Wealthfront (long term) user review; 6 Year update
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- Опубліковано 13 жов 2024
- Six years, that's right I have been using and making videos about Wealthfront for SIX years now. Has Wealthfront made any changes to their service? You bet they have! However, it is not all sunshine and rainbows. What do I mean by that well you will need to watch to find out.
0:00: Intro
1:55: New portfolio options
4:09: Returns
8:40: Edit portfolio
10:17: Cash account
11:50: UBS Bank buy out
Welathfront 5k managed fee-free for Automated Investing account with this link: www.wealthfron... (referral link)
or
Extra 0.50% APY on cash account and 5k managed fee-free for Automated Investing account for 3 months with this link: www.wealthfron... (referral link)
Lolli Review: • Lolli: Earn Free Bitco...
Get Lolli: www.lolli.com/... (referral)
Marcus savings account: www.marcus.com... (referral link)
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#Wealthfront #Robo #HighYieldSavingsAccount
As of now a year after this video, I'm thinking of opening a checking and savings with this bank, It seems like much hasn't changed since sbs bought it, this video was 10/10, I just turned 18 so hopefully under a year or two I'll open a roth ira with wealthfront. Again amazing video
Happy you found it so helpful. Just a follow up the SNB buy out ended up not going through. So Wealthfront is still a stand alone company. I am working on a new follow up video. Here is a preview... still using this as my primary means of saving and investing.
@@Wanderer001_Reviews cant wait to see it
@@dawsonguam5700 Just throwing it out there if you have not seen the 6.5 year update yet. (ua-cam.com/video/_zjZTfoTP8c/v-deo.html) To hold you over while I am working on the 7 year update.
Hi! I have an individual Investment account and a savings account with Wealthront. Would you still recommend opening a Roth IRA, especially since I don't have a 401k? Is investing in stocks on your own a better option?
I am not a financial advisor so I can only tell you what I would do. Having an investment account and high yield savings account is great, but having a Roth IRA helps you save for retirement and has tax advantages to it that you would not get with a general investment account. Especially if your work does not offer a 401k you should think about opening up a Roth IRA.
@@Wanderer001_Reviews Thank you for your reply! I appreciate it.
Thank you for recommending this video brother truly appreciate you! I started a Wealthfront account so I will see how it goes I believe it will be great 😊
No problem, happy to help. Just remember wealthfront is a set and forget. With markets doing what they are currently might be best to not watch it day to day.
My issue as of late (after 6 months) is that Wealthfront's "Inflation Thrivers" bucket of stocks is doing anything but thriving. I've had a cash account for a bit now, but just started investing. So far I'm not impressed with the loss of money compared to managing the portfolio myself.
I know the market is anything but certain for any person or entity, however I would have thought a stock bucket designed to play it safe (as it were) during times of inflation would have at least done SOMEWHAT well, but no it's only losing my money.
I'm not convinced roboadvisors are efficient enough to manage a portfolio yet.
I think for what they started with which was index fu d I vesting robots like Wealth front work well. However once you start introducing humans picking stocks things are not good as you are hopping that the team picking them knows what they are doing. The tech behind Wealthfront is solid I just think their finance team still has some work to do.
The "o face" comment made me chuckle.
It just seems to be the new finance youtube meta.
Hi sorry I’m just starting so I’m a little confused. Does welathfront buy and sell stocks for you?
Kind of. You take a risk assessment when you setup your account. Based on that you are given a risk score. This score tells wealthfront how much to add into particular asset classes, i.g. US stocks, US bonds, REITs, etc. When you send money to wealthfront it buys shares in these asset classes for you. If you have a taxable account and have tax loss harvesting turned on it can also sell these assets and purchase like ones to help lower your taxes at the end of the year. I hope that helps.
Highly helpful video. Thanks.
Happy to help.
@@Wanderer001_Reviews :)
Thanks for your great Review. If I customize my portfolio how can Wealthfront rebalance it? Will the rebalancing feature be disabled?
If you customize your portfolio it is still part of one of the main asset classes. Wealthfront can do the math and keep things targeted to where you would like.
Can you please tell me since inception of your account how much has been overall your return? 7% ? 10%? Thank you so much
If i am calculating correctly annualized for my roth is 4.47% investment is about 3.43%
@@Wanderer001_Reviews wouldn't I want to stick to the 4% cash account then?
@@smoofwah3552 Well, part of that would be at the time when I was trying to calculate this the APY for the cash account was around 2%. Also, I was trying to figure out annualized reture for my IRA acocunt and investment account over all not the indivdule assents held in each which I might have done incorrectly. Right now this is what I am looking at for annualized returns:
IRA (start Jan. 2016)
US 12.55%
Foreing 7.16%
Emerging 6.93%
Dividen 13.09%
Real estate 4.49%
Corporate bonds 2.56%
Foreigne bonds 1.82%
Investment (start Setp. 2016)
US 11.78%
Foreing 6.14%
Muni bonds 1.05%
Emerging 3.78%
Dividen 10.47%
When you slide the little thing to change your risk does it readjust your current investments or just your future buys?
Depends on if it is an IRA or the investment account. If it is an IRA it will change right away as there are not tax implications to do this. However, with the investment account it will take longer to do as it will try to limit your taxes. So it could take a few deposits or tax lost harvesting events to fully execute your new score.
They absolutely suck at being able to do the basic things..like performing a full ACAT transfer if the link to the external service is broken. Extremely rigid and unhelpful when it comes to such customer requests. Cannot speak to anyone or get her anyone on a live chat, only email. The customer service experience with their service is extremely frustrating.
Hey quick question, what is your risk level and are you using the tax loss harvesting feature? I am new, but I noticed it sells and buy other index it just seems to be bouncing between two indexes... I don't see how useful that is
Does it really work well? Considering everything is going down.
For my non retirement account I have a risk score of 7.0 with some added tech stocks thrown in. The bouncing you see between two different indexes is what tax lost harvesting is supposed to do. What you get by doing that is a on paper deduction that you can take off your taxes at the end of the year up to 3k per year. With the down year we have been having I have seen about $139 in tax lost harvesting to date. The bouncing between the two different indexes is so that your % allocation for that type of index does not change. So you will always have X% in US stock even if to harvested some losses. Hope that helps.
What is your risk score set for your Roth?
6.5 with moving some of the % bonds into stocks but that was only a year ago.
@@Wanderer001_Reviews I’m pretty young and can generally handle a little more risk atm. But due to where the market “might” be going, do you think adjusting risk to lower would be beneficial? Or would it be a good time to keep the aggressiveness high if I can handle it?
According to wealthfront the only times to consider changing your scores are based on large life events IG getting married having children buying a house something like that. The rest of the time they suggest leaving your risk score at whatever you originally picked. Myself I have been happy that I have not played with my risk score when there has been Market volatility. But not Financial advice.
Do you think they are still worth it after backing out of their merger?
I was happy with them before. I was more worried about what would have happened after the merger. So for me I have no intention of stopping my use of it.
Thank you for putting this video together, really great overview for Wealthfront and appreciate the transparency in terms of numbers, growth, etc
Happy you found it helpful.
Thank you. 🙏
I use wealthfront but just for the savings account. Currently 3.8%.
That is how it all starts ;)
How does the 0.25% fee work? I heard it’s actually about 1.85% because of ETF fees. Say I reach $6000 for the year what would I be charged in fees?
I saw that too when I was looking as well. The 0.25% is the fee Wealthfront charges to use their platform to have them take care of everything for you. Which includes daily rebalancing if needed, daily tax lost harvesting, ect. The expensive ration that an ETF has is not charge by Wealthfront but rather from the provider of the ETF. So in this case we will say Vanguard because that is mostly what Wealthfront uses. The current fee charged for the Vanguard US stock ETF is 0.03% which is very low if you look around. The thing is not matter where you go to invest that Vanguard US stock ETF will always be 0.03%. So you really should not think of it as part of the fee for using Wealthfront. In relation to your question your fee for having 6000 in wealth front would be $2.50 for the year, because they will only charge you the fee on the 1k over the 5k managed free threshold. As for the ETF fees that is dependent on what your risk score is and is a little harder to place. But you can always look at the expense ration for each of the things that Wealthfront would put you in and calculate it that way. Just keep in mind that the expense ration on the EFT does not fall under Weatlhfronts 5k managed free policy and the expense ration for the ETF is charged by the provider of the ETF and would be the same no matter where you went.
@@Wanderer001_Reviews wow great insight! You definitely did your research! Ok so the fees charged aren’t that bad especially when compared to other platforms.
@@Alpha-Scythe23 Yes if I am going to trust my hard earned money with a company I want to make sure that I have done as much research as possible.
Keep in mind Wealthfront charges their fee for amounts over $5,000 (using standard referral codes) so the direct fee from Wealthfront would be $2.50 from Wealthfront, passive ETFs are often under 0.07% (a lot are under 0.03% so this is likely an over estimate), so the fees from ETFs would be in the $42 on the high end. So the total fee for $6,000 will likely be less than $44.50 or just barely more than the 0.007% fee used as a placeholder for ETF fees. If we used the 0.07% etf fee the expected fees for extremely large portfolios could be expected to be around 0.32%, but once again 0.07% is on the high end for ETFs so it will likely be a lot lower than that.
I’m glad they offer a cash account.
I am too just wish the % rate did not drop so fast.
Cash account 10:47
I respect your diligence, and smart investors will agree that slow and steady wins the race. I personally decided that my risk tolerance is unlimited, but my greatest fear is always that I will underperform a 60/40 portfolio over a 40yr period. Even if I put all my money into Ark funds I would probably underperform a 60/40 portfolio over a 40yr period.
I know I still have a few decades left before I am going to retire, but I have always been risk adverse. Even saying that I know I need to pick up my risk score a little more then what I have.
@@Wanderer001_Reviews I disagree, what you are doing is very smart
@@Wanderer001_Reviews Do whatever you are comfortable with. At this rate you should still be perfectly comfortable come retirement so if having a more bond or dividend heavy portfolio helps you sleep at night then by all means go crazy (or not).
@@word42069 Well these days it has helped when you see everything is red. Living in a high cost of living state does not help me much. So for me I would like to grow things a little more but I think I am keeping wealthfront where it is and will take advantage of a 457b where I work and make that my more aggressive holdings.
Do u still have to pay 500 dollars to start
The minimum balance required to start investing is still $500.
@@Wanderer001_Reviews oh dang thought it was cheaper
If you are looking at their savings account you can start that with $1. I think in minimum starting balance is what is is because they do not use fractional shares so you need that much to start off actually buying into things.
@@Wanderer001_Reviews so that’s what I saw on nerd wallet
@@boatenthusiastandexplorer6961 Depending one what you are looking to do M1 Finance you can start an investment account with just $100. I have my wife's account setup there. They do fractional shares, but don't do tax loss harvesting. I did a review of that service as well if you are interested: ua-cam.com/video/k9MvBfiLiAo/v-deo.html
Thanks for the video fantastic work
Happy to help.
still not sponsored, that’s wild
Not a finance Channel. Guess they figure they have been getting free advertising as it is.
The Graham shade... lol
No idea what you are talking about....;) More finance Youetubers in general. Graham just happen to be the first one I noticed doing spots for Wealthfront.
What did the cash account APY drop from/to at the date you made this video? I see it advertized today on Wealthfront at 4.55%. @wanderer001_reviews
Is 4.8 now