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On today’s episode of Unconventional Genius, I talk with Andy Rachleff, President and CEO of Wealthfront about the advantages of automated investing. Wealthfront is the leading automated planning and investment company in the financial industry. Utilizing sophisticated software and a client-first approach, Wealthfront makes investing easier and more affordable.
During my conversation with Andy Rachleff, you’ll hear how Wealthfront is maximizing the value of automated investing. You will also get an inside peek into how he leads this innovative company.
What makes automated investing better?
While the older generation of investors might prefer getting their financial advice from another person, the younger generation approaches investing differently. Automated investing offers several benefits for younger investors. Andy Rachleff says one common misconception about Wealthfront is that they are trying to steal clients from more traditional firms.
In reality, automated investing appeals to a completely different clientele that is often younger and still in the wealth accumulation phase of life. Hear about the distinctions of automated investing and how it can be a more viable option for many investors during this episode of Unconventional Genius.
Should you choose the local zoo or automated investing?
According to Andy Rachleff, a group of chimpanzees may have a better chance at picking a winning portfolio than a financial advisor. But instead of going to the local zoo to find your next financial advisor you might give automated investing a try.
The financial industry isn’t designed to be fair. Many large companies require you to invest millions of dollars in order to qualify for a financial advisor. Even then there is little guarantee that they will make the best choices. As Andy explains, Wealthfront is utilizing automated investing to even the playing field.
Quoting Wealthfront’s Chief Investment Officer Burt Malkiel, Andy says, “Since you can’t outperform the market, don’t try.” That is why Wealthfront uses time-tested, academically proven models to invest in low-cost index funds. Doing so with automated investing removes the potential for human judgment and error, and allows invested money to grow in spite of market volatility.
3 factors to help you maximize your return on investment
Andy Rachleff explains that there are three factors you should consider when planning your investment portfolio. These 3 considerations will help you maximize your return on investment and are the same three factors that Wealthfront focuses on when advising clients.
Automated investing keeps these three factors at the forefront of your investment strategy. Listen to my conversation with Andy Rachleff to hear about these important 3 factors and how Wealthfront leverages software to prioritize them.
The growth and evolution of automated investing
During our conversation, Andy shares about what it takes to run a successful automated investing company. He shares the difficulties of prioritizing his time and maintaining a clear vision for the company.
Wealthfront currently manages over $10.5 billion in investments with over 200,000 clients. As the company continues to grow, the services available to clients will continue to grow and evolve. Hear all about that and more on this week’s episode of Unconventional Genius.
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Topics Featured In This Episode
- [2:04] Andy Rachleff on what makes Wealthfront the premiere automated investing resource
- [6:30] How Wealthfront chooses investments better than human financial advisors
- [9:05] The three factors that will help you maximize your return on investments
- [10:40} Andy Rachleff explains how tax loss harvesting can lower your tax liability
- [17:37] The services that make Wealthfront such a valuable resource for investors
- [20:33] Wealthfront’s automated investing portfolio diversification strategy
- [24:21] How the growth of Wealthfront has allowed them to better serve their customers
- [27:11] Andy Ratchleff’s journey in starting and leading a growing company
- [33:42} How Wealthfront’s approach to financial planning sets them apart
- [37:38] Andy Ratchleff’s priorities and how he manages his time as a CEO
Resources & People Mentioned
Connect with Andy Rachleff
Connect With Max Borges
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