WEALTHFRONT REVIEW: AUTOMATED INVESTING & FINANCIAL PLANNING

Wealthfront has garnered positive feedback for its user-friendly interface and automated investment strategies, which make it a hit among those new to investing. Clients appreciate the convenience of hands-off portfolio management and the platform's tax-loss harvesting feature. However, some users have expressed dissatisfaction with customer service response times. Despite this, the low fees and comprehensive financial planning tools offered by Wealthfront continue to attract customers looking for a straightforward approach to growing their wealth. Overall, the sentiment leans towards satisfaction with the ease of use and innovative features that cater to long-term investment goals.

OVERVIEW OF WEALTHFRONT

Wealthfront, my primary selection for automated financial advisors and particularly notable for its goal-oriented approach, is one of the original creators of such services. It boasts 520,000 users and manages $34 billion in assets.

Wealthfront provides a selection of over 200 ETFs, which you can integrate into your existing investment portfolios or utilize to construct an ETF portfolio from the ground up.

PROS AND CONS OF WEALTHFRONT

I will now take you through some of the pros and cons I have experienced using this broker.

PROS

Wealthfront presents an advanced range of financial products that attracted me to embark on long-term investment journeys.

I use Wealthfront’s Path tool to access great insights from Wealthfront’s robo-advisor without a full commitment. Upon investing with Wealthfront, I didn’t need to make further decisions on the platform following the initial questionnaire. Like other automated advisors, Wealthfront provides a portfolio tailored to my risk tolerance, featuring low-cost funds that minimize fees.

Wealthfront signup questionnaire

Wealthfront also ensures ongoing adjustments to my portfolio to prevent it from straying towards higher risk or more conservative asset allocations. It employs tactics like tax-loss harvesting to reduce my tax liabilities. In the future, with all features operational, their Self-Driving Money feature will even suggest the optimal utilization of each newly deposited dollar into my account!

CONS

If you’re seeking extra guidance and interaction, Wealthfront might not be your best choice. Unlike certain automated advisors, there’s virtually no human element available when I require assistance in comprehending certain aspects of my investments—Wealthfront takes the “robot” aspect of robo-advisor quite seriously.

Although Wealthfront offers numerous features that provide an advanced perspective of your financial situation, they might also seem a bit overwhelming. This isn’t necessarily a downside: gaining extensive insights into your finances at a relatively low cost can be highly advantageous.

However, suppose you’re easily put off by linking accounts or uncomfortable sharing a substantial amount of personal information with a single company. In that case, you might consider using only Wealthfront’s investment-related features.

From a more technical standpoint, Wealthfront requires you to maintain a slightly higher cash balance than you otherwise would. This is due to two reasons: firstly, it sets aside the funds I’ll owe in fees for the year, and secondly, Wealthfront doesn’t permit the purchase of fractional shares of ETFs. As a result, the platform retains my funds until I can acquire a total new share.

While I acknowledge Wealthfront’s lack of fees on its banking product, you can find better interest rates with other savings accounts. Therefore, it’s most convenient to use Wealthfront Cash for ease and accessibility.

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