Is Wealthfront good for beginners? Invest Your First $5,000 Free: If you’re on the fence about Robo-Advisors, Wealthfront is a great place to test the waters with a small amount of money because it’s free. This is also really great for beginner investors and students who simply don’t have a lot to invest yet.
What are the cons of Wealthfront? Risk Parity Fund Has High Fees
The Wealthfront Risk Parity Fund is available for investors with $100,000 or more in assets but it’s much pricier than the other ETFs available. In addition to the 0.25% management fee for all users, the Risk Parity Fund carries an additional 0.25% fee.
Is Wealthfront a good idea? Tax strategy: 4.5 out of 5 stars
Wealthfront offers daily tax-loss harvesting on all taxable accounts. Tax-loss harvesting is an investment strategy that can significantly reduce capital gains taxes. In taxable accounts, the practice involves selling losing investments to offset the gains from winners.
Is Robinhood better than Wealthfront? But there’s a huge difference between Wealthfront vs. Robinhood. Robinhood is a brokerage firm that allows you to choose your own mix of investments including stocks, ETFs, and cryptocurrencies. Wealthfront handles all your investing for you.