrencies are minuscule, but it's fun following the madness.

Compare With These Robo-Advisors:

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

By: | Last Updated: | 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.

I’ll 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 I 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.

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.

I 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, I 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 I have mentioned it here), however, I 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.

Learn More
*My Investments Disclosure
I'm constantly tweaking my investment strategies as I gain more insight and as investment options evolve. Below is my current lineup.
  • Thinkorswim platform from TD Ameritrade. This is the desktop platform I currently use to trade Forex, Futures and Equities. I mainly swing-trade, entering and exiting positions over a period of days to weeks. For the most part, I base my trading on Technical Analysis, following the tips I've learned from the james16 Chart Thread on forexfactory. As this is a high-risk endeavor, I only use a small portion of my pot.
  • Vanguard funds. As the great Warren Buffet recommends, I invest a good portion into an S&P 500 index fund directly with Vanguard. Most of my investments here are in the VOO Vanguard S&P 500 ETF. With an Expense Ratio of just 0.04%, this is a great way to diversify and save a great deal on fees. I've also decided to diversify further with the total stock market, investing in the VTI ETF with Vanguard.
  • Wealthfront. If you're a good number of years before reaching retirement, many finance experts suggest going with a robo-advisor. I've set my risk tolerance at high for now, and split a good portion of my investment funds between my Wealthfront and Vanguard accounts. With so many good reputable robo-advisors on the market, I decided on Wealthfront based on their track record, client reviews, and because I've been able to waive all management fees through their referral program.
  • Fundrise. I wanted to have an alternative to stocks and bonds, and decided to dip my toes in the private real estate arena with Fundrise. I'm not all-in on this strategy just yet, and only have a small account open.
  • Online Savings. This is how I store my emergency funds. The best online Savings accounts will provide much better rates than your traditional big banks will. You'll be able to make up to 6 withdrawals a month for emergency situations. Click the link to compare the nation's best rates.
  • Bitcoin and cryptocurrency. This is simply for fun and I can't recommend this option to anyone with all the unknowns. My investments in cryptocurrencies are minuscule, but it's fun following the madness.

Compare To These Robo-Advisors/Automated Investing Services:

See the list of the current best Robo-Advisors here.

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

By: | Last Updated: | 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.

Find the latest Wealthfront promotions, bonuses and offers here. Similar to Betterment (another popular option), Wealthfront is another robo-advisor that sets you up with automated investing. Wealthfront is my editor’s pick for automated investing and I currently have an actively managed account open with this provider. See the list of the current best Robo-Advisors here.

For more in-depth reviews of Wealthfront, I 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)

Wealthfront $5000 Per Referral Offer

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 my 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 Moneysmylife readers, I’ve received numerous successful referrals since posting my link. Again, thank you!

*I 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
*My Investments Disclosure
I'm constantly tweaking my investment strategies as I gain more insight and as investment options evolve. Below is my current lineup.
  • Thinkorswim platform from TD Ameritrade. This is the desktop platform I currently use to trade Forex, Futures and Equities. I mainly swing-trade, entering and exiting positions over a period of days to weeks. For the most part, I base my trading on Technical Analysis, following the tips I've learned from the james16 Chart Thread on forexfactory. As this is a high-risk endeavor, I only use a small portion of my pot.
  • Vanguard funds. As the great Warren Buffet recommends, I invest a good portion into an S&P 500 index fund directly with Vanguard. Most of my investments here are in the VOO Vanguard S&P 500 ETF. With an Expense Ratio of just 0.04%, this is a great way to diversify and save a great deal on fees. I've also decided to diversify further with the total stock market, investing in the VTI ETF with Vanguard.
  • Wealthfront. If you're a good number of years before reaching retirement, many finance experts suggest going with a robo-advisor. I've set my risk tolerance at high for now, and split a good portion of my investment funds between my Wealthfront and Vanguard accounts. With so many good reputable robo-advisors on the market, I decided on Wealthfront based on their track record, client reviews, and because I've been able to waive all management fees through their referral program.
  • Fundrise. I wanted to have an alternative to stocks and bonds, and decided to dip my toes in the private real estate arena with Fundrise. I'm not all-in on this strategy just yet, and only have a small account open.
  • Online Savings. This is how I store my emergency funds. The best online Savings accounts will provide much better rates than your traditional big banks will. You'll be able to make up to 6 withdrawals a month for emergency situations. Click the link to compare the nation's best rates.
  • Bitcoin and cryptocurrency. This is simply for fun and I can't recommend this option to anyone with all the unknowns. My investments in cryptocurrencies are minuscule, but it's fun following the madness.

Here Are More Top Brokerage Promotions To Consider:

I keep all stock broker promotions updated here.

More At MoneysMyLife You May Like:

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

Motif Investing Review: Current Promotions And Bonuses

By: | Last Updated: | 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 My full review further down below.

Other brokerage bonus promotions can be found here.

Free Motif Subscription Referral Offer

Motif Free Promotion

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.

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 Features

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 I 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

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 I 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. See the list of the current best Robo-Advisors here.

*My Investments Disclosure
I'm constantly tweaking my investment strategies as I gain more insight and as investment options evolve. Below is my current lineup.
  • Thinkorswim platform from TD Ameritrade. This is the desktop platform I currently use to trade Forex, Futures and Equities. I mainly swing-trade, entering and exiting positions over a period of days to weeks. For the most part, I base my trading on Technical Analysis, following the tips I've learned from the james16 Chart Thread on forexfactory. As this is a high-risk endeavor, I only use a small portion of my pot.
  • Vanguard funds. As the great Warren Buffet recommends, I invest a good portion into an S&P 500 index fund directly with Vanguard. Most of my investments here are in the VOO Vanguard S&P 500 ETF. With an Expense Ratio of just 0.04%, this is a great way to diversify and save a great deal on fees. I've also decided to diversify further with the total stock market, investing in the VTI ETF with Vanguard.
  • Wealthfront. If you're a good number of years before reaching retirement, many finance experts suggest going with a robo-advisor. I've set my risk tolerance at high for now, and split a good portion of my investment funds between my Wealthfront and Vanguard accounts. With so many good reputable robo-advisors on the market, I decided on Wealthfront based on their track record, client reviews, and because I've been able to waive all management fees through their referral program.
  • Fundrise. I wanted to have an alternative to stocks and bonds, and decided to dip my toes in the private real estate arena with Fundrise. I'm not all-in on this strategy just yet, and only have a small account open.
  • Online Savings. This is how I store my emergency funds. The best online Savings accounts will provide much better rates than your traditional big banks will. You'll be able to make up to 6 withdrawals a month for emergency situations. Click the link to compare the nation's best rates.
  • Bitcoin and cryptocurrency. This is simply for fun and I can't recommend this option to anyone with all the unknowns. My investments in cryptocurrencies are minuscule, but it's fun following the madness.

Best Robo-Advisors 2018: Top Automated Investment Services Reviewed

By: | Last Updated: | 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.

Look out financial world, robots are taking over! Aptly named robo-advisors are online tools programmed with sophisticated algorithms to build the right portfolio for your profile.

In 2017, automated investing platforms managed over $200 billion in aggregate assets worldwide. Want to get in on the robo-game? Check out my breakdown of the best robo-advisors on the market.

All About Robo-Advisors For Automated Investing

Automated Investing

A robo-advisor automatically selects a pretty darn good investment portfolio to fit your finance needs and realistic wishes. It’s the middle option between doing it yourself and hiring a human financial advisor.

Once your funds are invested, the automated advisor makes changes to your investments when it sees fit and aligns your portfolio back to a target allocation for you. Many will purchase exchange-traded funds on your behalf. All you have to do is tell your robo-advisor your financial goals and  how much risk you’re willing to take, then sit back and let your money go to work with minimal thought and effort.

Why Robo?

Using a robo-advisor is not free, but it sure costs much less than hiring a human financial advisor. Robo-advisors will also perform difficult tasks like tax optimization and portfolio re-balancing automatically, which means higher net returns for you.

A robo-advisor is a good fit if you prefer to have very little involvement in your investments and like the idea of someone else doing all the leg work. It’s a great option if you don’t have quite enough assets to hire a human financial advisor and if you have a simple financial profile that doesn’t require the expertise of a human financial advisor.

Factors To Consider

Before I delve into the best of robo-advisors, here are some factors you should consider when picking out the right automated investing service for you.

  • Management fee. Paid annually, this fee is usually a percentage of your assets with your robo-advisor. If your annual return is 7% and your management fee is 0.25%, your gross return that year will be 6.75%. Most often, this fee is deducted from your account balance.
  • Expense ratio. Like management fees, except they’re not paid to the robo-advisor. Rather, this amount goes towards the investments your robo-advisor utilizes, like mutual funds, index funds and exchange-traded funds (ETFs), to cover their costs.
  • Account types. Generally speaking, investments fall under two categories:
    • Retirement accounts include IRAs and 401(k)s and have tax advantages for your contributions. However there are contribution limits and stiff distribution rules.
    • Nonretirement accounts AKA taxable accounts have no contribution limits or distribution rules.
  • Investments. Most fall under two categories:
    • An index fund is a type of mutual fund with a portfolio built to match or track the parts of a market index, such as the S&P 500. These index mutual funds provide broad market exposure and low operating expenses.
    • An ETF, or exchange-traded fund, tracks an index, bonds, a commodity or a group of assets like an index fund. ETFs differ in that they trade like a common stock on a stock exchange, and will have price changes throughout the day as they are bought and sold. ETFs are attractive to investors because they have lower fees than mutual fund shares and higher daily liquidity.
  • Tax-loss harvesting. This strategy sells investment assets at a loss in order to reduce your tax liability at the end of the year. It’s pretty complicated, but luckily some robo-advisors will do it for you!
  • Rebalancing. Get your investment portfolio back in order periodically. Failing to do so means you’re taking on added risks as your portfolio becomes heavily weighted by one or several types of investments. Many robo-advisors check for opportunities to rebalance on a daily basis and adjust your portfolio when an allocation varies by a set amount.
  • Access to human advisors. Level of access varies from personal advisors for each individual client, to a team of professionals readily available via email or online chat.
  • Assets under management (AUM). The more AUM, the more stable the company is, and the more you can trust it.
  • Socially responsible investing (SRI) AKA impact investing, or values-based investing, is a way for you to align your investment with your values. Companies that don’t promote social good are excluded from SRI funds and portfolios.

Now, let’s get to the best automated investment services currently.

Best Robo-Advisors: At-A-Glance

Robo-Advisor Best… Management Fee Minimum Investment The Good
Personal Capital For high ballers 0.89% $100,000 Smart indexing, dedicated financial advisors and great investment tools
Wealthfront For new robo-investors 0.25% $500 Easy learning curve, daily tax-loss harvesting and automatic rebalancing
Betterment For taxable accounts 0.25% for Digital $0 Fractional shares limit uninvested cash and robust goal-based tools
Fundrise For real estate investment 0.85% $500 90-day money-back guarantee, diversified portfolio and a user-friendly platform
Wealthsimple For socially responsible investment 0.50% $0 SRI options and free access to human advisors, portfolio analysis and tax-loss harvesting
WiseBanyan Newbie on the scene 0% for Basic $0 Free services and great technology
Motif For portfolio mix $4.95/mo $0 Pre-built portfolio, customizable motifs and SRI options
Schwab Intelligent Portfolio From a major brokerage firm 0% $5,000 Diversified portfolio, access to financial advisors, automatic rebalancing and tax efficient
Vanguard Personal Advisor Services With a human touch 0.30% $50,000 Personal advice, complex financial planning, access to Vanguard Funds and savings on taxes
Blooom For 401(k) management $10/mo $0 Free analysis, investment expense audit and financial advisors
FutureAdvisor  To manage your 529 0.50% $10,000 Free tools, advice and financial advisor support
Fidelity Go For Fidelity clients 0.35% for Retirement / up to 0.40% for Taxable $10,000 Seamless multi-account viewing and investment research (for Fidelity clients)
SigFig 1st $10k managed free 0.25% above $10k $2,000 Low $2,000 minimum investment. First $10,000 managed free.

Best Robo-Advisors List

Personal Capital: Best For High Ballers

Personal Capital

Management Fees
0.89%		 Minimum Investment
$100,000		 Promo
None

With more than $6.5 billion assets under management, Personal Capital utilizes a hybrid robo-advisor experience with free access to a powerful personal finance management platform. Because of the added human touch, pricing for this management service is a bit more expensive than most other robo-advisors on the market.

The Good. Smart indexing, dedicated financial advisors and great investment tools.
The Bad. High management fee and high account minimum.

Learn More

*Full Review

Wealthfront: Best For New Robo-Investors

wealthfront logo

Management Fees
0.25%		 Minimum Investment
$500		 Promo
$5k managed free & more with referrals

Wealthfront relies on its Modern Portfolio Theory to build portfolios from low-cost ETFs. It offers direct indexing for accounts over $100,000 which mimics ETFs with direct investments to stocks in order to achieve the most tax-loss harvesting benefits.

The Good. Great for beginners, lower fees, easy learning curve, daily tax-loss harvesting, automatic rebalancing and direct indexing on accounts over $100,000.
The Bad. No fractional shares and no large-balance discounts.

Learn More

*Full Review

Betterment: Best For Taxable Accounts

Betterment-Logo

Management Fees
0.25% for Digital Plan		 Minimum Investment
$0		 Promo
One year free (*comes and goes)

Betterment is largest independent robo-advisor, managing $13.5 billion in assets, offers a powerful blend of goal-based tools, affordable management fees and no minimum account requirement. You have the choice of human advisor assistance, but that will cost you in higher management fees.

The Good. No account minimum, fractional shares limit un-invested cash, and robust goal-based tools.
The Bad. No direct indexing.

Learn More

*Full Review

Fundrise: Best For Real Estate Investment

Fundrise Logo

Management Fees
0.85%		 Minimum Investment
$500		 Promo
90 days free per referral

Fundrise is an online real estate company that lets average investors buy into private commercial and residential properties by pooling assets via their investment platform. You can gain access to real estate deals without having to foot the entire bill. However, these distributions are taxed as ordinary income so make sure you take that into account.

The Good. Low minimum investment, 90-day money-back guarantee, diversified portfolio and a user-friendly platform.
The Bad. Fees are not transparent, investment commitment and tax consequences.

Learn More

*Full Review

Wealthsimple: Best For Socially Responsible Investment

Wealthsimple Logo

Management Fees
0.50%		 Minimum Investment
$0		 Promo
Per referral: $10k managed free for 12 months

With no minimum balance requirement, human assistance and a user-friendly design, Wealthsimple attracts beginners who are taking their first steps in investment. There’s a slew of SRI portfolios to choose from if you’re big on values-based investing. Lastly, if you’re going to be working with taxable accounts, Wealthsimple provides free tax-loss harvesting.

The Good. Free access to human advisors, free portfolio analysis, free tax-loss harvesting, SRI options and no account minimum.
The Bad. Higher account management fees and limited personal finance tools.

Learn More

*Full Review

WiseBanyan: Best Newbie On The Scene

wisebanyan-logo

Management Fees
0% for Basic Plan		 Minimum Investment
$0		 Promo
$20 for Each Referral

WiseBanyan is a robo advisor service with no hidden charges. The basic service includes automatic portfolio rebalancing and low minimum deposit. However, if you want to open an IRA, you must pay a premium.

The Good. Offers free services, no minimum balance and great technology.
The Bad. Limited account selection and paid tax-loss harvesting.

Learn More

*Full Review

Motif: Best For Portfolio Mix

Motif Logo

Management Fees
$4.95 per Month		 Minimum Investment
$0		 Promo
One month free (*comes and goes)

Motif is a unique, theme-based and cost-efficient option to a diverse portfolio. You invest in 20 to 30 stocks or ETFs that share similar characteristics, called motifs. Examples include “Biotech Breakthroughs” and “Healthy and Tasty.” It’s also possible to filter motifs by looking at daily change, one year return and even popularity.

The Good. Pre-built portfolios, customizable motifs and SRI options.
The Bad. Other fees like $4.95 per share and $9.95 per motif, no dividend reinvestment and minimal trading tools.

Learn More

*Full Review

Schwab Intelligent Portfolios: Best From A Major Brokerage Firm

charles-schwab-intelligent-portfolios-logo

Management Fees
0%		 Minimum Investment
$5,000		 Promo
$100 sign-up bonus

Schwab Intelligent Portfolio is a fee-free robo-investing service from investment powerhouse, Charles Schwab. With the company’s array of financial services, you have the options of tax-loss harvesting, automatic rebalancing and other tools through Intelligent Portfolios, and you can also take advantage of all the other benefits Charles Schwab has to offer.

The Good. Low cost, diversified portfolios, access to financial advisors, automatic rebalancing and tax efficient.
The Bad. High minimum investment, high cash allocation and tax-loss harvesting not available for investments lower than $50,000.

Learn More

*Full Review

Vanguard Personal Advisor Services: Best With A Human Touch

Vanguard Personal Advisor Services Logo

Management Fees
0.30%		 Minimum Investment
$50,000		 Promo
None

Vanguard Personal Advisor Services is backed by the trusted Vanguard brand. You can access human financial advisors via phone. However, the minimum investment requires a whopping $50,000, which usually does not apply to beginner investors.

The Good. Great for advanced users, personal advice, complex financial planning, access to Vanguard Funds and savings on taxes.
The Bad. High account minimum, no tax-loss harvesting and possible transaction fees.

Learn More

*Full Review

Blooom: Best For 401(k) Management

Blooom Logo

Management Fees
$10 per Month		 Minimum Investment
$0		 Promo
One Month Free

Blooom makes the complicated task of picking the right mutual funds for your 401(k) easy with online access. However, this robo-advisor service only works with 401(k) and 403(b) plans.

The Good. No account minimum, free analysis, investment expense audit, financial advisors and low cost.
The Bad. Limited investor assessment and aggressive allocations.

Learn More

*Full Review

FutureAdvisor: Best To Manage Your 529

FutureAdvisor Logo

Management Fees
0.50%		 Minimum Investment
$10,000		 Promo
6 Months Free for Mint Users

Not sure if you’ll like robo-advisors? FutureAdvisor lets you test drive its service for free. It’s also one of the very few that can manage your 529 college savings plan.

The Good. Free tools, advice and financial advisor support.
The Bad. High account minimum, high management fee and maximum age restriction.

Learn More

*Full Review

Fidelity Go: Best For Fidelity Clients

Fidelity Go Logo

Management Fees
0.35% for Retirement Accounts
Up to 0.40% for Taxable Accounts		 Minimum Investment
$10,000		 Promo
None

Another investment powerhouse entering the robo-advisor market is Fidelity. The pricing is transparent and if you have an existing account with Fidelity, it could turn into a one-stop investment shop. However, Fidelity Go lacks some of the features that other robo-advisors have to offer.

The Good. Seamless multi-account viewing and investment research (for Fidelity customers), low “all-in” annual costs for retirement accounts and taxable accounts.
The Bad. No tax-loss harvesting and only basic goal tracking offered.

Learn More

*Full Review

SigFig: 1st $10k Managed Free

SigFig Logo

Management Fees
0.25% above $10k
Diversified Income Portfolio fee: 0.50%		 Minimum Investment
$2,000
$100k for Diversified Income Portfolio		 Promo
1st $10,000 managed free

With a modest minimum investment of $2,000 and no management fees up to a $10,000 investment, SigFig fits the bill for investors looking to dab into automated investing.

The Good. They have a portfolio tracking feature that is free to use and SigFig’s financial advisors will also provide complimentary portfolio reviews. No management fee under $10,000.
The Bad. Diversified Income Portfolio fee is high at 0.50%. Limited investment platform options – you must use Fidelity, Charles Schwab or TD Ameritrade.

Learn More

*Full Review

Personal Capital Review 2018 | Legit Or Not Worth It?

By: | Last Updated: | 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?

Personal Capital Software

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.  I 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 I 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 I feel the management fees are just not competitive at all. I 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; I 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

*My Investments Disclosure
I'm constantly tweaking my investment strategies as I gain more insight and as investment options evolve. Below is my current lineup.
  • Thinkorswim platform from TD Ameritrade. This is the desktop platform I currently use to trade Forex, Futures and Equities. I mainly swing-trade, entering and exiting positions over a period of days to weeks. For the most part, I base my trading on Technical Analysis, following the tips I've learned from the james16 Chart Thread on forexfactory. As this is a high-risk endeavor, I only use a small portion of my pot.
  • Vanguard funds. As the great Warren Buffet recommends, I invest a good portion into an S&P 500 index fund directly with Vanguard. Most of my investments here are in the VOO Vanguard S&P 500 ETF. With an Expense Ratio of just 0.04%, this is a great way to diversify and save a great deal on fees. I've also decided to diversify further with the total stock market, investing in the VTI ETF with Vanguard.
  • Wealthfront. If you're a good number of years before reaching retirement, many finance experts suggest going with a robo-advisor. I've set my risk tolerance at high for now, and split a good portion of my investment funds between my Wealthfront and Vanguard accounts. With so many good reputable robo-advisors on the market, I decided on Wealthfront based on their track record, client reviews, and because I've been able to waive all management fees through their referral program.
  • Fundrise. I wanted to have an alternative to stocks and bonds, and decided to dip my toes in the private real estate arena with Fundrise. I'm not all-in on this strategy just yet, and only have a small account open.
  • Online Savings. This is how I store my emergency funds. The best online Savings accounts will provide much better rates than your traditional big banks will. You'll be able to make up to 6 withdrawals a month for emergency situations. Click the link to compare the nation's best rates.
  • Bitcoin and cryptocurrency. This is simply for fun and I can't recommend this option to anyone with all the unknowns. My investments in cryptocurrencies are minuscule, but it's fun following the madness.

Our Other Reviews Of Top Robo-Advisors:

See the list of the current best Robo-Advisors here.


Wealthsimple Promotions: $10,000 Managed For Free

By: | Last Updated: | 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.

Wealthsimple has only been around since 2014, and it is already Canada’s largest financial robo-advisor service. It launched into the US on January 31, 2017 and is expecting a dramatic increase in the uptake of its services, commensurate with the massive potential of the US market.

Wealthsimple’s staff is made of up world-class financial advisors, software engineers, designers and data scientists, many of whom have experience working for companies such as Apple, Google and Amazon. The company boasts offices in Toronto, London and New York. The numbers continue to climb but as of quarter 1, 2018 Wealthsimple has over $2 billion (CAD) in assets under management and more than 75,000 clients. Wealthsimple touts itself as a socially responsible investment option.

Overall, Wealthsimple’s services will perform well for small and new investors, as well as for investors with more than $100,000 to spend.

Minimum Investment $0
Fees $0k – $100k: 0.50%/year; $100k+: 0.40%/year
Account Options Taxable, Traditional IRA, SEP IRA, Joint, Rollover IRA, Trusts, Roth IRA
Promotions Referrals will get you and the referred client $10,000 managed for free for 12 months

Learn More at Wealthsimple

Current Wealthsimple Promotion: $10,000 Managed For Free

Once you’re a Wealthsimple client, you can start making referrals and get $10,000 in assets managed for free for 12 months for each friend who joins and funds an account from your referral link. Your Referrals will also get $10,000 in assets managed for free for 12 months as well.

You can invite your friends and family to Wealthsimple by visiting the Invite area when logged in.

If you’re on mobile, tap the “Earn Rewards” button in your account overview to invite friends.

How Does Wealthsimple Work?

Wealthsimple Apply

Wealthsimple calculates a client’s tolerance for investment risks through responses to a questionnaire. It then recommends an investment portfolio mix which is suited to those tolerances.

Wealthsimple’s service features single stock diversification, tax loss harvesting, direct indexing, fractional shares and human advisors.

The company has three different account types, three different investment mixes and two different plans to choose from, which are outlined below.

Different Account Types

  • Personal Account. This is Wealthsimple’s most popular account. It is a regular taxable investment account. While the account does not come with any tax benefits, it does have the dynamic feature of giving clients the freedom to further invest in or draw on their deposits, without restriction. This account is a great option for those looking to improve their investment returns on their taxable investment account through the power of a respected robo-advisor.
  • Traditional IRA. This account allows clients to invest their pre-tax dollars. Tax is not applied to the money in the account until it is withdrawn in retirement when it is presumed the calculated taxation rate would be less. Early withdrawals are subject to taxes and penalties from the IRA. This is a popular retirement account because of its flexibility and tax-advantaged savings for the future. It is worth pointing out to would-be investors that because of the rules relating to taxation, this account is best suited to individuals looking to retire in the next ten years or so.
  • Roth IRA. This is yet another tax-advantaged account, however, instead of using pre-tax dollars clients invest after-tax dollars. The benefit of this account is that while income tax is charged on deposits, withdrawals and capital gains are tax-free. It is similar to traditional IRA accounts in that further penalties and taxes apply to withdrawals made prior to retirement. The exception to this rule is when clients withdraw money from the account for a down payment to purchase their own home. This account is best suited to young professionals or those with a long timeline before retirement.

Investment types

Wealthsimple portfolios

Wealthsimple’s management strategy utilizes the modern portfolio theory, developed by the Nobel Prize-winning economist Harry Markowitz. This strategy is based on the maximization of returns on investment through the diversification of investment purchases.

Wealthsimple provides three portfolio classifications, each differing in risk classification, for clients to choose from. These portfolio classifications are outlined below:

  1. Conservative – 65/35 stock/bond split
  2. Balanced – 80/20 stock/bond split
  3. Growth – 50/50 stock/bond split

As a point of comparison, the ETFs between Betterment’s portfolio and Wealthsimple’s portfolio is almost exactly the same, so no new ground is being broken with this offering.

Plan types

Clients can choose between a traditional investment portfolio and a socially responsible portfolio, which invests in 6 ETFs including emerging technologies, improving the diversification of local investments, affordable housing, social enterprises and clean energy. This allows clients who prioritize socially responsible enterprises to feel good about their investments while growing their personal wealth.

Signing Up For Wealthsimple

Wealthsimple Plans

Signing up to Wealthsimple involves three easy steps:

  1. New clients fill in an online information form which helps Wealthsimple to identify each individual’s risk tolerance for investments
  2. Clients then select 1 or more of Wealthsimple’s Investment Management Options
  3. Bank details are verified online.

Once these steps have been completed, it will take about five days for the client’s account to be up and running, and Wealthsimple will take care of the rest. Clients investing less than $100,000 are placed into the Wealthsimple Basic Program. Clients investing more than $100,000 are placed into the Wealthsimple Black Program. I outline the features of each program below.

Wealthsimple Basic Program

This is the basic investment service offered to those with less than $100,000. The management fee is 0.50% per year. It has the following features:

  • Automatic rebalancing – Wealthsimple will periodically buy and sell investments to keep its client’s portfolios in line with their stated targets.
  • Dividend reinvestment – Dividends are automatically invested back into the same ETFs, rather than paid out to clients, so the investment portfolio continues to grow.
  • Automatic Deposits – Clients can set their own schedule for payments from their Savings or Checking accounts into their Wealthsimple investment account.
  • Financial advice and support via phone, text and email.

Wealthsimple Black Program

This is a complete investment service designed for investors with $100,000 or more to invest. The service provides all of the offerings outlined in the Wealthsimple Basic Program and unlocks a discounted management fee of 0.40% as well as other goodies, such as a financial planning session with one of Wealthsimple’s human financial advisors and other tax-efficiency features such as tax-efficient funds and tax loss harvesting. The management fee rate is competitive with other robo-advisors on the market, such as Betterment, which offers premium services at 0.4% to 0.5%. Another option, Wealthfront, charges a 0.25% management fee (referral bonuses will help with this fee)

For those frequent flyers out there, the Wealthsimple Black Program also offers its members Priority Pass membership which allows VIP access for the member and a guest to over 1000 airport lounges around the world. I use my Priority Pass membership all the time while traveling, which I received with my Chase Sapphire Reserve card, and this service has been awesome.

The Wealthsimple Black Program provides a great investment service level for people with a reasonable amount to invest, who otherwise would not have access to the more expensive traditional investment brokers and advisors in the marketplace.

Who Is Wealthsimple Suitable For?

There are two distinct categories of clients who will benefit from using Wealthsimple’s services. They are:

  1. New and small investors looking to enter the market, but who have little to no capital to invest. Wealthsimple’s decision to have no account minimum makes it the perfect starting place for new or small investors to dip their toes in the investment pond.
  2. Investors with over $100,000 to deposit. These investors get the benefit of Wealthsimple’s Black Program with lower account management fees and other perks, such as a free consultation with a human financial advisor to assist with goal setting, tax loss harvesting and VIP access to over 1,000 airport lounges around the world.

Pros & Cons Of Wealthsimple

Pros

  • The service is simple to understand and easy to use. With just three account types, three classifications of tolerance to risk and two plan types, investors need only make a few decisions to get a diversified portfolio which immediately starts to work for them.
  • No account minimum. As previously noted, Wealthsimple’s decision not to have an account minimum requirement is a welcome service offering new investors and for those with a little capital to invest.
  • Fractional shares. The ability to purchase fractional shares means investors can be assured all of their money is invested and working for them all of the time.
  • Live Support. Clients have access to live support services to assist with the use of the management tool and investment advice. This is a welcome service offering in an industry which is notorious for giving its clients little to no support.
  • Socially responsible portfolio. This is a standout in the robo-advisor market. Clients choosing this option can feel good about their investments while still growing their personal wealth. Wealthsimple’s socially responsible portfolio requires the robo-advisor algorithms to prioritize investments in clean energy, advances in clean technology, low carbon emissions, socially responsible companies and the like.
  • Portfolio Review. Wealthsimple offers its clients a free portfolio review of accounts held with third parties. This service provides clients with an objective assessment of the performance of these third party accounts. The assessment includes an examination of account fees, taxation efficiencies and portfolio allocation.
  • Available in Canada and the United States of America. While most robo-advisor services stop at the border between Canada and the United States of America, Wealthsimple has managed to step the divide. Wealthsimple was created in Canada, which remains its base.  The company expanded into the US market at the end of January 2017. Wealthsimple has enjoyed an envious level of expansion since its inception in 2014. It now has over $2 billion in assets under management and over 75,000 clients. The company is likely to continue on its expansion program within the American market. If this is successful, Wealthsimple may be a very stable location to invest your money for the long-term.
  • Secure and insured accounts. Each account is secure and insured by the SIPC for up to $500,000, so clients are offered piece of mind about their investments with this company.

Cons

  • High fees for investors with less than $100,000. While Wealthsimple’s rate of 0.40% for investors in Wealthsimple’s Black Program is an attractive proposition for these classes of investors, it is a little on the pricey side for investors with less than $100,000. This is because their account management fees are charged at 0.50%, which is up to twice as much as its robo-advisor competitors, such as Betterment and Wealthfront, who each charge 0.25% for their basic services.
  • No function to set goals. Other robo-advisor services such as Betterment, Wealthfront and WiseBanyan have goal setting functions which I think would be a welcome addition to Wealthsimple’s simple service offerings.
  • Investment mix. While Wealthsimple’s portfolio model is similar to those provided by other robo-advisors, it would benefit from the addition of investments in commodities and real estate investment trusts which would further diversify the offerings of investment portfolios.

Summary Of Wealthsimple

Wealthsimple’s service offering is simple and easy for clients to understand. Its three account types, three investment mixes and two different plans to choose from mean most people will find a product which is suited to their needs. Unfortunately, Wealthsimple’s account management fees at 0.5% just cannot compete with the 0.25%  rate offered by other robo-advisors, such as Betterment and Wealthfront. Investors falling under $100,000 in deposits would be better served to look at these services which purchase similar ETFs and therefore enjoy similar returns on investment.

Wealthsimple’s standout feature lies with its socially responsible investment option which deposits client’s money into morally and socially responsible organizations and enterprises.  This option helps clients to feel good about their investments while making money from them. It is definitely the company of choice for those investors who want to make certain types of morally based investment decisions.

Learn More at Wealthsimple

*My Investments Disclosure
I'm constantly tweaking my investment strategies as I gain more insight and as investment options evolve. Below is my current lineup.
  • Thinkorswim platform from TD Ameritrade. This is the desktop platform I currently use to trade Forex, Futures and Equities. I mainly swing-trade, entering and exiting positions over a period of days to weeks. For the most part, I base my trading on Technical Analysis, following the tips I've learned from the james16 Chart Thread on forexfactory. As this is a high-risk endeavor, I only use a small portion of my pot.
  • Vanguard funds. As the great Warren Buffet recommends, I invest a good portion into an S&P 500 index fund directly with Vanguard. Most of my investments here are in the VOO Vanguard S&P 500 ETF. With an Expense Ratio of just 0.04%, this is a great way to diversify and save a great deal on fees. I've also decided to diversify further with the total stock market, investing in the VTI ETF with Vanguard.
  • Wealthfront. If you're a good number of years before reaching retirement, many finance experts suggest going with a robo-advisor. I've set my risk tolerance at high for now, and split a good portion of my investment funds between my Wealthfront and Vanguard accounts. With so many good reputable robo-advisors on the market, I decided on Wealthfront based on their track record, client reviews, and because I've been able to waive all management fees through their referral program.
  • Fundrise. I wanted to have an alternative to stocks and bonds, and decided to dip my toes in the private real estate arena with Fundrise. I'm not all-in on this strategy just yet, and only have a small account open.
  • Online Savings. This is how I store my emergency funds. The best online Savings accounts will provide much better rates than your traditional big banks will. You'll be able to make up to 6 withdrawals a month for emergency situations. Click the link to compare the nation's best rates.
  • Bitcoin and cryptocurrency. This is simply for fun and I can't recommend this option to anyone with all the unknowns. My investments in cryptocurrencies are minuscule, but it's fun following the madness.

Compare Robo-Advisors

Truth is, it’s hard to say which one robo-advisor is the best in the market. Most are using many of the same ETFs and other investment options in their portfolios. Void of any major dips or crashes in the market, most will average a yearly return of 8-11%. Just about all the big brokers have their own robo-advisory service so you may opt to simply go that route if you’re already a client with them. Otherwise, consider your projected investment capital and match that with the robo-advisor that will save you the most on fees. I review many of the other automated investment options below. See the list of the current best Robo-Advisors here.

FutureAdvisor Review 2018: Promotions And Offers

By: | Last Updated: | 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.

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.

*See the list of the current best Robo-Advisors here.

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
Mint users get 6 months free premium service
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
Sign Up For Free Service

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, I 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.  I 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.  I 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.

Sign Up For Free Service
*My Investments Disclosure
I'm constantly tweaking my investment strategies as I gain more insight and as investment options evolve. Below is my current lineup.
  • Thinkorswim platform from TD Ameritrade. This is the desktop platform I currently use to trade Forex, Futures and Equities. I mainly swing-trade, entering and exiting positions over a period of days to weeks. For the most part, I base my trading on Technical Analysis, following the tips I've learned from the james16 Chart Thread on forexfactory. As this is a high-risk endeavor, I only use a small portion of my pot.
  • Vanguard funds. As the great Warren Buffet recommends, I invest a good portion into an S&P 500 index fund directly with Vanguard. Most of my investments here are in the VOO Vanguard S&P 500 ETF. With an Expense Ratio of just 0.04%, this is a great way to diversify and save a great deal on fees. I've also decided to diversify further with the total stock market, investing in the VTI ETF with Vanguard.
  • Wealthfront. If you're a good number of years before reaching retirement, many finance experts suggest going with a robo-advisor. I've set my risk tolerance at high for now, and split a good portion of my investment funds between my Wealthfront and Vanguard accounts. With so many good reputable robo-advisors on the market, I decided on Wealthfront based on their track record, client reviews, and because I've been able to waive all management fees through their referral program.
  • Fundrise. I wanted to have an alternative to stocks and bonds, and decided to dip my toes in the private real estate arena with Fundrise. I'm not all-in on this strategy just yet, and only have a small account open.
  • Online Savings. This is how I store my emergency funds. The best online Savings accounts will provide much better rates than your traditional big banks will. You'll be able to make up to 6 withdrawals a month for emergency situations. Click the link to compare the nation's best rates.
  • Bitcoin and cryptocurrency. This is simply for fun and I can't recommend this option to anyone with all the unknowns. My investments in cryptocurrencies are minuscule, but it's fun following the madness.

More Investment Pages At MoneysMyLife

SigFig Automated Investing Review 2018: First $10,000 Managed Free

By: | Last Updated: | 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.

SigFig is brought to you by the same people who founded Wikinvest more than a decade ago in 2006. Operational in its own right since 2011, they have around 300,000 clients and manage over $70 million in assets.  SigFig’s focus is on easy accessibility and being transparent with their customers, providing clear information to them specifically relating to fees.  SigFig will assess your overall holdings based on their cost, performance, and diversification. Using unique algorithms, it will then ascertain any potential gains you might have.

This robo-advisor service makes it easy to add and link up your existing accounts without needing to hand over the reigns entirely or transfer cash into their service.

SigFig is very good at keeping customers informed about the rationale behind their investments.  They are an open book in terms of explaining where the money is and why it is there.  It explains precisely how they make their calculations and this level of access to information is something we like about their offering.

Account management is available for just $10 monthly.  They have a great track record regarding delivering strong returns to their Investors and are also ranked highly in terms of their overall security of their operations too.  For the Investor who does not have the time to manage their own portfolio, or who does not want to hire an independent Financial Advisor, SigFig delivers great value for money.

What makes SigFig stand out over others in this space is their focus on the methodology and their desire to help their clients to understand the details of what is going on with their money.  This education-led approach is popular with many.  The information is displayed in a clean and simple dashboard that lays everything out in an easy to understand manner.  They also post an abundance of useful articles and news on the site which help those looking to refine their trading or investment strategies.

Overall Rating
Account Minimum
  • $2,000
  • $100,000 for a Diversified Income Portfolio
Account Management Fee
  • 1st $10,000 is managed free/0.25% above $10k
  • Diversified Income Portfolio fee: 0.50%
Portfolio Mix ETFs from 9 asset classes
Investment Expense Ratios 0.07% to 0.14%
Account Types
  • Individual & Joint non-retirement accounts
  • Roth, Traditional, SEP, Rollover IRAs
  • Trusts
Tax Strategy Free tax-loss harvesting on all accounts
Automatic rebalancing Free on all accounts
Customer Support Phone, Email, Chat
Promotions? First $10,000 is managed for free

Different Levels Of SigFig Services

They offer three types of services to clients which are:

  • Asset Management
  • Portfolio Tracking
  • Diversified Income

Asset Management costs 0.25% once you reach a balance of $10,000.  Anything between $2,000-$9,999 is free from annual management fees.  It is great for retaining a balanced portfolio that is equally diverse and allows you to optimize your investment earnings.  The minimum amount you need to invest in this service is $2,000.

The portfolio tracking service provided by SigFig is free of charge. It will aggregate your investment portfolio and deliver an easy to view snapshot via their dashboard.  There is no minimum investment required for this service.

A diversified income account costs 0.50% in management fees.  This allows you to maximize your bonds, CDs, US treasuries, and bank interest rates in a low-rate environment.  The minimum investment required for this service is $100,000.

Who Is SigFig Suitable For?

  • SigFig supports a range of account types such as 401(k) plans, IRA Accounts, Roth IRA Accounts, Taxable Accounts, and SEP IRA Accounts.
  • With a low account minimum of $2,000, they are able to attract those who are new to investing, or who have only a small amount of capital to invest.
  • Those who are looking to learn about investment decisions and understand the ‘why’ behind what they do
  • If you do not require human support from a Financial Advisor

How Does SigFig Work?

How SigFig Works

Unlike others in this space, SigFig is not concerned with taking a portion of your managed assets as commission.  Some of the revenue they earn comes from the referrals they make to brokers and advisors. However, the recommendations they make are not based on these commissions; they are driven with SigFig’s unique algorithms.

Another good point about the services offered by SigFig is the progress they have made in recent years which has been impressive, to say the least.  If you have a modest portfolio, this means you get sound advisory services from the site without paying the hefty prices that can traditionally be associated with such advice.

If you do not have a managed account, you are still able to get a lot of useful information from your personalized dashboard.  You are able to tailor the recommendations based on your preferences which relate precisely to your tolerance for risk and your own portfolio.  Once you have updated your information, the algorithms then work out the optimal allocation of your holdings in just a few seconds.  The data is presented in real-time and gives you an overview of your portfolio which can be actively compared to different indexes such as the S&P 500 or the Dow Jones.

SigFig also allows investors to compare the fees that their chosen advisor is charging, relative to their portfolio performance.  This is particularly useful as it will then offer suggestions and will recommend Financial Advisors who are within your locality who can offer a better level of performance and more competitive fees. Anyone who is listed as a recommended Advisor on the site has been fully verified and vetted by SigFig beforehand, and they are required to sustain performance standards in order to retain their place on the SigFig platform.

If you are new to investing and looking to learn the ropes, then SigFig is a great service to use.  If you haven’t got the time to rebalance your portfolio by going through a ton of information, this education-driven approach will be invaluable. The vast amount of information that is presented on the dashboard, coupled with their simple interface and low fees make it a great option for people looking for a low-cost entry route into the word of investing.

SigFig Portfolio Manager

SigFig Scenarios

In order for SigFig to optimize your portfolio, they will undertake a deep analysis using a system called SigFig Scores.  This looks at a number of factors before ascertaining any recommendations. It considers fees, risk, asset class, third-party ratings, the Sharpe Ratio and the trading costs of your funds.  It will then perform an analysis on the historical risk-adjusted returns over the past three years for each specific fund, providing you with data that pertains to any predicted fluctuation along with recommendations for higher-yielding funds. It will also deliver you information about any opportunities to lower your fees and any recommendations it gives will match up with your risk tolerance profile.

If you have a managed account, then this will only invest in ETFs that are commission free, such as iShares, Schwab, and Vanguard.  This approach also delivers certain tax advantages as well, which is another reason we like the SigFig approach.

Pros And Cons Of SigFig

Pros

  • Free Portfolio Tracking. We love the fact that SigFig offers this service for free.  You get a handy summary sent to you each week that tells you how your investments are performing. It also tells you the top-performing investments and provides you with a snapshot of investment news alongside your own portfolio’s individual performance.
  • Low Minimum Investment. With SigFig, you can get access to their managed service with just $2,000 worth of funds. Compared to others, this is a relatively low investment amount. Competitors like Betterment (no minimum) and Wealthfront ($500 minimum) do a bit better if the $2,000 minimum is an issue.
  • No Management Fees up to $10,000. You will not start paying any annual fees with SigFig until you reach the $10,000 mark, anything under that is managed for free. This makes the offering quite appealing to those who want to test their services without first needing to pay any fees.
  • Tax Loss Harvesting
  • Accessibility. Accessible from Apple and Android devices as well as from the desktop

Cons

  • Fee-Driven Service. The whole service tends to be fee driven.  While it is always good to know that your fees are competitive, where investments are concerned, it should not be the driving force behind all of your decisions.
  • Recommendations with High Fees. Speaking of fees, we were surprised to see that SigFig suggested some funds with higher fees when there were other options which were available at a lower cost.

SigFig Summary

The features that SigFig provide can be most similarly found in Personal Capital’s offering. The only exception to this is that the Financial Advisors are via third-parties and not in-house such as is the case with Personal Capital.  One of the most commonly reported ways to use this site is as an aggregator of services.

You can tell that SigFig has placed a great deal of time and focus on the usability of their platform.  It is easy to navigate through, and if you want to compare the features of other providers, then this is really easy to do with SigFig.

The daily updates, along with the clear and transparent breakdown of the fees give you a good overview of your portfolio.  However, one of the really confusing aspects of their service that puts a lot of people off using it relates to the recommended funds.  Even though the services are unbiased towards specific Financial Advisors, it does have a tendency to recommend funds with higher fees.  This is also one of the reasons that SigFig comes up short in a lot of the independent reviews of the service.

Although calculations provided by SigFig do not take into account a longer period, it is stated that they depend too heavily on the Sharpe Ratio to dictate potential future performance.

We feel the standout feature of the SigFig offering is the free investment portfolio tracker and the aggregation features.  As a service, SigFig creates a very transparent way for Investors to manage their portfolio.  The patent-pending algorithms provide a suite of useful and up to date information that allows users to easily compare providers and their fees.

Overall, it delivers great value, and with the low management fees and low deposit amount, it is a great tool that will help you learn about investing and understand the rationale behind the decisions that are made.  With the increasingly difficult task of understanding exactly who charges what fees, or where the hidden fees might be, SigFig makes it easy to see who is offering the best deal and provides an easy way to save time which might have otherwise been spent sifting through complex pages trying to ascertain this information.

Learn More at SigFig

Compare All Top Robo-Advisors

See the list of the current best Robo-Advisors here.


*My Investments Disclosure
I'm constantly tweaking my investment strategies as I gain more insight and as investment options evolve. Below is my current lineup.
  • Thinkorswim platform from TD Ameritrade. This is the desktop platform I currently use to trade Forex, Futures and Equities. I mainly swing-trade, entering and exiting positions over a period of days to weeks. For the most part, I base my trading on Technical Analysis, following the tips I've learned from the james16 Chart Thread on forexfactory. As this is a high-risk endeavor, I only use a small portion of my pot.
  • Vanguard funds. As the great Warren Buffet recommends, I invest a good portion into an S&P 500 index fund directly with Vanguard. Most of my investments here are in the VOO Vanguard S&P 500 ETF. With an Expense Ratio of just 0.04%, this is a great way to diversify and save a great deal on fees. I've also decided to diversify further with the total stock market, investing in the VTI ETF with Vanguard.
  • Wealthfront. If you're a good number of years before reaching retirement, many finance experts suggest going with a robo-advisor. I've set my risk tolerance at high for now, and split a good portion of my investment funds between my Wealthfront and Vanguard accounts. With so many good reputable robo-advisors on the market, I decided on Wealthfront based on their track record, client reviews, and because I've been able to waive all management fees through their referral program.
  • Fundrise. I wanted to have an alternative to stocks and bonds, and decided to dip my toes in the private real estate arena with Fundrise. I'm not all-in on this strategy just yet, and only have a small account open.
  • Online Savings. This is how I store my emergency funds. The best online Savings accounts will provide much better rates than your traditional big banks will. You'll be able to make up to 6 withdrawals a month for emergency situations. Click the link to compare the nation's best rates.
  • Bitcoin and cryptocurrency. This is simply for fun and I can't recommend this option to anyone with all the unknowns. My investments in cryptocurrencies are minuscule, but it's fun following the madness.

Betterment Review 2018: New Promotions & Bonuses

By: | Last Updated: | 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.

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 I’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.

Betterment Referral Bonus: Extra Free Year

Betterment Referral Bonus

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 Investing Promotion: 12 Months Of Free Service

Betterment

Up to 12 months of free service

*Offer appears to be down currently, but check the link below to see if it has updated.

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 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