Top rated Wealthfront competitors in 2019: robo-advisor competing companies offering low priced automatic investing service.

Wealthfront Competitors Prices

Broker Review Stock/ETF
Commission
Mutual Fund
Commission
Maintenance
Fee
Annual IRA
Fee
Promotion
Offer
M1 Finance $0 na $0 $0 Invest for FREE - pay no broker commissions or fees.
Wealthfront na na 0.25% 0.25% None
Betterment na na 0.25% 0.25% None
Ally Invest Advisors na na 0.30% 0.30% Just 0.30% Annual Advisory Fee at Ally Invest.

In the beginning the biggest Wealthfront competitor was Betterment. Both companies offer similar services and pricing. Later a lot of copycats appeared but they offered little if any additional value.

All that changed when Ally Invest Managed Portfolios arrived. All other robo-advisors have, as the name suggests, computer program doing all the decision-making. With Ally, for a slightly higher fee they offer human auto-investing service. So basically with Ally Managed Portfolios you are getting something similar to wealth management that rich people get but at a price that's 3-7 times lower than what wealth management firms charge.

Another game changer has been M1 Finance. They offer both robo-advisor and discount brokerage service. With other Wealthfront competitors you are limited to just few ETF's and mutual funds. With M1, you can invest in all stocks and ETF's listed on either the New York Stock Exchange or NASDAQ. Amazingly, there is $0 investing cost. That's right — unlike other Wealthfront competitors with M1 you pay no annual management fee. The company makes money by offering additional optional services, such as borrowing money, debit card, etc.

WealthFront Review

Robo-investment advisors like Wealthfront are making it possible for the general population to take control of their future, and enter the market in ways not previously conceivable. It’s a very exciting time in fintech. As the years march on, no doubt there will be more innovations and ways to invest smartly with the help of AI and Big Data.  

The word 'saving' isn’t exactly something that brings joy to the hearts of the masses. In fact, 62% of Americans have less than $1,000 set aside in an emergency fund. A whopping 21% don’t have a savings account to speak of. Between the average person’s natural aversion towards planning for tomorrow, and the fear words like ‘Brokerage’ or ‘Individual Retirement Account’ can instill, it’s not surprising that a large percentage of the population neglects setting aside what they’re going to need for a stable future.

However, it's never too late to start. In our gadget-filled era, there’s an app for everything. It follows that there is increased access to financial planning tools and yes, even robotic investment advisors.

When it comes to investing with the aid of AI, there are quite a few players. Acorns, Betterment, and Wealthfront are among the most popular. Acorns is a micro-transaction service that’s getting Millennials interested in the world of investing by rounding up the spare change of every latte bought with a linked credit card and putting the difference in a low-cost index fund. It doesn’t offer retirement accounts at the time of this writing, but its low barrier for entry is something that couldn’t have existed so much as 10 years ago.

Behind the sleek automation, there is some real investing experience. The WealthFront's Chief Investment Officer is Dr. Burton Malkiel, the author of A Random Walk Down Wall Street, the book that “launched the low-cost investing revolution”. Not only is he a famous name in the industry, he’s a Senior Economist at Princeton University and has served on the President's Council of Economic Advisors.

Aside from great promotion offer WealthFront also has very low pricing: it charges a flat 0.25% fee. The minimum deposit for Wealthfront is only $500, which should not be too much for anyone serious about their retirement planning.


Wealthfront IRA


WealthFront IRA Offer

There are a lot of options to consider when making choices to fund your retirement. The traditional thought adopted by elder generations of working hard, saving your money and trusting your company and the government to take care of you upon your retirement has gone by the wayside over the past twenty years or so, and individual responsibility has taken a larger role in providing for the American retirement. As baby boomers reach retirement age, they are realizing that pension plans have diminished in value and 401(k) numbers have grown but with limited employer contribution, a relatively new option has blossomed for retirement funding: the Roth IRA.

A Roth Individual Retirement Account is a tax-advantaged, market incorporated retirement vehicle that is distinctive from 401(k)s and Traditional IRAs in that it is funded with after-tax dollars and both grows and is withdrawn tax-free. This is considered “advantaged” because the investment gains created by the IRA in the markets is not taxed. This means that as long as the first withdrawal occurs after age 59 ½, the value seen when the money is withdrawn is exactly the value received. Not coincidentally, it is thus arguable that investing in a Roth IRA is one of, if not the best plan to take personal responsibility for your retirement. Such a Roth is offered by the United States Automobile Association (USAA) and it has many desirable features accompanied with few minor drawbacks.


M1 Finance


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