Wealthfront Review, Historical Investment Return

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I wanted to write this Wealthfront review because it’s one of my favorite investment platforms. I keep the large majority of my extra cash with Wealthfront because their automated investing tool has given me the best return out of all of my investments. With so many Robo-Advisors available today, it’s hard to pick just one.

Wealthfront Review
Average investment return of someone with a risk level of 5.0

I started using online investment platforms a few years ago and have watched them grow in popularity over time. I have tried Betterment, Wealthfront, Lending Club, Fundrise, Robinhood, and TDameritrade. They all have their pros and cons but the one I recommend for most people is Wealthfront because it’s the easiest way to get returns from passive investing. Other platforms require more work and introduce much more risk if you’re picking your own stocks.

wealthfront historical return chart

Wealthfront automatically invests in low-cost baskets of stocks and bonds on your behalf. It uses artificial intelligence to know when to buy and sell. These baskets are commonly known as ETFs or exchange-traded funds. Financial experts recommend investing in ETFs over individual stocks because it diversifies your investments and lowers your risk.

  • No fees on balances under 5,000 USD. Requires that you use a referral link.
  • 500 USD minimum to open an account.
  • 0.25% advisor fee on investments over 5,000 USD, about a quarter of the cost of a traditional investment advisor. So 10,000 USD invested would could $2.08 a month in fees.
  • Tax Loss Harvesting. This is designed to reduce your tax bill by capturing investment losses due to movements in the market. Many investment platforms don’t have this, or they charge extra for it.
  • Digital financial planning tool. This helps you strategically plan for big financial purchases like buying a home or vehicle and gives you a better idea of when its the best time to pull the trigger.
  • Risk management. Wealthfront asks you a series of questions when opening your account. These questions help determine your level of risk and assign you a score from 1-10. Score level 1 equals low risk while score level 10 is high risk. Low risk won’t have as much growth but your money is safer from swings in the market. High risk equals high growth but your more likely to go through big downturns in the market.
  • Simply the best roboadvisor. Wealthfront was awarded best roboadvisor by NerdWallet and Investopedia!

Wealthfront is one of the oldest roboadvisors available, it has a great reputation and I highly recommend it. Thanks for reading my Wealthfront review.  If you use my referral link, we will both get 5k managed for free.

1 comment

  1. The stock market is crashing hard right now because of the corona virus. Do you think it’s a good time to invest during this pandemic?

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