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I think you have things flipped. Since the fee is a percentage, roboadvisors are perfect for someone with relatively low assets. If you have millions you benefi
by argonaut 4y ago
I think you have things flipped. Since the fee is a percentage, roboadvisors are perfect for someone with relatively low assets. If you have millions you benefit more from spending the time to manage/rebalance everything yourself and also gain access to different investment opportunities/vehicles/services.
- Izkata 4y ago> If you have millions you benefit more from spending the time to manage/rebalance everything yourself Robo-advisors probably also save a ton of time come tax season. I've never used the traditional ones but if you're doing the management yourself I imagine they don't automate it like the robo-advisors do...
- deleted 4y ago[deleted]
- kibibyte 4y agoMy experience is that they usually complicate your taxes. In particular, past a certain asset threshold, Wealthfront will do something called "direct indexing", which basically invests your money in individual stocks the way an ETF would. It has TLH benefits, but at the cost of a massive 1099-B that you have to deal with every year.
- hedora 4y agoWealthfront has a turbotax import option. You tax accountant can press it too.
- bombcar 4y agoAnd if you do all your dirty work in an IRA or other privileged account, nobody cares.
- JumpCrisscross 4y ago> Wealthfront has a turbotax import option. You tax accountant can press it too Two issues: complexity of return and efficiency of turning pre-tax into post-tax income. Wealthfront is good at the former. It's half decent at the latter for moderate income levels. Above some threshold between $500k and $2mm, it's not the best.