Picking stocks and chasing market fluctuations may be exciting, but when it comes to long-term investing, you can’t expect to outperform the market. Even Warren Buffet agrees, stating in his annual letter to shareholders that “when trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients.” He goes on to state that “both large and small investors should stick with low-cost index funds.” If the world’s largest institutional investors are focused on long-term profits, why shouldn’t millennials be too?
After a successful career at Benchmark Capital, Andy Rachleff realized the importance of democratizing access to sophisticated investment products while teaching technology entrepreneurship at Stanford Graduate School of Business. His students would ask him for investment advice and Andy was unable to recommend the services he used because minimums were far too high for students. As a member of the Board of Trustees at the University of Pennsylvania, Andy found that even the best-managed endowments in the world relied on outdated tools to make investment decisions. Andy knew that technology could make investing easier and better for more people, so he reached out to Dan Carroll who had been tinkering with a similar idea and the rest was history.
Since then, Wealthfront has helped pioneer the robo-advising industry [alongside its closest competitor, Betterment]. Wealthfront’s state of the art technology enables you to craft a plan around your personal goals and invest your money in a way that will help you achieve your financial objectives. Patience is key to Wealthfront’s passive investment strategy. Through low account minimums, an intuitive interface, and a number of innovative features that simplify the investing process, Wealthfront has grown to over $6.5 billion in assets under under management. In 2017, Wealthfront will broaden its services by offering lending and savings tools. Check out Wealthfront to learn more about how they’re revolutionizing investments.
And want to learn about other startups disrupting the financial services industry? Discover more @ FinTech Nation.