Connect with us

Finance

The top robo-advisor offerings for 2022

Published

on

When you’re looking for a hands-off way to invest, robo-advisors can be a good choice. These online investment platforms typically provide automated investment management and often do so for minimal cost and little effort on your part. Simply answer a questionnaire about your financial goals, timeline, risk tolerance, and other preferences and the platform selects assets and designs a portfolio for you.  

But not all robo-advisor platforms are created equal. Some are more expensive than others or require a steep minimum balance to get started. Some offer one-on-one guidance from a financial professional, while others may offer no human support at all.

To help make the selection process a little easier, the Fortune RecommendsTM editorial team reviewed nearly two dozen robo-advisor platforms and came up with a list of our top 10 picks. When conducting our review we considered the minimum required deposit to open an account, commission fees, annual fees, customer support, one-on-one advisory service, sign-up bonuses, and account closure fees. (Read our full methodology here)

All fees listed are up to date as of December 16, 2022.

  1. Schwab Intelligent Portfolios
  2. Merrill Edge Guided Investing
  3. Ally Invest Managed Portfolios
  4. INVEST for Amex by Vanguard
  5. Fidelity Go
  6. SigFig
  7. UBS Advice Advantage
  8. E*TRADE Core
  9. Wealthfront
  10. Betterment

The 10 best robo-advisors

Here’s a closer look at the top 10 on our list including key information about their fees, customer service offerings, and other important information to consider when opening an account.

1. Schwab Intelligent Portfolios: For the investor seeking minimal fees and personalized support 

Key numbers 
Commission: $0
Account minimum: $5,000
Annual advisory fee: $0
Sign-up bonus: $0
Account closing fee: $0

Why we picked it: Schwab Intelligent Portfolios offers the best all around service for the price Though the initial deposit to get started is steeper than many other platforms, there’s no advisory fees, no commissions, and no account closure fees. In addition, customers get 24/7 live support from U.S.-based professionals and the Schwab robo-advisor actively monitors and automatically rebalances your portfolio when needed. In addition to phone support, the platform also offers chat support with account specialists. 

2. Merrill Edge Guided Investing: For those seeking a sign-up bonus 

Key numbers
Commission:
$0
Account minimum: $1,000
Annual advisory fee: 0.45%–0.85%
Sign-up bonus: $100–$600
Account closing fee: $49.95

Why we picked it: Merrill Edge comes with more fees than some of the other accounts that made our list. But it’s also one of the few platforms currently offering a sign-up bonus. Though you’ll need to deposit a significant amount of money to earn a bonus. Those who fund their account within 45 days of opening with at least $20,000 will receive a $100 cash bonus. The bonus increases to $150 when you deposit from $50,000 to $99,000 within 45 days, while deposits of between $100,000 to $199,999 earn $250. 

Those who deposit $200,000 or more earn a $600 bonus. Another benefit of this platform is phone access to personalized service from advisors. However, the $1,000 minimum to open an account with Merrill Edge may be too high for some and there are some fees to consider, including advisory and account closure fees. 

3. Ally Invest Managed Portfolios: For investors who have less money to get started but still want personalized support  

Key numbers
Commission:
$0
Account minimum: $100
Annual advisory fee: 0%–0.30%
Sign-up bonus: $0
Account closing fee: $0

Why we picked it: Ally makes it easy to get started investing with just a $100 minimum deposit requirement and few fees for its service.Those who open Ally’s Cash-enhanced portfolio, which requires setting aside 30% of your portfolio in cash to act as a buffer against volatility, won’t pay advisory fees. 

However, when opening Ally’s Market-focused portfolio, which only requires a 2% cash buffer set aside, there’s a 0.30% advisory fee. Ally Invest customers get access to portfolio specialists via phone Monday through Friday. The Ally platform offers chat customer service and you can also reach out with questions via email.

4. INVEST for Amex by Vanguard: For American Express Card members who want assistance investing

Key numbers 
Commission: $0
Account minimum: $10,000
Annual advisory fee: 0.50%
Sign-up bonus: $0
Account closing fee: $0

Why we picked it: INVEST for Amex by Vanguard is designed for basic American Express cardholders and offers membership rewards points when you invest. Another particularly notable feature of this platform is the dedicated, one-on-one consultation it provides with a Vanguard representative once you enroll. On the downside, while there’s no advisory fee for the first 90 days, after that customers pay a fee of up to 0.50% on assets managed by the INVEST platform.  

5. Fidelity Go: For those seeking minimal opening deposit requirements 

Key numbers
Commission:
$0
Account minimum: $10 
Annual advisory fee: $0
Sign-up bonus: $0
Account closing fee: $0

Why we picked it: If you’re curious about robo-advisor platforms but don’t have much money available to get started, Fidelity Go may be a good choice. There’s no deposit required to open an account and just $10 is required to get started investing and exploring the robo-advisor experience. Yet another benefit of the Fidelity Go platform is the lack of fees across the board. For those who have less than $25,000 under management, there’s no annual advisory fee. However, those with $25,000 or more in a Fidelity Go account will pay a 0.35% each year. In exchange for that 0.35% fee, customers get unlimited one-on-one coaching.

6. SigFig: For those seeking unlimited access to advisors 

Key numbers
Commission:
$0
Account minimum: $2,000
Annual advisory fee: 0%–0.25%
Sign-up bonus: $0
Account closing fee: $0

Why we picked it: Perhaps the most notable feature about a SigFig robo-advisor account is that it offers unlimited access to advisors no matter what your account balance. This is an invaluable feature. The platform’s customer service options are also admirable and include phone, email, and chat. The platform also constantly monitors your account and rebalances it when necessary. On the downside, you’ll need $2,000 to open a SigFig account. And while your first $10,000 invested is managed for free, beyond that you’ll pay a 0.25% annual fee. 

7. UBS Advice Advantage: For those who have a substantial amount of money to begin investing with

Key numbers
Commission:
$0
Account minimum: $10,000
Annual advisory fee: 0.75%
Sign-up bonus: $0
Account closing fee: $0

Why we picked it: At $10,000, UBS has the steepest minimum balance on our list. However, users are able to contact UBS financial advisors whenever they have questions. Advisors can be reached Monday through Friday from 8:30 a.m. EST until 7:30 p.m. EST. You’ll also pay an advisory fee with UBS, which is worth keeping in mind. However, the platform offers automated rebalancing, tax-loss harvesting, and ongoing oversight by experienced financial professionals. 

8. E*TRADE Core Portfolios: For new investors who want access to educational information 

Key numbers
Commission:
$0
Account minimum: $500
Annual advisory fee: $0
Sign-up bonus: $50–$3,500
Account closing fee: $75

Why we picked it: Perhaps one of the best known robo-advisors, E*TRADE offers a number of benefits including no annual advisory fees and a sliding scale sign-up bonus that starts at $50 for those who deposit at least $5,000 within 60 days of opening an account. Its platform is also easy to use and offers a suite of educational information and articles for users who are new to investing. On the downside, the $500 account minimum may be an issue for some and there’s also an account closure fee. Customer service options include 24/7 phone, email, and chat via the E*TRADE website.

9. Wealthfront: For those interested in customized robo-portfolios

Key numbers
Commission:
$0
Account minimum: $500
Annual advisory fee: 0.25%
Sign-up bonus: $0
Account closing fee: $0

Why we picked it: Wealthfront’s robo-advisor platform allows users to create portfolios that are curated and customized based on specific interests such as social responsibility. You’ll need $500 to open a Wealthfront account however, which may not be accessible for everyone. In addition, there’s an advisory fee of 0.25% per year. Wealthfront customers have phone access to product specialists and can also reach professionals via email. The platform promises emails are answered within one business day.

10. Betterment: For beginning investors looking for an easy-to-use platform and minimal fees

Key numbers
Commission:
$0
Account minimum: $0
Annual advisory fee: 0.25%
Sign-up bonus: $0
Account closing fee: $0

Why we picked it: Betterment offers a very user-friendly platform that allows for setting up your account within just a few minutes after answering a few questions. You don’t need any money to open an account but you will need $10 to start investing. The platform offers automatic rebalancing and dividend reinvestment for no added cost. Users can also set up automated deposits to their Betterment account to continue funding their investment goals. 

One drawback to consider however is that there’s a fee to access one-on-one advice from certified financial planners. Customers will need to purchase a one-time package for that support, which costs $299 to $399, or switch to a premium plan that includes continuous support. Premium plans have a 0.15% add-on annual advisory fee.

What is a robo-advisor? 

Robo-advisors are platforms that offer automated investing and wealth management services based on the use of mathematical algorithms. Customers provide some initial information about their financial goals, risk tolerance, and personal background and the robo-advisor identifies suitable assets and creates a portfolio. Many robo-advisors also automatically rebalance portfolios and provide tax-loss harvesting.

These online portfolio management services first emerged on the scene back in 2010 and over the years the field has grown to include more than 100 robo-advisor platforms across 15 countries, according to a report from Deloitte.

How do I open a robo-advisor account?

Opening a robo-advisor account is simple. It typically involves completing an online questionnaire that requires providing information about yourself, your financial goals, and your risk tolerance. After that, you fund the account to get started.

Can you lose money with a robo-advisor?

As with any type of investing, there are risks involved and it is possible to lose money with the ups and downs of the market.

Our methodology 

To identify our top picks for the best robo advisors, Fortune RecommendsTM compared 20 different robo advisor platforms. We ranked each account based on seven categories: commission fees, account minimum, annual advisory fees, customer service, human advisor availability, sign-up bonus, and account closure (ACAT) fees.

All of the accounts on our list are available to anyone in the U.S., so you can sign up for any offering no matter where you’re located. 

The core categories we analyzed are:

  • Commission fee (25%): This represents the fee some investment platforms or brokers charge for buying or selling stocks at your request. It is sometimes referred to as a trading fee.
  • Account minimum (20%): Some robo advisors require a minimum deposit to establish an account, which in some instances can be as high as $10,000 or more. We ranked robo advisors with low to zero minimum opening balances higher.  
  • Annual advisory fee (20%): An annual advisory fee is charged by some robo advisors to cover the services provided by the financial platform and its professionals. The fee is charged as a flat dollar amount or as a percentage of assets under management on the platform. To calculate this fee for platforms charging a percentage, we used the minimum required opening balance of  $10,000, which is the highest minimum balance amount among all robo advisors we reviewed. 
  • Customer service (10%): The ability to get questions answered easily is critical when it comes to managing your money. Top picks in our ranking offer customers various ways to get in contact: chat support, by phone, or even email—with phone support being the most highly rated. 
  • Sign-up bonus (10%): Some robo advisors periodically provide a cash sign-up bonus to attract new customers. In some cases the bonus is as high as $600 or more.
  • Human advisor (10%): Not all robo advisor platforms offer customers the ability to interact with a financial advisor but the best do. Those who provide professional, one-on-one financial guidance were scored more favorably.

Account closing fee (5%): Fees can add up quickly. Yet another fee charged by some platforms is an account closure or ACAT fee. Robo advisors that do not charge ACAT fees were rated higher.

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Finance

How to Reduce Your Personal Taxes?

Published

on

tax income

Basic tips for Singapore tax residents
Whatever Year of Assessment (YA) it is, we should start considering our personal tax strategy early. In Singapore, one of the most expensive cities in the world, financial management can be an important tool for survival, and proper tax planning is an integral part of this.

Should tax planning be exclusively for high net worth individuals (HNWIs) with vast assets? As long as you are required to file a tax return, you need to do tax planning. It’s worth noting that your personal tax obligations affect your disposable income and proper tax planning can translate into significant savings in the long run.

Here are some basic tips to reduce your tax burden. However, please note that they are all general in nature. If you have more specific questions and/or concerns, please schedule a consultation with us.

Claim the relevant tax credits and rebates

Personal tax rates in Singapore are progressive, starting at 0% and ending at 22% (YA 2018) for annual incomes above S$320,000. There are a number of reliefs and allowances that allow you to save on your personal taxes.

Tax credits against your assessable income are given in recognition of your contributions to areas that are in line with government policy. For example, certain allowances are available to support parenthood and family formation, care for elderly parents, upskilling, national service, etc.

Some of the reliefs you can claim include, but are not limited to, Spouse Relief, Child Relief, Parental Relief, Earned Income Relief and Foreign Maid Relief. All are subject to certain conditions.

Top up your CPF (Central Provident Fund)

The CPF Minimum Top Up Scheme allows you to claim tax relief when you top up your CPF savings. You can also claim relief if your employer does the topping up.

This also applies when you top up your family members’ retirement account or special account for additional relief, provided their annual income does not exceed S$4,000 in the previous year.

For cash top-ups under S$7,000 made by you or your employer, you are entitled to a tax credit equal to the top-up amount. For cash top-ups of S$7,000 or more, your tax credit is limited to S$7,000.

For top-ups you make to your sibling’s, spouse’s, parents’ or grandparents’ CPF, you can claim additional relief equal to the cash top-up amount, which is capped at S$7,000.

The CPF top-up allowance you can make annually is S$14,000 (maximum).

Contribute to the SRS (Supplementary Pension System)

The Supplementary Retirement Scheme (SRS) is a voluntary scheme that encourages individuals to save for retirement beyond their CPF savings. Contributions to the SRS are eligible for tax relief, which will again be deducted from your taxable income. Investment returns are tax-free before withdrawal, and only 50% of SRS withdrawals are taxable at retirement. For Singaporeans and Singapore Permanent Residents, the maximum allowable contribution is $15,300 – YA 2018 per year, while the ceiling is $35,700 – YA 2018 for foreign Singapore work visa holders.

Voluntary contribution to your Medisave account

Claim relief on any income earned in the year your voluntary MediSave contributions were made. This method will help you reduce the amount of taxes you have to pay while saving for your health care needs.

The amount of relief allowed for voluntary Medisave contributions is limited to the lowest of the following: (1) Voluntary contributions specifically to a Medisave account; (2) Annual CPF limit minus the mandatory contribution by you and your employer; or (3) The prevailing Medisave contribution cap of $48,500 ($49,800 – YA 2018) less your Medisave account balance before your voluntary contribution.

Make a charitable donation

In Singapore, donations to any approved Institution of Public Character (IPC) or Eligible grant-making philanthropic organization are tax deductible.

In general, you will claim a double tax deduction (ie, double the amount of the gift) for gifts that fall into any of the following categories: (1) monetary gifts; (2) share gifts; (3) computer gifts; (4) donations of artifacts; 5) a public system of tax incentives for art; and (6) gifts of land and buildings.

The government will promote or discourage certain activities according to the economic situation and social benefits to fulfill the national benefits as a whole. By donating to charity, you not only do a good deed, but you also significantly reduce your tax liability. For example, donations made between 2009 and 2018 that meet the double tax deduction criteria will be temporarily entitled to 2.5 times the tax deduction.

Apply for the Not Ordinarily Resident (NOR) program.

Enjoy a period of 5 years of tax benefits (YA) if you qualify under the Not Ordinary Resident (NOR) scheme.

You must meet both of the following criteria: (1) you have not been in Singapore for 3 YAs prior to the year you qualify for the NOR scheme; and (2) you are a tax resident for the YA in which you wish to qualify for the NOR regime.

Rental expenses can be deducted from rental income

Rental income is taxable, so related expenses are deductible.

Examples of such allowable costs are: property tax, mortgage interest, fire insurance, maintenance fees to the governing body or general repair and maintenance costs. Check the following: rental expenses are deductible if incurred: (1) solely for the purpose of generating rental income; and (2) during the term of the lease.

The above are general tips to reduce your tax burden in Singapore. It is always better to plan before the end of the basic period. If your tax situation is unique or if your needs are more specific, consider consulting with a Singapore tax specialist.

JC has over 20 years of experience, including 14 years in senior management positions for small to some of the largest companies across Asia. He helps more than 30 companies from various industries and takes care of a number of CEOs and top managers. Transformation of digital business, first-class management and with multidisciplinary fields. With sets of unique business frameworks, JC helps clients grow their companies to where one of the startups is now valued at SGD 30 million.

Continue Reading

Finance

Commuters from the Southwest threatened arrest at Christmas in a viral video

Published

on

By

Southwest Airlines He already had it Terrible end of the year After a massive winter storm forced it to cancel flights that had outsold its industry competitors. Then, somehow, the PR nightmare got worse.

At Nashville International Airport on Christmas Eve, a police officer threatened to arrest stranded Southwest passengers if they did not leave a secure area of ​​the airport. A video of the incident went viral on social media after it happened Posted by passenger to TikTok. Other videos circulating on social media also captured parts of the incident.

In the video, which has been viewed more than 910,000 times since it was posted two days ago, the officer warns passengers that they must leave the area or they will be “arrested for trespassing.”

“Now,” he continued. “Everyone to the unsafe side. The ticket counter will help you answer any questions you have.”

Shelly Morrison, who was among the passengers with her three daughters, was queuing at the southwest gate hoping to get more information about what was going on with her flight, to me the Tennessee.

After she and others waited nearly an hour for an explanation, one of the workers announced via the intercom that she was leaving – and called security. Morrison told the local newspaper that he did not tell a passenger that they had to leave if they had a canceled ticket.

“The Southwest is calling us”

Soon, two police officers from the airport’s Department of Public Safety arrived at the scene, just as Morrison’s daughter, Amani Robinson, began recording a video.

An officer tells passengers in the video, “If you don’t have a ticket, you don’t have to be on the safe side.” To someone who said they had tickets, he replied, “Your tickets just got cancelled.”

Morrison asked the officer again if he might be stopped, and he repeated to him: “If you don’t have a valid ticket and you’re on the safe side and you refuse to leave, you’ll be arrested… If your ticket’s canceled, they don’t have a ticket anymore. You understand that, right?”

He added, “Right now, Southwest is calling us because you guys are congregating here, and they’re trying to close that gate.”

The officer grew impatient when Morrison again tried to “establish a legal connection,” as she puts it in the video, and told him she was an attorney.

“Do you refuse to leave the safe side?” he asked clearly.

She replied, “No, I don’t refuse to leave.” “I ask for additional information. Can you mention the statue to me?”

He replied, “It is the security of airports and planes.”

“Don’t you have a department?” she asked.

“I don’t need to give you the code. If you’re a lawyer, you can look it up.”

Morrison thanked him and went with the others to where he had indicated.

Southwest responds

when called luckA Southwest spokesperson said that employees “did not request that customers be escorted outside the gate area.” Instead, the company required “that local law enforcement be present at the gate to assist with crowd control efforts while our team works with customers.”

A spokesperson for Nashville International Airport, also known by the airport code BNA, responded:

“The sheer number of flight cancellations over the past week has caused great stress for our passengers, and included an unfortunate incident involving a passenger, airline staff and an LNA officer. We are very sorry this happened and we take this situation very seriously. We are working with Southwest Airlines and our other airlines to promote better communication between team members so that every traveler enjoys the optimal experience at BNA:

luck She also contacted the Ministry of Transport regarding the airport incident, but did not receive any immediate response.

Southwest passengers trying alternative routes faced higher fares from other airlines, some of which — faced public backlash —Announce a price cap on the affected roads.

The Department of Transportation said this week it would open an investigation into Southwest Airlines. He. She he wrote in a tweet It was “concerned by Southwest’s unacceptable rate of cancellations, delays, and reports of a lack of prompt customer service. The department will study whether cancellations are manageable and whether Southwest is complying with its customer service plan.”

This article has been updated with responses from Southwest Airlines and the airport.

The Impact Report’s new weekly newsletter examines how ESG news and trends shape the roles and responsibilities of today’s CEOs. Subscribe here.



Source link

Continue Reading

Finance

Why Trump didn’t want you to see his tax returns

Published

on

By

What was he hiding?

We’re finally starting to find out, now that the House Ways and Means Committee has released six years of Donald Trump’s personal and business tax returns. Trump’s returns are complex and it could take weeks for experts to realize whether Trump cheated or used overly aggressive tactics to lower his tax bill. The committee did not release any tax documents for some of Trump’s business entities, so puzzles may remain.

But a few things soon emerge from the assessment of the leading figures in Trump’s comeback. When Trump announced his candidacy for the presidency in 2015, he described himself as a builder and businessman who could go to Washington and fix what politicians had destroyed. Trump’s stated status was as a political outsider and business titan crucial elements in his appeal to voters.

But Trump’s tax returns suggest his businesses are always losing money, while raising questions about how he manages to fund a gilded lifestyle. In each of the six years from 2015 through 2020, DJT Holdings, one of Trump’s main business entities, lost millions of dollars. The smallest loss was $34 million in 2015. The largest loss was $64 million in 2016. Combined, these losses totaled $314 million from 2015 through 2020.

This is not an entirely new revelation. Glimpses of Trump’s finances have long revealed that Trump is capitalizing heavily on losses incurred in one part of his business portfolio, to offset gains elsewhere and significantly reduce his tax bill. Documents leaked to the New York Times in 2016 showed that Trump declared a loss of $916 million in 1995. lowered his tax bills for nearly two decades. When Trump began earning millions from The Apprentice TV show in the 2000s, losses from faltering real estate ventures, such as his casinos in Atlantic City, helped keep his income tax payments down. These practices are generally legal, although some tax experts believe Trump could have expanded the legal boundaries.

Members of the US House of Representatives Ways and Means Committee move boxes of documents after a panel meeting to discuss former President Donald Trump’s tax returns on Capitol Hill in Washington, US, December 20, 2022. REUTERS/Jonathan Ernst

When Trump ran for president in 2016, he said he would release his tax returns once the IRS finished auditing them. Of course Trump never released any tax returns, and the IRS audit wouldn’t have stopped him from doing so in the first place. Ways and Means Committee Finally got Trump’s payout from the IRS on Dec. 20, after Trump lost a four-year legal battle to keep them secret. He found justices all the way up to the Supreme Court Congress had the right to see the proceedsbecause it can contribute to legislative activity.

[Follow Rick Newman on Twitter, sign up for his newsletter or sound off.]

If Trump had released his comeback in 2015 while running for president in 2016, journalists and political opponents would have been mired in what appears to be huge business and personal losses. His return to DJT Holdings shows total revenue of $25.1 million but a net loss of $34.1 million. It is reasonable for a company to incur losses greater than revenue, since tax code allows for carry-over losses from prior years. But it’s very bad looks to tell voters you’re a business owner while reporting large losses to the IRS.

Trump and his wife Melania’s 2015 comeback undermines his commercial credibility. Trump’s adjusted gross income in 2015 was $31.8 million. In other words, he supposedly lost $31.8 million, because he was allowed to claim losses from his business against his personal income. His taxable income was $0 and he owed $0 in federal income tax. It is difficult for average workers who earn most of their income from work to declare passive income, unless they have capital losses or other types of losses beyond what they earn from their employer.

Hillary Clinton, Trump’s Democratic opponent, She released her tax return for 2015 on August 12, 2016. The report showed that she and her husband, Bill Clinton, had an adjusted gross income of $10.6 million, and paid $3.6 million in federal income tax, for an effective tax rate of 34%. While the return showed the Clintons wealthy, they claimed no mysterious tax breaks except for a small capital loss of $3,000. Trump was the nominee going after meat-and-potatoes voters in 2016, but Clinton’s taxes were more involved.

DJT Holdings reported business losses for each of the next five years, through 2020. In terms of Trump’s personal returns, his adjusted gross income has been negative for three years and positive for two years. Over the six years combined, those business losses have pushed Trump’s total adjusted income – $53.2 million, or a loss of $53.2 million. His taxable income was $0 for four out of six years.

Trump has hit one snag with regard to federal income tax payments — the alternative minimum tax, which raises the tax liability of some, mostly wealthy, depositors who use the deductions to significantly lower their taxable income. During four of those six years, the federal tax code started to push Trump’s federal tax bill. Including regular income tax and AMT payments, Trump appears to have paid about $4.1 million in federal income taxes from 2015 through 2020.

If voters had been able to see several years of Trump’s tax returns during the 2020 presidential election, it would have been clear that Trump’s corporations lose money every year and that Trump as an individual loses more money than he earns, overall. This isn’t really how it works. Trump has very few regular sources of income, such as millions of dollars in interest each year, and the capital gains that would come from the countless deals to license the Trump name. This income appears to be constant and recurring, while losses may occur in a particular year or two, but are spread across many years, for tax purposes.

Trump has sometimes bragged about the low taxes he’s paid, saying he’s drastically undercutting his tax bill It makes him smart. Maybe so. It will be interesting to see if that makes him more or less electable.

Rick Newman is a senior columnist for Yahoo Finance. Follow him on Twitter at @tweet

Click here for policy news on business and finance

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for an Apple or android

Follow Yahoo Finance on Twitter TwitterAnd the FacebookAnd the InstagramAnd the FlipboardAnd the linkedinAnd the Youtube



Source link

Continue Reading

Trending