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FutureAdvisor Reviews

According to FutureAdvisor reviews, they put their own unique spin on their robo-advisor tools by offering several free services for investors in addition to their paid portfolio management options.Users can access a free, comprehensive retirement analysis that allows users to link their financial accounts and produces tailored recommendations based on their assets and goals.

Customers who are interested in traditional investment management complete with tax-loss harvesting, automatic re-balancing, and monitored by a team of financial advisors can use the FutureAdvisor paid option.This offering charges a 0.50% annual management fee and requires invested funds of $10,000 or more.

The paid accounts are held with two reputable brokers, TD Ameritrade or Fidelity, and comprise the over $900 million in assets that FutureAdvisor currently manages.

Here, we will compile FutureAdvisor reviews to give you insight into how the platform works, who it’s best suited for, and what you need to know to get started.

At A Glance Summary of FutureAdvisor

Anyone looking to open a new account with FutureAdvisor should be aware of these important basics.

Account Basics

There is a $10,000 account minimum to use the FutureAdvisor Premium service which allows you to invest funds. There are a few different fees investors pay.

The management fee is 0.50% annually

ETF expense ratios which average 0.15%

As the accounts are held at either Fidelity or TD Ameritrade, there may be additional transaction fees associated with the account.

Free services include:

Portfolio analysis

Qualifying Fidelity 401(k) management

Automatic Re-balancing

Tax strategy assistance

Supported accounts must be held by Fidelity or TD Ameritrade.

This includes individual and joint accounts not allocated for retirement

IRA’s including Roth, traditional, SEP, and rollover

401 (k) accounts through Fidelity that are enabled with BrokerageLink

Investment Information

The funds used in the investment scope will vary based on where the account is held.Users can expect their allocations to cover up to 12 asset classes based on their risk assessment and overall goals.

How it Works

Customers can analyze FutureAdvisor through their two primary offerings: the free portfolio analysis service, and their investing option, FutureAdvisor premium.

The company’s individualized recommendations that they provide without a fee are a nice perk for investors who want a second opinion, or who need advice on funds they already have allocated elsewhere.The software reviews your portfolio and makes trade recommendations based on the standard methodology of most robo-advisors, modern portfolio theory.You can use that advice to make trades through your online broker, whether you’re using FutureAdvisor or another service.

Subscribers who use FutureAdvisor premium get the same information, plus additional resources and access to financial advisors to help reach your goals.Customer service is available via chat, email, and phone during regular business hours, and every transaction that occurs on your account is monitored by a live person as well as the company’s proprietary investing algorithm.

FutureAdvisor Platform Features

FutureAdvisor does a few things differently than their competition.Here’s what makes them stand out.

Eligible Fidelity 401(k)’s Managed Free

Approximately 63% of the 401(k)s held at Fidelity are enabled with Brokerage Link.That’s good news if you want to get involved with Future Advisor, as those accounts are managed free of charge.  It’s simple to find out if your current 401(k) is eligible.Begin by creating an account with FutureAdvisor, then link i to your 401(k).Next, email help@futureadvisor.com to determine eligibility and get everything set up.

You won’t need to enroll another account in the FutureAdvisor Premium service to utilize their free 401(k) management, but you will need to maintain the $10,000 minimum balance to participate.

Support from Licensed Advisors

While most robo-advisors offer customer service and ways to seek advice from a professional, FutureAdvisor goes above and beyond the industry standard.They’re on the verge of being a hybrid service based on the level of access they provide their clients to interact directly with licensed financial advisors.

Funds Held by Well-Known Online Brokers

As FutureAdvisor Premium requires that all the accounts they manage are held at TD Ameritrade or Fidelity, and they are two of the largest players in the game, it’s likely that current investors may already have funds there.

If you already hold accounts with one of these brokers, you won’t need to do any transfers or make any moves.All you need to do is contact them and give FutureAdvisor the management rights which will allow them to make trades on your behalf.

This allows you to access a virtually risk-free trial of their services without needing to do additional paperwork. If you already have money elsewhere, the company will assist you with the process of moving the funds.While it is a bit complicated, itis also a very common practice.

Potential Drawbacks

While FutureAdvisor has many compelling perks, there are a few things that may impact your decision to open an account with them.Here’s what you need to know.

High Account Minimum

While it’s not as high as some of the other services that provide direct access to financial advisors, FutureAdvisor does have a higher minimum than what you traditionally see in the robo-advisor space.At $10,000 to get started, this might be a limiter for new investors with smaller budgets.

Maximum Age Limit

FutureAdvisor will manage your 401(k), at times for free, but once you retire, you can no longer enroll.They do not accept new Premium clients who are age 68 or older because their products are focused on producing returns and not generating income in retirement.Older investors may want to explore a product that will take them to retirement and beyond and has tools to manage their needs throughout.

High Management Fees

While 0.50% isn’t the highest we’ve encountered, it is on the high end of annual management fees for robo-advisors. Especially when you factor in the additional annual investment expenses with the occasional transaction fees you may also incur, this service could be costlier than competitors with similar offerings.

Who Would Benefit

This service is a good fit for current Fidelity or TD Ameritrade account holders, especially if you have a qualifying 401(k) with Fidelity.Also, anyone looking for 401(k), retirement, or financial planning advice should absolutely access their free tools.Finally, if you’re someone who likes the idea of being well-invested with someone else managing the funds, but you still want on-demand access to a financial advisor, FutureAdvsior will provide a lot of value to you.

Final Thoughts

No matter where you’re at as an investor, the way that FutureAdvisor reviews your portfolio free of charge is worth a glance.They provide valuable insight and suggestions on how to better manage your funds and increase your gains.Additionally, their free 401(k) management for eligible Fidelity products isn’t offered through any other robo-advisor.

Their service is also an attractive option for existing Fidelity or TD Ameritrade clients who want to use an online advisor but don’t want to go through the process of transferring funds.Other customers may not be as strong of a fit and may want to research other online advisors with similar product offerings that have lower fees and account minimums.

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TD Ameritrade Essential Portfolios Reviews

TD Ameritrade has long received praise from investors who prefer an active trading approach for their innovative online trading platforms.In 2016, they launched a robo-advisor to give customers who prefer a more hands-off approach to investing an option.TD Ameritrade Essential Portfolios reviews are positive, and users are impressed with the fee structure and portfolio options.

To utilize the service, you’ll need a minimum investment of $5,000.Customers payan annual 0.30% management fee and are matched with oneof five portfolio options based on individual investment goals and risk tolerance.

Here, we’ll delve into the details on TD Ameritrade Essential Portfolios to help you better understand the niche they’ve carved out in the marketplace.We’ll examine how the account works, who it’s best suited for, and point out potential drawbacks to consider before signing up.

At A Glance Summary of TD Ameritrade Essential Portfolios

To better understand TD Ameritrade Essential Portfolios, we’ll break down the basics onaccount structure, associated fees, funds managed, and what the service includes.

Account Basics

There is a $5,000 account minimum to invest on this platform.

You’ll incur a few different fees.These include:

0.30% annual account management fee

0.06% to 0.08% investment expense ratios

$75 full transfer out fee.If your account has a balance of over $100,000, you’re exempt from this fee.

Free automatic re-balancing is included as part of the service.

TD Ameritrade supports many different account types.These include:

Individual and joint non-retirement accounts

IRA’s- Roth, SIMPLE, SEP, traditional and rollover

Trusts

Coverdells

401(k)s and Roth 401(k)s

Profit-sharing plans

Corporation accounts for nonprofits

UGMA/UTMA

A variety of business accounts with $100,000 minimum like S Corp, LLC, C Corp, Partnership and Unincorporated

The portfolio allocations include five funds from iShares and Vanguard and a percentage of cash.

Investment Information

Many online brokers who launch a robo-advisor product have their own proprietary funds where they allocate many of their investments.TD Ameritrade Essential Portfolios in an exception, asthey use non proprietary funds recommended by respected investment research and advisory firm, Morningstar Investment Management.This is important to note as many other brokers who have developed a solution in this space use their own funds to build customer portfolios which effectively allows them to profit twice.One from fund expenses and again from the fund management fees.

However, in this scenario, investors can rest assured that the funds were selected because they were a good match for the risk goals of each portfolio.The Essential Portfolios product uses a mix of iShares and Vanguard ETFs, but it’s limited to just five ETF’s per offering.

How it Works

Like you would expect from a robo-advisor, new clients take an initial assessment that reveals risk tolerance, investment goals, and time horizon.The results produce a recommendation that matches the investor with one of five portfolio options.Users can also navigate through the different portfolio choices to see how the recommendations change based on risk tolerance.

TD Ameritrade Essential Portfolios also provides detailed predictions about what you can expect regarding volatility in each of the five options, as well as the likelihood of accumulating various account balances with the selection.

TD Ameritrade Essential Portfolios Features

TD Ameritrade used their expertise in creating robust trading tools to develop this hands-off investment product.Here are a few features that differ from the competition.

Low Investment Expense Ratios

When you sign on with a robo-advisor, chances are good you’ll allocate a portion of your portfolio to exchange-traded funds (ETFs). TD Ameritrade follows that same model, but with a customer-friendly twist.They offer investment expense ratios ranging from 0.06% to 0.08%, some of the lowest in the marketplace.Combined with their competitive annual management fee, they provide a valuable service at an overall low cost.

Competitive Management Fee

As we mentioned above, TD Ameritrade’s 0.30% annual account management fee is right on par with what you’ll see from other robo-advisors launched by online brokers in the past year.There are options with slightly lower fees on the independent side, but you may need a larger minimum investment to qualify.

Robust Account Choice

While you are limited to just five ETFs in your portfolio, the list of account types you can choose seems endless.If you’re someone who loves having a plethora of choices, including accounts that aren’t typically managed by robo-advisors, the Essential Portfolios product may be the perfect fit.

Potential Drawbacks

When TD Ameritrade launched Essential Portfolios in 2016, they did a thorough job of covering all the bases.There are just a few considerations that might make you think twice before signing up for the services.

No Tax Strategy

The 2016 product soft launch included a stipulation fromTD Ameritrade that they would beadding the feature early in 2017, but asof April, itis not yet available.Tax-loss harvesting is a common feature in robo-advisors that helps investors limit their tax impact by selling off losses to offset gains.Some competitors offer this as a free feature to all their customers while others have a set minimum you need to meet to qualify.  It’s yet unknown which approach Essential Portfolios will take.

Bare Bones Portfolios

TD Ameritrade came up with the name for their robo product because it just includes the essentials.While other advisors may allow you to incorporate 10or more asset classes, with Essential Portfolios you’re limited to five ETFs per portfolio offering.TD Ameritrade believes that this minimalist approach still offers well-diversified options for their clients, but also has a more robust digital advisory option for investors who want more options.

Who Would Benefit

There are a few classes of investors who would make the perfect client on this new TDAmeritrade platform.If you’re someone who wants to have money in the market but doesn’t want to have to monitor it regularly, this is a good hands-off choice.

If you are already familiar with TD Ameritrade products, their Essential Portfolios solution offers a similar look and feel and isan easy transition for a loyalist.

Customers who don’t want to pay high fees also like this option, asdo those who want a large choice of accounts when making their investment selections.

Final Thoughts

Broker-backed robo-advisors are becoming the norm, and most of the companies pay careful attention to what their competitors are doing. While this results in many great choices in the marketplace, it also means that most of the services offer the same things.

Essential Portfolios isno different.Their pricing, portfolios, and services onpar with industry standards, and while they have a few unique aspects, there isn’t a strong call to action to have investors signing upin droves.

That said, they did just launch in late 2016 and had promised some additional features throughout 2017, which gives us something to keep our eye on.In the meantime, the TD

Ameritrade Essential Portfolios reviews all suggest this is a good robo-advisor option for many different types of investors who could benefit from automated account management.

The post TD Ameritrade Essential Portfolios Reviews appeared first on ExpertFront.

from ExpertFront https://www.expertfront.com/2017/04/28/td-ameritrade-essential-portfolios-reviews/

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WealthSimple Reviews 2017

Introduction

A Canadian robo-advisor founded in 2014, WealthSimple introduced its digital investment service to the U.S. market in January 2017. The Toronto-based company has offices in New York and London. It oversees over $750 million in assets and has 20,000 clients.  WealthSimple reviews show that it’s a promising new firm, ranking it higher than SigFig, but with fewer stars than Betterment or WealthFront.

WealthSimple provides automated investment services at slightly higher fees than most other automated advisors with some access to personal advisors over the phone. It offers exclusive perks for high-balance account holders and a Socially Responsible Investment Portfolio dedicated to environmentally and socially conscious products and services.

Types of Accounts Supported/Facts

WealthSimple has no minimum deposit. Accounts under $5,000 don’t require a fee. You’ll pay a fee of 0.50% if you have between $5,000 and $100,000. Deposit over $100,000, and you’ll pay a fee of 0.40%.

Supported Account Types

IRA

Roth IRA

Individual and Joint Taxable Accounts

You can transfer any existing accounts to WealthSimple, and they’ll cover any bank transfer fees.

The SIPC insures WealthSimple accounts up to $500,000. Apex Clearing Corporation acts as its broker and dealer. Power Financial Corporation, one of the world’s largest financial institutions, provides financing and other services for WealthSimple.

How WealthSimple Works

Sign up for WealthSimple by completing an online application and answering questions about your investment history. Choose a growth, conservative or balanced portfolio. You’ll E-sign an Investment Management Agreement and verify your bank account information. WealthSimple approves and activates most accounts within five days.

After assessing your personal financial goals, the company’s advisors will determine the right investments for your needs. WealthSimple invests your money in Exchange-Traded Funds (ETFs) from different sectors of the worldwide economy. This market diversification gives you the right blend of securities and reduces the chance of losses due to holding too many similar investments.

WealthSimple’s robo-advisor platform saves you a significant amount of money over using a traditional stockbroker or financial advisor.  Digital investment platforms also save you time by enabling you to deposit and withdraw money and check your balances from your phone or computer. Automated advisors use specialized software, algorithms and historical data to choose the best investments for you.

Your ETFs will be selected based on Modern Portfolio Theory, which advocates minimizing risk and maximizing reward by using a mixture of stocks that will provide decent returns without extremes in value.

Some of the ETFs WealthSimples uses include the following stocks:  

Vanguard US Total Stock Market

WisdomTree Japan Hedged Equity Fund

Vanguard FTSE Europe

Vanguard US Mid-Cap Value

Vanguard US Small-Cap Value

Vanguard FTSE Emerging Markets

Bonds include:

Vanguard US Total Bond Market

iShares TIPS Bond

VanEck Vectors Fallen Angel High Yield Bond

iShares National AMT-Free Muni Bond

Features

Asset Allocation

WealthSimple helps you make the most of your account by choosing ETFs that best serve your goals. Young people may benefit from having high-risk stocks in their portfolio. Investors near retirement age may prefer lower-risk bonds to protect their investment.

Regardless of your age or financial goals, allocating assets from different sectors will help you avoid losing money if one type of ETF underperforms.

Tax-Loss Harvesting

Available for accounts over $100,000, tax-loss harvesting helps you save money. WealthSimple will sell investments when they lose money and replace them with similar securities. You’ll regain lost money when the market for the investment type rises again.

Tax-loss harvesting increases your gains by compounding interest since the process enables you to wait a year or more before paying taxes on money from the sale. Taking advantage of tax-loss harvesting during a bad market can give you a future tax credit.

Dividend Reinvestment

A dividend reinvestment program (DRIP) automatically reinvests dividends instead of cashing them. Dividend reinvesting reduces the cost of a share of stock, and it helps investors avoid brokerage sales fees. WealthSimple reinvests in dividends with varying prices, which lessens the chance of buying all stocks at a higher price point.

Portfolio Rebalancing

By balancing your investments to account for fluctuations in the value of particular securities, portfolio rebalancing helps you reach your financial goals. It maintains your ideal asset allocation, which may need to be adjusted as your circumstances change.

WealthSimple rebalances your portfolio by trading at a preset time. Its algorithm automatically does the math and figures when- and what – to sell or buy. This automated process prevents emotional responses to a weak or robust market get in the way of sound investment decisions.

Compound Interest

Compound interest is the process by which the interest on your investments earns interest. You’ll make a lot more from your portfolio with compound interest than simple interest. The earlier you open a compound interest account – and the more money you have in that account – the more money you’ll make. The bonds and stocks offered by WealthSimple can give you compound interest.

Black Program for Clients with High Balances

WealthSimple’s Black Program offers you better tax efficacy, including tax-loss harvesting, to lower the amount you pay to the government each year.You’ll be eligible for perks if you have a balance of $100,000 or more.

A financial advisor will assist you to clarify your financial goals if you qualify for the program. As a member of this exclusive club, you’ll receive a Priority Pass for free entry to over 1,000 luxury airport lounges worldwide. Perks at these lounges include champagne, appetizers, and free Wi-Fi.

Socially Responsible Investing Portfolio

An SRI portfolio consists of ETFs dedicated to a better environment. WealthSimple’s socially responsible investments include:

PowerShares Cleantech Portfolio

iShares MSCI ACWI Low Carbon Target ETF

BMO Mid Federal Bond Index ETF*

Vident International Equity Fund

iShares Jantzi Social Index ETF*

* Canadian securities

Socially responsible ETFs have slightly higher fees than regular ETFs, (0.25% to 0.40% to 0.2% to 0.3% for other WealthSimple investments.

Security

Bank-level security with 128-bit SSL encryption and a firewall protects information sent between your computer and the WealthSimple servers. The company backs up client information daily.

Apps

Log in to WealthSimple on your computer, or download the free app for iPhone or Android.

Blog/Online Magazine

The WealthSimple magazine/blog has a contemporary feel. The online magazine is regularly updated with news, how-tos, “Money Diaries” featuring interviews with celebrities, and an “Ask WealthSimple” section.

Support Center

You can call or email WealthSimple for assistance with your account. (No official hours for these services are listed on their website.)

Potential Drawbacks

WealthSimple has fees higher than industry leaders Wealthfront and Betterment. You can get Betterment’s services for a fee of as little as 0.25%.

This robo-advisor concentrates on passive investing to provide you with long-term financial security. It uses ETFs only and avoids buying individual stocks. You’ll need to choose another firm if you want single stocks to be part of your portfolio.

Who Will Benefit from Using WealthSimple?

The Socially Responsible Investing Portfolio will allow you to actively improve society while contributing to your net worth if you care about the environment and social issues.

The higher fees may not be a problem if you have $100, 000 or more to invest since you’ll be eligible for tax-loss harvesting and the premium Black Program.

Summary

WealthSimple offers the same financial basics as other robo-advisors, but with a social conscience and easygoing flair. Even though the company doesn’t brand itself as such, it seems to be Millennial-friendly. WealthSimple’s services, however, will work for investors of any age.

WealthSimple reviews show this automated investment firm provides many of the services people need from a robo-advisor, with its higher fees being the only major complaint.

The post WealthSimple Reviews 2017 appeared first on ExpertFront.

from ExpertFront https://www.expertfront.com/2017/04/28/wealthsimple-reviews-2017/

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WiseBanyan Reviews 2017

Introduction

WiseBanyon bills itself as “the world’s first free financial advisor”. Founded in   2014, this automated investment advisor requires that potential clients receive an invitation before applying. You’ll be added to their waitlist following receipt of an invite, but once you’re accepted, it only takes a few days to set up your account. WiseBanyan has 9,400 clients and manages $49 million dollars in assets, much less than many other robo-advisors. WiseBanyan reviews note the digital service’s low AUM in comparison to similar firms. Its financial showing is a combination of its no-fee business model and its status as a new, evolving company.

Types of Accounts Supported/Facts

WiseBanyan membership is invite-only, and you may have to wait before you can fill out a questionnaire regarding your finances and goals. They accept applications from legal U.S. residents over 18 with a permanent address and Social Security number. H-1B Visa holders with a U.S Social Security number and U.S. address are also eligible to apply.

WiseBanyan will verify your identity when you apply for an account, but they don’t conduct a credit check.

WiseBanyan has a $1 minimum deposit and requires no annual fee, regardless of your account balance.  Clients must pay $95 to transfer their IRA to another broker; it costs $75 to transfer a non-retirement account to another brokerage house.

You’ll receive electronic statements for free. A paper statement costs $10 or $150 for 12 monthly reports. A domestic paper check costs $5. If you want to use a wire transfer to send money from WiseBanyan to another financial institution, you’ll pay $25 (domestic) or $50 (international).

Apex Clearing conducts and clears all transactions for WiseBanyan and holds investments. The company has registered with SEC and FINRA. It offers SIPC insurance up to $500,000 for clients and lacks FIDC insurance.

WiseBanyan supports the following account types:

Individual Investment Accounts

Roth IRAs

Traditional IRA

SEP-IRAs

Rollover IRAs

How the Product Works

WiseBanyan creates a risk score for your account based on your answers to financial questions. The company’s algorithms then build a portfolio of exchange-traded funds (ETFs) appropriate to your financial risk assessment. You can always change the amount of financial risk you’re willing to take, and the automated system will update your account to fit the new level.

WiseBanyan will use the seven following ETFs (or most of them), in your portfolio:  

Vanguard REIT ETF

Vanguard FTSE Emerging Markets

Vanguard Intermediate-Term Government Bond ETF

Vanguard Total Stock Market ETF     Vanguard FTSE Developed Markets ETF

iShares iBoxx $ Investment Grade Corporate Bond ETF

iShares TIPS Bond ETF

WiseBanyan omits municipal bonds, natural resources and emerging market bonds from its assets.

Once WiseBanyan has set up your account, you can keep track of investments with the easy-to-navigate user interface. It clearly shows your balance, deposits, and withdrawals with accompanying graphs.

Features

Milestones

Set your financial goals with WiseBanyan’s Milestones. You let the advisor know your net worth, income level and time horizon, and it will create a savings plan for you, complete with automatic deposits and rebalancing.

Choose from Rainy Day, Retirement, Build Wealth Milestones or create a plan for all three. You can develop a plan for as many Custom Milestones as you want.

A Rainy Day Milestone helps you save for unexpected events like a car repair or moving to a new apartment.

Choose a Build Wealth Milestone if you want to invest money without a specific goal in mind.

Save for the future with a Retirement goal, or create a Custom Milestone for a goal that doesn’t fit in the first three categories.

Check on your Milestone details on your online Dashboard. If you want to changeyour asset allocation, use the slider on your Milestone screen. To transfer funds from one milestone account to another, click the “Funding’ tab, and then the “Transfer Funds” tab.

When you first use a Milestone account, you may want to auto-deposit monthly, and then change the frequency to weekly as you become more comfortable.

WiseBanyan doesn’t let you change the EFTs assigned to your account. A diversified portfolio gives you the best results, and their algorithms choose particular securities for a sound financial reason.

Portfolio Rebalancing

When you make a deposit,withdrawal, or earn dividends,WiseBanyan rebalances your portfolio for free to reduce your tax burden.

Modern Portfolio Theory

Like most other automated investment advisors, WiseBanyan adheres to theModern Portfolio Theory, which favors the use of several types of stocks and bonds to minimize risk.

WiseHarvesting

WiseHarvesting is a form of paid tax-loss harvesting. It turns losses in your account into an opportunity to reduce taxes. Most digital advisors include tax-loss harvesting as a regular part of their service for all clients (or for high-balance customers). WiseBanyan provides this service as a paid option for customers.

You can take advantage of WiseHarvesting for a yearly cost of 0.25% of taxable assets and a cap of $20 per month if you have a taxable account. Accounts over

$96,000 will give you unrestricted value over a lifetime of use. You don’t need to have a certain minimum balance to use WiseHarvesting.

Fractional Shares

WiseBanyan can buy fractional shares for your portfolio.

Blog and Web Content

WiseBanyan offers a blog, financial advice, interviews, and a “Heroes” section on its website. Like WealthSimple, another newcomer to the electronic investment industry, they provide lots of content and financial food for thought on their website.

You can contact customer support by phone from 11 a.m. to 7 p.m. Eastern Time, and email support.

WiseBanyan offers free Android and iOS apps. Customers rate the apps as being suitable for beginners and being easy to install.

Potential Drawbacks

WiseBanyan doesn’t offer support for trusts, joint taxable accounts, 401(k)s or 529 college plans. If you have any of these accounts, you’ll need to use WealthFront, Betterment of the more comprehensive automated investment advisors. Another robo-advisor can offer you more benefits if you have any taxable account.

WiseBanyan has customer support but lacks personal financial advisors to complement the automated system.

You may prefer to use traditional tax-loss harvesting instead of paying a separate fee for WiseHarvesting. The add-on fee might not be worth the cost for many people, even with the otherwise free service.

Who Will Benefit from WiseBanyan?

This no-cost service serves as a relatively risk-free introduction to digitalinvestment if you’re a beginning investor or have a small balance.

WiseBanyan will help you save without a complex layout if you have a retirement account and need a safe, inexpensive digital investment account.

Summary

WiseBanyan’s free service offers a clear and easy to navigate app, and its l Milestones provide an excellent way to manage several different financial plans.

You may wonder how WiseBanyan stays solvent without charging management fees. It offers additional products to clients, like paid tax-loss harvesting, IRAs and investment accounts.

Unlike its competitors, WiseBanyan requires no management fee for any customer account. It offers most of the services fee-charging companies do, such as portfolio rebalancing, automatic deposits, and mobile apps.

WiseBanyan reviews, while not glowing, praise the company as a new player on the robo-advisor landscape. If you’re a new investor or prefer a digital-only platform, WiseBanyan may be a good option for you.

The post WiseBanyan Reviews 2017 appeared first on ExpertFront.

from ExpertFront https://www.expertfront.com/2017/04/28/wisebanyan-reviews-2017/

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E-Trade Adaptive Portfolio Review

E-Trade is a respected online broker, and in June of 2016, they launched their robo-advisor product to serve their customers better. In this E-Trade Adaptive Portfolio review, we’ll discuss how the new arm of the company distinguishes itself from other competitors in the marketplace.

They began by adding some unique fund types to their line-up, allowing investors to branch out from the traditional index-tracked exchange-traded funds (ETF’s) into managed mutual funds.E-Trade’s Adaptive Portfolio also gives clients an opportunity to interact directly with a team of certified financial consultants to get personalized advice and recommendations on how to best meet your portfolio goals.

To use their service, you’ll need a $10,000 account minimum, and will pay an annual 0.30% management fee, and expense ratio’s ranging from 0.20% to 0.45%, depending on fund type.

Below we explore the details of how the E-Adaptive Portfolio works, including the basics you need to know, pros, and cons, and who is the best fit for this investment opportunity.

At A Glance Summary of E-Trade Adaptive Portfolio

E-Trade Adaptive Portfolio investors need to know the basics about the service.Here are the important highlights.

Account Basics

Investors must have a minimum of $10,000 actively managed to use the service.

There are a few different fees you’ll incur annually.

0.30% account management fee

EFT portfolio average investment expense ratios are 0.20%

Hybrid portfolios that include mutual funds range from 0.20% to 0.45%

$60 fee to transfer out or close the account

Users can build their portfolio one of two ways:

An actively managed ETF portfolio

A hybrid ETF and mutual fund portfolio

Supported accounts include:

Individual and joint non-retirement accounts

Traditional, rollover, and Roth IRA’s

Custodial accounts

Automatic rebalancing is free for all account holders

There is no tax strategy included in the fees or available through the service

Investment Information

Your profile and allocations are built based on a questionnaire that will assign you into one of six risk profiles.Each of those risk profiles includes two options; an all ETF portfolio or a hybrid model that combines ETFs with mutual funds.

The allocations may be diverse and could include fixed-income funds, large and small-cap blend funds, emerging market funds, and international funds.Every portfolio managed by E-Trade Adaptive will maintain a 1% cash allocation, an attractive feature for investors who don’t want large percentages of their investment resources tied up in cash.

How it Works

Like most of their competitors, E-Trade Adaptive Portfolio begins by asking users a series of nine questions to determine your risk tolerance.Their aim is to ask the common questions in subtly different ways to best assess what type of asset disbursement will be best for you.

After compiling your answers, E-Trade assigns users to one of five risk profiles that range from conservative to aggressive.In each risk profile, investors are given the choice of using just ETF investments or branching into their hybrid model that includes managed mutual funds.

Once the selection is made, and the account is fully funded, users will be able to see line by line which funds are used and the fees that they pay on each.

E-Trade Adaptive Portfolio Standouts

With all the different robo-advisors in the marketplace, it’s sometimes simpler to examine where they stand out.Here are some of the features that E-Trade offers that are different than their competitors.

Education and Support

While you won’t be assigned a one-on-one advisor, E-Trade takes customer support very seriously.They provide access to licensed professionals during regular business hours via chat, phone, or email.They also have a plethora of online tools that allow you to find reliable information on the different risk levels, the portfolios and funds associated with each, details about the fund relevance, and how the investment matches your goals.Clients can also view reports on the past and projected performances of the portfolio they’ve matched with to provide a better idea of what to expect from their investments.

Daily Automatic Rebalancing

Although most robo-advisors offer some type of automatic rebalancing, E-Trade’s Adaptive Portfolios do it daily.They use an algorithm that compares accounts against their target allocations and submits necessary trade orders to keep the accounts from drifting out of line.

Fully Integrated with E-Trade Brokerage Accounts

To utilize the Adaptive Portfolio service, users need to invest a minimum of $10,000 specifically with the robo-advisor, not just with E-Trade in general.However, it’s simple for existing E-Trade clients to convert brokerage accounts into a managed account by enrolling in the program.As a user, you won’t need to sell any securities or make any changes before you transfer.The Adaptive Portfolio platform will take care of that for you by liquidating any holdings that aren’t in your recommended allocations without charging you any commissions.However, it’s important to note; you may incur capital gains or losses as part of the process.

Potential Drawbacks

There are many attractive features when considering E-Trade Adaptive portfolio, but there are a few potential drawbacks that deserve acknowledgment.

High Account Minimum

Although a $10,000 minimum isn’t unheard ofin the modern robo-advisor landscape, itis higher than some of the firm’s main competitors.The company attributes the higher threshold to their need to create a truly diversified portfolio, which is likely the case if you select to use managed mutual funds as part of your mix.

No Tax Strategy Available

E-Trade doesn’t provide any tax strategy counseling at all, and that could be problematic for investors who want resources to help reduce capital gains taxes.You may need to employ outside assistance with tax-loss harvesting, which can be costly.Many competing services offer this feature for free or once you reach a minimum investment threshold.

Who Would Benefit

If you are a current E-Trade customer, this robo-advisor could be the perfect fit for you.The company makes it easy to start using the service and handles all the back-office components for you seamlessly.Investors who are interested in the mutual fund space are also a great prospect for this product as there aren’t many other automated online investing platforms that include them in the mix.Finally, if you’re someone who wants to manage your investments to your goals closely, the daily automatic rebalancing service that E-Trade provides is both valuable and helpful.

Final Thoughts

If you’re searching for a robo-advisor that adds actively managed mutual funds to the mix to try to perform better than the market, the Adaptive Portfolio is a strong option.Even more so, this product is a great fit for current E-Trade clients who are readyto check out a robo-advisor.  It’s a seamless process to transfer the funds, and the annual fees are right onpar with what you find most anywhere else.

Investors who don’t meet these criteria might want todo more research before making a final decision.  It’s possible that you could get more services for the same, or less, with another option.While this E-Trade Adaptive Portfolio review is overall positive, people who need help with tax strategy or want to start with a smaller investment may be better suited with another provider.

The post E-Trade Adaptive Portfolio Review appeared first on ExpertFront.

from ExpertFront https://www.expertfront.com/2017/04/28/e-trade-adaptive-portfolio-review/

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Fidelity Go Reviews

Fidelity Investments is a reputable online broker, and the robo arm of their company is known asFidelity Go.Fidelity Go reviews reveal that the managed product provides a unique fee and pricing structure that differentiates their offering from other competitors in the marketplace.

Investors pay 0.35% of the portfolio balance annually for the management of retirement funds, and 0.40% for taxable accounts.These fees include the investment expense ratios, a feature that’s totally unique to Fidelity Go.There is a $5,000 minimum to get started with the service.

Fidelity Go allocates among index funds, primarily their own, to diversify assets and create your portfolio.They employ a team of specialists who then monitor and re-balance the funds as needed.

In this summary, we’ll examine the details of the Fidelity Go investment option and give you insight into the account basics, pros and cons of the service, and help determine if this is the best robo-advisor fit for you.

At A Glance Summary of Fidelity Go

To better understand Fidelity Go, here we’ll review the basics you need to know about the service.

Account Basics

There is a $5,000 account minimum.

The account fees encompass both the management and investment expense ratios.They are as follows:

0.35% on retirement accounts

Up to 0.40% on taxable accounts

The service includes free re-balancing on accounts that is executed by fund managers rather than by computer algorithm.

Portfolios may be comprised of the following products:

Up to seven different Fidelity index funds

BlackRock iShares ETF’s

Supported accounts include:

Joint and individual non-retirement accounts

IRA’s- Roth, traditional and rollover

Fidelity Go does not offer 401(k) management

There is no tax strategy counseling available

Investment Information

Like you’ll commonly find the robo-advisor services, upon enrollment, you’ll fill out an online questionnaire to determine your attitude towards risk, overall goals, the timeline to achieve them, and the amount of monthly investment you’re able to make.Based on your answers, a computer algorithm will recommend a portfolio that’s a match.Before you invest your funds,you’ll be able to see the estimated future value of your suggested portfolio to help you better make your decision and compare your options to other similar products.

If you’re building a portfolio for retirement, your allocations can include up to seven different Fidelity index funds.Investors building taxable portfolios may also have BlackRock iShares ETFs included in the mix to maximize gains.

How it Works

Fidelity Go’s flat-rate fee model is what makes this product unique.Regardless of your investment level, you’ll pay 0.35% for retirement accounts and up to 0.40% for taxable accounts for the service.

The company allocates the funds among Fidelity index funds, and a portion of taxable funds into BlackRock iShares exchange traded funds.Then, they return all their revenue from the Fidelity funds and the majority of the revenue from the BlackRock investments back to their customers via a variable fee credit to achieve their investment-inclusive expense model.

E-Trade Adaptive Portfolio Standouts

In addition to their comprehensive fee model, there are a few other areas where Fidelity Go offers features and services unique in the robo-advisor space.Here are the highlights.

Managed by Actual People

Most online automated advisors pair sophisticated computer algorithms with a team of financial advisors who monitor accounts and answer questions on as-needed basis.Fidelity Go breaks out of that mold.All their client portfolios are built and overseen by actual people with investment advising institution Geode Capital Management.The firm is one of the sub-advisors on many of Fidelity’s own funds as well.

The professionals are responsible for both monitoring and re-balancing the accounts, making this an attractive option for someone who wants a hands-off investment option but doesn’t necessarily want a computer doing all the work.

Although they manage your account, it’s important to note that these are not the advisors you will speak with if you ever have a question via phone.Their customer service line is staffed with representatives, not financial professionals 24 hours a day.

Fidelity Integration

If you’re one of Fidelity’s more than 500,000 existing clients, it’s an easy process to take advantage of this managed investment option.You can use money available in your existing IRA or taxable account to fund your minimum.

Competitive Account Minimum

Among other broker-backed robo-advisors, a $5,000 minimum is very competitive.There are a few others in the marketplace with the same threshold, but many are well above that limit.

While it’s good to know if you want the backing of a large broker, there are many independent advisors in the space with much lower, or no, minimum point of entry.

Potential Drawbacks

Fidelity Go does a good job of producing an attractive robo-advisor product, but there are a few areas where they fall a bit short.Here are a few areas of possible concern.

No Tax Strategy

One benefit that many robo-advisors offer that is attractive if you have a taxable account is tax-loss harvesting.This process helps you to mitigate your investment impact on capital gains taxes.Fidelity Go does use tax-advantaged funds in their accounts, which can help to minimize the impact, but they don’t offer any services as part of their platform to help directly.

It Must be Cash

Whether you’re an existing Fidelity customer or not, they will not accept any securities transfers of any kind.This includes someone who may already have funds allocated towards securities inanother Fidelity Go portfolio.To enroll, you must first sell all securities.

Who Would Benefit

Fidelity Go is a great option for a couple of different types of investors.New investors who are interested in the robo-advisor space but who are concerned about being hit with fees and charges they didn’t expect can rest easy using this service.  The flat-rate investment management approach is at a comparatively low cost to other services available, and won’t hold any surprises.

Individuals who like the idea of a human element managing their money are also a good fit for this product.While Fidelity Go does use advanced computer algorithms to manage parts of the system, there is a live human being who regularly oversees the accounts.

Finally, current Fidelity customers may also be a great fit for Fidelity Go.  It’s a simple process toenroll your existing accounts in the service and could help to produce gains for your retirement or financial strategy.

Final Thoughts

As robo-advisors go, this service has a lot to offer.Fidelity Go reviews show that the established broker has developed a unique fee structure that is not only all-inclusive but also competitive.The additional benefits of a low account minimum and human monitoring on the accounts make this an excellent potential choice for both new and seasoned investors.

The main drawback of the service for investors with taxable accounts is the complete lack oftax-loss harvesting.You may need to look elsewhere, and likely pay for this expertise.Additionally, transferring securities is impossible with Fidelity Go, although some marketplace competitors make it work.

The post Fidelity Go Reviews appeared first on ExpertFront.

from ExpertFront https://www.expertfront.com/2017/04/27/fidelity-go-reviews/

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TradeKing Advisors Reviews

TradeKing Advisors launched in 2014 and has undergone many changes since then.Based onTradeKing Advisors reviews, they focused on keeping consumers top of mind, which resulted inlowered management fees and account minimums as well as a diversified portfolio to include business selections that you won’t typically see in a robo-advisor.

Investors pay 0.25% in management costs, or$1 monthly if the balance is under $5,000.The minimum amount to open an account is $500, and TradeKing offers an option to make deposits to build upto that amount for new investors who need to come up with the cash.

The firm offers upto17 asset classes in their portfolio and allows customers to diversify over a range of different account types.

The brand, along with online broker TradeKing were purchased by Ally Financial in 2016 and are in the process of moving to ally.com.During the transition, users can still enroll with TradeKing Advisors, and once it’s complete, you’ll have access to a new mobile app and 24/7 customer service through the website.

Here, we’ll summarize what you need to know about TradeKing Advisors reviews and provide details on their product, how it works, and who is a good potential investor.

At A Glance Summary of TradeKing Advisors

Here we’ll highlight the basics details you need to understand about this online investment management option.

Account Basics

TradeKing Advisors offers low account fees for their clients.

If your balance is under $5,000, you pay $1per month.

Accounts with a balance of $5,000 or more pay 0.25% annually.

Average expense ratio on exchange-traded funds is 0.17%

There is a $50 fee if you’re closing an IRA

Investors payno fee to close a brokerage account

There is a $500 minimum investment to open an account.

TradeKing portfolios can include exchange traded funds (ETFs) and exchange traded notes (ETNs) from 17 asset classes.

The platform supports the following types of accounts:

Non-retirement individual and joint accounts

IRA’s including Roth, SIMPLE, SEP, rollover, and traditional

Trusts

UTMA and Coverdell accounts

Business accounts

Automatic rebalancing is a free service included with account enrollment.

There are no tax strategy services offered.

Investment Information

Investors with Traducing Advisors can choose from five different portfolio choices that include options that range from conservative to aggressive and incorporate up to 17 asset classes.Types of assets may include fixed-income securities that are domestic or foreign, real estate, and equities.The service provides daily monitoring and re-balancing of all portfolios.

How it Works

TradeKing Advisors services their clients through a combination of features.First, they have a business relationship with the registered investment advisor Ibbotson Associates through their partnership with Morningstar.This means that although TradeKing Advisors is a relatively new firm with a small client base, they have the expertise of a company in Ibbotson Associates that has a proven track record and manages over $105 billion in assets.

Ibbotson Associates services the investment portfolios managed by TradeKing Advisors, regularly providing reviews and updates to the exchange-traded pieces.

Features

There are several areas where TradeKing Advisors offer some unique features that make them a good choice for a range of investors.Here are some highlights.

Risk Assessment

When you open a new account with TradeKing, the first thing you’ll do is complete their risk assessment.The survey, developed by their experienced partner Ibbotson, help to determine the risk tolerance and goals of a new investor to best choose the right investment strategy.The questions cover a variety of topics, including your comfort level with losses and fluctuations, and your investment time horizon.Based on these questions, users get a portfolio recommendation that includes the complete details about the asset allocation.

Unique Account Options

Most robo-advisors stick with individual and joint investment accounts. At TradeKing, you can also invest as an LLC, a sole proprietorship, partnership, or as a corporate entity.

TradeKing and Ally Integration

Currently, account holders with TradeKing can open their advisor’s account and have access toan online platform that makes it easy to see all their transactions in one place.Once the switch is made to Ally, this will hold true for account holders there as well.

The platforms are mobile friendly, and will eventually grow to include an app for one-stop management.

Potential Drawbacks

While TradeKing Advisors is a strong choice for robo-investing, there are a few subsets of customers who might not be the best fit.Here are a few things to consider.

Account Fees for Smaller Accounts

TradeKing Advisors has made recent changes to their fee structure, making the product more attractive than it’s been in the past.Clients who maintain balances of $5,000 or more pay 0.25% annually, which is right on par with what other online advisors are charging.

However, investors who have less than $5,000 in the game are paying a much higher ratio if you look at the $1 monthly fee as a percent compared to the assets under management.For example, if you invest just the $500 minimum, you’ll pay 2.4% in fees annually.Only customers who have an account balance of $4,800 or above will break even at the 0.25% annual fee.

Additional Fees for Added Services

Many online advisors include additional services free of charge to their clients, but at TradeKing, you’ll pay for them.For example, clients with $5,000 or more invested with the firm can add the Risk Assist feature to their account.This valuable add-on helps to manage severe market declines like what we saw in 2008 by automatically shifting asset allocation out of equities and into safe investments, like fixed-income EFT’s during those periods.The algorithm then monitors the climate and will shift back as the market recovers.

While this is an optional feature, it costs an additional 0.50% annually, which would bring your total management cost to 0.75%, a very high price to pay for that peace of mind.

The company also doesn’t offer any tax-loss harvesting feature at all, so if you want that service, you would have to enlist and pay for, the help of an expert outside the firm.

Who Would Benefit

Despite the handful of drawbacks, TradeKing Advisors is an attractive choice for a variety of investors. If you currently hold a TradeKing online broker account or have a business account that you would like to make investments on behalf of, this is a strong choice for you.This robo-advisor is also very friendly to investors who don’t want to actively participate in the day to day of managing and allocating their funds.The daily automatic re-balancing feature can help you be successful without needing to keep a constant eye on your accounts.

Final Thoughts

When compared with all the online investment options out there, TradeKing advisor reviews show that this product is a competitive choice for someone with $5,000 or more to invest.Also, loyal TradeKing customers are strong prospects because of the simple way the accounts are housed all on one platform.

Investors with less than $5,000, or large investors who need tax loss harvesting might want to look elsewhere to avoid paying high fees or missing out on potential services offered by competitor robo-advisors.

The post TradeKing Advisors Reviews appeared first on ExpertFront.

from ExpertFront https://www.expertfront.com/2017/04/27/tradeking-advisors-reviews/

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Hedgeable Reviews

While there are a growing number of robo-advisors to choose from, according to Hedgeable reviews, they’re a player who has been around since 2009 who offers a unique approach toonline investing.Born following the dramatic market meltdown of 2008, which saw the Dow Jones Industrial drop by more than 50%, the firm seeks to take the hedge strategies that many of the extremely wealthy used to mitigate their losses and spread them to the masses.

Hedgeable doesn’t employ any complex instruments, derivatives, or other high-risk strategies tohedge the portfolios of their clients, but they do use a strategy designed to protect from catastrophic losses that can hurt your long-term growth and goals.

There is no minimum to get started.In fact, Hedgeable allows new customers to test drive the platform before you decide to put any money into the service. Their portfolio allocations include traditional stocks and ETF’s, and incorporate unique asset classes like private equity, Bitcoin, real estate, and commodities into the platform freeof additional charges.

Here, we’ll examine Hedgeable reviews to help you better understand how their accounts work, pros and cons of their strategy, and to determine if this service is the right place for your investment.

At A Glance Summary of Hedgeable

Here is a list of the important basics you need to know if you choose to open an online investment account with Hedgeable.

Account Basics

There isno minimum investment amount to use the service.

The account fees vary depending on the amount you have invested.The prices are higher than competitors in the marketplace but include all the services they provide including their management fee, the custodial fee, product fees, trading costs, analytics, administration, and support.

$0-$49k pay 0.75% annually

$50k-$99k pay 0.70% annually

$100k-$149k pay 0.65% annually

$150k-$199k pay 0.60% annually

$200k-$249k pay 0.55% annually

$250k-$499k pay 0.50% annually

$500k-$749k pay 0.45% annually

750k-$999k pay 0.40% annually

$1M+ pay 0.30% annually

Hedgeable offers tax-loss harvesting and portfolio rebalancing as part of their services.

Available account types include:

Traditional IRA

Roth IRA

Rollover IRA

SIMPLE IRA

SEP IRA

401 (k)

Trusts

Individual and joint

Investment Information

Investors create their portfolio based on the individual risk appetite questionnaire.Investment categories can include stocks and ETF’s, as well as their unique investment classes private equity, Bitcoin, real estate, and commodities.

If you’re interested in the private equity class of investments, you’ll be working through their partnership with CircleUp, a leading private equity platform in the marketplace. CircleUp is focused on startups in the retail and consumer space that produce tangible products, allowing you to invest at the ground floor of aspiring new businesses. To allocate funds to this class, you’ll need to be an accredited investor.

Through Hedgeable’s integration with Coinbase, the leading platform worldwide for Bitcoin, you can allocate funds towards managed digital currency atno additional cost.This is one of the features that acts as a hedge against the downside risk sometimes associated with the U.S. dollar and can counterbalance a dollar-dominated portfolio.

Real estate and commodities are another way to counterbalance weakness against the U.S. dollar.These unique opportunities that include precious metals, agricultural products, energy, and real estate can be added to your portfolio at opportune moments, which Hedgeable helps you to identify through their proprietary tools that determine the interaction between asset classes and securities in hundreds of market scenarios and economic environments.

How it Works

While Hedgeable is a robo-advisor, they challenge the standards of the industry in that they don’t follow traditional investment strategies.Rather than stay in markets that, in theory, should increase in value annually, their active management approach uses tactical security selection and reacts quickly to changing circumstances.They may completely sell out of equity positions to mitigate risk, which you don’t often see in an online platform.

The biggest differentiating factor of Hedgeable is their downside risk protection feature.Through their proprietary technology, they can minimize large losses and offer their investors the option to allocate 100% of your funds into a cash position atany time to preserve capital.

While their strategy is reactive and not predictive, meaning it doesn’t involve market timing and instead reacts to when markets are losing money, in the past, it has resulted in growth compared to losses investors experienced with other robo-advisors.For more information ontheir technique, read their White Paper.

Unique Features

Here is a summary of some of the unique features you can expect if you decide to use Hedgeable as your online advisor.

Risk Assessment Questionnaire

While not completely unique to Hedgeable, the robo-advisor requires that all new customers submit a survey with answers to five questions that help them construct a portfolio that best meets your needs.These questions address your risk tolerance, income requirements, and overall net worth.Questions include things like:

If you were to open the newspaper and see that the U.S. equity market dropped 5%(a very drastic downward move) the day prior what would you anticipate being your first thought?

Which of the following scenarios presents the best outcome for you?

How do you normally determine what to buy/sell in your portfolio?

Unique Allocation Options

As detailed above, Hedgeable offers traditional asset allocation options in ETF’s and bonds but also incorporates classes that you don’t often see in other online advisors. Without paying any additional fees, you can choose to diversify your portfolio into private equity, Bitcoin, real estate, or other commodities.

Downside Risk Protection

Perhaps the most compelling feature, especially for smaller investors, is Hedgeable’s technological ability tolimit downside risk.Through their proprietary algorithm, their platform can react quickly to market fluctuations and allow investors to take an all-cash position toprotect assets in times of market crisis.

Potential Drawbacks

While Hedgeable offers several unique pros for both inexperienced and advanced investors, there are a few cons to consider before making your choice.

High Account Fees

Their combined fee structure makes it simple to understand exactly what you’ll pay for the Hedgeable service annually, but for investors with less than $250,000 in play, the fees are very high compared to competitive services.If you weigh them against a competitor, be sure to consider the total in annual fees, as many other robo-advisors will break theirs up into multiple line items.Examine the management fee, the custodial fee, product fees, trading costs, analytics, administration and support fees before making your final decision.

No Major Downturns to Compare to

As Hedgeable has only been in play since 2009, after the last large market slump, they remain somewhat untested.According to their internal analytics, their investors see strong performances, but it’s worth noting that we haven’t had a similar market dive to 2008 tocompare.

Who Would Benefit

Hedgeable isan attractive choice for small to mid-sized investors who like the idea of paying a flat fee structure regardless ofhow many services you use.They also have some appealing analytics if you’re someone who enjoys crunching numbers.The robo-advisor’s biggest strength isin their reactive technology, allowing you to minimize your losses should the market take a drastic downturn.As such, they are an excellent choice for new investors who might beskittish about investing money, or seasoned clients who are nearing retirement and don’t want to jeopardize their funds.

Final Thoughts

Hedgeable attempts to bring the “trade secrets”of the wealthy to the masses, and the platform they provide gives the average investor all the tools they need todo so.Examining the Hedgeable reviews, we’ve concluded that their diverse platform allocation options help them tostand apart from their competitors, and their loss mitigating technology helps to guard against downside returns.Their biggest drawback is the large fees that smaller investors pay, butsomeone who is especially concerned about losing money may find their downside risk protection worth the cost.

The post Hedgeable Reviews appeared first on ExpertFront.

from ExpertFront https://www.expertfront.com/2017/04/27/hedgeable-reviews/

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Charles Schwab Intelligent Portfolio Reviews

Charles Schwab has long been an industry leader in the robo-adviser space.Those who follow Charles Schwab Intelligent Portfolio reviews know they were the first major online company tointroduce the concept, they continue to stay ahead of their competition with unique online offerings and their fee-free account management policy.

The Schwab Intelligent Portfolios manage over $10 billion in assets and obtain earnings from the funds traded through the exchange in its managed portfolios.The revenue stream includes both third-party funds and their own funds, and the expense ratios are paid through the fund investors.

Investors who can meet the $5,000 account minimum and aren’t averse to a portfolio with a relatively high cash allocation are a good fit for this robo-advisor choice.

In this Charles Schwab Intelligent Portfolio review, we’ll examine the product to help you better understand how the product works, its features, the best type of investor for the product, andpotential drawbacks, to give you the tools you need to decide if this is the best investment choice for you.

At A Glance Summary of Charles Schwab Intelligent Portfolio

Here we’ll highlight the basics of what you need to know about this online robo-advisor investment option.

Account Basics

Investors need a minimum of $5,000 to open an account with Charles Schwab.There are no management fees, or annual account, transfer, or closing fees. Accounts supported include:

IRAs- Traditional, Roth, and Rollover

Non-retirement accounts- Individual and Joint

Custodial accounts and trusts

Automatic rebalancing on all accounts

Free tax-strategy analysis for investors with $50,000 and above

Customer support over phone or online chat available 24/7

Investment Information

The investment scope includes:

53 exchange-traded funds (ETFs) that cover 20 different asset classes Options include stocks, bonds, emerging markets, real estate investment trusts and commodities.

How it Works

Charles Schwab touts state-of-the-art asset allocation based on current asset allocation algorithms that also take into account your appetite for risk.Users can manage behavior considerations, including whether avoiding losses is more important that acquiring gains.This allows Charles Schwab to manage funds to your preference for loss aversion.

The asset allocation goes beyond the traditional stocks, bonds, and cash blend.Non-traditional asset classes that include hot commodities like gold are part of the mix, and stocks and bonds are managed in a variety of sub-asset classes.Investors can view stocks in their portfolio grouped by large and small, domestic and international, and emerging versus developed markets.Bond allocations could include high-yield bonds, corporate bonds, agencies, and Treasuries.

Users will primarily fall into one of Charles Schwab’s three different asset allocation philosophies:

Traditional diversification:Someone who chooses their asset classes based on the desire to maximize the expected return for a given level of risk.

Risk budgeting:An investor whose goal isto diversify the sources of risk across multiple asset classes.

Goal-driven:A user planning for a more specific goal, like achieving an absolute return.

For more information on the specifics of asset acclamation, review Charles Schwab’s White Paper.

Features

Several key features that make Charles Schwab Intelligent Portfolio an attractive option for investors.The key areas their product shines are as follows.

Free Account Management

Unlike most robo-advisors who charge both a management fee and for investment expenses, Schwab investors payno management fees, commissions to brokers, or account fees on their Intelligent Portfolio accounts.

However, users will pay expense ratios based on the investments you choose, and many ofthose are Schwab funds.That’s how they pay for the service.That said, even with those expenses ratios for the most aggressive risk portfolios, the service can still be less costly with other online advisors.

According to Schwab, their weighted average expenses in their initial portfolio allocations that they recommend to individual advisors are:

Conservative portfolio: 0.07%.

Moderate-risk portfolio: 0.16%.

Aggressive portfolio: 0.21%.

Customizable

Personalized investing is important, and Schwab takes it seriously.Customers answer questions online to develop a customized profile based on goals, time constraints, and risk profile.Investors can accept these results, or make additional changes to the allocations bychoosing upto three ETF’s to remove and replace with an alternative investment.

Accurately Track Goals

Whether you have short or long-term financial goals in mind, keeping your finger on the pulse ofyour investments is one key to success.The Goal Tracker feature in Schwab Intelligent Portfolio allows you to customize a savings or income goal and receive daily feedback on how you’re tracking.

The tool uses simulations based on the sophisticated Monte Carlo design that looks at your returns in multiple random scenarios and calculates if you are on target, at risk, or off target for reaching your goals.The feature will then recommend adjustments that improve your likelihood of achieving your target if you’re off track.

This tool offers valuable insight for investors, especially if you’re nearing retirement and are about to start drawing income from your investments.The algorithm is an active way of monitoring how your withdrawals affect the future of your income stream and allow you to make course corrections to ensure you don’t run out of money in retirement.

Potential Drawbacks

Although the Schwab product has many upsides, it also has two potential drawbacks depending on your investment strategy.The first is that their plan includes a comparatively large allocation of portfolios to cash.You will have a minimum of6%upto a maximum of 29.4% of total portfolio holdings that are managed in a deposit account and earn interested based on the $10,000 level of average money market rates according to RateWatch.

This allocation can create a cash drag, producing low single-digit returns, that while safe, aren’t being actively managed in a fund with the potential for large gains.

The second potential drawback for smaller investors is the high limit for access to a tax-loss advisor. Users need to have a minimum of $50,000 invested in their taxable accounts to use the service.

Who Would Benefit

Although Intelligent Portfolios have a few drawbacks, this isan excellent robo-advisor choice for investors who want to put their money with a well-known and established company.

Someone with a minimum of $5,000 who doesn’t want to pay any advisory and account service fees or commissions to brokers are a good fit for this product.Additionally, the tools make iteasy for beginner investors or anyone who wants to choose from a wide range of exchange traded funds and asset classes to get into the investment game.IRA investors or those nearing retirement age are also good candidates because of the goal tracking features.

Final Thoughts

When it comes to online robo-advisors, Charles Schwab Intelligent Portfolios reviews fall closely in line with several others in the marketplace.The main advantage to this advisor is the size ofthe company and the experience they have in developing divested portfolios for clients with different goals and risk attitudes.

What makes this product stand outis the range of investments available, the ability to customize beyond their initial recommendations, and the free account management.This is a good fit for clients who are comfortable with high cash allocations, and who want a trusted name managing their money.

The post Charles Schwab Intelligent Portfolio Reviews appeared first on ExpertFront.

from ExpertFront https://www.expertfront.com/2017/04/27/charles-schwab-intelligent-portfolio-reviews/

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Vanguard Personal Advisor Services Reviews 2017

Product Introduction

Vanguard Personal Advisor Services has been considered one of the top financial advisory firms since its inception. With Vanguard’s experience and reputation behind it, this online offering provides a combination of investment management, asset allocation, and personal financial coaching.

Vanguard established its automated investing program in 2013. Unlike many of its competitors in the field, it offers human advisors with CPA certifications and an online portal so you can check on your investments.

Types of Accounts Supported/Facts

Vanguard manages $3 trillion dollars in assets. They oversee more mutual funds than any other financial company, and trades more ETFs (exchange-traded funds) than any other company except Blackrock.

Investors need to have deep pockets initially to work with Vanguard Personal Advisor Services. They require a $50,000 minimum deposit to start an account. The 0.30% management fee pertains to all accounts regardless of the balance; Vanguard offers no discounted fees for larger accounts.

You may encounter other fees, depending on your financial plan. The ETFs and mutual funds in your portfolio may be 0.05% for index funds or as high as 0.40% for certain managed funds. You may be charged brokerage commissions when ETFs are purchased. No commission fees are applied if Vanguard advisors buy Vanguard ETFs

Supported Account Types

Traditional IRAs

Roth IRAs

Individual and Joint Accounts

529 College Plans*

Trusts

401(k)s*

 SEP IRAs

Rollovers

*Vanguard Personal Advisor Services doesn’t directly manage 401(k)s, 529 plans, and certain other outside assets, but will include them in your financial plan.

Vanguard Personal Advisor Services use Vanguard Brokerage Services for all trades. SIPC insurance covers all accounts up to $500,000. Lloyds of London offers additional coverage up to $50,000,000 per account.

How Vanguard Personal Advisor Services Works

A Vanguard advisor works with new clients to review investments and goals. You’ll receive a financial plan customized to your situation. The advisor then puts together a portfolio of bonds and cheap diversified stock to fulfill your goals.

You’ll call a toll-free number and receive a free consultation. The call may last up to an hour. After the phone consultation, you’ll register for a free Vanguard account and fill out an intake questionnaire. You’ll discuss your answers during a second phone consultation.

It may take a few weeks for Vanguard to formulate a plan. Once a plan is formalized, the Asset Transfer Team will help you transfer your existing accounts to Vanguard.

You’ll have access to a team of Vanguard advisors if you have a balance of $500,000 or less. You’ll get a dedicated advisor if you have more than $500,000 in your account.

Unlike other automated investment systems, Vanguard has a “set it and forget it”experience for clients regarding upkeep. Your advisor sets up your portfolio after your initial meetings. You’ll never need to do any manual inputting after setting up your online account. All you need to do is check your portfolio. Contact your advisor when you have questions or want to change your goals, deposit schedule or other aspects of your account.

Features

Once your advisor has analyzed your goals, you can log in to your account and see your personal recommendations for achieving them.  Investments for retirement savings may recommend a new asset mix of 100% stock instead of a current asset mix of 95% stocks and 5% bonds.

A screen featuring “Accounting for Different Marketing Scenarios” will project your savings year-by-year for best and worst markets, according to a pre-determined yearly contribution.

An “Elements of Investing” screen explains how important a mixed asset allocation will be to your annual returns.

Vanguard uses the Vanguard Capital Markets Model to estimate returns. A simulation tool created by Vanguard Investment Strategy Group, it analyzes historical data, like interest rates, for fixed income and commodities to generate projected long-term returns.

Tax Optimization

Vanguard optimizes your taxes by allocating taxes across account types. Highly taxable items will be placed in tax-sheltered retirement accounts, and advisors will put tax-efficient investments in taxable accounts.

Automatic Deposits

The service can deposit money into your accountaccording to a pre-determined schedule, either weekly, bi-weekly, monthly or every other month.

Automatic Rebalancing

Vanguard Personal Advisor Services rebalances your account quarterly unless your financial plan indicates otherwise.

Low-fee Mutual Funds

You’ll receive access to low-fee Vanguard Admiral class mutual funds with nominimum per fund.

Your portfolio may include mostly index funds instead of ETFs, which include:

Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares

Vanguard Intermediate-Term Investment-Grade Fund Admiral Shares

Vanguard Total Bond Market Index Fund Admiral Shares

Vanguard Total International Stock Index Fund Admiral Shares

Vanguard Total International Bond Index Fund Admiral Shares

Vanguard Short-Term Investment-Grade Fund Admiral Shares

Vanguard Total Stock Market Index Fund Admiral Shares

Mobile Apps

Access your accounts on free iPhone, iPad, tablet or Android apps or via your desktop computer.

With your Vanguard Personal Advisor Services app, you can:

View your investment returns and asset mix

Check account balances, transaction history, and performance

Get market and financial news

Goal analysis based on your financial consultation

Vanguard Personal Advisor Services sends you personalized quarterly progress reports reviewing your investments.

Customer service operates by phone Monday to Friday 8 a.m. to 8 p.m., ET. Email assistance keeps the same hours.

Potential Drawbacks

New or young investors may not be able to afford the minimum deposit of $50,000.

Vanguard services include at least some fees for ETF and index fund transactions. Although the fees are small, most new robo-advisor firms (Betterment, Personal Capital, etc.) don’t pass any transaction fees to customers, just investment expenses, and management fees.

You can’t purchase fractional shares through this service, or receive any special promotions.

Vanguard allocates a mix of taxable and tax-deferred accounts within your account, but they don’t offer tax-loss harvesting.

Although Vanguard offers a dedicated personal advisor, you’ll need to consult with him or her by email, Live Chat or phone; Vanguard Personal Advisor Services doesn’t have in-person consultations.

Who Will Benefit from Using This Product?

Vanguard Personal Advisor Services can help you make the most of your assets with its personalized financial planning and advisors if you can easily meet the $50,000 minimum.

Going through some changes? Vanguard consultants can customize your financial plan when marriage, job changes, a new baby, and other life events change your circumstances. Modifying financial plans with only a digital algorithm offered by automated advisory service may take longer and not be as accurate.

Summary

Vanguard Personal Advisor Services works best if you’re looking for an old-fashioned investment advisor without the high fees. It bridges the gap between hands-off robo-advisor and an in-person advisor in an office building.

This well-known financial company offers a cheaper service than a traditional financial planner if you have $50,000 or more to invest. You’ll work with an advisor over the phone (or email), but achieve the same results.

Vanguard has fewer overall services than competing automated investment companies, but its emphasis on consultations with financial advisors makes it an excellent choice for many investors.

A few websites containing Vanguard Personal Advisor Services reviews cite the company’s ability to connect with clients through an advisor in case of life changes.

The post Vanguard Personal Advisor Services Reviews 2017 appeared first on ExpertFront.

from ExpertFront https://www.expertfront.com/2017/04/27/35/

[expertfront]

SigFig Reviews 2017

Product Introduction

An online portfolio manager that manages financial holdings via patent-pending algorithms, SigFig got its name from the concept of “Significant Figures” in mathematics.

SigFig first came on the scene in 2006 under the name Wikinvest and became SigFig in 2011. It has 309,000 users and manages $70 million dollars in assets. While not as sophisticated as Wealthfront or Personal Capital, this robo-advisor recommends investments by using an algorithm. SigFig reviews show that the service offers a passable mix of automated advice that may work for some investors.

Types of Accounts Supported/Facts

You’ll need at least $2,000 to open a SigFig account. There’s no management fee if you invest between $2,000 and $10,000 with them. Account balances over $10,000 incur a 0.25% fee. If you invest $20,000, that means you’ll pay a fee of $2.08 a month, versus $21.67 for a traditional investment advisor.

As a robo advisor, SigFig uses artificial intelligence to optimize investments and manage portfolios with little to no human intervention.

Supported Account Types

401 K Plans

Traditional IRAs

Roth IRAs

SEP IRAs

Taxable Accounts (Individual and Joint)

SigFig doesn’t accept 529 Plans and Trusts.

How SigFig Works

After answering a few questions and creating a login, you’ll have access to SigFig’s online dashboard and app.

SigFig’s automated system compiles historical data and runs simulations to determine how the market may perform. After receiving a variety of outcomes, the Wealth Charts in the dashboard will show you this information to indicate potential results.

SigFig holds your money with its partners, Fidelity, Schwab and TD Ameritrade Institutional. Your money will stay with your brokerage if you already have an account with one of them. SigFig will open an account for you at TD Ameritrade Institutional if you have an account at a brokerage house other than the ones they use.

The company invests your money in ETFs and funds. They avoid purchasingindividual stocks because it would result in higher fees for their users, particularly those with smaller balances.

You can link your checking or savings accounts and withdraw or deposit money through your SigFig dashboard. Select the “Managed” tab on your account after logging in, and click “Withdrawal” to take out money.

Click “Edit Allocation” under the “Managed Tab” if your financial situation changes and you want to invest in higher-risk securities. SigFig’s automated system will change the asset allocation to your new preference.

Your end of the year tax forms will continue to come from your brokerage house, not SigFig.

Features

You can set up the company’s free Portfolio Tracking feature in about a minute. Import your brokerage information, and you’ll see all your information in the app’s “View Holdings” section. The “Report Card” tab shows you how your portfolio compares to the current market. Sigfig assesses your portfolio with star ratings from one to five stars.

The Portfolio Tracker sends you an email each week letting you know how your investments are performing. The email includes a brief assessment of your portfolio and gives you a list of the week’s top market securities and investments.

You can sign up for Managed Account Solutions for more guidance if you like the free tracking service. Access SigFig’s dashboard on a desktop computer, iPad, iPhone or Android. Their user-friendly apps employ colorful graphs and easy to understandbreakdowns so you can get a fill view of your investments without wading through complicated information. SigFig manages brokerage accounts. It offers minimal financial help in other areas and doesn’t track spending or credit card use like Personal Capital and a few other robo-advisors.

Managed Account Solutions

You’ll receive a well-balanced portfolio consisting of Vanguard, Schwab and other commission-free ETFs. You can choose how you want your account funded. Use an existing brokerage account or start a new one with cash.

Optimize Your Portfolio

When any of your investments has a poor rating, according to SigFig’s algorithm and market comparisons, the App will indicate how you can improve your portfolio’s value. Recommendations are based on your risk tolerance and other preferences.

Diversified Income

Combine your certificates of deposit (CDs), US Treasuries and bonds in this low-rate account. If you have an extensive fixed income portfolio, this may be an excellent choice for you.Sigfig’s Diversified Income managed account has a minimum $100,000 investment and a 0.50% yearly fee.

Rebalancing

SigFig rebalances when the financials markets move your investments more than a few points from your desired target. They regularly review your account and market conditions and adjust your portfolio to protect your investments for adverse changes. The robo-advisors purchase ETFs for your portfolio when you add cash. This addition keeps your target allocation the same. The company keeps transaction costs low by avoiding relatively small purchases.

Tax-Loss Harvesting

Sigfig’s Tax Loss Harvesting feature reduces your tax liability by selling holdings that have experienced losses to counterbalance realized gains. Selling stocks or ETFs that have increased in value will cause you to pay taxes on capital gains. Tax-loss harvesting maintains your portfolio’s value while reducing your yearly tax bill.

SigFig Guidance

For users with problems such as cash flow drag or lack of diversification, SigFig offers a Guidance feature to diagnose issues based on your answers to a questionnaire and your current account status.

Guidance looks at your portfolio and shows you which investments are causingthe problems. It then recommends more efficient options.

Security

Your SigFig account is protected by the same trustworthy encryption banks use. SigFig runs audits to check security levels. They also validate security through Verisign. Sigfig monitors its servers by surveillance cameras 24/7. Many encryption layers further protect your data from hackers.

SigFig has iPhone, iPad, Apple Watch and Android mobile apps, as well as desktop computer login. The company offers 24/7 email customer service and a phone help line from 9 a.m. to 6 p.m. Pacific Time seven days a week.

You can cancel your account anytime by calling the company’s direct support line. You won’t pay a penalty. SigFig will no longer be an advisor on your account, and you’ll keep all your holdings.

Potential Drawbacks

Sigfig lacks the tools needed for investors with more complex needs, such as trusts. The company depends on algorithms, which may not serve the needs of high-asset clients who need more input from real-life advisors.

Even for low-asset investors, the advice may prove incorrect since it’s based on previous performance with only some basis on proper asset allocation. The services occasionally recommend funds with high fees, which may causeproblems for investors with low balances.

Who Will Benefit from using SigFig?

SigFig’s affordable, straightforward system offers benefits for low-balance investors with minimal needs. If you don’t need to talk with an advisor or feel more comfortable with a service that’s digital only (except for phone support), it’s worth a try. The service’s focus on consumer education and rebalancing accounts will prove helpful to young investors unfamiliar with financial jargon.

Summary

SigFig reviews give the app high marks for its intuitive nature and low fees. BestCompany rates it #28 out of 44 automated investment advisors, and well-known business sites (Forbes, Business Insider) lack reviews for the product.

A digital financial advisor offering the bare minimum of services, SigFig has partnered with Wells Fargo to attract young investors. For first-time investors, the service offers a good introduction to savings and securities. More seasoned investors can benefit from robo-advisors with more services.

The post SigFig Reviews 2017 appeared first on ExpertFront.

from ExpertFront https://www.expertfront.com/2017/04/27/sigfig-reviews-2017/