4 ms·
I haven't switched to a roboadvisor product for a few reasons, but one of them is that saving for retirement is a decision you make on a 30+ year timeline. Most
by nateberkopec 10y ago
I haven't switched to a roboadvisor product for a few reasons, but one of them is that saving for retirement is a decision you make on a 30+ year timeline. Most startups hardly last 3 years, much less 30. Why would I trust my money to an industry where the typical case is a flameout in only a few years?
- tehlike 10y agobuffet's advice will work for some 30 year horizon just fine.
- lukejduncan 10y agoIt's a fair concern. Both Wealthfront and Betterment are Broker dealers and they have legal obligations in the event of going out of business. Wealthfront spells it out as: "In the unlikely event Wealthfront were to cease doing business, your account would be held by our brokerage partner until you transferred your account to a new broker or chose to liquidate your account to receive a check." https://support.wealthfront.com/hc/en-us/articles/211004083-What-would-happen-to-my-account-if-Wealthfront-were-to-be-acquired-go-public-or-cease-doing-business- https://support.wealthfront.com/hc/en-us/articles/211004083-...
- harmegido 10y agoThis is the same concern I had, though it's important to point out that if you had money in Betterment/Wealthfront and they went under, it would just be an inconvenience as you'd retain your investments.
- mabbo 10y agoIf their companies go under, it shouldn't affect your assets- that's not part of their balance sheet. You can move then elsewhere after they flame out, and have paid only 25 bps for a few years in the meantime.