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Wealth review

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Many robo-advisers share common characteristics: low-cost diversification, automatic rebalancing, and the ability to put your money into an IRA to save specifically for retirement.

But some of the best robo-advisers stand out with their ability to go beyond the usual offerings. Wealth front does just that. Users pay a low annual advisory fee of 0.25% and can also have access to a $ 529 education savings plan and paid checking account with debit card access.

Below, Select reviews the Wealthfront platform to give you all the details about its investment options, features, and fees so you can decide if it’s right for your money.

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Wealth review

Wealth front

On the secure Wealthfront site

  • Minimum deposit and balance

    Minimum deposit and balance requirements may vary depending on the investment vehicle chosen. Minimum deposit of $ 500 for investment accounts

  • Costs

    The fees may vary depending on the chosen investment vehicle. No account, transfer, transaction or commission fees (fund ratios may apply). Wealthfront’s annual management advisory fee is 0.25% of your account balance

  • Premium

  • Investment vehicles

  • Investment options

    Stocks, bonds, ETFs and cash. Additional asset classes to your portfolio include real estate, natural resources and dividend paying stocks

  • Educational resources

    Offers free financial advice for college planning, retirement, and home buying

Advantages

  • No transaction or transfer fees
  • Good for automated investing
  • Chooses investments based on the user’s risk tolerance and time to retirement
  • Offers a cash management checking account with a debit card
  • Reap tax losses to reduce the taxes you pay
  • Wealthfront Invitation Program: When a friend funds an investment or cash account through your invite referral link, you will receive an additional $ 5,000 managed for free

The inconvenients

  • Minimum deposit of $ 500
  • 0.25% management fee

Investment options on the wealth front

Wealth front invests in low cost, globally diversified index funds, specifically ETFs. Its diversified portfolios include stocks, bonds, real estate and ESGs. You cannot buy and sell individual stocks on Wealthfront.

When you sign up for a Wealthfront account, you complete a questionnaire to determine your comfort level with taking risk. Based on your age, financial situation, and risk attitude, Wealthfront will then assign a risk score that reflects your comfort zone. This is useful for personalizing a portfolio for you.

Wealthfront clients can also invest in Traditional IRA, Roth, SEP or Rollover, plus Wealthfront offers a 529 education savings plan.

Characteristics

Wealthfront’s advanced features include harvesting tax losses that can help offset consulting fees, a cash management current account with a debit card and its 529 education savings plan, which robo-advisers do not traditionally offer.

It also provides free financial advice for college planning, retirement, and home buying. Additionally, Wealthfront has a referral program: you will receive an additional $ 5,000 managed for free when a friend funds an investment or cash account through your invite referral link.

The Wealthfront app has good reviews. It is available for free download in the App Store (for iOS), where it has 4.8 / 5 stars, and on Google Play (for Android), where it has 4.6 / 5 stars at the time of writing. This article.

Costs

There is a minimum deposit of $ 500 for investment accounts at Wealthfront. The annual management advisory fee is a small 0.25% of your account balance. So, if you invested $ 5,000 with Wealthfront, you would only pay $ 12.50.

At the end of the line

Wealth front is a solid robo-advisor option. It selects investments based on users’ risk score (indicating their risk tolerance and time to retirement), and offers investments through IRAs and 529s.

If you don’t want to be tied to a minimum investment deposit of $ 500, consider another popular robo-advisor. Improvement. There is no minimum balance required, and the annual account fee is the same 0.25% of your fund balance. Moreover, even though it is an automated service, users can have access to a real financial advisor. (Read our full review on the upgrade.)

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Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.



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