We have seen the future, and it sucks.


20th April 2017

Read it.

Not mentioned in the article is the fee structure. Like most ‘advised’ accounts, they take a little piece periodically; the dependence on AI means that the piece can be very small, as with the fees charged by index funds. They also do ‘tax loss harvesting’, which means losses can be used on your tax return to offset gains. It doesn’t work out to much but any savings on your taxes ought to be worth something.

I put a bit of money in a Wealthfront account just to see what would happen, and in the year I’ve had it the return has been a bit over 12%. That doesn’t tell you anything meaningful about the long-term, of course, but it’s encouraging. I think AI-based investing will increasingly be a Thing.

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