Dear Investor,
The rich get rich by buying appreciating assets like stocks, bonds, real estate, companies, and fine art. The people who don’t get rich spend their money on depreciating assets like cars they can’t comfortably afford, and clothes that are never worn more than a few times a year. It takes discipline to invest your money for a brighter future.
One of the biggest push backs I hear from readers who want to get rich, but don’t want to invest is that investing costs too much and is too complicated. All this changes with Wealthfront, the leading digital wealth advisor, which charges zero fees for the first $15,000 you invest and makes sophisticated investing easy. Wealthfront only charges 0.25% for every dollar over $15,000 with my link ($10,000 if you sign up elsewhere). Compare that to paying 1% – 2% in fees charged by many mutual funds and advisors. Currently, Wealthfront manages roughly $5.5 Billion in client assets and is based right here in my hometown of San Francisco.
PASSIVE INVESTING IS THE BEST
Over the long run, it is very hard to outperform the stock market. In 2014, 86% of active fund managers underperformed the S&P 500. Yet they were still paid their outrageous fees!
A better way is to automatically contribute to a digital wealth manager like Wealthfront, that never forgets to rebalance your portfolio every month with low-cost ETF funds based off your pre-determined risk tolerance. All you’ve got to do is methodically contribute to your account every month just like you do for your pre-tax 401k. They make automatic contributing easy by just adding your checking account to your Wealthfront account. Don’t let fees kill your long-term performance!
Wealthfront uses sophisticated algorithms to make sure your money is being best allocated. They’ve got an incredible investment team headed by CIO Dr. Burton Malkiel, Princeton Professor, and author of A Random Walk Down Wall Street, which helped launch the low-cost investing revolution by encouraging institutional and individual investors to use index funds. In addition to Dr. Malkiel, Wealthfront employs a team of eight PhDs to continually optimize its investing process.
In addition to automatically rebalancing your investments each month, Wealthfront also conducts tax-loss harvesting to optimize the returns of your portfolio. Tax loss harvesting is the practice of selling a security that has experienced a loss. By realizing, or “harvesting” a loss, investors are able to offset taxes on both gains and income. The sold security is replaced by a similar one, maintaining the optimal asset allocation and expected returns.
TRY FOR FREE BEFORE INVESTING
If you have doubts about using a digital wealth advisory to manage your money, I suggest spending just a couple minutes answering Wealthfront’s six question survey to ascertain what type of investor you are. Once completed, Wealthfront will produce a free sample investment portfolio for you to analyze. You don’t have to transfer a single penny to see what Wealthfront comes up with for you.
Your custom sample portfolio is interactive so you can adjust your Risk Tolerance to see how your model portfolio changes. Perhaps you find a 29% allocation in municipal bonds to be too conservative and want to be more aggressive since you’re still young.
Below is a sample of a portfolio with a risk tolerance rating of 10 i.e. risk-loving. Notice how the municipal bond weighting declines to just 5% from 29% as riskier assets like Emerging Markets increases to 28% from 12%.
Not only will you see the portfolio’s weightings change, you’ll also get to see what the likely performance outcome is of your portfolio over time if you maintain the weightings and keep up with regular contributions. Now that’s smart!
MOBILIZE YOUR MONEY TODAY
Investing your savings regularly in a risk-adjusted manner is one of the keys to building wealth over the long term. The stock market trend is up and to the right due to population growth, rising demand, rising earnings, and inflation. There will be volatile times during the short-run, but I’m confident that over the long run, you will develop much greater wealth if you invest your cash.
Leverage technology to grow your wealth. Unless your expertise lies in investing, leave the money management responsibilities to the professionals. Focus your time on making money where you’re most skilled and most passionate. Try Wealthfront for free today.
About the Author: Sam has been investing his own money since 1995 when he first opened an online brokerage account. Sam loved investing so much that he decided to make a career out of investing and spent the next 13 years after college working at Goldman Sachs and Credit Suisse Group. During this time, Sam received his MBA from UC Berkeley with a focus on finance and real estate. He also became Series 7 and Series 63 registered. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $210,000 a year in passive income. He spends time playing tennis, hanging out with family, consulting for leading fintech companies, and writing online to help others achieve financial freedom.
