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Those are two different issues though. Firstly, if you believe that you should hold your money through a crash, then you are free to do so whether or not you i
by startupdiscuss 8y ago
Those are two different issues though.
Firstly, if you believe that you should hold your money through a crash, then you are free to do so whether or not you invest through Wealthfront.
Secondly, that is a huge amount of money. Congratulations on making so much. Yes you can save that money by learning yourself but do value your time. If you are going to rebalance, tax harvest etc it can add up time wise.
Thirdly, learning yourself may not be about saving in the areas that the robo-advisor is good. You don't want to learn about tax harvesting because it is better to leave that automated. You might want to learn about a particular stock, but even that is better left to analysts and you can rent the research. I had a friend who worked at Goldman. He analyzed three stocks total. He worked 16 hour days. He knew more about any of those stocks than I ever could.
- pembrook 8y agoFor your average index fund portfolio, rebalancing has been statistically proven to actually make investor returns lower. The value of rebalancing is in keeping your risk profile constant, not increasing your returns. By selling winners you lose exposure to one of the most persistent risk factors: momentum. Also, the value of the TLH services provided by Roboadvisors have been grossly over-stated and they have since backed off form their initial claims. Read this for more info: https://www.kitces.com/blog/evaluating-the-tax-deferral-and-tax-bracket-arbitrage-benefits-of-tax-loss-harvesting/ https://www.kitces.com/blog/evaluating-the-tax-deferral-and-...
- startupdiscuss 8y agoI am not defending the choices they make. If you believe in rebalancing, let the robo-advisors do it. (I don't rebalance personally).