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I was looking at both Wealthfront and Betterment and it seems Wealthfront used to be a startup that actually did something with actively managed hedge funds. It kind of made me second guess WF as an investment site that can really be trusted, although what they have up now looks good. I'm interested to see if anybody else uses Wealthfront or Betterment and what they recommend. Is WF or BM the one that rebalances with bands?
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Apr 16, 2014 04:13
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| # ¿ May 10, 2024 08:59 |
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From the quora reply I read: "Wealthfront has changed its business model and focus many times since launching, from a Facebook game, to a social investing site called Kaching, to a separate account marketplace evangelizing active portfolio management, to an investment advisor technology and distribution platform, to its current solution as a software based advisor for the tech crowd evangelizing passive portfolio management, as well as more recently offering tech startup compensation guides and research. There is nothing wrong with a startup pivoting but there will always be a lot of uncertainty hovering over your Wealthfront account, since they have done complete 180s in the past about what they believe (i.e. building a platform touting active management as the best way to invest and then completely reversing track and marketing passive index based investing). Betterment has always had the same focus and model to make investing simpler and easier." Also this since I'm going to be investing over $100k: "They are both in the same price range, but the fee for Betterment gets lower as you add more money, which is customary in the investing space, whereas Wealthfront is free up to $25k and .25% after this, which doesn't entice you to add more money. However, Wealthfront says they have added tax loss harvesting functionality for clients with over $100k in taxable accounts which according to their research will save the client money: Tax-Loss Harvesting" I'm torn because of the tax-loss harvesting, which I think is beneficial, but haven't decided yet.
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Apr 16, 2014 04:53
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