YOUTUBE is Wealthfront Investment Account a Scam | ROBO-ADVISORS AdminDecember 25, 2023041 views The Wealthfront Investment account is designed by individuals with PhDs and implemented by engineers. ????ACORN FREE $5???? Link: https://acorns.com/invite/38EYSU But it can cost you 151,614 dollars by investing with Wealthfront over 30 years. What is Wealthfront Investing: a lot of people are calling it Robo advising, where they use tech to create a portfolio for you. And to make it sound fancy, it was done by Ph.D.’s and implemented by an engineer. And to be honest it looks excellent, but I don’t care if you have a master or Ph.D. or even album filled with degrees. I care about results and cost. My concern – That people don’t realize how expensive a management fee can be over 40 years of investing for retirement. – And also that people generally fall for the marking off, it was don’t by a person with a Ph.D. It doesn’t matter, all that matters is results. – I remember I read in either Tony’s book or Warrens book, about how over the long term it has been proving that these brokerages just average out with the market. They can’t consistently beat the market because the market is run by human Emotion. Questions: No customer service so I want to answer 3 questions myself. 1. How can a .25% management fee add up to be so much money Example: I’m 20 years old and I’m planning to retire by 50. So I start with 500 bucks in wealth front and contribute 833 monthly to add up to 10k a year. Now the management fee is only .25% so in the beg before I hit 5k, it seems great and it’s free. But after that is where the game start. – Time 30 years (story): My portfolio would be worth around 931,267, and the fee for the life of that portfolio would be around 46,694 dollars ( how did I get this number of 100k) – Compound Interest (story): Because that money compounded which average out to 130 bucks per month for 30 years at 7% interest rates adds up to be 151,164k. – Opportunity Cost(story): Plus the opportunity cost how much money you could have made in another venture. 2. How do I avoid this fee? – But the way you avoid it is by going with the alternatives. Sofi and Acorn don’t have any management fees. – Why? Because sofi has other products and their own funds, plus acorn has a monthly fee plus a debit card. And they keep expenses low. 3. Why do people Choose these Online tech apps to invest? Like Sofi, wealth front and Acorn. – Its easier to interact, plus with some, you can buy partial shares. Which means you can start with 5$ on acorn. – But if you wanted you can literally call Vanguard and just buy ETF directly and balance your portfolio yourself – The catch is no partial shares…for now Pros of Wealthfront Investment – You can borrow up 30 percent of portfolio value no problem ( lucrative for investment ) Con ( risky) – Computerized Advisors very simple to understand ( but it doesn’t mean it’s a perfect system. But it’s a well balanced one for sure) – Tax Harvesting: Effectively selling off losing investments to offset your taxes which can be head ache if you try to input this manually into your taxes. ( Im long term this doesn’t matter to me) – Low fee ( But it’s a fixed percentage which adds up. I rather a fixed dollar amount ) – Marketing is great and the experience is great with the app ( But thats all it is, marketing, dont trust the PhDs trust the facts. And the truth is that the market is risky and no one can predict it, ride the wave) * PRO TIP* INFORMATION IS EVERYTHING Link: Articles https://www.nerdwallet.com/blog/investing/millennial-retirement-fees-one-percent-half-million-savings-impact/ https://www.investor.gov/additional-resources/free-financial-planning-tools/compound-interest-calculator https://www.wealthfront.com/investing#static-guest-investing-management ????Merch???? https://teespring.com/stores/tommybryson ✅2 FREE AUDIOBOOKS✅ https://amzn.to/2Enayo8¬¬¬ ????ACORN FREE $5???? Link: https://acorns.com/invite/38EYSU ⚡FREE KINDLE UNLIMITED⚡ (traditional reading) Link: https://amzn.to/2VGbxt9 My Camera Gear: https://amazon.com/shop/tommybryson ✔ Help Us Reach 5000 Subscribers: https://goo.gl/0wvm6w Social Media~ Facebook: https://www.facebook.com/tommybryson.yt Twitter: https://twitter.com/TommyBrysonVlog Instagram: https://www.instagram.com/tommybryson Snapchat: tommy28fly source