Ellevest - Detailed Review
Finance Tools
Ellevest - Product Overview
Ellevest Overview
Ellevest is an AI-driven financial platform that specializes in providing investment and financial planning services, particularly focused on the unique needs of women.Primary Function
Ellevest’s primary function is to help women achieve their financial goals through personalized investment strategies. The platform uses an algorithm that takes into account factors such as salary gaps, career breaks, and longer life expectancy, which are common challenges women face in their financial lives.Target Audience
The primary target audience of Ellevest is women of all ages and income levels. While it caters to women across various age groups, its target demographic tends to be younger women who are early in their careers. However, the services are valuable to women of all ages seeking to build wealth and secure their financial futures.Key Features
Accounts Supported
Ellevest offers individual taxable accounts and IRAs (Roth, traditional, and SEP). It also supports 401(k) and 403(b) rollovers and provides allocation guidance for external 401(k) plans, though it does not offer joint taxable accounts.Automatic Rebalancing
The platform provides automatic rebalancing of portfolios to ensure they remain aligned with the user’s intended investment allocation, adjusting investments as needed without additional fees.Human Advisor Option
Ellevest offers access to certified financial planners (CFPs) through various session options, including a free 15-minute call for all clients and non-clients. Clients can purchase additional sessions at a discounted rate, and there is an option for unlimited access to a CFP with quarterly phone calls and unlimited email access.Goal-Based Investing
The platform allows users to set specific financial goals such as building wealth, buying a home, starting a business, or planning for retirement. It creates customized investment portfolios based on these goals, the user’s risk tolerance, and their time horizon.Financial Education and Support
Ellevest provides extensive educational resources, including free digital workshops, in-app learning materials, and personalized progress reports. These tools help women make informed financial decisions and build their financial knowledge over time.Customer Support
The platform offers standard phone and email support during business hours, as well as support via Instagram direct message and Facebook Messenger. There is also email support available for urgent matters on weekends.Impact Portfolios
Ellevest offers impact portfolios that allow clients to invest in companies with strong social and sustainability practices, such as those with women in leadership positions. By focusing on these key features, Ellevest empowers women to take control of their financial futures with a user-friendly, goal-oriented, and supportive approach. Ellevest - User Interface and Experience
The User Interface of Ellevest
The user interface of Ellevest, a finance tools AI-driven product, is designed to be approachable, intuitive, and user-friendly, particularly for women who are new to investing.
Sign-Up and Onboarding
The sign-up process is streamlined and informative. Users are asked for demographic information, such as location and educational background, which Ellevest explains is necessary to personalize investment recommendations later on.
- The process involves selecting money goals and career foci, followed by choosing a membership plan. Users then connect their bank account using a Plaid integration, which simplifies the process by not requiring them to leave the Ellevest platform.
User Flow and Design
Once signed up, the onboarding flow is clean and well-structured. Users can select from onboarding tutorials, either focusing on their investment plan or banking setup. The interface includes succinct copy about investing basics, with additional information available through clickable green text that opens modal windows.
- The design ensures that each page of the onboarding flow is easy to follow, reducing friction and making the process less intimidating for new investors.
Goal-Based Planning
Ellevest allows users to create and manage savings goals and plans seamlessly. For example, users can set up a savings goal and a corresponding savings plan, with the interface guiding them through each step. This includes assigning fun and illustrative icons to each goal, making it visually easy to distinguish between different goals.
Dashboard and Portfolio Management
The dashboard is clear and graphical, showing how monthly deposits contribute to a larger portfolio. Users can adjust the aggressiveness of their portfolio by shifting more into stocks or bonds, and they can also turn the impact portfolio on or off. This visual representation helps users see the progress of their investments and make informed decisions.
Educational Resources
Ellevest provides a wealth of educational resources, including email courses, workshops, and one-on-one coaching sessions for an additional fee. These resources help users stay engaged and motivated, with regular emails offering helpful articles and tips on building their financial plan.
Ease of Use
The overall user experience is designed to be smooth and engaging. Ellevest explains why it needs certain information during the sign-up process, which helps build trust and clarity. The use of Plaid integration for bank account connection and the step-by-step onboarding process make the initial setup straightforward.
Feedback and Improvement
While the interface is generally user-friendly, there are some areas for improvement. For instance, the modals in the investing setup can be text-heavy, which might deter some users. Shorter explanations with links to additional information could enhance user engagement.
Additionally, some users have reported issues with customer service and account cancellation processes, highlighting the need for better support in these areas.
Conclusion
In summary, Ellevest’s user interface is designed to be approachable and easy to use, with a focus on educating and supporting users in achieving their financial goals. However, there are some areas where the user experience could be further refined to address user feedback and improve overall satisfaction.
Ellevest - Key Features and Functionality
Ellevest Overview
Ellevest is a financial services platform that leverages AI and machine learning to provide personalized, goal-based investment solutions, particularly targeting the unique financial needs of women.Main Features and Functionalities
Goal-Based Investing
Ellevest allows users to set and prioritize multiple financial goals, such as buying a home, starting a business, saving for a child, retirement, or a major splurge. The platform uses an algorithm to create customized investment portfolios based on these goals, taking into account the user’s timeline, salary projections, and savings contributions.AI-Driven Algorithm
The platform’s algorithm is powered by machine learning and considers factors such as earnings trajectory, anticipated career breaks, and longer life expectancy, which are particularly relevant for women. This algorithm helps in maximizing the likelihood of reaching specific goals rather than solely focusing on maximizing returns.Portfolio Construction
Ellevest offers two main portfolio options: the Core Portfolio and the Impact Portfolio. The Core Portfolio invests in a range of ETFs across various asset classes, including U.S. large-cap, mid-cap, and small-cap stocks, international stocks, REITs, and bonds. The Impact Portfolio includes ESG (Environmental, Social, and Governance) funds. The portfolios are automatically rebalanced to ensure they remain aligned with the user’s goals and risk tolerance.Automatic Rebalancing
Ellevest’s system automatically rebalances the portfolio when it has “drifted meaningfully from the target.” This ensures that the investments remain on track to meet the user’s goals, even as market conditions change. The rebalancing process also incorporates tax minimization strategies to reduce tax impacts over time.Tax Minimization Methodology
Ellevest uses its Tax Minimization Methodology (TMM) to optimize tax efficiency. This involves selecting low-impact securities such as municipal bonds for taxable accounts and corporate or U.S. Treasury bonds for tax-deferred retirement accounts, thereby reducing the overall tax burden.Low Fees and No Minimums
There are no minimums to open an account, and the platform charges a low monthly subscription fee of $12 for the Ellevest Digital Plan. This makes it accessible to a wide range of investors. The investment expense ratios range from 0.05% to 0.10% for the Core Portfolio and from 0.13% to 0.19% for the Impact Portfolio.Easy Account Setup and Management
Setting up an account on Ellevest is quick and easy, with the entire process able to be completed online. Users can link an external bank account and set up automatic deposits. The platform also offers a mobile app for both iOS and Android, although the initial setup might need to be done via the website for some users.Financial Education and Support
Ellevest provides users with financial education and support, including access to financial advisors for additional guidance. While minimal access to a financial planner is included in the basic plan, users can opt for additional services at an extra cost.Cash Management
Ellevest keeps the amount of uninvested cash in the account minimized, ensuring that most of the funds are invested in ETFs or mutual funds. However, it does offer free management of an emergency fund, which is not invested in the market but earns a very low interest rate. There are no transfer or withdrawal fees.Integration of AI and Machine Learning
Ellevest’s use of AI and machine learning is central to its operation. These technologies enable the platform to provide personalized investment recommendations, automate portfolio rebalancing, and optimize tax strategies. By continuously improving its algorithms, Ellevest aims to enhance the accuracy and efficiency of its financial advice.Conclusion
Overall, Ellevest’s integration of AI and machine learning, combined with its goal-based investing approach and low fees, makes it a compelling option for individuals, especially women, looking to manage their finances effectively and achieve their long-term financial goals. Ellevest - Performance and Accuracy
When Evaluating Ellevest’s Performance and Accuracy
A key aspect to consider is its approach to investment management and financial planning, particularly how it caters to the financial needs of women.
Investment Performance and Accuracy
Ellevest uses a goal-based planning approach, constructing portfolios with low-cost ETFs from 21 asset classes. This diversification helps in mitigating risk and optimizing returns. The expense ratios for the core portfolios range from 0.05% to 0.10%, which is competitive and reasonable, especially when compared to other robo-advisors.
For its impact portfolios, Ellevest incorporates ESG (Environmental, Social, and Governance) funds, which may have slightly higher expense ratios (0.13% to 0.19%). However, these portfolios are designed to align with clients’ values, particularly focusing on women’s rights, racial justice, and climate action.
Financial Planning and Advice
Ellevest offers personalized financial planning, taking into account factors such as gender-specific salary curves and longer lifespans. This approach helps in creating long-term investment strategies that are more relevant to women’s financial goals. Clients have access to certified financial planners (CFPs) for additional guidance, although this comes at an extra cost.
Limitations and Areas for Improvement
Despite its strengths, Ellevest has several limitations:
- Flat Monthly Fee: The $12 monthly fee can be prohibitive for small investment amounts, making it less cost-effective compared to the industry standard of charging a percentage of assets under management.
- Limited Account Types: Ellevest does not offer joint accounts, trust accounts, or 529 accounts, which might limit its appeal for some users.
- No Tax-Loss Harvesting: Unlike many other robo-advisors, Ellevest does not offer automated tax-loss harvesting. However, it does minimize taxes by avoiding short-term capital gains and realizing tax losses when appropriate.
- No Cash Management Account: Ellevest eliminated its cash management account in 2022, which means clients need to look elsewhere for such services.
Engagement and User Experience
Ellevest is known for its user-friendly interface and educational resources. It provides monthly market insights and online workshops led by financial planners, which can be very beneficial for clients looking to stay informed and engaged with their investments.
Conclusion
In summary, Ellevest performs well in terms of investment diversification and personalized financial planning, especially for women. However, its flat fee structure and lack of certain features like tax-loss harvesting and joint accounts are areas where it could improve to better serve a broader range of clients.
Ellevest - Pricing and Plans
Ellevest Pricing Overview
Ellevest, a robo-advisor focused on women’s financial needs, offers a clear and structured pricing model with several plans to cater to different investor requirements. Here’s a breakdown of their pricing and the features associated with each plan:Money Membership Programs
As of the latest updates, Ellevest offers three main membership programs under its Money Membership initiative:Essential
- Annual Fee: $1 per month (or $12 annually)
- Minimum Balance: $0
- Features: Goal-based investment plan, automatic portfolio rebalancing, and free emergency fund management. This plan is suitable for those starting out or with smaller investment amounts.
Plus
- Annual Fee: $5 per month (or $60 annually)
- Minimum Balance: $0
- Features: Includes all the features of the Essential plan, plus additional benefits such as access to educational resources, workshops, and some financial planning tools.
Executive
- Annual Fee: $9 per month (or $108 annually)
- Minimum Balance: $0
- Features: This tier includes all the features from the Plus plan, along with more comprehensive financial planning, access to certified financial planners, and other premium services. Members also get discounts on one-on-one planning sessions.
Private Wealth Management
For high-net-worth individuals:- Minimum Balance: $1 million
- Fees: Vary based on the amount of assets under management
- Features: This program offers personalized wealth management services, including customized investment plans and direct access to financial advisors.
Investment Management Fees
In addition to the membership fees, there are underlying fees associated with the ETFs and mutual funds used in the portfolios:- Core Portfolio: Expense ratios range from 0.05% to 0.10%.
- Impact Portfolio: Expense ratios range from 0.13% to 0.19%.
Free Options
- Emergency Fund Management: Ellevest manages an emergency fund at no extra cost. This fund is not invested in the market but earns a low interest rate.
Additional Services
- Access to Certified Financial Planners: Available on an a la carte basis, with discounted rates for members. Prices start at $500 for individual sessions and can go up to $4,938 for comprehensive planning packages.
Ellevest - Integration and Compatibility
Integration with Other Tools
One of the key integrations Ellevest offers is with Plaid, a service that allows users to connect their bank accounts directly to the Ellevest platform. This integration simplifies the sign-up process by eliminating the need for users to leave the Ellevest site to find their bank account information, thereby reducing friction and the likelihood of sign-up abandonment.Compatibility Across Devices and Platforms
Ellevest is accessible on multiple devices and platforms:Mobile Apps
Ellevest has mobile apps available for both iOS and Android users. The iOS app supports versions 11 and above, which means users need at least an iPhone 6 or newer. For Android, the app requires version 8.0 or newer. Although there is no specific app for iPads, users can access the service through the Ellevest website on their iPads.Web Browsers
The Ellevest website is compatible with the two most recent versions of major web browsers such as Chrome, Internet Explorer, Firefox, and Safari. This ensures that all account functionalities available on desktop are also accessible to mobile users.Accessibility
Ellevest is committed to providing an accessible website, adhering to the World Wide Web Consortium’s Web Content Accessibility Guidelines 2.0 at Levels A and AA. They regularly evaluate and adjust their website to ensure it remains accessible to the widest possible audience.Additional Features
Educational Resources
Ellevest offers a range of educational resources, including on-demand learning sections, email courses, and workshops. These resources are accessible across both the web and mobile platforms, helping users stay engaged and informed about their investment plans.Customer Support
Users can access customer support through email, phone, and chatbot services, ensuring help is available across different communication channels and devices. In summary, Ellevest integrates smoothly with tools like Plaid for bank account connections and is compatible with a variety of devices and platforms, including mobile apps and major web browsers, while also ensuring accessibility and providing comprehensive educational resources. Ellevest - Customer Support and Resources
Customer Support
Phone Support
You can contact Ellevest’s customer service using their toll-free number, (844) 355-7100. This line is available for assistance on various issues, including account questions, product and service inquiries, payments, and charges.
Email Support
Ellevest provides multiple email addresses for different types of inquiries. For general support, you can use support@ellevest.com, which is the most commonly used email by customers. There are also specific emails for business inquiries (partnerships@ellevest.com) and media questions (press@ellevest.com).
Social Media Support
In addition to phone and email, Ellevest offers support through Instagram direct messages and Facebook Messenger during business days. Email support is also available for urgent matters on weekends.
Additional Resources
Financial Planning Sessions
Ellevest clients can access financial planning sessions with a Certified Financial Planner (CFP) at a 50% discount. These sessions can cover topics such as budgeting, retirement planning, and homebuying strategies. Even non-clients can purchase these sessions at the retail price.
Educational Resources
The platform provides a wealth of educational materials, including free digital workshops, in-app learning resources like videos, articles, and guides, as well as email courses. These resources help users address their money questions and stay on track with their financial goals.
Learn Dashboard
Users have access to a Learn dashboard that offers various tools and resources to get their money questions answered at their own pace.
Automated Rebalancing
Ellevest automatically rebalances your portfolio to ensure it remains aligned with your intended investment allocation, which helps in managing risk and optimizing returns.
Human Advisor Access
Clients can schedule quarterly phone calls with a CFP and have unlimited email access. Additional calls can be requested, though they may incur an extra fee.
Account and Goal Management
Goals-Based Investing
Ellevest allows users to set up different investing goals, such as retirement, emergency funds, or buying a home. Users can track their progress and adjust their strategies accordingly.
Impact Investing
Users can choose to invest in Ellevest Impact Portfolios, which focus on companies that advance women and align with Environmental, Social, and Governance (ESG) criteria.
By leveraging these support options and resources, Ellevest users can better manage their financial plans and achieve their goals.
Ellevest - Pros and Cons
Pros of Ellevest
Goal-Based Investing
One of the standout features of Ellevest is its goal-based approach to investing. Instead of organizing investments by account type, Ellevest allows users to organize their investments by specific goals, such as buying a house, retirement, or a dream vacation. This approach helps users make informed decisions based on high-probability outcomes.
Low-Cost ETFs and Portfolio Construction
Ellevest uses a variety of low-cost ETFs from 21 asset classes to construct its portfolios. The expense ratios for these funds range from 0.05% to 0.10%, making them highly competitive. Ellevest also offers impact portfolios that invest in ESG (environmental, social, and governance) funds, which can be particularly appealing to those interested in socially responsible investing.
Access to Financial Planners
Ellevest provides its users with discounted access to certified financial planners (CFPs) as part of its monthly subscription. This feature is particularly beneficial for those seeking personalized financial advice and planning.
Automated Investment Management
Ellevest offers fully automated investment management, including automated IRA accounts and the ability to roll over 401(k) or 403(b) accounts. The platform is designed to minimize taxes by avoiding short-term capital gains and placing higher-taxed assets in tax-protected accounts.
Inclusive and Empowering
Ellevest is specifically designed to address the unique financial needs of women, taking into account factors such as earnings trajectory and anticipated career breaks. However, it is inclusive and welcomes clients of all genders, including non-binary and gender non-conforming individuals.
Cons of Ellevest
Monthly Subscription Fee
Ellevest charges a flat $12 monthly fee, which can be prohibitive for those with small investment amounts. This fee translates to a significant percentage of the portfolio’s value if the investment is small, making it less competitive compared to other robo-advisors that charge a percentage of assets under management.
Limited Account Types
Ellevest offers a limited selection of account types. It does not provide joint accounts, custodial accounts, or trust accounts, which may force some users to look elsewhere for these services.
No Tax-Loss Harvesting
Unlike many other robo-advisors, Ellevest does not offer tax-loss harvesting. While it does minimize taxes by avoiding short-term capital gains and optimizing asset placement, the absence of automated tax-loss harvesting might be a drawback for some investors.
No Cash Management Account
Ellevest eliminated its cash management account in 2022, which means users cannot manage their cash within the platform. This is a significant drawback compared to competitors like Betterment and Wealthfront, which offer comprehensive cash management features.
High Minimum for Private Wealth Services
Access to Ellevest’s private wealth management services requires a high minimum investment, typically $1 million. This makes these services inaccessible to many users.
By considering these pros and cons, potential users can make an informed decision about whether Ellevest aligns with their financial goals and needs.
Ellevest - Comparison with Competitors
Unique Features of Ellevest
- Goal-Based Planning: Ellevest offers goal-based planning, which allows users to set and work towards specific financial goals, such as retirement, buying a home, or starting a business.
- Socially Responsible Investing: Ellevest is particularly strong for values-based investors, especially those interested in supporting companies with policies and practices that advance women.
- Financial Education and Planning: Ellevest provides free educational materials, access to certified financial planners (CFPs), and digital workshops. Clients can also purchase various financial planning sessions at a discounted rate.
- Automatic Rebalancing: Ellevest offers automatic rebalancing of portfolios at no additional fee, ensuring that the investment allocation remains aligned with the user’s targets.
Competitors and Alternatives
Wealthfront
- Tax-Loss Harvesting: Wealthfront is known for its tax-bill-lowering strategies, including tax-loss harvesting, which is not a primary focus of Ellevest. Wealthfront also offers a wider range of investments, including index funds and crypto trusts.
- Minimum Requirements: Wealthfront requires a $500 minimum for automated investing, unlike Ellevest which has no minimum to open an account.
Betterment
- Cryptocurrency Investing: Betterment is a better option for those interested in investing in cryptocurrencies, offering crypto portfolios and trusts. It also provides CFP access, but only unlimited guidance is available with the premium plan, which has a $100,000 minimum.
- Fees and Accounts: Betterment has similar fees to Ellevest but offers different service levels, including a premium plan with more extensive features. It also supports IRA accounts and has no account minimum to open, but $10 is needed to start investing.
Penny Finance
- Focus on Women: Like Ellevest, Penny Finance focuses on empowering women through financial education and planning. However, it is more specialized in personalized financial guidance rather than automated investment services.
FinMarie
- Financial Workshops and Coaching: FinMarie provides financial planning and advisory tools, including workshops, coaching, and educational resources, which are similar to Ellevest’s educational offerings but more focused on women investors.
PropElle
- Community Engagement: PropElle offers educational resources, community engagement, and access to professional networks, making it a good alternative for those seeking a more community-driven approach to financial empowerment.
Other Notable Competitors
- Betterment and Wealthfront are both strong alternatives for hands-off investors looking for professionally managed portfolios. Betterment is particularly good for those interested in cryptocurrency and IRA accounts, while Wealthfront excels in tax-loss harvesting and portfolio customization.
- FinMarie and PropElle are more specialized in providing financial planning and advisory services specifically for women, which might appeal to users looking for a more targeted approach.
In summary, Ellevest stands out for its goal-based planning, socially responsible investing options, and comprehensive financial education resources. However, depending on your specific needs, such as cryptocurrency investing, tax-loss harvesting, or more personalized financial coaching, alternatives like Wealthfront, Betterment, Penny Finance, FinMarie, or PropElle might be more suitable.
Ellevest - Frequently Asked Questions
Frequently Asked Questions about Ellevest
What is Ellevest and what services does it offer?
Ellevest is a woman-run investing and private wealth management platform that provides a suite of financial planning services and tools. It helps individuals manage investments, coordinate estate plans, and offers automated investment advice. Ellevest also provides access to certified financial planners, retirement plans such as traditional and Roth IRAs, and online workshops.What are the different types of portfolios offered by Ellevest?
Ellevest offers two main portfolio options: Ellevest Core and Ellevest Impact. The Ellevest Core portfolio invests in a blend of ETFs and mutual funds to help you reach your financial goals, with fund fees ranging from 0.05% to 0.10% per year. The Ellevest Impact portfolio focuses on socially responsible investing, with up to 53% of your funds invested in ESG and impact funds, and fees ranging from 0.13% to 0.19% per year.What are the account minimums and fees associated with Ellevest?
There is no minimum balance requirement for the Ellevest Digital Plan, but the Ellevest Private Wealth Management requires $1 million in assets. The fees for the Ellevest Plan are $12 per month, and there are no advisory fees. However, there are fund fees associated with the ETFs and mutual funds in your portfolio. Additionally, there are fees for transferring accounts to another institution.Does Ellevest offer any financial planning services beyond automated investing?
Yes, Ellevest provides comprehensive financial planning services led by certified financial planners (CFP® professionals). These services include 1:1 packages and sessions for budgeting, debt payment, and other financial goals. You can book a complimentary consultation to determine which planning session is right for you. Your partner can also join in on these planning sessions at no additional cost.Can I invest in Ellevest without transferring my existing investments?
You do not need to transfer any invested assets to Ellevest or open an investment account with them to work with a financial planner. Your planner will provide guidance that factors in all of your investment and other financial accounts, even if they are outside of Ellevest.How does Ellevest handle accessibility issues on its website?
Ellevest is committed to providing an accessible website for all users. If you encounter any accessibility issues, you can contact their support team via email at support@ellevest.com with “Accessibility” in the subject line or call 844-355-7100. They regularly evaluate their website using automated accessibility assessment tools and make necessary adjustments to comply with recognized accessibility standards like the World Wide Web Consortium’s Web Content Accessibility Guidelines 2.0.What kind of retirement plans does Ellevest offer?
Ellevest offers various retirement plans, including traditional and Roth IRAs, as well as automated IRA accounts and 401(k)/403(b) rollovers. These plans are part of their overall financial planning services and are designed to help you achieve your retirement goals.Can I open joint or custodial accounts with Ellevest?
Currently, Ellevest does not offer joint accounts or custodial accounts. You can only open individual investment accounts and retirement accounts.Are there any additional features or tools provided by Ellevest?
Yes, Ellevest offers several additional features, such as an auto-deposit option to set aside a portion of your paycheck into your Ellevest account, tax minimization strategies, and monthly market insights from Dr. Sylvia Kwan, Ellevest’s Chief Investment Officer.How does Ellevest ensure the security of my investments?
Ellevest works with Goldman Sachs Custody Solutions, an independent third party, to act as the custodian for Ellevest accounts. This ensures that your investments are held securely and managed professionally.