Wealthfront - Legit Robo Investing? [Review 2019]

Welcome to my review of Wealthfront.

If you’re interested in learning more about the Robo Investing company Wealthfront then you’re in the right place.

You can get all the details on Wealthfront including it’s pros, cons and features down below.

Before I start…

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Wealthfront Review

Mobile applications, artificial intelligence machines, and robo advisors are popping up left, right and center.

This, in a bid to save money, time and provide solutions in a snap. A while ago, it took the services of a financial advisor to take one through their financial plans, help them set goals and direct them along the path that would most likely guarantee success.

However, this was a long, expensive process that was marred by uncertainties and took days or even months to carry out and you were never sure how reliable the information given by their financial advisors was.

For this reason, Wealthfront, a robo advisor was invented. Wealthfront is of course not the only robo-advisor out there, in fact I’ve already reviewed major competitor Betterment and also done a comparison article Wealthfront vs Betterment so be sure to check that out too.

wealthfront review

What is Wealthfront?

Wealthfront is an automated investing service unveiled in December 2011 and is aimed at enabling users to invest their money.

The platform has grown in leaps and bounds to accumulate assets worth $10.5 Billion and counting.

How Does Wealthfront Work?

A user begins by opening a Wealthfront account. Thereafter you deposit an amount not less than $500.

In addition, you cannot withdraw funds below $250. Your funds are then sent into a pool of Exchange-Traded Funds-ETFs.

You have the option of investing money from your individual retirement account.

Note that Wealthfont does not hold any money but instead, the platform works in conjunction with The Royal Bank of Canada –RBC where all the money is held.

Numerous robo investing platforms use a variety of saving options. Wealthfront uses a saving service dubbed Path.

Path helps people achieve their financial goals aimed at financing major projects such as college, buying a home, and retirement among others.

The Path savings model works by considering information acquired from your mortgage accounts, trusts, joint bank accounts, and external savings accounts, among other accounts.

Wealthfront provides you with financial advice specific to your overall situation.

Thereafter the user is presented with structures that show whether or not you are taking the right path and getting closer to hitting your goal or if you are straying away from achieving your goals.

In case you are not on the right financial path, Wealthfront provides you with a variety of options to help you get back on track.

Often when you have some money and you want to invest, you ask yourself numerous questions.

Some of these questions include:

Will you be able to maintain the same life you have now once you are retired?
How much money will you be worth by the time you hit retirement age?
How much cash can you save today?
Are you on the right track and are you saving enough cash for that home?
Are you close to hitting your savings goals for your child’s college money?

This are all questions and uncertainties that can easily be answered almost instantly by using Wealthfront.

Wealthfront – Rules and Perks

There are numerous requirements and perks that come with using Wealthfront.

They include:

In case you want to leave your financial advisor or move from your brokerage firm to join Wealthfront, you can only do it in cash. This may force you to sell your shares and holdings.

The Path app furnishes you with algorithms that help you plan and save wisely for your:

Retirement
fees
Home buying

You get rewarded for referring other people to join. For every person you refer, you get $5000 of your savings managed for free.

You may end up paying less tax. For every taxable account with $100,000 or more, the stock level tax-loss harvesting service allows efficient taxation.

If you are joining for the first time, you get $5000 free management for college fund savings through the 529 college savings plan.

The Smart Beta service measures the market indexes to allow you to register better returns.

You must, however, have at least $500,000 in your Wealthfront account to be eligible for this service.

If you have at least $100,000 you are eligible to borrow money through the Portfolio Line of Credit service. You are allowed to borrow up to 30% of the amount of money you have in your Wealthfront account with an annual percentage rate-APR of 3.25% to 4.50%.

The path service can even advice the user and help him/her determine the best moment to take time off from work. The service shows you how taking time off will impact your financial goals by telling you how much time you can take off without hurting yourself financially.

Wealthfront Verdict

With Wealthfront, you only pay fees amounting 0.25% of your account balance per annum. This as opposed to paying hundreds or thousands of dollars to an actual financial advisor who can only give you a fraction of what Wealthfront gives you. There are numerous other good features that come with using Wealthfront that guarantee better financial planning and management. All in all if you were thinking about getting started with them then I have no reason not to recommend them.

That being said you should always look at the alternatives available, many of which I have recently shared reviews of.

Before you leave

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Mark Charles

Mark Charles is the founder of NoBSIMReviews and has been making a 6-figure income online for over 10 years.

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