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Investing

Wisebanyan Review 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

One of the newer online robo-advisory companies on the block, WiseBanyan makes a bold claim as “the world’s first free financial advisor.” It charges no fees for its robo-advisory services, choosing to make money on add-on packages, such as tax loss harvesting and premium portfolio choices, instead. For tax loss harvesting, the company charges 0.24% of assets annually up to $20 a month. The firm charges $3 a month for its Portfolio Plus package, which offers more investment options. For another $2 a month, you can set up customized auto-deposits into your account.

To get started with WiseBanyan, you need to deposit at least $1 and answer some questions about your risk tolerance and goals. From there, you can set as many goals as you’d like, from college savings to an emergency fund to retirement. The software then recommends a portfolio of investments — all low-cost ETFs — you can pick from to choose your desired strategy.

The website is simple and easy to use, and customer service is available from 11 a.m. to 7 p.m. ET Monday through Friday. You can call in with questions, and while you may not reach an advisor initially, your request can be forwarded to an advisor if needed. You also can send an email, and the website features a chat service for members.

WiseBanyan
Visit WiseBanyanSecuredon WiseBanyan’s secure site
The bottom line: For a beginning investor or someone looking for a no-frills, no-fee way to invest, WiseBanyan offers easy entry into the marketplace.

  • There are no fees for basic account management.
  • You can open an account for as little as $1.
  • Rebalancing is free, but tax loss harvesting carries a fee.

Who should consider WiseBanyan

WiseBanyan is a good option for a new investor or anyone looking for a low-cost way to invest and manage a portfolio online. There aren’t a lot of account options — just Individual taxable accounts and IRAs for now — but the company plans to start offering joint accounts and UGMA accounts in early 2019. WiseBanyan offers automatic rebalancing and access to a variety of low-fee ETFs. The site allows you to work toward specific milestones, such as retirement planning, building up a rainy day fund, and buying a home or vehicle.

That said, for someone looking specifically for tax loss harvesting, WiseBanyan’s fees are comparable to other robo-advisors that include it in their service offerings. And anyone interested in including other types of investments in their portfolio or integrating advice for other kinds of accounts — such as 401(k)s — may want to try a more full-featured option.

WiseBanyan fees and features

Amount minimum to open account
  • $1
Management fees
  • $0 for basic services
  • 0.24% annual fee for Tax Protection package add-on
  • $3 per month for Portfolio Plus add-on
Account fees (annual, transfer, inactivity)
  • $0 annual fee
  • $75 full account transfer fee for taxable accounts, $85 for IRAs
  • $75 partial account transfer fee for taxable accounts, $85 for IRAs
  • $0 inactivity fee
Account types
  • Individual taxable
  • Traditional IRA
  • Roth IRA
  • Rollover IRA
  • Rollover Roth IRA
  • SEP IRA
Portfolio
  • 10 as part of basic service, 32 as part of Portfolio Plus ($3 a month)
Automatic rebalancing
Tax loss harvesting
Tax loss harvesting detailWiseBanyan offers a Tax Protection package that includes tax loss harvesting, selective trading and automated IRA deposits.
Offers fractional shares
Ease of use
Mobile appiOS, Android
Customer supportPhone, Chat, Email

Strengths of WiseBanyan

  • No basic account fees: Just like it promises, WiseBanyan charges no account fees aside from the expenses of the investments themselves, which are low (the average expense ratio is 0.12%). That’s a big advantage in a field where other companies charge 0.25% to 0.50% for assets under management, depending on the amount.
  • Low account minimum: You can open an account at WiseBanyan for as little as $1, so even a beginning investor can get started easily. Compare that to Schwab Intelligent Portfolios, which requires at least $5,000 to open an account, and Vanguard Personal Advisor Services, which requires at least $50,000.
  • Automatic rebalancing: When you make a deposit or withdrawal or earn dividends, WiseBanyan’s software examines your portfolio and rebalances it as needed based on the amount of free cash available or asset classes that have drifted off base.
  • Investment options: WiseBanyan points its clients toward low-cost ETFs, primarily from companies like Vanguard, iShares and State Street Global Advisors. For another $3 a month, you can gain access to a total of 32 asset classes (up from 10 asset classes with the basic package) so you can better put together a versatile portfolio.

Drawbacks of WiseBanyan

  • Tax loss harvesting costs: While many robo advisors offer tax loss harvesting as part of their basic service, WiseBanyan does not — and if you opt in, you’ll pay a monthly fee of either 0.02% of your average account value or $20, whichever is less.
  • Limited account options: For now, you can open only a taxable account or a traditional, Roth or SEP IRA. WiseBanyan plans to offer Joint taxable and UGMA accounts, but it also plans to charge for the option of the Joint taxable account. (It isn’t sure what it’ll charge yet.) For now, users can share their goals with each other on the platform, allowing both people to see what kind of progress they’re making toward the same goal, but they can’t work together in the same account — and that functionality might also be fee-based once WiseBanyan offers joint accounts.
  • Guidance is a work in progress: Although the site leads new customers through a goal and risk questionnaire to gauge where they hope to go and how soon they hope to get there, the technology does not yet take other assets into account — such as how much they’ve already saved. That can lead to some unhelpful advice on how much a client needs to save in order to reach their goals. The company continues to tweak functionality as customers provide feedback on the service.

Is WiseBanyan safe?

All investments carry risk, and WiseBanyan is a new player in the game, launching in 2014. In late 2018, however, Axos Financial, a nationwide bank with approximately $10 billion in assets, signed a deal to acquire the company. WiseBanyan itself has 25,000 users and $170 million in assets under management, and the company is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000.

Final thoughts

For newer investors looking to save on costs or seeking basic investing functionality with some algorithm-based guidance, WiseBanyan is an economical way to go. The software will suggest a low-cost, balanced, ETF-based portfolio that takes into account your risk tolerance, goals and time horizon, but you also have the freedom to adjust your ratios or go off-plan. Tax loss harvesting and additional portfolio choices are available for a small add-on fee.

If you’re an advanced investor or someone who is looking for more investment choices or hoping for tax loss harvesting as part of a more full-featured package, another robo-advisor, such as Wealthsimple, might be better suited to you.

Open a WiseBanyan accountSecured
on WiseBanyan’s secure website

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Kate Ashford
Kate Ashford |

Kate Ashford is a writer at MagnifyMoney. You can email Kate here

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Investing

J.P. Morgan You Invest Review 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Chances are you’ve heard of J.P. Morgan Chase. It’s one of the major players in the financial space, and it’s long had a brokerage arm in addition to providing global banking services. Now, though, J.P. Morgan is getting into the online brokerage space with You Invest.

You Invest is an online trading platform that allows you to buy and sell individual stocks and exchange-traded funds (ETFs) without the need for a human broker. This review will look at what’s offered and provide you with the information you need to decide if it’s right for you.

You Invest offers a way for you to seamlessly connect your Chase bank account to your brokerage account. Additionally, you end up with access to plenty of educational materials and the ability to understand your total portfolio.

J.P. Morgan You Invest
Visit J.P. MorganSecuredon J.P. Morgan You Invest’s secure site
The bottom line: You Invest offers a fairly standard online brokerage experience with the perks of low-cost trading fees and a wealth of investor education.

  • Pay just $2.95 per trade after receiving 100 free trades.
  • Enjoy a large selection of investments, including stocks, bonds, mutual funds and ETFs.
  • Manage investments according to goals with the Portfolio Builder tool.

Who should consider You Invest

You Invest is ideal for beginning investors, especially those looking for education and assistance building a portfolio that will help them reach their goals. Intermediate and advanced investors also can benefit, but the educational tools and resources are especially helpful for novice investors.

Additionally, it connects to your other Chase accounts, making it easy for you to move money from your bank account to your brokerage account and vice versa. If you already bank with Chase, using You Invest to manage your portfolio might not be a bad choice.

While $2.95 per trade is a low cost, this product might not be the best choice for active traders. For traders who can keep their trade volume low, this can be an excellent brokerage since you receive 100 free trades in the first year after an account is opened — with the opportunity to qualify for more free trades in subsequent years.

J.P. Morgan You Invest fees and features

Current promotions

Up to 100 free trades

Stock trading fees
  • $2.95 per trade
  • $0 per trade for Chase Private Client, Chase Sapphire Banking, J.P. Morgan Private Bank and J.P. Morgan Securities clients
Amount minimum to open account
  • $0
Tradable securities
  • Stocks
  • ETFs
  • Mutual funds
  • Bonds
Account fees (annual, transfer, inactivity)
  • $0 annual fee
  • $75 full account transfer fee
  • $75 partial account transfer fee
  • $0 inactivity fee
Commission-free ETFs offered
Offers automated portfolio/robo-advisor
Account types
  • Individual taxable
  • Traditional IRA
  • Roth IRA
  • Joint taxable
  • Rollover IRA
  • Rollover Roth IRA
Ease of use
Mobile appiOS, Android
Customer supportPhone, Chat, 5,100 branch locations
Research resources
  • SEC filings
  • Mutual fund reports
  • Earnings press releases
  • Earnings call recordings

Strengths of You Invest

The educational tools and insights provided by You Invest are where this offering shines. They help you find the right mutual funds and stocks, and get you to understand your investing needs.

  • Low trading fees: To start, you get 100 free trades from You Invest. After you use your allotment, trades cost only $2.95. Among online brokers that charge trading fees, this is one of the lowest. If you’re not an active trader, you might be able to avoid paying fees fairly easily. You can get more free trades each year if you use certain Chase banking products, such as Premier Plus Checking.
  • Educational resources: You Invest offers a number of helpful articles about investing, strategy and more. It’s possible for you to learn the basics and then apply them to your portfolio.
  • Portfolio Builder: If you have at least $2,500 in your account, you can take advantage of this tool designed to help you choose the right investments for your portfolio. You’ll receive guidance on putting together a portfolio based on your answers to questions designed to gauge your risk tolerance, investment goals and time horizon.
  • Powerful screening tools: You can use these tools to set parameters and then find assets that fit your requirements. A list of options appears, and when you’re looking at Mutual funds , You Invest also includes Morningstar ratings and analysis of where they might fit into your portfolio.

Drawbacks of You Invest

A review of You Invest wouldn’t be complete without a look at some of the downsides. In many ways, You Invest is a typical online brokerage option. Other than some of the educational and portfolio building tools, there’s not a lot to distinguish this from other brokers.

  • No standalone app: Rather than offering a standalone app, you access You Invest through J.P. Morgan Mobile. Until you get used to it, it can be somewhat disconcerting to navigate to your trading app within the regular app.
  • Limited account types: There are only two account options with You Invest: taxable and IRA. You can get a Joint taxable account as well as an individual account, and there is a Roth option with the IRA. However, if you’re hoping for a custodial account or 529, you won’t find it with You Invest.
  • No managed portfolios: Right now, you won’t find managed portfolios, but they are supposed to be coming in 2019. So if you’re more of a hands-off investor, you might want to wait until there are more options available.
Fees
$2.95 per trade

Per Trade Stock Trading Fee

Account Minimum
$0
Promotion

Up to 100 free trades

Fees
$0.00 per trade

Per Trade Stock Trading Fee

Account Minimum
$0
Promotion

Get up to $600 when you open and fund an account within 60 calendar days of account opening, depending on deposited amount.

Fees
$0.00 per trade

Per Trade Stock Trading Fee

Account Minimum
$0
Promotion

Cash bonuses are available for new accounts. Bonuses start at $50 if you deposit or transfer $10,000+.

Is You Invest safe?

Any investment comes with the risk of loss. However, You Invest is insured by the SIPC for up to $500,000. Additionally, J.P. Morgan is a member of FINRA. As a result, you’re reasonably protected — especially when you consider that this is a company with more than $1 trillion in assets under management. It’s not likely to fail.

Just make sure you understand your own risk tolerance before you invest. While insurance protects you from failure, you’re not protected from market losses.

Final thoughts

You Invest can be a great option for middle-of-the-road investors who want a little more flexibility in their portfolios but still need some guidance. There are a number of assets to choose from, and the educational tools and resources allow you to build a portfolio based on your long-term goals and expectations.

Depending on your goals, there might be other products that work for you. For those more interested in a hands-off approach, Betterment might be a more suitable choice. You also can make trades for less with a service like Robinhood. However, you might not get the same level of educational tools with Robinhood, and Betterment won’t let you personalize your portfolio to the same degree.

If you want a low-cost, personalized way to invest — learning as you go — and if you’re already a Chase customer, opening a You Invest account might be a good way to move forward.

Open a J.P. Morgan You Invest accountSecured
on J.P. Morgan You Invest’s secure website

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Miranda Marquit
Miranda Marquit |

Miranda Marquit is a writer at MagnifyMoney. You can email Miranda here

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Investing

How to Make Money in Stocks

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Putting money in the market is well-worn financial advice for a reason: Investing in stocks is one of the best steps you can take toward building wealth.But how, exactly, is that wealth built? How is money earned by purchasing stock market holdings, and what can you do to maximize the gains you make from your own portfolio?

How to make money in stocks: 5 best practices

The way the stock market works — and works for you — is as simple as a high school economics class. It’s all about supply and demand, and the way those factors affect value.

Investors purchase market assets like stocks (shares of companies), which increase in value when the company does well. As the company in question makes financial progress, more investors want a piece of the action, and they’re willing to pay more for an individual share.

That means that the share you paid for has now increased in price, thanks to higher demand — which in turn means you can earn something when it comes time to sell it. (Of course, it’s also possible for stocks and other market holdings to decrease in value, which is why there’s no such thing as a risk-free investment.)

Along with the profit you can make by selling stocks, you can also earn shareholder dividends, or portions of the company’s earnings. Cash dividends are usually paid on a quarterly basis, but you might also earn dividends in the form of additional shares of stock.

Micro-mechanics of how stocks earn money aside, you likely won’t see serious growth without heeding some basic market principles and best practices. Here’s how to ensure your portfolio will do as much work for you as possible.

1. Take advantage of time

Although it’s possible to make money on the stock market in the short term, the real earning potential comes from the compound interest you earn on long-term holdings. As your assets increase in value, the total amount of money in your account grows, making room for even more capital gains. That’s how stock market earnings increase over time exponentially.

But in order to best take advantage of that exponential growth, you need to start building your portfolio as early as possible. Ideally, you’ll want to start investing as soon as you’re earning an income — perhaps by taking advantage of a company-sponsored 401(k) plan.

To see exactly how much time can affect your nest egg, let’s look at an example. Say you stashed $1,000 in your retirement account at age 20, with plans to hang up your working hat at age 70. Even if you put nothing else into the account, you’d have over $18,000 to look forward to after 50 years of growth, assuming a relatively modest 6% interest rate. But if you waited until you were 60 to make that initial deposit, you’d earn less than $800 through compound interest — which is why it’s so much harder to save for retirement if you don’t start early. Plus, all that extra cash comes at no additional effort on your part. It just requires time — so go ahead and get started!

2. Continue to invest regularly

Time is an important component of your overall portfolio growth. But even decades of compounding returns can only do so much if you don’t continue to save.

Let’s go back to our retirement example above. Only this time, instead of making a $1,000 deposit and forgetting about it, let’s say you contributed $1,000 a year — which comes out to less than $20 per week.

If you started making those annual contributions at age 20, you’d have saved about $325,000 by the time you celebrated your 70th birthday. Even if you waited until 60 to start saving, you’d wind up with about $15,000 — a far cry from the measly $1,800 you’d take out if you only made the initial deposit.

Making regular contributions doesn’t have to take much effort; you can easily automate the process through your 401(k) or brokerage account, depositing a set amount each week or pay period.

Fees
$0.00 per trade

Per Trade Stock Trading Fee

Account Minimum
$0
Promotion

500 free trades with a qualifying net deposit of $100,000

Fees
$0.00 per trade

Per Trade Stock Trading Fee

Account Minimum
$0
Promotion

Get up to $600 when you open and fund an account within 60 calendar days of account opening, depending on deposited amount.

Fees
$0.00 per trade

Per Trade Stock Trading Fee

Account Minimum
$500
Promotion
New accounts with a deposit of at least $5,000, may be eligible for a cash bonus, which can range from $100 to $2,500 depending on the amount deposited.

3. Set it and forget it — mostly

If you’re looking to see healthy returns on your stock market investments, just remember — you’re playing the long game.

For one thing, short-term trading lacks the tax benefits you can glean from holding onto your investments for longer. If you sell a stock before owning it for a full year, you’ll pay a higher tax rate than you would on long-term capital gains — that is, stocks you’ve held for more than a year.

While there are certain situations that do call for taking a look at your holdings, for the most part, even serious market dips reverse themselves in time. In fact, these bearish blips are regular, expected events, according to Malik S. Lee, CFP® and founder of Atlanta-based Felton & Peel Wealth Management.

So-called market corrections are healthy, he said. “It shows that the market is alive and well.” And even taking major recessions into account, the market’s performance has had an overall upward trend over the past hundred years.

4. Maintain a diverse portfolio

All investing carries risk; it’s possible for some of the companies you invest in to underperform or even fold entirely. But if you diversify your portfolio, you’ll be safeguarded against losing all of your assets when investments don’t go as planned.

By ensuring you’re invested in many different types of securities, you’ll be better prepared to weather stock market corrections. It’s unlikely that all industries and companies will suffer equally or succeed at the same level, so you can hedge your bets by buying some of everything.

5. Consider hiring professional help

Although the internet makes it relatively easy to create a well-researched DIY stock portfolio, if you’re still hesitant to put your money in the market, hiring an investment advisor can help. Even though the use of a professional can’t mitigate all risk of losses, you might feel more comfortable knowing you have an expert in your corner.

How the stock market can grow your wealth

Given the right combination of time, contribution regularity and a little bit of luck, the stock market has the potential to turn even a modest savings into an appreciable nest egg.

Ready to get started investing for yourself? Check out the following MagnifyMoney articles:

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Jamie Cattanach
Jamie Cattanach |

Jamie Cattanach is a writer at MagnifyMoney. You can email Jamie here