Chances are you’ve seen the term “tax loss harvesting” if you’ve read about popular robo advisors such as Wealthfront and Betterment. Both of these services offer it as a feature. But what exactly is tax loss harvesting, or TLH, and how can it help your investment portfolio?
Whether you envision yourself sitting by the pool drinking Dom Perignon or jumping in piles of gold coins a la Uncle Scrooge, you can’t deny that the thought of being uber-wealthy makes for a good daydream. And some of us even think we can achieve those untold riches in no time through investing. So is there an investment that can get you rich quick?
With so many robo advisor platforms on the market today, finding the one that best suits your individual needs can be a challenge. That’s why we’ve created this comparison of two of the most popular services, Betterment and Vanguard Personal Advisor Services. Both products have each received excellent ratings from our reviewers. So which one is better? Let’s put them head-to-head and find out.
Robo advisors came onto the investment scene less than a decade ago, but you can already see the effects sweeping through the industry. For investors, robo advisors are changing your investment options, fees and how you interact with investment services. Here are five notable ways robo advisors are changing the industry.
Let’s face it: A lot of us just don’t have enough money. A recent survey by Bankrate revealed that only 39% of Americans have enough in the kitty to cover a $1,000 emergency. Clearly, we need to grow our wealth — and ideally, through investing. But why should we go broke trying to do so?
Robo advisors are among the hottest developments of the financial technology (fintec) era. With their advanced investing and trading algorithms, they can help you grow your retirement and investment nest eggs. But they’re just for technology-addicted Millennials, right? Wrong!
Thanks to the rise of robo advisors, investing for the future is now more accessible than ever. You don’t have to spend a lot of time or money hiring a financial advisor to create a complicated asset allocation to receive the best returns possible. Robo advisors now have the technology and computer software to do this for you — all at a lower annual fee.
Betterment is not like any other broker we’ve reviewed. It’s set-and-forget investing for individuals wanting automated financial guidance at a low cost. You create a goal, and Betterment creates a personalized investment plan. Better yet, with these promotions, you don’t need to pay any fees. Read our review of Betterment to get a better idea of what they are about.
Johnny Depp, Hollywood’s fifth highest-paid actor, made headlines in June 2017, not for taking home a top prize at Cannes or being photographed on the beach with a topless model, but because a lawsuit filing revealed that — despite the millions he commands per movie — his finances are a mess. In short, Jack Sparrow lives paycheck to paycheck.
A new robo advisor seems to be popping up every few months. Some have become more popular than others. Currently, two of the most popular services are Betterment and Wealthfront. In this comparison review, I will break down key features of each service and state which is better. In many ways, both automated investment services function in a similar fashion. But there are differences between the two robo advisors, and you might find that one will better suit your situation.