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So it's passive investing with a pretty interface and a 0.9% fee. No thanks. Users would be better off just deciding how much they want to risk in stocks vs b

by Kadin 16y ago

So it's passive investing with a pretty interface and a 0.9% fee. No thanks. Users would be better off just deciding how much they want to risk in stocks vs bonds, and moving it into Vanguard. The major difference is that Vanguard doesn't try to fool you into thinking that a mutual fund is really a savings account. Anyway, good luck to 'em, but I hope consumers are smart enough not to be interested. Then again, I doubt anyone has ever gone broke betting against the intelligence of the average American consumer, particularly when it comes to finance and investing.

mos1 16y ago
They charge 0.9% to put the money into Vanguard and iShares ETFs. This is not professional advice but I can't understand who needs this product. For investment, most people should be trying to max out their 401(k)/*IRA options, and the people who still have a lot of money left after doing so would likely benefit from more thoughtful investment and wealth management strategies. If somebody needs some emergency cash, it's unlikely they want to keep it in an instrument that can lose value, since that defeats the point of emergency cash. And frankly, if they don't want to be thoughtful, there are already products that are even easier to use. The Vanguard Target Retirement funds, as an example, require only that you pick your planned year of retirement, then the asset allocation is automatically handled for you. Added bonus: it's cheaper than betterment.