Hey everyone, With so many options to invest using robo advisors like Wealthfront, Betterment, Scwab intelligent portfolio, etc., would you guys like to share your experience if you are using any of them? I am thinking if I should go with these robo advisors or not. If not, why not and if yes then which one to choose and why? Currently I am investing in funds only through HSA and retirement accounts like 401k and IRA. Considering tax loss harvesting done by the robo advisors and the wash sale rule, planning to have just one taxable investing account. Any help will be appreciated. TIA yoe: 8yrs tc: 160k
Have been using wealthfront. It offers free tax loss harvesting. It uses index funds and do diversitification automatically.
Howz your gains looks like? Any pros and cons you can think of when compared to other robo advisors?
Only one Financial DIY tool - TINO IQ
Never heard of it, will surely check. Thanks
Absolutely fucking not. The reviews all sound like clickbait. If you want to learn how to manage your money: 1. The richest man in Babylon 2. The intelligent investor Do not treat those books as the bible, but rather general guides to LONG TERM investment mentality. Save your money. Invest a reasonable amount. Know the difference between investment and speculation. Never invest more than you can stand to lose.
So far pretty happy with Wealthfront
Howz your gains looks like? Any pros and cons you can think of when compared to other robo advisors?
Was deciding between Wealthfront and betterment initially, but there’s pretty much no difference. Biggest thing for me is the tax loss harvesting
Buy some vti every paycheck, it doesn't take a startup to do that for you.
Thanks for your opinion 😄
I’ve also been pretty happy with wealthfront as well. It is comparable to betterment. Daily tax loss harvesting is really nice, and doing the math is going to Net out better in the long run than most 3 fund portfolio strategies. Since you are asking about gains, YTD is looking like 25% growth time-weighted
No. In 4+ years my robo advisor returned 40% on a 10K sample amount while the stock market returned 60%+. So skip the robo advisor and just do an S&P500 index fund. If you want to play a bit more also do Dow and Russell and maybe some MSCI Emerging markets. You don't need bonds (atleast not in this low interest environment). This is easiest to monitor and no robo advisor will beat the returns.
4 year is not even close to a long enough horizon to draw any sort of conclusion, and this analysis completely neglects the actual benefits of roboadvisors which are not in the returns (tax loss harvesting, better diversification, automatic rebalancing, etc.)
That’s because it is a bull market, once market turns, it will be very difficult to say what is better. Also returns also mean nothing if not compared to risk level, going 100% on index fund is more risky of course it offers better returns.
Repeat after me: V A N G U A R D E T F
C H U T I YA spotted