Ellevest Overview
Ellevest is a goal-focused robo-advisor platform designed to help individuals, particularly women, achieve their financial objectives through personalized and automated investment strategies.
What Ellevest Does
Ellevest provides a comprehensive financial management solution that combines automated investing with human advice. The platform is tailored to address the unique financial needs and goals of its users, taking into account factors such as gender-specific salary curves and longevity data.
Key Features
Personalized Investment Portfolios
Ellevest creates customized investment portfolios based on users’ specific financial goals, risk tolerance, and time horizon. These portfolios are diversified across up to 21 asset classes and primarily consist of low-cost ETFs and mutual funds. Users can choose from various goal-based portfolios, including those for buying a home, starting a business, saving for a child, retirement, and building wealth.
Goal-Based Investing
The platform allows users to set and prioritize multiple financial goals, providing a clear plan and projections for achieving each one. For example, if a user aims to buy a home, Ellevest will calculate the target amount based on the average home price in the user’s area and suggest a monthly deposit plan.
Automated Rebalancing and Management
Ellevest offers automatic rebalancing of portfolios to ensure they remain aligned with the user’s target investment allocation, adjusting for market fluctuations without additional fees.
Impact Investing
Ellevest provides Impact Portfolios that invest up to 53% of the portfolio in ESG (Environmental, Social, and Governance) and impact funds. These funds support companies that promote positive social change, advance women in leadership, and encourage sustainable and ethical business practices.
Financial Planning and Advice
Users have access to complimentary 15-minute consultations with Certified Financial Planners (CFPs). Additional financial planning sessions or packages can be purchased at a discounted rate for clients, with the option to split the cost into three monthly payments.
Account Types and Rollovers
Ellevest supports individual taxable accounts, traditional, Roth, and SEP IRAs. It also offers guidance on 401(k) and 403(b) accounts, although it does not directly manage these. Users can roll over or transfer 401(k), 403(b), IRA, or brokerage accounts to Ellevest.
Auto-Deposit Feature
The platform includes an auto-deposit feature that allows users to set aside a portion of their paycheck directly into their Ellevest account, helping to ensure consistent savings and investments.
Educational Resources
Ellevest provides free educational materials and online workshops led by financial planners, as well as monthly market insights from its Chief Investment Officer, Dr. Sylvia Kwan.
Fees and Costs
- The robo-advisor service costs $12 per month or $129 per year.
- The portfolios use low-cost ETFs with expense ratios ranging from 0.05% to 0.10% for core portfolios and 0.13% to 0.19% for impact portfolios.
Accessibility
While Ellevest is designed with women in mind, it is open to all users, including non-binary and gender non-conforming individuals. However, it does not offer joint accounts, custodial accounts, or self-direct trading options.
In summary, Ellevest is a robust platform that offers personalized, goal-based investing, automated portfolio management, and access to human financial advice, making it a strong choice for those seeking a hands-off yet goal-oriented investment approach.