I always say new finance services will eventually replace traditional financial providers because they are 1000 times better at a fraction of the cost.
But sometimes the problem can be just finding and understanding the right service for our styles as investors. Technology, mobility, and the internet enable these providers to be so much better, but also so much more specialized.
These 4 new finance companies are already managing hundreds of millions of dollars for their customers, which is the right one for you?
This company is the future of financial advice. When you subscribe you can use their dashboard to link and track all your accounts in one place and you can hire a financial adviser to help you manage your money. With Personal Capital you get the best of technology and mobility with the personal service of a professional for only 0.90% in a market where the fees are normally between 2% and 3%. If you want to finally take control of your finances and be able to talk to a pro then Personal Capital is the best service for you.
If you always had the right investment ideas, but always picked the wrong stocks then this service is for you. The company and its community create portfolios with up to thirty stocks called Motifs that represent specific investment ideas. These can be “wind energy”, “mobile technology”, or “healthy food” and when you open an account, you can buy the whole portfolios in one trade for only $9.95. This way you can use Motif to invest or trade in ideas, talk to other users, and even build your own Motif that others can copy and invest in.
This service provides a professional asset allocation service, ongoing portfolio rebalancing, and tax loss harvesting for a fee of only 0.25% a year. When you subscribe you enter your profile, answer a few questions, and they recommend a model portfolio based on their investment strategy. If you accept their proposal you open an account, send the money and they manage your portfolio for you. If you prefer to focus your attention managing your career and living your life, with a professional service managing your money with tax efficiency, then Wealthfront is for you.
If you don’t want to open new accounts or you just like where you currently have your money, but need professional asset allocation advice then Jemstep can be the perfect solution. When you subscribe you enter your profile and also link your existing accounts like IRAs, 401k’s, and individual brokerage accounts. Based on your profile and current portfolio they give you a recommendation of how to distribute your investments and in which mutual funds and ETF’s. You also get a report of what to sell and what to buy so you implement the strategy on your existing accounts. All this for only $17.99 a month up to $150.000 in investments and then slightly higher for bigger portfolios.
As you can see there are much better ways of managing your money than just using discount brokers or the traditional investment banks. It is only a matter of finding and selecting the best new finance service for your real investment needs.