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I like the idea of Wealthfront but I can't imagine why anyone would pay any fee for the service. Perhaps that's why Schwab has a fee free robo advisor, and sur

by notadoc 10y ago

I like the idea of Wealthfront but I can't imagine why anyone would pay any fee for the service. Perhaps that's why Schwab has a fee free robo advisor, and surely every other brokerage and bank is working on the same thing.

rev_bird 10y ago
I think it probably depends on how much you stand to gain from automated tax-loss harvesting: If you don't have the time/skills to do it yourself, strategically selling depreciated stocks (then, potentially, buying them again later) can cancel out a lot of the taxes you'd pay on gains elsewhere in your portfolio. If the Wealthfront fee is less than you save, seems like it'd make sense.
- notadoc 10y ago
  OK, but don't you think the same service will be offered fee-free from robo advisors from big banks and brokerages? That's my guess, anyway.
  - sushid 10y ago
    Do you know of any places that offer this automated service?
    - notadoc 10y ago
      Schwab has a free robo advisor, Vanguard has a fee robo advisor, iShares has a little robo portfolio generator. I'm sure there are others too.
  - vehementi 10y ago
    Banks yes (as they put you into high MER funds), brokerages no
rbcgerard 10y ago
I think the calculus for many people, is: i could do this myself pretty easily, but I'd rather pay $200-400/year per $100k not have to do anything than spend X hrs a month dealing with it...
astrange 10y ago
Brokerages with no flat fees like to charge you per-trade, and Schwab requires you to keep some of your contributions in cash so they can skim off the interest. They've all got to make money somehow. I'm guessing the dedicated robo-advisors will end up being the cheapest services, since they're online only and don't need to keep all those bank buildings and old guys in suits around.
Spooky23 10y ago
The typical discount broker customer isn't a Robo customer -- they're fishing for people who give some dope in a suit 1% of their assets every year for generic advice and a shoulder to cry on.

by notadoc 10y ago

rev_bird 10y ago

I think it probably depends on how much you stand to gain from automated tax-loss harvesting: If you don't have the time/skills to do it yourself, strategically selling depreciated stocks (then, potentially, buying them again later) can cancel out a lot of the taxes you'd pay on gains elsewhere in your portfolio. If the Wealthfront fee is less than you save, seems like it'd make sense.

notadoc 10y ago
OK, but don't you think the same service will be offered fee-free from robo advisors from big banks and brokerages? That's my guess, anyway.
- sushid 10y ago
  Do you know of any places that offer this automated service?
  - notadoc 10y ago
    Schwab has a free robo advisor, Vanguard has a fee robo advisor, iShares has a little robo portfolio generator. I'm sure there are others too.
- vehementi 10y ago
  Banks yes (as they put you into high MER funds), brokerages no

rbcgerard 10y ago

I think the calculus for many people, is: i could do this myself pretty easily, but I'd rather pay $200-400/year per $100k not have to do anything than spend X hrs a month dealing with it...

astrange 10y ago

Brokerages with no flat fees like to charge you per-trade, and Schwab requires you to keep some of your contributions in cash so they can skim off the interest. They've all got to make money somehow. I'm guessing the dedicated robo-advisors will end up being the cheapest services, since they're online only and don't need to keep all those bank buildings and old guys in suits around.

Spooky23 10y ago

The typical discount broker customer isn't a Robo customer -- they're fishing for people who give some dope in a suit 1% of their assets every year for generic advice and a shoulder to cry on.