Author Topic: WealthFront versus Betterment?  (Read 3505 times)

MoonShadow

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WealthFront versus Betterment?
« on: August 28, 2015, 01:48:41 PM »
I'm trying to decide where to put my wife's Roth IRA, which she doesn't want me to be able to "screw with" (her term for me managing the investments directly), but nor does she want to do it herself.  So, since I don't have enough funds to open her a managed account at the Mutual Fund Store (which she liked, but require $50K to start) I have worked it down to these two automated advisor websites; WealthFront & Betterment.  I'd like to hear about experiences from the crowd.

ShoulderThingThatGoesUp

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Re: WealthFront versus Betterment?
« Reply #1 on: August 28, 2015, 01:50:07 PM »
I think Schwab will let you open an IRA, fund it, and not charge you any fees. So you could just put it all in SCHB, their version of VTSAX, commission-free, and then walk away.


MoonShadow

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Re: WealthFront versus Betterment?
« Reply #3 on: August 28, 2015, 02:53:35 PM »

What doesn't she like about VTTSX (or similar)?

She is a computer luddite.  She actually has our teenagers look up websites for her, or do pretty much any kind of online research on her behalf.  For her to pick a diversified fund, she would either have to do the research, or trust me to do it for her.  She doesn't trust the stock market as a rule, mostly because it's complicated, and she fears that there are too many ways for her (me?) to screw it up.  I can't claim I've never made mistakes, but basicly she would trust a professional advisor over her own husband; based upon the idea that he is a professional investor and I am an amateur.  So I can't really even recommend an index fund, or standard balance, because she doesn't trust my judgement in this matter.

MDM

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Re: WealthFront versus Betterment?
« Reply #4 on: August 28, 2015, 03:11:27 PM »
She actually has our teenagers look up websites for her, or do pretty much any kind of online research on her behalf.

Any chance the teenagers have earned income, are thus eligible for their own Roth IRAs, and could be guided appropriately toward index funds?  And then enlisted to say "Hey mom, look what we found!"?

MoonShadow

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Re: WealthFront versus Betterment?
« Reply #5 on: August 28, 2015, 03:18:22 PM »
She actually has our teenagers look up websites for her, or do pretty much any kind of online research on her behalf.

Any chance the teenagers have earned income, are thus eligible for their own Roth IRAs, and could be guided appropriately toward index funds?  And then enlisted to say "Hey mom, look what we found!"?

Not soon.  My teens are homeschooled, and I hoped that would give my 15 year old daughter an edge in scheduling, but it hasn't worked out for her so far.  Also, I have found it rather difficult to find any institution that is willing to open a custodial Roth IRA for a minor, wage income or not.  So far, only the Mutual Fund STore; which still requires a $50K minimum total account to get started, and our insurance company (Nationwide) has stated that they are willing to do it.  The MF store is, by definition, managed; and the Nationwide IRA is pretty much just the bonds of the company, and is otherwise managed by Nationwide also.

milesdividendmd

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Re: WealthFront versus Betterment?
« Reply #6 on: August 29, 2015, 04:19:39 PM »
Betterment is top notch. they have fantastic customer service. Constant improvement of the product, a pleasure to do business with.

I can't say enough good things about their service.

That being said, their real sweet spot is with taxable accounts.

For your wife, why not just purchase a vanguard target date fund, appropriate for her risk tolerance?


MDM

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Re: WealthFront versus Betterment?
« Reply #7 on: August 29, 2015, 06:10:48 PM »
Any chance the teenagers have earned income, are thus eligible for their own Roth IRAs, and could be guided appropriately toward index funds?  And then enlisted to say "Hey mom, look what we found!"?
Also, I have found it rather difficult to find any institution that is willing to open a custodial Roth IRA for a minor, wage income or not.

You might click through the first link in the link behind "eligible for their own" above. ;)

The short version: Schwab Custodial IRA (and the word "Custodial" is important in finding the correct option).

MoonShadow

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Re: WealthFront versus Betterment?
« Reply #8 on: August 30, 2015, 08:50:05 PM »
Any chance the teenagers have earned income, are thus eligible for their own Roth IRAs, and could be guided appropriately toward index funds?  And then enlisted to say "Hey mom, look what we found!"?
Also, I have found it rather difficult to find any institution that is willing to open a custodial Roth IRA for a minor, wage income or not.

You might click through the first link in the link behind "eligible for their own" above. ;)

The short version: Schwab Custodial IRA (and the word "Custodial" is important in finding the correct option).

Opps. Sorry, I didn't notice that was a link.  Thanks,though.