WiseBanyan Creates and Manages Investment Portfolios for You for Free
WiseBanyan, “the world’s first free financial advisor,” may be the easiest and least expensive way to get a diversified investment plan and manage it automatically.
Like other advisor robots, WiseBanyan uses the information you provide about your goals and risk tolerance and develops algorithms to select investments (ETFs) with low fees and across a diverse pool of asset classes. He will also rebalance your portfolio on a quarterly basis, reinvesting dividends and making sure your portfolio matches your risk tolerance.
Unlike other robotic advisors, WiseBanyan does not charge management, trading, storage or other fees. There is only a minimum of $ 10 to invest and no minimum additional investment requirements. The funds themselves charge a commission, which, as with other brokerage accounts, is factored into your portfolio. The fund’s average commission is relatively low – 0.12%.
You can create or transfer a Roth, SEP IRA, Traditional IRA, or Personal Investment Account with WiseBayan and set up an automatic deposit on a weekly, monthly, or quarterly basis to take advantage of the dollar value averaging.
You’re probably wondering what the catch is. WiseBanyan plans to make money from additional products and services, such as collecting tax losses, which the company will soon implement. They declare that they will never make money from clients by selling personal information, receiving commissions or kickbacks for recommending certain funds, or displaying advertisements.
WiseBanyan does not offer detailed investment advice, analysis or flexibility. You answer questions when you create a new account, and then everything will be done for you. You can change your “risk number” (how much you tolerate risk), but you cannot go back to the questions to change your answers. You also only get one view of your portfolio and cannot change the ETFs selected or the amount allocated to each. However, your WiseBanyan account can be accessed through Folio Investing, a popular online brokerage company, where you can view additional statistics and investment information.
The service is currently in beta on a waiting list, but after a couple of weeks I received an invitation. If you’re looking for a completely hassle-free way to invest in the broad market – even with just $ 10 a month – WiseBanyan is worth a look.