Building real wealth takes discipline and consistency. As humans, it’s hard to always be disciplined and always be consistent. Luckily, there are now tools available to make this a problem of the past.
If you want to accelerate the rate at which you’re building wealth, you need to start leveraging the resources available to you.
One financial tool that’s helping drive this change is FutureAdvisor. Take a look at how FutureAdvisor can give you the boost you need to grow your money faster.
FutureAdvisor – Making Wealth Management Easier
FutureAdvisor is an online wealth management platform that uses the same investing strategies that were once only available to high net worth individuals. Since FutureAdvisor leverages technology, they can now bring these same levels of services to everyone.
Another cool thing about FutureAdvisor is that they focus on tax efficient investments, which is something is especially important if you’re not investing inside of a retirement account. When you sign up for an account with FutureAdvisor, they will give you your own financial plan and show you how to better grow your money and reach your retirement goals.
There are both free and paid services available at FutureAdvisor.
If you sign up for a paid direct management account, FutureAdvisor will trade in your accounts for you based on the risk profile that you set up. They will look to maintain and maximize your current investing strategies. If you sign up for the free account, you will only be provided with recommendations for your portfolio allocation and best practices.
How FutureAdvisor Works (Setting Up Your Account)
When you sign up for a free account with FutureAdvisor, you’ll first fill in your basic information such as gender, income, risk tolerance, marital status, and number of children. After doing this, you’ll be directed to a page where you can link up your brokerage accounts. After entering your username and password for your online brokerage account or 401k, it takes FutureAdvisor about five minutes to pull the information.
After linking up your account(s) you’ll be taken to a screen like this:
This screen shows you your current path vs. your best path. When you scroll down, you can see if your portfolio is following best practices and also how FutureAdvisor can help make improvements.
In this example, four out of nine of the best practices were followed. Specific recommendations were given where each of the best practices were not followed.
You can also add other goals to your FutureAdvisor plan, such as college savings for your children.
If you do this, FutureAdvisor will help you determine how much you need to save, a specific savings plan, and even open up the best college savings plan for you for free.
If you want more than just the free retirement portfolio analysis, you can sign up for Direct Management, where FutureAdvisor will directly make investments in your brokerage accounts for you.
Here’s how that works.
Direct Management of Assets with FutureAdvisor
FutureAdvisor believes that long term diversified investing brings the best results overtime. They invest through Fidelity or TD Ameritrade, and diversify and rebalance your portfolio through ETFs that are chosen specifically for you.
If your accounts are not currently with Fidelity or TD Ameritrade, FutureAdvisor does the paperwork for you to consolidate them and move them over. This is part of their service. Do note that if you’re currently contributing to an employer sponsored 401k that is not through Fidelity, FutureAdvisor will not be able to directly manage it.
The accounts that are supported for direct management are:
- Rollover 401ks
- SEP IRAs
- Roth IRAS
- Traditional IRAs
- Individual and Joint Taxable Accounts
With the premium Direct Management Plan, FutureAdvisor will auto-rebalance your portfolio, look for tax saving opportunities daily, and manage all of your brokerage accounts.
They do this by making sure your asset allocation never goes too far off balance and are able to rebalance in an instant if your personal situation or retirement needs change. Rebalancing is normally done four to six times per year.
This service really is fantastic for anyone who wants smart financial advice without the traditional financial advisor. Or just doesn’t want to deal with constant monitoring of their investments. Of course, all of these features are not free. If you’re wondering about the cost please see below.
How Much Does it Cost?
To make things clear, FutureAdvisor will not automatically trade or rebalance for you with the free version. Instead they’ll give you a snapshot of your portfolio and what you could be doing better. The actual implementation is left to you.
If you want FutureAdvisor to manage and optimize your investments for you, they charge:
- Gold Plan: $49/year, which also gets you call time with a live advisor and 24/7 portfolio monitoring, or
- Platinum Plan: $195/year, which gives you face-time and unlimited video calls with an advisor
When they initially rebalance your portfolio you may also incur some commission fees. However, they only choose to incur the fees if the projected benefits outweigh the costs. The possible initial transaction costs at TD Ameritrade are $6.95 per stock/ETF trade and no-load mutual funds have a $49.99 transaction fee. The fees at Fidelity are $4.95 per stock/ETF trade, and a maximum of $50 per mutual fund trade. Once again, these costs may only be incurred at the initial rebalance and that depends on your current investments, goals and risk tolerance.
Future rebalances are normally $0 since they invest in commission free ETFs almost exclusively.
Is FutureAdvisor For You?
FutureAdvisor is for anyone who wants to make sure their portfolio is running at an optimum level. They use cutting edge technology to make sure that your money is invested in the most efficient way possible, according to your specific goals and level of risk tolerance. Here’s an example:
If you don’t want to worry about rebalancing and optimizing your portfolio, or looking for tax saving opportunities, and would rather this be done for you, then FutureAdvisor is a fantastic option.
You can check out FutureAdvisor here.
This post was sponsored by FutureAdvisor, but all opinions and commentary are my own.