I wonder if M1 has fees in the portfolio they create and manage, which are added to the fees of the ETFs. Since there is not perc of AUM charged. I read that they charge you 100 per transfers out. That means every time you withdraw 1000, they charge you 10%!!??
A 0.25% fee is not reasonable at all imo. I'm used to my ETF expense ratios hovering between 0.02% to 0.11%, and averaging about 0.04%. That fee essentially quintuples my expense ratio
@Thurgor - If you can manage your own investment portfolio, then you probably don't need a robo-advisor. Or, you could check out M1 Finance, Schwab Intelligent Portfolios (requires a ~8% cash allocation0, or SoFi automated investing, as these robo advisors don't have management fees. But for those who prefer to have someone manage their portfolio, the 0.25% AUM fee is reasonable in comparison with higher fee financial planners. Thanks for writing in.
@@Thurgor_Supreme - I understand, a lot of people don't want any cash in their investment portfolios. At Schwab Intelligent they invest the cash in a high yield government money market fund - SWGXX which as of 9/1/23 pays a 4.9% rate. Good luck and keep me posted.
@@Thurgor_SupremeNO before you get SoFi keep in mind SoFi uses their own ETFs (0.19% expense ratios) over others like Vanguard (0.03% expense ratio). So you are still paying a “fee”
Hi Paul, Typically, higher inflation can lead to higher stock prices, so that will be good for the equity portion of a robo-advisor portfolio. While bonds tend to suffer with rising inflation. Bottom line is that for long term investing, robo-advisors, with a portfolio that reflects your risk tolerance, will grow your wealth. For short term investing, look to cash and CDs. Learn more: www.roboadvisorpros.com/best-robo-advisors/
Hi Miss, Great question. If your investments are owned in a taxable brokerage account, not an IRA retirement account, then it is likely that at tax time, you will receive a 1099 tax form which will list the taxable dividends and capital gain income. Typically the tax rates are low on capital gains and "qualified" dividends. So, "yes" you might have to pay taxes on income earned from your investment with Wealthfront.
