Category Archives: Robo Advisor

Overview

Charles Schwab Intelligent Portfolio is an automatic investment advisory service which put up, examines and rebalances your portfolio so that there is no need not do anything for making plans for investment. This help you to set your income and saving goals, keep a track over them and work towards achieving them without any advisory fees, account service fees and commission charges. At the start up process all you have to do is just invest $5000 and build an ETF portfolio. To build and manage your portfolio Charles Schwab’s Intelligent Portfolio make use of advanced algorithms and take professional’s advice from Schwab’s investment Advisory Inc. and as a result of that you get a diversified portfolio which consists of low-cost ETFs specially selected by CSIA team.

After making choice of ETFs the experts looks after it and sees if these ETFs are providing consistency and diversity to the investors. As there are fluctuations in day to day market and value of holdings keeps on increasing or decreasing so as a result of these changes a situation may arise where there is a need to rebalance your assets i.e. buy underweight and sell overweight assets. Therefore this solution is solved with the help of Charles Schwab’s Portfolio investment, where there is daily check-in and automatic rebalancing of more than 20 assets types. So as a risk taker it reduces your chances of losing your invested amount.

    

How to Open an Account?

For opening an account there is a condition that you must have $5000 with Schwab already. Then you have to answer a 12 –step questionnaire which asks about your goals, time horizon and risk profile. All the questions which you answer regulate the stock/bond ratio and at the end generate your assets allocation. All the investments at Charles Schwab are SIPC insured and also intelligent portfolio supports all types of taxable and retirement accounts. All the accounts which hold more than $50,000 in taxable investment can take advantage of tax-loss harvesting.

Model of the Portfolio

There are nearly 20 kinds of ETFs which are checked and rebalanced with intelligent portfolio service and the basic aim of robo advisors is to take into account small investors which face problems while investing money. The selection of ETFs is based on the 12 step questionnaire answered by you. All the ETFs are Schwab Funds and for secondary ETFs which are not funded can be used depending upon unspecified conditions.

The main focus of portfolio is to value with market-cap weighted ETFs and this is the reason why greater percentage of small-cap lie within the portfolio.

    

Whitepapers in Charles Schwab Intelligent Portfolio

  1. Goal Tracker Whitepaper
  2. A Goal Tracker is a tab in Schwab Intelligent portfolio dashboard which helps to set and track a goal for investment in your account. It shows how your portfolio works and provide you with various outcomes range so that you get to know how much near you are to your future goal. The goal tracker makes use of the long-term estimates and shows you that either you are on your target or there is any need to make changes to reach your target. The Goal tracker helps to control investment amount, which is based on risk profile and planned contributions every month. It also helps you to generate retirement income and provides advice on how much monthly withdrawal you need to carry out in order to last long your income stream.

        

  3. Selection of ETFs for Schwab Intelligent Portfolio
  4. The main benefits of using ETFs as an investment tool for Schwab’s Intelligent portfolio are that they are totally transparent than mutual funds and any other investment tool. The second reason to choose ETFs is that they have low expense ratio. And the third advantage is that these are more tax efficient. Those ETFs are selected in Schwab’s Intelligent Portfolio which fulfils the basic standard for structure, liquidity and economic viability and from those ETFs which fulfil above three conditions only those are chosen which have least expense ratio and share prices below certain limits. However, exchange traded notes and limited partnerships are not eligible for Schwab Intelligent Portfolio.

  5. Asset Classes and ETFs
  6. In Charles Schwab Intelligent Portfolio more than 20 asset classes are included along with FDIC insured cash. The list of major asset class is given below:


    Stocks

    • US large Company Stocks
    • US large Company Stocks-Fundamental
    • US Small Company Stocks
    • US Small Company Stocks- Fundamental
    • International Emerging Market Stocks
    • International Emerging Market Stocks- Fundamental
    • The US High Dividend Stocks
    • Master Limited Partnership
    • nternational High Dividend Stocks and much more.

    The fixed income includes mainly US Treasuries, US securitized bonds, US Corporate high yield bonds, US Inflation-protected bond, preferred securities, bank loans, Investment grade Municipal Bonds etc.

  7. Allocation of Assets
  8. The allocation of assets in different categories such as large company stock, small company stock, international stock, cash investment and commodities is the basic feature of investment planning for many years. The main aim to allocate assets is to reduce the risk by making diversification in a number of investments which behave differently in diverse market conditions. As a result of this diversification, portfolio risk lowers down and can generate high wealth in long run.

  9. Tax-Loss Harvesting and Rebalancing
  10. As the taxes can take a big part of your investment in the taxable account the purpose of Schwab Intelligent Portfolio is to maintain the after tax and risk-adjusted rate of return of account holder. For this purpose, it makes use of an algorithm which incorporates both tax loss harvesting and rebalancing strategy.

        

  11. The Role of Cash Investments
  12. The cash investment provides higher stability, diversification and inflation protection. The cash allocation is decided according to the risk profile of the investor. The cash is invested in Schwab Intelligent portfolio by Savings sweep program. With the consent of clients, the free credit balance in their portfolio is swept to deposit accounts at Charles Schwab Bank where these investments earn a market rate of interest .The cash allocation in Schwab Intelligent portfolio is determined by the risk profile of investor i.e. the least risk investments hold the highest cash and high-risk portfolio holds the least cash. The amount of interest at Schwab bank is determined by an index. The interest rate is decided on the first day of each month and on last business day of that month.

    It is right to say that the Charles Schwab Intelligent Portfolio is the best and cheapest portfolio as this provides a number of benefits to their investors such as no fees, tax-loss Harvesting, Automatic Rebalancing and much more.

Betterment Description

Overview

Betterment is a New York based online – investment Adviser Company which is registered by the U.S. Securities and Exchange Commission. The company is specialized in providing all kind of recommendations regarding investment as well as advices and fully automated and diversified investment management to its clients, for much less than the expenditure you would incur on hiring a traditional financial adviser or wealth manager.

All transaction of Betterment occurs online exclusively. Betterment does not employ any further brokerage sales representatives and it is a directly execution only service.

Betterment Business Model

Betterment is a goal-based investing service that if fully automated. The software invests in a portfolio of passive index-tracking equity and fixed income exchange-traded funds (ETFs) and offers both tax advantaged and taxable accounts including the traditional Individual retirement accounts (IRAs) and Roth IRAs (individual retirement accounts).

Betterment’s core portfolio programming actually incorporates the insights of Modern Portfolio Theory, the behavioral asset management and Black – Litterman model. Modern Portfolio Theory (MPT) basically relies on the diversification and asset allocation and attempt for maximum portfolio return for a certain amount of given risk. Black-Litterman enables passive asset allocation by using the world market capitalizations and makes an attempt to estimate the expected returns. Behavioral Asset Management focuses entirely on investor returns, and attempts to increase the returns an investor achieves, including minimizing potential market-timing behavior.

Betterment Fees and Commission Charged

The best facility which betterment provides to all the investors is that they are allowed to start their business by investing a very little amount. Moreover the fee charged by Betterment is quite low. It is clear with the table given below:

Builder plan Better Plan Best plan
Management fees(% of total balance) 0.35% 0.25% 0.15%
Minimum balance NIL $10000 $100000 or above

Betterment’s Essential Features

  • No Initial Deposit – Opening an account with Betterment does not involve any kind of initial deposits.
  • Custom Asset Allocation –Your risk tolerance and the type of accounts (taxable vs. tax-deferred) you are holding is assessed accordingly the asset allocation which is customized.
  • Available Accounts – The types of accounts that are available with Betterment are:-
    • Traditional Individual retirement account
    • Roth Individual retirement account
    • Trusts
    • Individual Account
    • Rollover Individual retirement account
    • Non-profit Account
    • Account Simplified Employee pension individual Retirement Arrangement
    • Joint Account
  • Minimal Annual Fees – Betterment offers astonishing features at very less amount of fees : –
    1. For the Builder package you need to pay 0.35% of average balance, with $100/mo. direct deposit.
    2. For taking the better package 0.25% of average balance will be charged also $10,000 minimum balance is required in your account.
    3. For upgrading to the Best package you need to pay 0.15% of average balance while there must be a minimum of $100,000 in your account.
  • Tax-Loss Harvesting –

Betterment help you to minimize the amount of your taxable investments by offsetting your gains with losses’. This feature is freely available to all the taxable accounts.

  • Automatic Deposits –

In case you don’t get enough time to invest money? Then don’t worry as Betterment offers you feature of automatic deposits. Transfer money into your account on a scheduled basis. For automatic deposits preferences available include: monthly, fortnightly, weekly and every other week.

  • Automatic Portfolio Rebalancing –

Betterment automatically buys and sells the Exchange traded fund(ETF) within your portfolio to rebalance your allocation whenever your portfolio gets out of the target allocation.

  • Smart Deposit –

Automatically make deposits if your bank balance goes over a specified amount.

  • Retire Guide Calculator –

This helps you to plan for retirement by plugging in your existing savings.

Betterment as Risk Reducer

Betterment is created so that investing could be made as easy as opening a bank account. Though, Betterment is may not be federal deposit insurance corporation (FDIC) insured that means that your returns are not always guaranteed and they may be subject to market risk. It’s even possible your investment could lose principal amount. However, the company through its measures takes proper care that every investor can develop up to its best potential by earning highest amount of returns on the funds invested by them and also neutralizing the risk of losing sums of money.

Also, compared to other investment options that don’t have principal risk, they do have other types of great risks which could be much worse than losing your principal. Betterment is a Securities and Exchange Commission (SEC) registered broker-dealer and is a potential member of the FINRA (Financial Industry Regulatory Authority) and Securities Investors Protection Corporation (SIPC). Thus we lay huge emphasis on protection of the investors by safeguarding them against all the risks of market.

How to use Betterment?

  1. Switch to website www.betterment.com and sign up.
  2. The signup process is quite easy without any hustle and takes approximately five minutes.
  3. During the process, you need to respond to a series of many short questions about your investment wants and expectations.
  4. There is also a slide bar that allows users to set the allocation of their assets (i.e., 60% stocks with 40% bonds).
  5. Once the choices and options are selected, you must then link your personal checking account. After that you can transfer money into the Betterment account whenever you want to or you can setup an automated deposit.
  6. When money is moved into the account, an automated system will purchase exchange traded funds (ETFs). The purchases will be made based on the way you’ve defined your asset allocations.
  7. Your investments are very liquid and selling your investments is also very easy with betterment as Betterment itself will perform the sell trades for you.
  8. Any dividends earned will be automatically reinvested. Each quarter, any portfolio that is showing an off 5% and more than it is rebalanced automatically.

Pros

  • Simple Asset Allocation :- It gives you insights of proper assets allocation thus increasing return from every asset
  • Low Management Fees:- Its very cheap and affordable comes with a small amount of fees
  • Perfect for Young Investors :- Young investors looking for great future return will found it amusing
  • Retire Guide Calculator :- easy to use tool for everyone

Cons

  • Not the best thing for High Net Worth Individuals:- For the more advanced investor or higher net worth individual, Betterment might not be the perfect fit.
  • No Two-Factor Authentication available – Betterment currently does not support two-factor authentication security which makes it much difficult for hackers to compromise your account.

Overview

FutureAdvisor is a digital investment manager and advisor that keenly focus in management of your investments. The company was founded in 2010, and registered with the U.S. Securities and Exchange Commission. It is a San Francisco based company which is reported to have around $600 million of assets currently under its management.

In 2015, the Company merged with BlackRock making it one of the most accurate investment managers. FutureAdvisor helps you to actively manage your investments by using modern portfolio theory which is also called as The MPT, that builds and maintains a portfolio to ascertain the level of risk and thereby maximizing you return. Some of major investors which the company comprises of include Devonshire Investors, Canvas Venture Fund, and Sequoia Capital.


FutureAdvisor Operations

In 2012, Company commenced its operation from where it has never looked back. The company has a team of qualified and competent professionals with great software engineers and finance professionals as its leaders alongside with a, well backed team of venture capital.

Future Advisor comprises of two major key areas that they offer:

  • Portfolio analysis service
  • Future Advisor Premium, which is direct management of investments

Any investor who wants a good investment opinion will love FutureAdvisor for the company’s free, personalized reference, which can be used on any account held at any broker. This service offers direct management of taxable investment accounts – both individual and joint. The company also offers direct management of IRAs, rollover, rollover and SEP IRAs.


With direct management, you grant the service the authority to trade in your accounts on your behalf. The latest update of Future Advisor has given a face-lift to some of their services and now has a whole new feature to help you reach all your desired life goals.

FutureAdvisor helps in automation of portfolio management with Software. It adjusts itself with desired risk and investor’s age both being key components of investor’s management.

How does Future Advisor Work?

FutureAdvisor works with TD Ameritrade accounts and Fidelity. The whole process is very simple. All you need to do is sign up with a free FutureAdvisor account, after signing up all you need to do is to link your investing accounts or manually report your holdings and other details about your inventory. Then proper analysis would be done of all your holdings through your dashboard and then this is presented to you all the kind of recommendations that are tailored according to your portfolio and the goals that you want to achieve and keeping in mind the amount of risk that you would like to take.
Remember that Future Advisor does charge their usual transaction fees for trades within the account. It charges 0.50% as your management fees. However minimum account balance needed to be kept is $10000. However these days new promotional offer of three months of free management is going on that will provide you free recommendations for a period of three months.



FutureAdvisor Pricing and Fees Charged

Service provides by FutureAdvisor is more reliable as compared with other companies at such low rates. Its pricing policies are as follows:

  • FutureAdvisor don’t charge any fees for retirement planning and investment advice, college savings, portfolio recommendations and for managing your 529 accounts. Moreover 401(k) retirement advice is completely free.
  • The rate charged by FutureAdvice for services, which include investment management costs only 0.50% on annual basis. The same fee is charged for low cost ETF in 529 accounts.

Services FutureAdvisor Provides

  • Index fund investing favoring low fee index funds.
  • Helping to do personalized diversification through a discrete portfolio based on your Age, Investment horizon and risk lenience
  • Low fees, by making portfolio fees transparent to help you pick lower fee options.
  • Focusing on high value and small-cap funds for greater long-term yields.
  • Tax harvest, by monitoring your holdings and looking for positions with at least $1,000 in harvestable losses at current market prices.

FutureAdvisor Features

Future Advisor offers three different services:

  • Retirement planning: This makes analysis of your funds, makes recommendations, and offers advice specifically tailored for your needs to make better yield of your portfolio and holdings in long term. Also this service comes for free.
  • Investment management: This service comes with a cost of 0.50% annually includes proper and dynamic management of your holdings. It only affects the assets you select for the company to directly manage.
  • College savings: It provides with free advice to help you create an optimized plan for your finances and future education plans of your children. This can handle disbursements to the school and it can open and manage your 529 accounts.
  • Comparison of Advisors: One benefit to using FutureAdvisor’s Investment Management service is that you get an access to a chart that will shows the difference of returns and fees when compared with traditional financial advisor.
  • Investing Library: Future Advisor has a complete library containing of free educational content and articles to help you find the answers to every economic question you are looking for. This helps you in getting tips to manage you financial goals and investments in a better way.

Why to choose FutureAdvisor?

Some of the best reasons to choose FutureAdvisor for investment purpose are given as follows:

  • FutureAdvisor is known for its best services for all the Fidelity and TD Ameritrade account holders.
  • FutureAdvisor directly manages college savings accounts for free. It walks you through the process of opening the accounts and then funding it, then scrutinizes and rebalances your investments as necessary as your child ages and the market fluctuates. FutureAdvisor also launched Future Gift in 2015, which allows parents to set up a asking for a contribution to a child’s college savings accounts so that friends and family can also contribute to it.
  • A hand off investors who want access to a financial advisor can approach FutureAdvisor. FutureAdvisor actually is way out of the standard robo-advisor and a hybrid service. The Company gives all its clients full access to financial advisors via phone, chat and email, five days a week. Users are also given an appointment with one of the advisors if they wish to have so. Alongside company’s investing algorithm “Each Trade” within an account is also monitored by a real person.

Wrapping Up

Future advisor is a trustworthy enterprise which assures greatest yields for the investors. All its plans seek to gain maximum output for anyone and siege its investors against risk. From past few years it has show a commanding growth in its assets and customer faith that is seeking its way to make it one of the best financial advisors.


Overview

SigFig is an online portfolio manager which was started as wikinvest in 2006. It is registered under the U.S. Securities and Exchange Commission. It majorly focuses on transparency and accessibility. In may 2012 wikinvest decided to change its name to SigFig. SigFig uses series patent-pending algorithms, which assesses the amount of holdings you have according to diversification, performance and cost. Moreover it also helps in determining the amount of potential gains you could earn by trading on the kind of capital.


SigFig Features and Pricing

Link all your investment account with SigFig. After you have linked all of your investment accounts, SigFig then gives recommendations and exhibits the performance and qualities of your entire portfolio.

Users of SigFig can keep their assets with their existing brokerage. SigFig reinvests your money using unbiased algorithms and balances the portfolio for optimal risk and maximizing returns with constant supervising and automatic rebalancing.

SigFig offers the holding section which could be very useful for those who have multiple accounts with different brokers which these days are quite common. SigFig gives a detailed view of your complete portfolio.


SigFig also has partnership with Fidelity, Schwab and TD Ameritrade, therefore the company’s investment strategies work to draft an analysis then monitor and improve any portfolio, automatically solemnly by balancing and diversifying investments, while reducing risk and minimizing fees.

 

SigFig offer three tiers of products:


  • Asset Management — This product helps you to keep your portfolio balanced and diversified, helps in maximizing your investment earning potential. It comes at minimal cost of 0.25 percent annual fee. However a minimum investment of $2,000 is mandatory.
  • Portfolio Tracking — This offers a free tracking tool which aggregates your entire investment portfolio in one glance. It is absolutely free and also does not require any amount of minimum investment
  • Diversified Income — This product helps you to make the most of your certificate deposits, bonds, U.S Treasuries and bank interest rates in this low-rate environment. This comes just at a cost of 0.50 percent annually with a minimum investment required of $100,000.

To capitalize on SigFig services, once you watch your entire portfolio and then measure it against our optimized version, then you can keep rebalancing it and checking it with the Managed Account option. SigFig will manage up to $10,000 for free and then it comes at a reasonable cost of 0.25 percent annually, which will be billed each month. It is cleared with the help of given table.

Products Minimum Deposit Annual Fees
Asset Management $2,000 0.25 percent
Portfolio tracking Nil Nil
Diversified Income $10000 0.50 percent

SigFig is a robo-advisor that connects to existing accounts, all the others advisors require investors to hand over cash in order to properly invest which usually is a lengthy procedure. However, the new feature that is given by SigFig is absolutely free and takes only few minutes for doing a deep analysis of your portfolio and then helps you to identify the mistakes that are made by any common investor. All you need to do is:-

  1. Enter all the credentials for your investment accounts and then answer the questions that are offered on the risk assessment questionnaire.
  2. Guidance makes a deep analysis of your portfolios and drills down to compare and contrast current allocations.
  3. Your report tells the problematic aspects in your investments and then accordingly gives you tailored recommendation for an optimized portfolio that avoids common mistakes.

SigFig Mobile App

You can enjoy benefits offered by SigFig with the help of official SigFig mobile app. SigFig offer its mobile app on platforms such as Ipad, Iphone, Apple Watch, Windows 8 tablet and Android users. To make use of mobile app first of all you need to set up your required account on the SigFig website and after that it is pretty easy to use same features on mobile device too. When compared with other investing companies’ app SigFig mobile app is one of the best investment app for active smartphone traders.


How SigFig helps you to increase your earnings?

Computer automated investing mangers are in great trend these days. But do all of them provide you with funds of protection against market risks. Letting Software to manage all your portfolios may seem scary to some investors, but in case if you trust SigFig then this offers you a lot of benefits. Unlike some personal brokers, SigFig is not interested in taking any percentage of your administered assets. Although a huge part of its revenue comes just from referrals to brokerages and advisors, however SigFig’s recommendations are based on algorithms and remain bias-free.

Also, SigFig’s managed accounts have consistently improved their investment performance in past years by an average increase of 4.5%, making it an easy way for investors with small portfolios to get quality investment advisory services for a very affordable price.

SigFig’s major point of attention is an important feature that can be very useful as it shows all the information on SigFig’s free-to-use dashboard, even without a managed account, which allows you to import your portfolios and rate of your own risk taking ability. After you add your information, this program critically calculates the best allocation of your holdings in just a matter of seconds. It has free live-streaming of data, so you can get a close and concrete as well as detailed view of your portfolio and then contrast your earnings with different type of indexes, such as the standard index of Dow Jones and S&P 500.

SigFig also offers advisor analysis that is available on the dashboard; this allows investors to contrast the fee that is charged by their advisor and the performance of their portfolios. If the portfolio you have is not performing well, this feature offers advices for better in-person advisors near you.

SigFig assures you trust as all the financial advisors who are recommended have been strongly tied up by SigFig only after they meet certain performance requirements.


Pros

  • Free tracking feature — The Portfolio Tracking feature that we offer is completely free.
  • Free portfolio review — SigFig’s expert financial advisors provide admiring portfolio reviews.
  • No annual fee — First $10,000 in managed funds are done absolutely free without the regular annual fee.
  • Traditional and Roth Individual Retirement Accounts — Both types of accounts are available.

Cons

  • Inaccurate advice — The recommended portfolio advice as is computer based thus can be a bit inaccurate.
  • High-fees funds — The funds that are recommended by SigFig are sometimes ones with high fees.

    

Overview

Stash Invest is an investment app for your smart phone that is totally automated and allows you to invest anything as little as $5. It is automated means it works with the help of algorithms to plough and sow your investments and helps you harvest great earnings. Stash has an eye pleasing interface that is simple and very easy to get started.

Stash is a kind of micro savings robotic advisor which is making its way into the hearts of many investors. Just as other robo-advisors Stash makes investment recommendations, but actual investing is totally done by users which give users an exciting experience of the market. Stash is growing rapidly and currently has some 50,000 active users.


How to get connected with Stash?

All you need is to go through an easy sign up process and then you need to complete a questionnaire that determines your risk level and aim of your investment. After completion of the questionnaire Stash presents you with a list of investment options from which to choose. This choice provided by stash actually gives you more elasticity and control on your portfolio than any other typical robo-advisors offer.

Stash focuses on those people who truly want to become investors, choose investments and know where their money is going. But many people are unable to do that due to large amount of sums involved in this and therefore earning a big amount remain a mere dream but with Stash the situation is totally different as it offers 30 different types of plan in which you can invest any amount of sums which could be as minimum as $5.

How Does Stash Invest Work?

Conditions for opening an account with Stash

  • Social security number
  • Evidence of US citizenship
  • Information to link your bank account
  • You must be 18 years of age
  • Available only in US though there exist some plans to make it international

After all this, Stash determines your investment risk level by offering you to answer a questionnaire. Once decided, your risk level cannot be changed, however by going into the app and revising your suitability questions may change your risk level. Also other things determining you risk level will be how conservative, moderate or aggressive is your age, your investment time horizon and your investment goals. Each risk level you have selected has its own recommended investments. Stash offers a lot more investment options than any of its competitors. You will be given a choice of about 30 investments consistent with your risk level, from which you can choose for your investments. Once you have been provided the required information, which should take no more than minute or two, you can download the Stash Invest app.

After that your linked bank account will be verified using a micro deposit. Stash will make a very small deposit into your bank account, which you will need to verify. This process could take up to six business days.

Once after your account is established, you’ll be able to add or subtract money to and from your linked bank account, using the Stash Deposit screen. However, Stash limits the Deposits and withdrawals to $10,000 per day due to security concerns. Also, you can link only one bank account to your Stash account. But you will continue to earn interest on un-ploughed cash balances.

For Who Stash is basically for?

Stash Invest is actually designed for people who has just started investing or can’t take any such headache and want an easy and automatic thing for managing funds and let it accumulate. The Stash app helps investors in learning a lot about invest­ing to build an expertise over your deci­sion mak­ing and habit. The app is basically meant for peo­ple who want to have spe­cific invest­ments that just match upon their values. Their aim and focus towards this goal is given proper care by Stash.


Stash Features and Pricing

  • ETFs and individual stocks are traded — Investment option offered by stash are usually exchange traded funds however unlike the other robo advisors in market Stash offers some individual stocks too. It let you to make an investment according to your risk level out of thousands of investments.
  • Protection from SIPC — As Stash is registered with the Securities Investor Protection Corporation (SIPC) therefore funds are protected through the clearing agency (see below).
  • Third-party Clearing Agency — Investments with Stash are held through Apex Clearing Corporation. Apex is the firm that handles custody of assets, reporting, trade confirmation, settlement and securities delivery in Stash.
  • Annual Fees — Stash is currently offering the service free for the first three months. After that, they charge a subscription fee of $1 per month ($12 per year) on account balances up to $4,999. Once your account reaches $5,000 the annual fee becomes 0.25% of your balance. Electronic statements and trade confirmations are free, but they will charge $2 for paper confirmations and $5 for paper statements.
  • $5 Minimum deposit — Stash allows you to hold fractional shares; they can split a single share of a stock or ETF between several investors on the platform.
  • Social Media Sharing — Stash enables you to share investments with your friends. The social sharing option is off by default. Stash limits how much of your information will be shared on social media.
  • Security — Stash is a Registered Advisor and it is regulated by Securities and Exchange Commission (SEC). The app uses 256-bit encryption to secure your information. It also uses secure sockets layer (SSL) to protect information sent between Stash and their servers. In addition, Stash does not store your bank login information.
  • Mobile App — Stash Invest is available for iOS, and has newly support Android as well. Web based access is not an option.
  • Auto Stash (New) — Set scheduled times to make deposit into your Stash Invest account.

Pros

  • Variety of Investment Options
  • Social Media Sharing
  • Minimal Fees on Small Accounts 
  • Less amount of Minimum Deposit required

Cons

  • Delayed Trading Execution 
  • No Web Site Access 
  • Costly for Larger Accounts 

    

Overview

WealthFront is an emerging automated investing service which emphasis on asset allocation with low fees. Launched in 2011, it is one of the biggest players in the robo – advisor investment from recent time which also works well with IRAs. The firm is based in Palo Alto, California and was founded by Dan Carroll and Andy Rachleff in year 2008.

It is the best robo – advisor firm which is good for investors who look for tax efficient investing. To create an automated asset allocation the firm makes use of Modern Portfolio Theory (MPT). In addition to this WealthFront don’t hold your portfolio unlike other investing firms; in fact they make use of Apex Clearing Corporation.

To offer good return to every investors WealthFront invest in ETF (Exchange Traded Fund) index funds. Apart from this the firm also offer diversified investment management with continual rebalancing in a tax efficient manner.

Just like other robo – advisors WealthFront is like having a financial advisor which is software based. WealthFront also manage different type of accounts such as personal account, retirements account, 401(k) rollovers account and other forms of individual retirement accounts.

According to recent market updates WealthFront recently announced that their firm has over $3.0 billion under management.


How WealthFront Exactly Works?

WealthFront in real uses a team of professional financial experts which is led by legendary economist Burton Malkiel who is a Chief Investment Officer at WealthFront. The working of WealthFront is similar to that of Betterment where you have to answer a questionnaire which consists of six subjective questions and four objective ones. The main reason behind answering a questionnaire is to tell WealthFront about your risk tolerance ability. Once you have filled all the required answers, the asset allocations will remain constant for the amount of money invested by you.


WealthFront Fees and Commission

WealthFront has introduced a very creative manner of strengthening their business as they use referral system for exploring business. Anyone who is registered customer with WealthFront can refer their friends and earn an additional $5,000 of free management. So if you are planning to invest with WealthFront you will be getting total of $15,000 in your account which will be managed for free. And in case the amount of $15,000 exceeds than an annual fee of 0.25 will be charged to that amount.

Apart from this the only other fee charged by WealthFront is the cost of the ETFs which is about 0.18 percent annually. This also gives WealthFront an advantage of becoming the deepest – discount brokers available in the market.


WealthFront Features and Pricing

Some of the major features which WealthFront offer to their new and existing investors are as follows:

  • Initial Deposit Required – As a new user to open an account with WealthFront you will only need an amount of $500 which is very low as compared to other firms.
  • Types of Account Available – At WealthFront you are given option to open account such as Traditional IRA, Rollover IRA, Roth IRA, SEP IRA, Non – Profit Account, Trusts, as well as Individual and joint account.
  • Free Management of first 15,000 – In case you register at WealthFront with any referential link, than you can enjoy benefit of getting $15,000 of free management.
  • Custom Asset Allocation – WealthFront automatically does asset allocation which is based upon risk profile and on the type of account you have.
  • Tax –Loss Harvesting – Another feature which WealthFront offer is tax –loss harvesting which helps in minimizing your taxable investments by offsetting your gains with losses.
  • Automatic Portfolio Rebalancing – This feature allows WealthFront to automatically buy and sell the ETFs within your portfolio in case when your portfolio gets out of whack.
  • Tax Optimized Direct Indexing – larger your taxable account the more tax efficient your account will be.
  • Automatic Deposits – Investors can also transfer their money into their account on scheduled basis such as weekly, monthly, quarterly and on 1st and 15th of every month.
  • Mobile Application Access – You can also manage your account with the help of WealthFront app which is totally free to use. Also the app is available for Google Android mobile users and Apple’s iOS users.
  • WealthFront Portfolio Review – It is a tool which is provided by WealthFront so as to analysis comprehensive portfolio.
  • External Account Support – Latest feature which is provided by WealthFront is external account support which allows investors to organize all their accounts in one place with advice on taxes, excess cash and fees charged.
  • Turbo Tax Integration – With the help of turbo tax you can automatically download your WealthFront Transactions.

As per pricing is concerned the minimum account size is $500 under which you can also withdraw amount of $250.

WealthFront Mobile App

Unlike other robo – advisors firms WealthFront also offers a mobile app for users of Android and Iphone. The firm’s mobile application for Iphone users is designed for iOS 7 users so as to give them clear view of their account at WealthFront. Another benefit which the mobile app provides is that for the first time all the retirements accounts such as Rolled – over IRA account, taxable account and Roth IRAs will be seen all in one place.


WealthFront Pros

  • Direct Indexing – In case when you are investing over $100,000 direct indexing is the best way to decrease taxes and fund expenses by avoiding ETF fees.
  • Tax Loss Harvesting available for all accounts – Earlier taxable accounts which were over $100,000 had tax loss harvesting, but according to new policies at WealthFront every account qualifies for this feature.

WealthFront Cons

  • Fractional Shares Not Available – It is not possible to have cash sitting in your account in which you have not invested.