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Rating
8.67
Commission & Fees
9
Customer Service
9
Ease of Use
8
Tools & Resources
8.5
Investment Options
8.5
Asset Allocation
9
Suitable for:
  • Novice investor
  • Intermediate investors
  • Gen X
  • Individual Retirement Account
  • Goal-based investing
Short description:

Wealthfront is an advanced robo-advisor that offers extensive automated investment opportunities, low commissions and a free account service up to $ 5K. Thanks to Wealthfront you can organize retirement savings. It has many presets and tools for achieving various financial goals, such as daily tax-loss harvesting, financial and college planning, direct indexing etc. This robo-advisor provides fully automatic ETF investments and can reassess your asset allocation in case of risk profile changes.

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All characteristics

GENERAL CHARACTERISTICS
MINIMUM ACCOUNT $500
Management fee 0.25%/year
ADDITIONAL INFORMATION ABOUT MANAGEMENT FEE 0.25%/year
ASSETS UNDER MANAGEMENT > $11 Bln
NUMBER OF USERS > 244000
AVERAGE ACCOUNT SIZE $40407
YEAR FOUNDED 2008
PROMOTIONS $5k Managed for Free
SERVICES
HUMAN ADVISORS
ADDITIONAL INFORMATION ABOUT HUMAN ADVISORS
PORTFOLIO REBALANCING
AUTOMATIC DEPOSITS
Access platforms Website, iOS App, Android App
TWO-FACTOR AUTHENTICATION
CUSTOMER SERVICE Phone: M-F 7A-5P PT; Email
CLEARING AGENCY RBC
ADDITIONAL INFORMATION
NO INFORMATION
ACCOUNT AVAILABLE
Taxable Traditional IRA SEP IRA
Solo 401(k) Partnerships Coverdell
Savings Joint Rollover IRA
SIMPLE IRA Trusts Non-Profit
Annuities Money Market Roth IRA
Custodial 401(k) Limited Parternships
529 Checking CDs
FEATURES
FRACTIONAL SHARES
401(K) GUIDANCE
TAX LOSS HARVESTING
ADDITIONAL INFORMATION ABOUT TAX LOSS HARVESTING All Taxable Accounts
RETIREMENT PLANNING TOOLS
SELF CLEARING
SMART BETA
SOCIALLY RESPONSIBLE INVESTING
INVESTS IN COMMODITIES
INVESTS IN REAL ESTATE
SUMMARY
NO SUMMARY

About company

Wealthfront is a robo advisor (one of the best on the market) which is a fully automated platform for passive investments. Now users do not need to use the services of business consultants. This service has gained stable international popularity since its foundation in 2011. The whole process is built simply and efficiently. You must register an account on the site and make a minimum investment of $ 500.

Wealthfront review is aimed at an in-depth analysis of the capabilities of the platform and the systematization of all the advantages of this robot consultant. You can also use the IRA (tax-deferred individual retirement account). Physically, all assets are controlled by the Royal Bank of Canada. Wealthfront deals exclusively with technical issues. The company uses stock exchange funds for the distribution of investments. Wealthfront is a robo advisor that uses Modern Portfolio Theory (MPT). This is necessary to automatically invest and reduce financial risk. The balancing system regularly checks technical indicators and redistributes investments.

Now let’s start a Wealthfront review. It’s a company providing unique opportunities for the average user. The minimum entry threshold allows you to invest from $ 500 in own development and progression. Individual algorithms developed by the company's engineers allow us to count on competent planning and diversification of our own assets.

A huge range of knowledge compiled to ensure that users can get prompt answers to their questions. Thanks to an advanced intellectual financing system, all clients can receive quick consultations without the need for an in-depth study of the topic. This makes it easier to work with financial portfolios and personal savings. The system is very multifaceted and allows you to invest your own funds for various purposes. A wide range of functional options allows you to analyze the current situation on the market.

The main Wealthfront Features

Wealthfront is a robo advisor that simplifies the work with personal finances. Its build-in algorithm can control the current account status. It has many presets and tools for achieving various financial goals, such as daily tax-loss harvesting, financial and college planning, direct indexing etc. This robo-advisor provides fully automatic ETF investments and can reassess your asset allocation in case of risk profile changes. Users can many financial stages with it.

·             Portfolio Line of Credit. It’s a new Wealthfront feature for those who have the accounts larger than $100,000. People can take out a line of credit against their investments and borrow up to 30% of their current account value with 3.25-4.50% APR loan rates.

·             Smart Beta. It’s a system of financial planning and investment control. This increases profitability when dealing with market indices You need at least $500,000 to enable Smart Beta;

·             Free Financial Planning with Path (New). This option does not require any financial expenses. Full automation of your business processes;

·             Retirement Savings with Path. Planning your future is extremely important. Wealthfront is a robo advisor that will help in the formation of retirement savings;

·             College Planning with Path (New). It’s a useful option for those people whose planning their children college education. With this program, technical aspects are moving to the background;

·             Home Planning with Path (New). The system analyzes legal and financial issues in the real estate market;

·             Time Off for Travel (New). A convenient program that allows you to calculate your vacation without significant financial losses;

·             Tailored Transfers. Usually people need to sell all of your holdings and move in cash if they need to move from a brokerage advisor to a robo-advisor. But Wealthfront has another option. All users’ assets will be transferred into a diversified portfolio over time. It can reduce a tax bill;

·             Referral Program. Each client you attract will increase your serviced portfolio by five thousand dollars;

·             Stock Level Tax-Loss Harvesting. Helps increase investment efficiency through tax optimization. The main condition is a taxable account of $100,000 or greater to use that option;

·             External Account Support. Convenient environment to combine all your personal data;

·             529 College Savings Plan. It’s a convenient solution to calculate the cost of education and solve a number of financial problems.

The “Path” and financial planning details

The Path is a unique development of the company's specialists. This savings model uses modern management and financing tools to generate cash savings. The goal can be absolutely any: raising money for a college, buying a car, own real estate, or retirement savings. The technology is based on the control of all types of user accounts. The system is engaged in calculating scenarios that allow you to choose the best option for creating savings. The Path algorithm is fully integrated into the Wealthfront system.

“Path” is part of the system and Wealthfront is a robo advisor that performs complex tasks. The main feature of the service is free to access to financial planning. To start, you need to download the official application and the system will start working in automatic mode. The base program contains 10000+ most common questions and detailed answers. The proposed conditions are most beneficial in current market situations.

The closest competitors of the company do not have a similar range of services and accessibility for each user. Free maintenance is a key feature of the base stage and allows you not to worry about third-party costs. The company fully provides a wide range of operations in order to simplify the economic processes in the life of any person.

PROS AND CONS

Pros

·             Low cost or free to use;

·             The ability to invest $5,000 for free;

·             Simple tax efficient investing and automatic re-allocation;

·             Only $500 for a minimum account;

·             The ability to maximize the tax savings and financial plans;

·             Easy invest goals forming.

Cons

·             A little bit higher fee than DIY;

·             The absence of human advisers (difficult for newbies);

·             No fractional shares if users don’t have enough money in your account to order a full share of an ETF.

How it works?

Wealthfront consists of international financial experts and headed by Burton Malkiel. The company's specialists have created a simplified procedure for each user, allowing making the necessary profile settings. Each user must fill out a special form. It consists of basic questions that allow you to analyze your financial and credit potential and determine the future direction of management.

Wealthfront Tax Efficiency

The service allows you to work effectively with taxes. Reduced taxation Through the use of legal aspects allows you to increase the profitability of any enterprise. The system uses intelligent reinvestment and a system of tax liability to minimize costs. The system of risk parity allows you to optimize your own investments and automatically calculate potential losses. This allows you to minimize costs and increase the profitability of an asset.

There’s a 6 tax minimization levels for automated investment in Wealthfront:

·             Index Funds. A simple option for mutual and index funds to incur much lower capital gains taxes for every user;

·             Daily Tax-Loss Harvesting. The taxable accounts option that covers the gains in ETFs with the losses of other ETFs owned with Wealthfront robo-advisor;

·             Wealthfront Stock Level Tax-Loss Harvesting. Useful option with ETFs and personal stocks to mirror the U.S. stock market in details;

·             Risk Parity. It’s a risk parity-based strategy mutual fund. This option requires a higher risk-adjusted returns then standard 60/40 stocks and bonds breakdown. It’s available from $100,000 or more account.

·             Tax Location. An option of receiving asset classes and allocations for retirement/ taxable accounts to optimize after-tax performance and account profit;

·             Intelligent Dividend Reinvesting. Popular dividend reinvesting option for rebalancing the portfolio throughout the year minimizes sales. This option leads to lower realized capital gains of users.

The system of adaptation redistribution allows you to reduce the cost of servicing your own investment portfolio. Service works with both minimum amounts and millions of payments. This allows you to cover the huge aspects of the market and improve the efficiency of financial investments. A distinctive feature of the system is the miscalculation of all current risks and the adaptive adjustment of the current development and investment plan.

The system has various stages of achieving goals. After increasing the deposit to a certain amount of money, users receive various options for changing profitability and increasing their own benefit. The system automatically adjusts the necessary steps to allow customers to earn more. This is a fully automated system that does not require third-party intervention. This offer is unique in the market and practically has no analogs in the chosen field.

Tax-Loss Harvesting: Wealthfront Review

The tax system is a very complex mechanism that is not easy to control independently. Wealthfront offers its own service available for taxable accounts. Thanks to the special developments of the company, users can save on taxes and reduce their own costs. This development is reminiscent of ETF charges, but it is an exclusive option of Wealthfront. Customers can rely on the highest quality service that can get their profitability by diversifying costs and reducing losses through controlled items. Thanks to a professional consultant and a whole staff of staff, Wealthfront users can be safe. All investments are kept much more efficient than in similar enterprises.

The company has three Stock Level Tax-Loss Harvesting options:

·             Wealthfront 100. This package offers a starting investment of $ 100,000 and the necessary set of controls. This is the starting basis for small companies and customers.

·             Wealthfront 500. This option involves investing $ 500,000 and working with more than 500 individual shares of various large companies. This is a good option for progressive users.

·             Wealthfront 1000. This is an expanded offer that requires $ 1 million and helps to expand previous opportunities and use more than 1000 shares of various large companies. Special capitalization ratio allows increasing economic profitability.

The company allows you to minimize costs and increase the capitalization of any market organization. This allows you to achieve a high degree of efficiency of any business and investment. Diversified portfolios allow significant savings on possible waste. The financial system of the company is based on leading experts in the field of stock markets and economic processes. This allows you not to worry about the safety of your own assets and automate all the processes of profit. The company is as effective as possible for ordinary users and for large organizations. Minimum commission allows you to rely on a high degree of profitability with minimal risks.

Conclusion

Thanks to Wealthfront, you can minimize your own tax expenses, avoid significant losses and optimize your waste system. Moreover, the system of individual selection of tariffs and a robot advisor help to get additional profits from investing. Now you do not need knowledge of securities prices or assets. The system helps to make each person a passive investor. By diversifying your portfolio, you can avoid losses and increase your personal income.

Fully Automated Investment Panel allows you to make a single setting and forget about the subsequent technical nuances. Wealthfront is a reliable service that combines many functional solutions and offers a complete online application for creating reliable financial planning for your future. This is an effective alternative to the usual financial advisor. A huge knowledge base allows you to get an answer to any financial and legal question. Now every user can be legally savvy and solve their everyday problems efficiently.

This service is one of the most innovative examples of robo advisors in the world. Customers can invest money in their future and take care of financial independence using this service. Few financial institutions can allow their clients to receive such generous dividends at minimal cost. Wealthfront is a ticket to a brighter future. Financial legal capabilities of this service are largely ahead of their time.

REVIEWS

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