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Are "robo-advisers" like Wealthfront/Betterment worth it?
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Date: October 9th, 2017 1:47 PM Author: maize wonderful national (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34401349) |
Date: October 9th, 2017 1:50 PM Author: know-it-all theatre giraffe if you're not going all in on crypto you're fucking insane (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34401385) |
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Date: October 9th, 2017 1:54 PM Author: maize wonderful national I'm basically going 33/33/33 on crypto/ the stock market / CACB (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34401414) |
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Date: October 9th, 2017 1:51 PM Author: Adventurous cream parlour stain If you are able and willing to harvest yourself and rebalance every time you want to put more cash in there, then it isn't worth it. If you just want to do that for you, then I guess it's fine. (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34401403) |
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Date: October 9th, 2017 1:59 PM Author: Magical Cruise Ship Telephone The TLH doesn't happen as open as you think. The fees are reasonable in the sense that how often are you going to rebalance your investments on your own + the TLH? The truth is, you're not, and I'd pay up to 50 basis points for that optimization, nothing more.
You can get robo-advisory either from outfits like Schwab and I think Vanguard (both of which I'd pick before Wealthfront or Betterment) or some consumer banks like Wells Fargo offer it via white label partnership. Go with a big brand for this shit as Wealthfront/Betterment will ultimately have to scam you somehow to turn a profit. |
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Date: October 9th, 2017 4:53 PM Author: maize wonderful national (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34403025) |
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Date: October 9th, 2017 2:02 PM Author: learning disabled clown If you will personally rebalance and TLH like once every 6 months (or immediately after a huge market drop) you can get 90% of the Wealthfront/Betterment services for none of the fee. (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34401495) |
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Date: October 17th, 2017 4:34 AM Author: Magical Cruise Ship Telephone You assume you can design a portfolio optimized for your risk based profile. I'm not saying the it's completely rocket science, but I'd bet the investment committee at a major advisory firm is designing portfolios and matching you into one better than you can do on your own. Add in that they TLH more frequently than you + you never need to log on and deal with re-balancing BS; for 25 to 50 basis points, it's an extremely fair deal. (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34460857) |
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Date: October 17th, 2017 5:58 PM Author: learning disabled clown I hear you. For someone who is asking the question (and doesn't find it fun to study, like me) I agree that 25 basis points isn't terrible.
I have the following concerns: -I don't want to be dependent upon their platform. What if they raise fees or do something else I don't like? -Possible someone finds a way to exploit their algorithms (and front run them on the margins) -You personally overvalue the intelligence and lack of conflicts of "investment committee(s) at major advisory firm(s)" |
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Date: June 14th, 2023 2:09 PM Author: Cracking sooty heaven those guys are putting ur money into tranny/AA sinks (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#46426309) |
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Date: October 9th, 2017 2:04 PM Author: Impressive offensive lodge new version I put some of my IRA funds with a robo-advisor from Fidelity this year. I've been extremely happy with the performance, but so have most people in the market. (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34401514) |
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Date: October 9th, 2017 4:52 PM Author: maize wonderful national (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34403016) |
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Date: October 9th, 2017 2:07 PM Author: Dark juggernaut ticket booth Just put everything in Vanguard All Market index. Look at it when you are 65. Why all this rebalancing? (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34401537) |
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Date: October 9th, 2017 4:52 PM Author: maize wonderful national (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34403019) |
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Date: October 9th, 2017 5:17 PM Author: mauve puppy I have friends at the service who told me they are going to crack down on this stuff. Most of the funds are too clever by half and violate the wash sale rules. The securities are just too similar. Prepare to get all of those losses disallowed when the IRS drops the hammer.
Note this is the newest providers like betterment--fidelity isn't dumb enough to push the envelope as far as the new players are. |
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Date: October 10th, 2017 12:01 PM Author: mauve puppy (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34408343) |
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Date: October 17th, 2017 7:22 AM Author: costumed house corn cake I use betterment. No complaints. I don't want to have to go and do the rebalancing and TLH myself, so it works for me. Plus being able do have different goals set up, using their RetireGuide, and some other things makes it worthwhile.
I look at Schwab's version when it came out. They don't charge a separate fee, but of course they're putting you into Schwab ETFs. I don't have a big problem with that since their ETFs are pretty cheap, but they also keep a portion of your money in cash. I don't need cash in my passive investments. |
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Date: October 17th, 2017 12:22 PM Author: Magical Cruise Ship Telephone Does Schwab keep a portion in cash for all the portfolios? I wonder if it's based on which one they put you in based on your goals. Regardless, I'd focus on the overall return, not what assets it's in unless the allocation was something super weird that didn't make sense (e.g. desire low risk and get an allocation w/ no bond funds and a bunch of foreign ETFs). (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34462590) |
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Date: October 17th, 2017 5:40 PM Author: costumed house corn cake You're right about focusing on returns. To that end, you can check this out:
http://mebfaber.com/2015/04/24/schwab-vs-wealthfront-vs-betterment/
This suggests they're all pretty comparable for similar allocations, but I do like some of the other features of Betterment.
As far as cash in Schwab, you can look at this:
https://investorjunkie.com/39634/schwab-intelligent-portfolios-review/
"Lastly, it should be said that the portfolio will always have a large percentage allocated toward cash. Based upon testing, it’s anywhere from 6 to 30 percent of the total portfolio, and cannot be removed." |
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Date: October 17th, 2017 7:27 AM Author: Cerebral domesticated point (http://www.autoadmit.com/thread.php?thread_id=3758590&forum_id=2#34461069) |