June 5, 2014

Wealthfront and Betterment, The myCFO of 2014?

Are Wealthfront and Betterment the myCFO of 2014?

Wealthfront and Betterment, two of the 2014-era financial advisors are targeting the newly-minted investors.

Like financial advisors before them, they are on a quest to capture the newly-minted $500,000 portfolios.

How each of them want to be known –

Betterment, The Apple of Finance
Wealthfront, The Schwab of Finance

If you think a 2014-era financial advisor will be more transparent about their performance than the older ones, you’d be wrong. The key thing missing from Wealthfront and Betterment’s public website and marketing – the daily performance of an actual account that they are managing. 

As long as the overall market keeps inflating, Wealthfront and Betterment are likely to keep increasing their assets under management (with no word on actual performance?).

But, when the market eventually corrects, will they go the route of myCFO (the financial advisor of 2000-era) or will they develop into lasting institutions?

Wikipedia on myCFO 
Harris myCFO is a wealth management unit of BMO Harris Bank serving high-net-worth individuals and families.[1] In 2002, Harris acquired certain assets of myCFO, Inc., originally founded by James H. Clark, in a $30 million deal

Tags: 2014-era financial advisor, wealthfront vs mycfo, betterment vs mycfo, mycfo of 2014