Given the complicated facets of investing, most young adults consciously choose to avoid the stock market; this is an extremely costly decision. By not investing until adulthood, individuals will forego seven-figures in lifetime income. Wealthfront and Betterment address this concern with their automated investment platforms (robo-advisors), both of which require little human involvement.

1. versus
Jackson
Moses
BLP
Associate
LinkedIn

2. What
Is
Automated
Inves8ng?
• The
emerging
FinTech,
or
Financial
Technology,
sector
has
given
rise
to
“Robo
Advisor”
wealth
management
startups.
• Robo
Advisors
are
a
new
class
of
online
financial
management
en88es
that
require
minimal
human
involvement.
• High
tech
soLware
and
algorithms
trade
ETFs
according
to
Modern
Por,olio
Theory
–
a
financial
theory
that
aims
to
maximize
returns
given
an
investor’s
risk
tolerance.
• While
short-­‐term
trading
is
oLen
vola8le,
automated
“Robo”
inves8ng
aims
to
maximize
long-­‐term
financial
gains.

3. Why
Is
It
Important?
• Robo
Advisors
are
unbiased
plaSorms:
People
from
all
backgrounds
can
now
access
global
stock
markets,
regardless
of
socioeconomic
status.
• No
prior
investment
knowledge
is
required;
members
need
only
establish
a
risk
tolerance
level
and
7me
horizon.
• Individual
barriers
to
entry
are
essen8ally
non-­‐existent:
Ini8al
deposits
and
monthly
maintenance
fees
are
remarkably
low.

4. Fees
Minimum
Deposit:
$500.
First
$10,000
managed
for
free.
0.25%
per
month
flat-­‐
rate
fee
for
balances
over
$10,000.
Addi8onal
$5,000
managed
for
free
per
referral.
No
minimum
Deposit.
0.35%
or
$3
per
month
fee
for
balances
under
$10,000.
0.25%
per
month
flat-­‐
rate
fee
for
balances
over
$10,000.
0.15%
per
month
flat-­‐
rate
fee
for
balances
over
$100,000.
3
referrals
for
free
year
of
service.

5. Features
Automa8c
porSolio
rebalancing.
Tax-­‐loss
harves8ng.
Customized
porSolios.
Automa8c
recurring
deposits.
Single
stock
diversifica8on.
Automa8c
porSolio
rebalancing.
Tax-­‐loss
harves8ng.
Customized
porSolios.
Automa8c
recurring
deposits.
Personal
goal
objec8ves.
Frac8onal
share
inves8ng.

6. Don’t
Leave
Money
On
The
Table!
www.wealthfront.com
www.becerment.com