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FutureAdvisor Review

FutureAdvisor is the investment advisory firm that automatically manages your investments and helps you to maximize your return based on certain levels of risk indicated by your investor profile.

FutureAdvisor review
Overall
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Introduction

The investment advisory firm FutureAdvisor serves as a fiduciary and this investment adviser automatically monitors, rebalances, and tax-manages your current investments. The company is wholly owned by Blackrock, Inc and has a team of data scientists, finance professionals and software engineers. This FutureAdvisor review will outline the pros and cons of this investment advisory firm and describe all aspects of how it operates.

FutureAdvisor uses academically researched portfolio management principles and industry best practices and apply them to your situation and your existing investment accounts. FutureAdvisor’s portfolios are comprised of varying positions that include a mix of stocks and bonds. What will you choose depends on your age and risk temperament. It is also important to mention that FutureAdvisor works with Fidelity and TD Ameritrade accounts. To enroll in FutureAdvisor, you must be a legal U.S. resident and U.S. citizen, at least 18 years of age, have at least $5,000 in investable assets, and you must have a valid Social Security Number or Tax Identification Number.

Overall Rating

Products & Fees
4.5
Security
5
Tools
4.5
Desktop Experience
5
Mobile Experience
5
Investment Options
5
Portfolios
5
Customer Support
4.5

Pros

  • Managed 529 Accounts

    FutureAdvisor can manage your 529 college savings plan and this the investment advisory firm can also help you with distributions

  • Review Trades Before Adjusting

    FutureAdvisor will review your existing investments before making recommendations

  • Ability to Link Up Brokerage Account

    This company is very flexible and allows you to link up with your brokerage account

  • Easy-to-Use Interface

    Better user interface when compared to its competitors

Cons

  • Slightly Higher Fees Than Competition

    Fees are slighty higher than comparable investment advisors.

  • Not for Overall Financial Planning

    FutureAdvisor can not be used for daily finance and budgeting but this is not a big issue in my opinion

FutureAdvisor is the investment advisory firm that automatically manages your investments and if you’re looking for a service to maintain your brokerage account, this company is a great choice for you.

How Does FutureAdvisor Work?

FutureAdvisor automatically monitors, rebalances, and tax-manages your current investments, adding low-fee index funds where necessary to bolster your portfolio. FutureAdvisor works with Fidelity and TD Ameritrade accounts but if your accounts are elsewhere, FutureAdvisor does the paperwork to consolidate them at Fidelity or TD Ameritrade. FutureAdvisor’s portfolios are comprised of varying positions that include a mix of stocks and bonds. What will you choose depends on your age and risk temperament. It is also important to say that FutureAdvisor will review your existing investments before making recommendations.

futureadvisor how does work

Commissions & Fees

FutureAdvisor charges a flat annual management fee of 0.5% of assets directly managed. This means that assets FutureAdvisor doesn't directly trade-in, such as your current employer 401(k), are not included for billing purposes. Its 0.5% management fee is billed as quarterly installments of 0.125% of assets directly managed. The billing cycle begins in the month following your initial rebalance, and  FutureAdvisor deducts the fee from non-tax sheltered accounts whenever possible. You may incur some trading commissions during your portfolio's initial rebalance but trading commissions are usually $0 for every subsequent rebalance. In rebalancing, FutureAdvisor takes transaction fees into consideration and only choose to incur them if the projected benefits outweigh the costs. At TD Ameritrade, these are $9.99 per stock/ETF trade and a maximum of $24.00 per mutual fund trade, depending on the fund. At Fidelity Investments, these are $7.95 per stock/ETF trade and a maximum of $50 per mutual fund trade, depending on the fund. For tax-loss harvesting, FutureAdvisor may incur the per-ETF trading commission of $7.95 or $9.99, but only when the calculated tax savings more than offset trading commissions.

Platform & Tools

The tools offered by FutureAdvisor are comprehensive, which justifies the slightly higher than normal advisor fees. FutureAdvisor has tools that analyze your funds, makes recommendations and offers tailored advice to better your portfolio and holdings. FutureAdvisor can manage your 529 college savings plan and this the investment advisory firm can also help you with distributions. FutureAdvisor has better user interface when compared to its competitors. It is also important to say that FutureAdvisor has an entire library of articles and educational content to help you find the answers you’re looking for. This company offers advice that considers your family, goals, and your accounts – together.

futureadvisor platform

Platform & Tools
Annual Fee
Minimum Investment
Assets Under Management
Human Advisors
Robo Advisor
Automatic Deposits
Online Platform
iOS App
Android App
Goal Tracker
Tax Loss Harvesting
401k Plans
IRA Accounts
Roth IRA Accounts
SEP IRA Accounts
Single Stock Diversification
Fractional Shares
Taxable Accounts
Trust Accounts
529 Plans
 
FutureAdvisor
0.50%
$5000
$1 billion
Personal Capital
0.49% - 0.89%
$100,000
$10 Billion
Betterment
0.25% - 0.4%
$0
$16 Billion
M1 Finance
0.00%
$0
$500 Million
Wealthsimple
0.4% - 0.5%
$0
$4 Billion
Wealthfront
0.25%
$500
$12 Billion

Mobile App

FutureAdvisor offers applications for both iOS and Android, the mobile applications are highly intuitive and individuals can monitor their net worth in real-time. With this application, you will get free trade recommendations based on modern portfolio theory, the same investing methodology used by the best of robo-advisors. Using the application, it is possible to view updates on investment allocations, current expenditure, portfolio performance, sector weighting, and current balance. This gives users a more in-depth understanding of their spending and investment psychology, making them more informed as a consequence. FutureAdvisor’s application will also alert you of the need to rebalance.

futureadvisor mobile

Deposits & Withdrawals

You can link your bank account to your managed accounts held at either Fidelity or TD Ameritrade. The deposit will be automatically invested within 2 business days, although FutureAdvisor waits until you have $500 or more in cash per account before they invest. FutureAdvisor works with Fidelity and TD Ameritrade accounts but if your accounts are elsewhere, FutureAdvisor does the paperwork to consolidate them at Fidelity or TD Ameritrade. To enroll in FutureAdvisor, you must be a legal U.S. resident and U.S. citizen, at least 18 years of age, have at least $5,000 in investable assets, and you must have a valid Social Security Number or Tax Identification Number. To make a withdrawal from one of your managed accounts, log in and click "Raise Cash" from your dashboard. The funds will be available for removal from your account after 4 business days.

Customer Experience

The customer experience with FutureAdvisor is reported as being relatively high. Customers are very satisfied with the fact that this firm automatically manages investments and helps them to maximize their return based on certain levels of risk indicated by every investor profile. If you’re looking for a service to maintain your brokerage account, this company is a great choice for you.

Customer Support

FutureAdvisor really excel in the customer service department, offering socially responsible investing which can boost their image even further. The company gives clients access to a team of financial advisors via email and phone, five days a week. If you have a question about services, deposit, withdrawal, fees - you can send a message anytime and get feedback extremely fast.

Security & Reliability

FutureAdvisor is secure, reliable, and regulated. This investment adviser firm is registered with the U.S. Securities and Exchange Commission (SEC), the company is wholly owned by Blackrock, Inc. FutureAdvisor takes security very seriously and has a thorough system of checks and balances in place. FutureAdvisor works with Fidelity and TD Ameritrade accounts but if your accounts are elsewhere, FutureAdvisor does the paperwork to consolidate them at Fidelity or TD Ameritrade. To enroll in FutureAdvisor, you must be a legal U.S. resident and U.S. citizen, at least 18 years of age, have at least $5,000 in investable assets, and you must have a valid Social Security Number or Tax Identification Number.

Security & Reliability
Regulated By
Year Founded
Country of Origin
 
FutureAdvisor
SEC
2010
United States
Personal Capital
N/A
2009
United States
Betterment
FINRA, SEC
2008
USA
M1 Finance
SEC, FINRA
2015
USA
Wealthsimple
FINRA, SEC
2014
Canada
Wealthfront
SEC
2011
USA

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