EllevestRobo-Advisor News

January 2018 – Robo-Advisor News – Ellevest Conquers Investing for Women

Robo-Advisor News – Women Investing Edition

When Ellevest Robo-Advisor launched, I was excited. A digital investment platform, targeted at women investors. When I was researching the company, Sallie Krawcheck actually called me up. How cool is that – to receive a call from the company CEO?

In the past, the robo-advisory management fee was higher than many competitors. That’s why, when Ellevest reduced the fee for their basic service to 0.25% of AUM, I was thrilled.

Instantly, Ellevest became competitive with Betterment, Wealthfront, Sigfig and WiseBanyan, but with a twist.

Ellevest offered many features that addressed women’s investing concerns. For example, according to asecurelife.com article, of the 62 million working wage and salaried women ages 21-64, only 45% participate in a retirement plan. Women typically have less confidence in their investment skills. despite the fact that countless studies show women to be better investors than men.

“86% of Investment Advisors Are Men, With an Average Age of 50+” ~Ellevest.com

The “gender-neutral” investment industry defaults to men’s salaries, career paths, preferences and lifespans.

Ellevest’s models take into account that women earn less than men, have typically smaller retirement accounts and live longer than men.

Bonus Offer: Free Investment Management Software from Personal Capital

Ellevest has features to address these issues:

  1. Customized portfolios — Ellevest has hundreds of unique portfolios, that are tailored to women’s specific goals and timelines.
  2. Holistic investing — When you first sign up with Ellevest they ask you to provide information on other investment accounts that you have. This enables Ellevest to build your portfolios while being fully aware of your entire investment situation. (We love this feature!)
  3. Compatibility with Mint.com — eSign in on the Ellevest Dashboard and you can view your account on Mint.com.
  4. Guidance and advice  – Financial concierge service to answer money questions for Ellevest Digital customers. CFPs and career coaches for Ellevest Premium customers.
  5. Ellevest accounts for realities such as taxes and fees, down markets, and other factors, and builds layers of conservatism into their projections.

Women investors, you owe it to yourself to read the complete Ellevest Review.

Robo-Adviser News - January 2018 - Ellevest Robo-Advisor for Women is Featured

Read on for the latest robo-advisor news…

More January 2018 Investing and Robo-Advisor News

“Why Women are Better Investors” by Chris Taylor – Reuters.com

“When it comes to industries, Wall Street is about as male-dominated as they come. So many people just assume that men are better investors.

And they would be wrong.

According to new data from financial services giant Fidelity Investments, women are actually superior investors. In sifting through more than 8 million investment accounts, Fidelity discovered that women not only save more than men, 0.4 percent, their investments earn more annually, also 0.4 percent.

‘It is a double whammy,’ says Alexandra Taussig, Fidelity’s senior vice president for women investors. ‘The myth that men are better investors is just that – a myth.’ ”

“Is Your Data Safe With a Robo-Advisor?” by Brian O’Connell – U.S. News and World Report.com

“Affordability and digital know-how are steering more and more investors to robo advisors, and that can mean good or bad news for financial consumers.

‘Low-cost, automated investment advice is set to become the core of financial planning services, with market potential of $19.5 trillion assets under management, according to a new report from Dublin, Ireland-based Research and Markets.

Yet with the massive Equifax (NYSE: EFX) breach still on the minds of consumers and companies, there are potential risks for investors using robo-investment platforms. Do investors know their data is safe? What are robo advisors doing to protect investors’ data? And most importantly, what steps can investors take to maximize their data’s safety?’ ”

“MIT expert says robo-advisors lack an important ability: They can’t create trust” by Stacey Yuen – CNBC.com

“The encroachment of technology into the financial space may have many in the industry worried about getting displaced, but one group may not have to worry so much, according to a Nobel laureate.

That is, wealth managers may be safe from total disruption from robo-advisors, according to Robert Merton, distinguished professor of finance at MIT and the winner of the Nobel Memorial Prize in Economic Sciences. That’s because programs using artificial intelligence to advise investors lack a fundamental ability their human counterparts possess, he explained.

“What you need to make technology work is to create trust. Technology doesn’t create trust on its own,” Merton said.”

“Morgan Stanley Woos Millennials Via Robo-Adviser With ETFs” by Rachel Evans – Bloomberg.com

“Morgan Stanley is trying to get down with the kids.

The banking and wealth management powerhouse is starting a new digital investment platform for clients with as little as $5,000 to invest, according to a statement from the company on Monday.

Built around exchange-traded funds — low-cost products that give investors access to broad chunks of the market — Morgan Stanley Access Investing will charge $3.50 a year for every $1,000 of assets under management, the statement said. Clients can choose from a range of strategies, including a mix of ETFs that aim to track the market, a core portfolio of ETFs and mutual funds, and thematic strategies including sustainability and gender diversity.”

Disclosure: Please note that this article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link. That said, I never recommend anything I don’t believe is valuable.

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Barbara A. Friedberg, MBA, MS

Barbara A. Friedberg, MBA, MS

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