July 29, 2017

Best Robo-Advisor Strategy

M1 WiseBanyan Robo-Advisor StrategyOur Robo-Advisor Strategy focuses on leveraging two platforms to reduce overall fees to a bare minimum while maintaining strict diversification across multiple assets. The two Robo-Advisor programs we decided to use are WiseBanyan and M1 Finance.  After several months of research, and testing all the other major platforms, such as Betterment, Wealthfront, Acorns, Stash, Intelligent Portfolios, etc., we selected these two programs for their mutual synergetic effect. WiseBanyan and M1 Finance not only work very well together, they provide you the opportunity to invest both passively and actively, while drastically minimizing fees.

If you’re not familiar with Robo-Advisors, please read our introductory article, What Are Robo-Advisors?

WiseBanyan and M1 Finance Robo-Advisor Strategy

By leveraging the benefits of both WiseBanyan and M1 Finance, our Robo-Advisor Strategy creates an optimized portfolio which can lead to higher rates of return.

WiseBanyan’s primary benefit is its basic platform is Completely Free!  That’s right, Zero, Nothing,  Notta. WiseBanyan does offer premium packages such as Tax Loss Harvesting, for an incredibly low fee; but these are completely optional.  WiseBanyan’s free service helps you select a well-diversified portfolio of stocks, bonds and real estate ETFs based on your age, timeline, and risk tolerance. Auto-rebalancing, Auto-Dividend Re-Investment, and Guidance all come with this sweet deal as well.

WiseBanyan Banner 1In comparison, M1 Finance does charge a minimal fee for their services, but unlike WiseBanyan, they allow you a lot more freedom to create your own portfolio anyway you like.  The reason we always recommend new investors start with WiseBanyan is everything is completely automated and free.  But for those investors who are ready to maximize their gains and build an even stronger portfolio that taps into changing and dynamic markets,  M1 Finance is the best choice.  Like any other Robo-Advisor, this platform will guide you on your investment choices and help you set up your portfolio. You can choose to use one of their many pre-built portfolios or select your own from scratch just like we do.  All our personal portfolio allocations are below.

Bare Minimum Fees – High Flexibility – Robo-Advisor Strategy

We personally believe WiseBanyan’s chosen allocation of US Equities is a bit too high, which is why we allocate less to US Equities in our M1 Finance portfolio.  However, one could argue a large portion of US corporations now make a good amount of revenue from international operations, making this choice understandable.  We generally like to see more exposure to Emerging Markets and Real Estate as well, so again we allocate more to these markets with our M1 funds.  Are you starting to see why the combination of these two Robo-Advisors is far better than using just one?  WiseBanyan helps to reduce fees while still providing a very solid portfolio, and M1 Finance gives you the flexibility to add in anything else you like.  The results so far have been absolutely phenomenal and we hope that you also see the potential in this great Robo-Advisor Strategy.

For more detailed information on each individual fund in our M1 Finance Portfolio and why we chose it, please read our M1 Finance Portfolio Details article.

WiseBanyan Portfolio Allocation

This is one of many example portfolio allocations WiseBanyan offers.  This particular allocation is a more Aggressive Retirement Strategy ideal for ages 18-35.  As you get older this system will automatically reduce your exposure to higher risk securities like stocks while increasing your exposure to lower risk securities like bonds.

All images are actual snapshots from our WiseBanyan mobile app showing our exact portfolio allocations. Click the images for a full size slideshow.  

 

M1 Finance Portfolio Allocation

Our M1 Finance Portfolio is completely custom and can operate on its own or in conjunction with WiseBanyan for better synergy and lower fees.  Much like WiseBanyan, this particular allocation is a more Aggressive Retirement Strategy — ideal for investors 18-35 years old.  Since our WiseBanyan app reminds us when it’s time to reallocate our funds as we get older, we can simply re-adjust our allocations in M1 Finance at the same time.  This way we continue to keep our portfolio optimized as we get closer to our final financial goal.

For more detailed information on each individual fund and why we chose it, please read our M1 Finance Portfolio Details.

All images are actual snapshots from our M1 Finance mobile app showing our exact portfolio allocations. Click the images for a full size slideshow.

For more detailed information on each individual fund and why we chose it, please read our M1 Finance Portfolio Details.

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