Even though I’m not going to be
doing the weekly updates on the test accounts, I will keep them open for a
while to park cash until it is needed for a new house construction project.
They will be closed before the end of 2015. I don’t want to have to do the tax
reporting for these in 2016.
Three of the five test accounts
were robo-advisers, Betterment, Wealthfront, and Schwab Intelligent Portfolios
(SIP). I discussed Wealthfront in a previous post when I closed that account. I
really like Betterment. In fact my wife and daughter have opened accounts
there. Betterment is a good choice for investors wanting to start with
relatively small amounts. Their use of fractional shares facilitates
reinvestments in these accounts. I can’t think of anything negative about
Betterment.
Schwab Intelligent Portfolios
(SIP) came late to the fray, but has performed well. They’re so new, the web
site still has some functions missing. There also has not been any transactions
since the initial investments. SIP does deal in whole shares which makes
reinvestment a bit more difficult. Although since they do hold cash in the
account this should be a little easier. It’s possible that SIP’s software is
yet ready.
I plan on adding funds to both of
these accounts and letting them run for the next few months. I will be closing
these cash accounts later in the year. I will also open an IRA with one of
these robo-advisers and rolling over some funds. I’m not sure which of the two
I’ll choose.
Next some thoughts on Folio
Investing and Lending Club.
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