Hey hometown, you are the one making the extraordinary claim that fees Wealthfront and Betterment charge are more than made up for by the extra performance they deliver.
Sounds awesome! How much is that extra performance exactly?
I have 0.0 expectation that you will respond with a number quantifying the out performance.
You're saying you need to compare it to what you'd have done alternatively. I would not have invested it all in an S&P 500 fund. I would have lost to the S&P 500 in either case because I'd have diversified. Would you have dumped it all into the S&P 500? Why or why not?
Uh, I explained what I meant previously, but maybe you missed it:
If you want to know what I'm saying look at the exact words I wrote in my post.
I'm saying you, alexpkeaton, will never, ever provide evidence of your claims of out performance. The sun will grow dim before you provide a single number that backs up your bold statements.
You will backtrack, change the subject, equivocate, make excuses, but one thing you will never, under any circumstances ever do is provide evidence. That's what I'm saying. You will never provide any numbers that validate your claims, ever.
You seem new to investing, so I'll throw you a bone: There is more than one way to measure performance. You don't have to compare yourself to the S&P500. You can and should just compare yourself to your desired asset allocation.
Let's say hypothetically, Wealthfront has you in 25% International, 50% US Large Cap, 35% Emerging markets. If you want to answer the question if Wealthfront is worth the costs, you could simply create a blended index, with the returns weighted by the percent in your portfolio. That's trivially easy to do. Use say, the FTSE Global All Cap ex US Index, the S&P 500 and MSCI Emerging Markets Index as benchmarkets. Then simply take the weight, multiply by the return, and add them all together. Should take you less than five minutes a year. Then you could see for yourself how much you are underperforming your blended index.
The reason why I said you seem new to investing is the
only reason to invest with Wealthfront is you make more money with them, than without them. That's true even if you only want them for their rebalancing services (there are other, cheaper ways to auto rebalance). But if you can't tell if they are making you more money...then you sound like a rookie.
Hey, everyone was a rookie once.