Wealthfront Review: A Robo-Advisor That Invests For You
- What is Wealthfront?
- How does Wealthfront work?
- How much does Wealthfront cost?
- Wealthfront features
- Who should use Wealthfront?
- Who shouldn’t use Wealthfront?
- Pros & cons
- Wealthfront vs. Competitors
- The bottom line
What is Wealthfront?
How does Wealthfront work?
- Roth IRAs
- Traditional IRAs
- SEP IRAs
- Rollover 401(k)
- IRA transfers
- Individual and joint taxable brokerage accounts
- 529 plans for college
How much does Wealthfront cost?
Free financial planning
College savings plans
Cash management account
Portfolio line of credit
Socially responsible investing
- Wealthfront 100 - For taxable accounts with a minimum of $100,000.
- Wealthfront 500 - For taxable accounts with a minimum of $500,000.
- Wealthfront 1000 - For accounts with a minimum of $1 million.
Who should use Wealthfront?
Those who want to make minimum financial decisions
Those with a large account balance and are in a high tax bracket
Those seeking low costs
Those who are not sure about their goals
Who shouldn’t use Wealthfront?
Those who want to work with a financial advisor
Pros & cons
- See the big picture: Wealthfront offers outstanding financial planning which enables you to see the larger picture. It is perfect for getting an overall sense of how your finances are currently doing. It allows you to synchronize complete financial information and does not restrict itself to your income, savings account, or your expenses.
- Goal-setting assistance: The platform goes in-depth for your goals like college savings and home purchases. You will be asked straightforward questions at the time of creating an account and the investment criteria are based on the goals you want to save and invest for.
- Ideal for multiple goals: Those who have multiple goals can see the trade-offs you will face through Path.
- Tax-loss harvesting: A major benefit of Wealthfront, tax-loss harvesting allows you to reduce the tax while maximizing returns.
- No online chat option: There is no chat option for prospective customers or customers to get information about the platform.
- No customization feature for small accounts: The portfolios below $100,000 are not customizable beyond the risk settings.
- No fractional shares: Fractional shares enable you to own a small part of a large company without spending a huge amount. However, it is not possible to purchase fractional shares through Wealthfront.
- No 401(k) assistance: A major drawback of Wealthfront is the lack of 401(k) assistance.
Wealthfront vs. Competitors
|Platform||Minimum investment||Advice||Account types|
|Wealthfront||$500||Automated||Several account types including college savings plan accounts|
|M1||$0||Automated||Only 5 account options|
|Betterment||$0||Human assisted||Individual, retirement, trust, and high yield savings/ cash account.|
Wealthfront vs. M1 Finance
Wealthfront vs. Betterment
The bottom line
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