Wealthfront Review 2019: Fees, Returns, Investing Services & Competitors

Robo advisors are increasingly growing in popularity, and these automated services are threatening to take huge amounts of business away from traditional financial advisors.

Multiple different segments of the investing public have already taken advantage of robo advisors for a variety of reasons. Many traditional financial advisors have decided to work cooperatively with robo advisors rather than try to compete with them directly, and this strategy has helped streamline the process and reduce costs.

Millennials use robo advisors because they remove the perceived “guess work” out of investing, which provides a measure of comfort to hesitant millennial investors. And often, robo advisors offer cheaper fees than human advisors, which also makes them attractive to this group.

And retirees and high net worth individuals can often test robo advisors because they have more disposable income.

But which robo advisor should you use?

To help you narrow down the choices, Business Insider Intelligence, Business Insider’s premium research service, has decided to review some of the most popular robo advisors on the market to help you make the most informed decision.

In this article, we’ll cover Wealthfront.

Wealthfront, launched in 2011, was one of the first companies to offer automated investing. Since then, Wealthfront has expanded its service to provide an all-in-one financial solution that focuses on three particular fully automated services: free financial planning, investment management, and lending.

So let’s take a closer look…

Wealthfront Review Summary

Wealthfront has done an excellent job of attracting new clients by offering a 0% management fee for customers with less than $5,000 in their accounts. But arguably its biggest selling point doesn’t come into play until you reach $100,000, at which point the robo advisor offers direct indexing. Wealthfront is the only major robo advisor to provide this service, which uses your individual securities to hunt for tax-loss harvesting opportunities. This, coupled with daily tax-loss harvesting on all taxable accounts, makes Wealthfront an ideal service for those with comparatively larger account balances, specifically those in taxable accounts.

Wealthfront has also tailored its services to people in their late 20s to early 40s, the generation that prefers to do almost everything online, or through an app – including managing their finances. Furthermore, Wealthfront has purposefully avoided adding an option to call an advisor because clients have told them “we pay you not to talk to us,” according to the company’s fact sheet.

Assets Under Management (AUM): $9.5 billion
Minimum Account Balance: $500
Fee Range: 0.25% after the first $5,000
Account Types: Taxable Accounts, IRA Accounts, Roth IRA Accounts, SEP IRA Accounts, 529 Plan Accounts, Trusts
Services: Direct Indexing, Tax-loss Harvesting, Single Stock Diversification, Referral Program Rewards, Portfolio Review, Third-Party Account Support, College Savings Plan, Retirement Planner, Mobile App
Wealthfront Fees & Pricing

Wealthfront’s minimum account requirement is just $500, which is an extremely reasonable threshold compared to most other robo advisors. Betterment, Hedgeable, and WiseBanyan each have either no minimum or a $1 requirement, but these are the only companies that beat Wealthfront in this regard.

As for management fees, Wealthfront has a structure that is sure to entice new investors. The …read more

Source:: Businessinsider – Finance


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