FutureAdvisor Reviews

According to FutureAdvisor reviews, they put their own unique spin on their robo-advisor tools by offering several free services for investors in addition to their paid portfolio management options.Users can access a free, comprehensive retirement analysis that allows users to link their financial accounts and produces tailored recommendations based on their assets and goals.

Customers who are interested in traditional investment management complete with tax-loss harvesting, automatic re-balancing, and monitored by a team of financial advisors can use the FutureAdvisor paid option.This offering charges a 0.50% annual management fee and requires invested funds of $10,000 or more.

The paid accounts are held with two reputable brokers, TD Ameritrade or Fidelity, and comprise the over $900 million in assets that FutureAdvisor currently manages.

Here, we will compile FutureAdvisor reviews to give you insight into how the platform works, who it’s best suited for, and what you need to know to get started.

At A Glance Summary of FutureAdvisor

Anyone looking to open a new account with FutureAdvisor should be aware of these important basics.

Account Basics

There is a $10,000 account minimum to use the FutureAdvisor Premium service which allows you to invest funds. There are a few different fees investors pay.

The management fee is 0.50% annually

  • ETF expense ratios which average 0.15%
  • As the accounts are held at either Fidelity or TD Ameritrade, there may be additional transaction fees associated with the account.
  • Free services include:
  • Portfolio analysis
  • Qualifying Fidelity 401(k) management
  • Automatic Re-balancing
  • Tax strategy assistance
  • Supported accounts must be held by Fidelity or TD Ameritrade.
  • This includes individual and joint accounts not allocated for retirement
  • IRA’s including Roth, traditional, SEP, and rollover
  • 401 (k) accounts through Fidelity that are enabled with BrokerageLink

Investment Information

The funds used in the investment scope will vary based on where the account is held.Users can expect their allocations to cover up to 12 asset classes based on their risk assessment and overall goals.

How it Works

Customers can analyze FutureAdvisor through their two primary offerings: the free portfolio analysis service, and their investing option, FutureAdvisor premium.

The company’s individualized recommendations that they provide without a fee are a nice perk for investors who want a second opinion, or who need advice on funds they already have allocated elsewhere.The software reviews your portfolio and makes trade recommendations based on the standard methodology of most robo-advisors, modern portfolio theory.You can use that advice to make trades through your online broker, whether you’re using FutureAdvisor or another service.

Subscribers who use FutureAdvisor premium get the same information, plus additional resources and access to financial advisors to help reach your goals.Customer service is available via chat, email, and phone during regular business hours, and every transaction that occurs on your account is monitored by a live person as well as the company’s proprietary investing algorithm.

FutureAdvisor Platform Features

FutureAdvisor does a few things differently than their competition.Here’s what makes them stand out.

Eligible Fidelity 401(k)’s Managed Free

Approximately 63% of the 401(k)s held at Fidelity are enabled with Brokerage Link.That’s good news if you want to get involved with Future Advisor, as those accounts are managed free of charge.  It’s simple to find out if your current 401(k) is eligible.Begin by creating an account with FutureAdvisor, then link i to your 401(k).Next, email help@futureadvisor.com to determine eligibility and get everything set up.

You won’t need to enroll another account in the FutureAdvisor Premium service to utilize their free 401(k) management, but you will need to maintain the $10,000 minimum balance to participate.

Support from Licensed Advisors

While most robo-advisors offer customer service and ways to seek advice from a professional, FutureAdvisor goes above and beyond the industry standard.They’re on the verge of being a hybrid service based on the level of access they provide their clients to interact directly with licensed financial advisors.

Funds Held by Well-Known Online Brokers

As FutureAdvisor Premium requires that all the accounts they manage are held at TD Ameritrade or Fidelity, and they are two of the largest players in the game, it’s likely that current investors may already have funds there.

If you already hold accounts with one of these brokers, you won’t need to do any transfers or make any moves.All you need to do is contact them and give FutureAdvisor the management rights which will allow them to make trades on your behalf.

This allows you to access a virtually risk-free trial of their services without needing to do additional paperwork. If you already have money elsewhere, the company will assist you with the process of moving the funds.While it is a bit complicated, itis also a very common practice.

Potential Drawbacks

While FutureAdvisor has many compelling perks, there are a few things that may impact your decision to open an account with them.Here’s what you need to know.

High Account Minimum

While it’s not as high as some of the other services that provide direct access to financial advisors, FutureAdvisor does have a higher minimum than what you traditionally see in the robo-advisor space.At $10,000 to get started, this might be a limiter for new investors with smaller budgets.

Maximum Age Limit

FutureAdvisor will manage your 401(k), at times for free, but once you retire, you can no longer enroll.They do not accept new Premium clients who are age 68 or older because their products are focused on producing returns and not generating income in retirement.Older investors may want to explore a product that will take them to retirement and beyond and has tools to manage their needs throughout.

High Management Fees

While 0.50% isn’t the highest we’ve encountered, it is on the high end of annual management fees for robo-advisors. Especially when you factor in the additional annual investment expenses with the occasional transaction fees you may also incur, this service could be costlier than competitors with similar offerings.

Who Would Benefit

This service is a good fit for current Fidelity or TD Ameritrade account holders, especially if you have a qualifying 401(k) with Fidelity.Also, anyone looking for 401(k), retirement, or financial planning advice should absolutely access their free tools.Finally, if you’re someone who likes the idea of being well-invested with someone else managing the funds, but you still want on-demand access to a financial advisor, FutureAdvsior will provide a lot of value to you.

Final Thoughts

No matter where you’re at as an investor, the way that FutureAdvisor reviews your portfolio free of charge is worth a glance.They provide valuable insight and suggestions on how to better manage your funds and increase your gains.Additionally, their free 401(k) management for eligible Fidelity products isn’t offered through any other robo-advisor.

Their service is also an attractive option for existing Fidelity or TD Ameritrade clients who want to use an online advisor but don’t want to go through the process of transferring funds.Other customers may not be as strong of a fit and may want to research other online advisors with similar product offerings that have lower fees and account minimums.

About the Author HarryC

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