Ellevest is a robo-advisor that focuses on women investors specifically. Ellevest offers customized plans tailor-made to suit the investment needs of women by considering the financial differences between investments made by men and women.
Ellevest believes the career breaks taken by women, the pay gap due to the gender difference and how it affects their earnings and investments.
And, by considering all these aspects, it offers the best investment planning recommendations for women.
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How Does Ellevest Work?
With Ellevest, you can make your investment very quickly, in fact, in just less than 10 minutes.
All you need to do is, fill in the details about yourself and your life’s goals in five simple steps and Ellevest will recommend customized investment portfolios from each of your goals.
And, since Ellevest is a fiduciary, it means that they can act on behalf of their customer’s interests by law.
Getting Started
The start-up process is simple. Ellevest does not have a mobile app, so you need to do everything via their website. You need to fill in details about yourself such as your name, age, education, job and details about your family.
Next, you need to outline your financial goals, including, buying your home, starting your business, building your wealth, etc. You can add how many ever goals as your wish and your goals are ranked according to the importance.
Once you add your account information, your salary projections, saving contributions and other financial information is scrutinized by Ellevest, which will then give you recommendations of how you can accomplish each of your goals.
Ellevest also tells you your approximate monthly deposit amount and the total amount of investment required. You can make adjustments in your timelines, goals, and priority of goals from these projections.
You can modify and change your plan till you feel that it’s the right for you. You can improve the following aspects:
- Initial deposit
- Recurring contribution
- Timeline
- A target for each of your goals
- Keep within your budget
Ellevest’s trade-off tools allow you to try out various ways of allocating your money across all your goals.
And, the best part is that you can change and update your investment plan as often as you want and at any time you desire. For instance, if you change your target date, your portfolio is automatically updated.
Overall, Ellevest provides a personalized, customized, target-based investment plan for you, which offers a hands-off approach to investments, while you are still working on achieving your goals.
And, with a dynamic market, which is fluctuating all the time, Ellevest rebalances your portfolio automatically to ensure that your finances are on track.
Types of Accounts
Ellevest Retirement Account
The 401(k) & 403(b) Rollovers from Ellevest allows you to put your 401(k) or 403(b) accounts all into a single place, i.e., in the Ellevest Retirement Account.
The Retirement Account allows you to consolidate your different retirement accounts into a single one so that you don’t have to keep track of and check multiple websites and accounts and do all the planning on your own.
Ellevest consolidates all your accounts, even those not a part of the Ellevest portfolio and puts them into a single dashboard that you can access conveniently.
Ellevest conducts a detailed review of your 401(k) or 403(b) plan and also your fees, your investment options, etc. and from these, they will make a customized recommendation.
Ellevest takes into consideration your age, income and your assets at the time of your retirement and finds the right portfolio of funds for you. And, the unique thing about Ellevest is that its forecasts lifespans and salary curves which are gender-specific.
Steps for 401(k) & 403(b) Rollovers
- Once the rollover is initiated, Ellevest uploads your current 401(k) or 403(b) plan statement and the disclosure.
- A comprehensive analysis of the 401(k) or 403(b) is done by Ellevest, which is compared to the plan Ellevest recommends.
- If you decide to shift your retirement account to Ellevest, they will contact your provider, and the rollover is then initiated.
- Once the rollover is complete, you can check your retirement accounts on the Ellevest dashboard.
IRAs for Women
Typically, women have a longer lifespan compared to men, and the salaries of women also grow differently compared to men.
Ellevest considers all these factors, your financial profile and recommends a customized retirement portfolio for you. You can transfer your SEP, Roth or traditional IRA to Ellevest, who will then manage it for you.
And, instead of giving you one colossal amount you need to invest, Ellevest tells you the amount of money you will require per annum during your retirement.
From Ellevest’s recommendations, you can adjust your deposits, timelines, and goal as per your convenience. There are no taxes or fees to transfer your retirement account from the IRA to Ellevest.
There is no paperwork, and it takes only a few minutes to begin your IRA transfer online. The transfer steps are straightforward:
- You can create your investment plan by choosing your retirement goal and select the “Transfer IRA” option.
- Set up your account by providing all your details and your regular, SEP or Roth IRA.
- Then, review your portfolio created by Ellevest and complete the transfer.
Private Wealth Management
Ellevest offers the services of specialized financial advisors who understand the nuances of how women want to invest their money to achieve their financial goals.
You can experience the one-on-one interaction with Ellevest’s advisor who is supported by the client service and investment associates’ team.
Ellevest provides tailor-made investment offerings across various classes of assets to power social change. Ellevest offers you personalized financial advice from what you and your family care about the most.
Ellevest Pricing
Ellevest offers exceptionally flexible pricing which you can switch at any time you want. Ellevest offers three pricing plans:
Digital
- Minimum Balance: 0
- Annual Fee (% of Assets Under Management):25% ($25 per year for a 10k account)
Digital Acounts include an options for:
- Investing in Ellevest Impact Portfolios
- Personalized investment portfolios
- Automatic deposits
- Automatic rebalancing
- No-penalty withdrawals
- TMM (Ellevest’s Tax Minimization Methodology)
- Unlimited support from financial professionals and Ellevests’s Concierge Team
Premium
- Minimum Balance: $50,000
- Annual Fee (% of Assets Under Management):50% ($250 per year for a 50k account)
Included in the Plan:
- One-on-one access to Ellevest CFPs for advice on money growth and finance strategies
- Individual access to Ellevest’s Executive Coaches for advice on career events and salary negotiations
- Option to invest in the Ellevest Impact Portfolios
- Personalized investment portfolios
- Automatic deposits
- Automatic rebalancing
- No-penalty withdrawals
- TMM (Ellevest’s Tax Minimization Methodology)
- Unlimited support from financial professionals and Ellevest’s Concierge Team
Wealth Management
- Minimum Balance: $100,000
- Annual Fee (% of Assets Under Management): Based on the assets under management
Company History
Ellevest is an entirely pro-female robo-advisor which was founded by Sallie Krawcheck, a veteran in financial services, in the year 2016.
Ellevest was started by Sallie who realized that the financial investing industry is predominantly a male-dominated one and has mostly kept women from achieving their financial objectives.
Sallie partnered with Charlie Kroll, a tech entrepreneur to start Ellevest with a mission to release the financial power of women and allow them to invest in their biggest goals.
The Ellevest team now comprises people from various backgrounds, finance, design, product, and engineering.
Pros
- Ellevest focuses mainly on the investment requirements and goals of women and offers customized advice based on a women’s lifespan and wage gap.
- The services offered by Ellevest are goal oriented and are meant for women looking to making sound investments.
- Ellevest creates unique investor profiles for every client on the basis of their gender, income and personal goals.
Cons
- While men can use the services of Ellevest, its focus is giving gender-specific financial advice to women.
- Does not offer any benefits for taxable accounts like other robo-advisors.
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