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Talkin go money

If you are young and just starting out, saving and investing may not be a top priority. But it should be. The reality is that the younger you start saving and investing for the future, the less money you will need to atone for in order to reap great rewards.

As a quick example, take a look at Joe investing $ 5,000 at the age of 25 and investing the money and making an annualized return of 7% by the time he retires at age 67. valued at $ 85,721. Joe's sister June doesn't start investing until she is 35 and invests the same amount and earns the same 7% annual return. If she retires at age 67, her $ 5,000 will be worth only $ 43,576. If you wait 10 years to invest, your June investment of $ 5,000 is worth just over half of Brother Joe's retirement fund.

Robo-advisors can help people with low cash make smart financial decisions and reap the benefits of saving for retirement. Of course, there are dozens of robo-advisors to choose from, and choosing a service with low fees and low minimum investments is a priority. Low-fee, low-minimum brands like Betterment and SigFig are specifically aimed at newbie investors. But what about WiseBanyan that has no fees and a minimum investment? Read more about the service. (For more information see: 6 Robo-Advisors with Rock Bottom Minimums.)

A cheap robo-advisor?

Yes, Wise Banyan is the only robo-advisor with no fees, even though it requires $ 10. 00 to open an account. The service makes money when you purchase optional products and services. For example, its tax loss harvest service will cost you 0.25% of AUM per month with a cap of $ 20 per month.

WiseBanyan's investment philosophy is based on two premises: keep fees as low as possible and help people invest as early as possible. Both principles suit the needs of most new investors. So far, the company's services are only available by invitation. To be invited, click the "Reserve" button on the website. After entering your email address, wait for an invitation, then create an account. Similar to other robo-advisors, you answer a few risk-related questions and then get a risk metric based on your perceived sensitivity to the ups and downs of the investment markets. If you are not happy with your initial risk assessment, you can always adjust it.

WiseBanyan's investment opportunities are similar to many other robo-advisors. Your account will be split between stocks, bonds, and exchange-traded real estate (ETF) funds, using more conservative fixed options for risk-averse investors and larger equity ETFs for aggressive investors. Automation is one of the reasons WiseBanyan can offer its free platform. The company automates the creation, monitoring and reinvestment of dividends. (For more information, see: Top 5 Robo-Advisor Myths and Why Robo-Advisors Make Sense for Retirees.)

WiseBanyan chooses its ETFs by analyzing each ETF asset grouping. potential returns and their risk profiles. The company could compare the performance of US stocks to European stocks to better gauge the percentages in each asset class. The company focuses on keeping clients' investments appropriately diversified in order to obtain the greatest risk-adjusted returns. The company offers a variety of diversified US and international equity ETFs, as well as pension funds and a real estate investment company. WiseBanyan strives to maximize after-tax and real-investment returns.

The bottom line

If you're just starting out, WiseBanyan could be a compelling choice compared to investing through other platforms with higher fees. As always, however, before you start, you should thoroughly evaluate the service to make sure it is right for you. (For related reading, see: Pros and Cons of Using a Robo-Advisor.)