- The Good
- 3 months of free management
- Multiple free and inexpensive features
- User-friendly interface
- The Bad
- Limited asset allocation
- Fees are marginally higher
A lot of services from FutureAdvisor, like Retirement Planning and College Savings Planning, are free of cost. The company also provides experts for giving advice and answering questions. However, they do not have dedicated individuals managing accounts, like some of their competitors. The services are prompt and to the point, making sure that you can consult experts before making a choice for the services you want.
- Annual Fee
- 0.50% of investment
Future Advisor scores really well on applying a flat fee on all sorts of account handling and transactions, though the price may be slightly higher than some similar companies in the market, and yet lower than others. Overall, the annual service fee is moderate and remains constant.
- Traditional, Roth, Rollover and SEP IRA
- Individual accounts and joint accounts
- Services for the 529 plan, Coverdell, UTMA, UGMA and 401(k)
FutureAdvisor offers all these and more. The 529 plan, for example, is used to plan for college education is maintained for free. FutureAdvisor is one of very few companies that offer to manage funds like this.
- Low fee ETFs
- Exchange Traded Notes
FutureAdvisor adhere to the Modern Portfolio Theory to create portfolios. This means the investor’s age and risk appetite are always taken into account for all trusts and thus managed according to the criteria instituted in every field. There are a couple of issues that need to be carefully researched before putting your trust in any firm. You must make sure that the services you desire have proper fund allocation and rates that match your budget.
- Risk appetite according to age and wealth
- Manages business accounts
- Retirement planning
FutureAdvisor sets itself apart by providing focus on key areas of investment. The user-friendly interface and large online Investing library help audiences decide what they want from the service. Retirement planning and risk appetite calculations are taken extremely serious by this company. They put a lot of effort into compiling all the data according to your preference to help you in the process of selecting plans and programs to invest in.
- Minimum Deposit
The account minimum required to invest in FutureAdvisor is $10,000 but still lower when compared to similar services, such as those offered by Personal Capital, where the minimum deposit is $100,000. On the other hand, FutureAdvisor’s minimum deposit falls short of what some investment companies like Hedgeable and WiseBanyan require ($1 and less).
FutureAdvisor: User Reviews
FutureAdvisor has two things to offer: one, a free analysis of your portfolio, and two, a program called FutureAdvisor Premium. Direct management of investments and funds is provided with this Premium program. It carries a minimum of 0.50 percent management fee, which covers most or all of the programs that FutureAdvisor has to offer.
The millennial wants to DIY all the time. Investors look for a second opinion before fixing on an option. FutureAdvisor offers free and personalized recommendations from different companies. All of this will be used to facilitate transactions on and from the accounts. This platform is programmed to analyze portfolios so that free trade recommendations are placed before you for your own benefit based on MPT, or modern portfolio theory. This investing methodology is used by all the competing robo-advisors in the market. Initiating trade and transactions through the programmed online broker has never been easier.
Free services will continuously keep you updated, informed and alert whenever you face issues regarding balance or what to do with a pre-planned transaction.Tax-loss harvesting opportunities are available only for customers who have paid the premium fees. These functions require more attention and are involved, with more complicated processes to execute.
How Does FutureAdvisor Work?
After signing up for premium service, you consolidate your assets at Fidelity and TD Ameritrade. If your investments are already there, you are not required to shift them. FutureAdvisor will monitor, rebalance and tax-manage your existing investments, once you give the service the authority to trade in your accounts.
The purchases and sales are determined by both a preference-based algorithm and an advisory committee. FutureAdvisor applies “modern portfolio theories” that consider diversification to use low-cost index funds and ETFs to enhance your portfolio. Automated trades are verified and cross-checked by human experts.
FutureAdvisor believes that you can expect your portfolio to be rebalanced on average at least four to six times a year. Apart from your first rebalancing, you are notified only on a completed rebalance. Users don’t have the option to override their investment decisions, though they are permitted to “lock” individual stock holdings as long as they comprise a portion of their portfolio.
Users can contact financial advisors via email, online chat or phone Monday to Friday from 8:30 a.m. to 5:30 p.m. Pacific time. You can also schedule a consultation. The advisors are to the point and vary according to your specific needs, so you don’t have to worry about getting run of the mill advice that won’t work for you.
What Makes FutureAdvisor Stand Out From Others?
Wondering what makes Futureadvisor a better program out there compared to many of its competitors?
- Expert Advisors: The team at FutureAdvisor consists of award-winning professionals who have a reputation of providing clients with exemplary financial results. The team is made up of software engineers, finance experts and data scientists hailing from diverse backgrounds with years of experience. The guidance and support offered by these professionals is continually backed by pertinent and results-oriented data. Competitors are unable to replicate or provide alternatives to the degree of financial knowledge and care offered by these professionals.
- High-End Systems: FutureAdvisor employs state-of-the-art software for financial supervision and accounting that is unrivaled in the market. The software utilizes multi-layered algorithms to identify deviations from expectations and will automatically apply suitable balance adjustments. The program is aligned to the company’s financial methodology that is committed to fetching high returns from long-term, diversified investments through account adjustments. Their systems automatically incorporate tax-saving strategies to prevent their users from facing high liabilities at the end of a financial year.
Are you also wondering about the common drawbacks that also make FutureAdvisor stand out?
- FutureAdvisor is suited for individuals that are interested in a hands-off approach. It is ideal for customers who, after setting investment growth expectations and identifying risk tolerance levels, are content to delegate their investment work to monitoring software and professionals.
- FutureAdvisor automatically compiles a portfolio and rebalances without any personal input. The team generates a single email to notify users of the initial rebalance phase, but it does not provide updates after the initial one. Furthermore, users do not have the freedom to select particular stock holdings for their portfolio once they have consigned account management to the team at FutureAdvisor. Users, however, are given the ability to lock existing stock holdings if they make up a very small portion of your portfolio.
Common Reviews of FutureAdvisor
According to the Consumer Affairs website, FutureAdvisor scored four out of five stars. The majority of the reviews were positive. One customer summed it up with the following,
“Easy to use and a variety of ways to get help. Customer service is very helpful and thorough. If you have any issues it’s easy to get assistance. I’d happily recommend. You can put minute details in to get the results you want. I can put my salary and outgoing bills to help determine expenses. It’s reasonably priced. Additional fees are extremely reasonable. You may want certain details that they can provide. It’s totally reasonable and worth the extra fees. It’s so easy… fun even! If you ever have any questions customer service is always there for you! The FAQ section is perfect for all your needs. It’s so easy there should never be any issues.”
On the other hand, there were some negative reviews. One customer complained about poor customer service, while another customer couldn’t understand why he was losing money when the stock market was up.