Many robo-advisors share common features: low-cost diversification, automatic rebalancing and the option to put your money into an IRA to save specifically for retirement.
But some of the best robo-advisors stand out for going above and beyond the usual offerings. Wealthfront does just that. Users pay a low 0.25% annual advisory fee and can also get access to a 529 college savings plan and an interest-earning checking account with debit card access.
Below, Select reviews the Wealthfront platform to give you all the details on its investment options, features and fees so you can decide if it's right for your money.
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Wealthfront review
Wealthfront
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. $500 minimum deposit for investment accounts.
Fees
Fees may vary depending on the investment vehicle selected. Zero account, transfer, trading or commission fees (fund ratios may apply). Wealthfront annual management advisory fee is 0.25% of your account balance
Bonus
None
Investment vehicles
Investment options
Stocks, bonds, ETFs and cash. Additional asset classes to your portfolio include real estate, natural resources and dividend stocks
Educational resources
Offers free financial advice for college planning, retirement and homebuying
Terms apply.
Pros
- No trade or transfer fees
- Highly automated investing with portfolios built around your risk tolerance and timeline
- Daily tax-loss harvesting available to all accounts to help reduce your tax bill
- High-yield Cash Account earns 3.30% APY base rate (up to 4.20% promotional APY for new clients with direct deposit) with no account fees or minimum balance
- Offers a cash management account with a debit card and access to 19,000+ fee-free ATMs
- Path financial planning tool gives personalized projections for retirement, home purchases and college savings
- Refer a friend and both parties receive $5,000 managed fee-free
Cons
- $500 minimum deposit for investment accounts
- 0.25% annual management fee
- No access to human financial advisors
- Tax optimization features (stock-level tax-loss harvesting, smart beta) only available at higher account balances
Wealthfront investment options
Wealthfront invests in low-cost, globally diversified index funds, more specifically ETFs. Its diversified portfolios include stocks, bonds, real estate and ESGs. You can't buy and sell individual stock on Wealthfront.
When you sign up for a Wealthfront account, you'll fill out a questionnaire to determine your comfort level with taking on risk. Using your age, your financial situation and your attitude toward risk, Wealthfront will then assign a risk score that reflects your comfort zone. This is helpful in tailoring a portfolio for you.
Wealthfront's customers can also invest in traditional, Roth, SEP or Rollover IRAs, plus Wealthfront offers a 529 college savings plan.
Features
Wealthfront's advanced features include tax-loss harvesting that can help offset the advisory fee, a cash management checking account with a debit card and its 529 college savings plan, which robo-advisors don't traditionally offer. It also provides free financial advice for college planning, retirement and homebuying.
Wealthfront's app has good reviews. It's available to download for free in both the App Store (for iOS), where it has 4.8/5 stars, and on Google Play (for Android), where is has 4.6/5 stars at the time this article was written.
Fees
There is a $500 minimum deposit for investment accounts at Wealthfront. The annual management advisory fee is a low 0.25% of your account balance. So, if you have $5,000 invested with Wealthfront, you'll pay just $12.50.
Bottom line
Wealthfront is a solid robo-advisor option. It picks investments based on users' risk score (indicating their risk tolerance and time until retirement), plus it offers investing through IRAs and 529s.
If you don't want to be tied to a $500 minimum investing deposit, consider another popular robo-advisor Betterment. There's no minimum balance required, and the annual account fee is the same 0.25% of your fund balance. Plus, even though it's an automated service, users can get access to a real-life financial advisor. (Read our full Betterment review.)
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