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Q&A With Burton Malkiel : Beware T-Notes; Find New Income
Thanks Ted for this article. Malkiel's Wealthfront looks very interesting: no management fees for accounts under $10K and a low 0.25% management fee for accounts over this level, which includes transaction fees.
I just took a quick look at the site, and couldn't find any sort of prospectus (other than some related info in the FAQs) or any indication of what their neutral and/or current asset allocations are. Anyone know if that info is available anywhere?
On the main page of their web site, you can get an idea what a model portfolio would look like by selecting the account type and your age. It's a new company so they don't have any actual performance data for the model portfolios. Also, they are a software-based financial advisor, so no prospectus is needed.
I may send them the minimum just to see the actual recommended portfolio and see how it performs going forward. Then if I'm pleased with the performance, I will send them over $10K as they deserve to be paid for their services, and 0.25% is not much if it includes transaction fees.
Thanks, Kevin. If you go through their brief risk-tolerance assessment, they show you the exact portfolio they'd set up for you if you were to invest with them. Mine was the basic Vanguard stock ETFs, a small shot of TIPS, DJP for commodities, and the muni ETF MUB (I picked a taxable account for the trial run).
Comments
Kevin
Regards,
Ted
https://www.wealthfront.com/
Ted, when you click on "Wealthfront" in my post, which is a hyperlink, don't you go to their web site ?
Kevin
On the main page of their web site, you can get an idea what a model portfolio would look like by selecting the account type and your age. It's a new company so they don't have any actual performance data for the model portfolios. Also, they are a software-based financial advisor, so no prospectus is needed.
I may send them the minimum just to see the actual recommended portfolio and see how it performs going forward. Then if I'm pleased with the performance, I will send them over $10K as they deserve to be paid for their services, and 0.25% is not much if it includes transaction fees.
Kevin