Ellevest - Detailed Review
Self Improvement Tools
Ellevest - Detailed Review Contents
Add a header to begin generating the table of contents
Ellevest - Product Overview
Introduction to Ellevest
Ellevest is a unique investment platform that focuses on addressing the specific financial needs of women. Here’s a breakdown of its primary function, target audience, and key features:Primary Function
Ellevest serves as a financial services platform that helps women invest and manage their finances effectively. It uses an algorithm that considers factors such as salary gaps, career breaks, and longer life expectancy, which are particularly relevant to women’s financial lives.Target Audience
Ellevest’s primary target audience is women of all ages and income levels. The platform caters to a diverse range of women, including younger women starting their careers, seasoned professionals, and those going through significant life transitions like marriage, divorce, or retirement. It also targets women entrepreneurs and millennial women looking to build a strong financial foundation.Key Features
No Minimums and Low Fees
There is no minimum to open an account, and the platform charges a low monthly subscription fee of $12 for the Ellevest Digital Plan.Goal-Focused Investing
Ellevest allows users to set various financial goals such as wealth building, home buying, family planning, business, big splurge, and retirement. The platform creates investment portfolios aligned with these goals and the user’s risk tolerance.Portfolio Options
Ellevest offers two main portfolio options: Ellevest Core and Ellevest Impact. The Ellevest Impact portfolio focuses on environmental, social, and governance (ESG) investing and funds that support women.Automatic Rebalancing
The platform provides automatic rebalancing of portfolios to ensure they remain aligned with the user’s intended investment allocation, without any additional fee.Access to Financial Advisors
Ellevest offers access to certified financial planners (CFPs) through free 15-minute consultations or more extensive sessions at a discounted rate for clients. Additionally, clients can participate in free digital workshops and receive personalized progress reports.Educational Resources
The platform provides a range of educational materials, including videos, articles, guides, and email courses, to help women make informed financial decisions.Customer Support
Ellevest offers customer support via phone, email, and social media during business hours, with additional email support for urgent matters on weekends. By focusing on the unique financial challenges and opportunities faced by women, Ellevest provides a supportive and empowering environment for women to take control of their financial futures. Ellevest - User Interface and Experience
Ellevest Overview
Ellevest, a goal-focused robo-advisor, is designed with a user-friendly interface that aims to make investing and financial management more accessible and less intimidating, especially for women.Sign-Up and Onboarding Process
The sign-up process on Ellevest is structured to gather necessary information while explaining its purpose clearly. Users are asked for demographic details such as location and educational background, which helps in personalizing investment recommendations later on. This transparency reduces friction and helps users understand why the information is needed.Money Goals and Membership Plans
After providing the initial information, users select their money goals and career foci from a list. This step is crucial in aligning the investment strategies with the user’s specific objectives. Following this, users choose a membership plan, which is a key part of the onboarding process. However, it is noted that Ellevest could improve by offering more guidance or recommendations for picking membership plans based on the user’s goals and information provided.Connecting Bank Accounts and Initial Setup
Users can connect their bank accounts through a Plaid integration, which streamlines the process and prevents the need to leave the Ellevest platform. This integration helps in reducing frustration and sign-up abandonment.Educational Content and Onboarding Tutorials
Once the bank account is connected, new members can choose from various onboarding tutorials, such as setting up their investment plan or banking setup. The onboarding flow features clean design and succinct copy about investing basics. Users can access additional information through green text links that open modal windows with more detailed explanations. However, it is suggested that these modals could be improved by having shorter explanations and links to additional information, allowing users to continue their onboarding process without being overwhelmed by text-heavy content.User Interface and Design
The interface is designed to be user-friendly, with a focus on clear and concise information. Each page of the onboarding flow is well-organized, making it easy for new users to understand the basics of investing. The use of green text links for additional information adds a layer of interactivity without overwhelming the user.Overall User Experience
Ellevest’s user experience is centered around making financial management accessible. The platform offers a range of features, including automated investment portfolio recommendations, access to certified financial planners (CFPs), and financial planning packages. The subscription-based model allows users to choose the level of services they need, with no account minimums or annual advisory fees.Customer Engagement and Feedback
Ellevest also focuses on retaining users by offering a free month of service when users request to cancel their membership. This approach aims to give users an additional opportunity to experience the benefits of the platform before making a final decision.Areas for Improvement
While the interface is generally user-friendly, there are areas for improvement. For instance, the modals in the investing setup could be more engaging with shorter explanations and links to additional information. Additionally, more guidance on selecting membership plans based on user goals would be beneficial.Conclusion
In summary, Ellevest’s user interface is designed to be approachable and educational, making it easier for new investors to get started with financial planning and investing. The platform’s focus on clear communication, user-friendly design, and personalized recommendations enhances the overall user experience. Ellevest - Key Features and Functionality
Ellevest Overview
Ellevest is a financial services platform that integrates AI and human advice to provide a comprehensive suite of tools for investing, financial planning, and wealth management, particularly focused on women. Here are the key features and how they work:Automated Investment Portfolios
Ellevest uses AI to create personalized investment portfolios. The platform offers two main portfolio options:- Ellevest Core: This portfolio invests in a blend of ETFs and mutual funds to help you reach your financial goals. It is suitable for investors who are not interested in socially conscious investing.
- Ellevest Impact: This portfolio focuses on socially responsible investing, with a significant portion of your funds invested in ETFs and mutual funds that support women in leadership, affordable housing, and sustainable business practices.
Automatic Rebalancing
Ellevest’s AI-driven system automatically rebalances your portfolio to ensure it remains aligned with your target investment allocation. This feature is crucial because market fluctuations can shift your portfolio’s composition, and automatic rebalancing helps maintain the desired risk level without manual intervention.Auto-Deposit Feature
You can set up an auto-deposit feature that allows a portion of your paycheck to be directly deposited into your Ellevest account. This helps in consistent savings and investment, making it easier to achieve your financial goals.Human Advisor Option
While Ellevest is an AI-driven robo-advisor, it also offers access to human financial advisors. All clients and non-clients can get a free 15-minute call with a Certified Financial Planner (CFP). Clients can purchase additional sessions at a discounted rate, including unlimited access to a CFP with quarterly phone calls and unlimited email access.Financial Planning and Education
Ellevest provides various educational resources, including free digital workshops, in-app learning materials such as videos, articles, guides, and email courses. These resources help you stay informed and on track with your financial goals. Additionally, you receive personalized progress reports with tips to keep your money goals aligned.Customer Support
Ellevest offers multiple channels for customer support, including phone and email support during business days, as well as support via Instagram direct message and Facebook Messenger. There is also email support available for urgent matters on weekends.Impact Investing
The AI-driven Impact Portfolios allow you to invest in companies that advance women in leadership, support affordable housing, and promote sustainable and ethical business practices. This feature is particularly appealing to investors who want to make a positive impact while achieving their financial goals.Tax Minimization
Although Ellevest does not offer tax-loss harvesting, it does focus on tax minimization strategies within its automated investment portfolios. This helps in reducing tax liabilities and maximizing your investment returns.Retirement Plans
Ellevest supports various retirement plans, including traditional and Roth IRAs, and SEP IRAs. It also offers guidance for external 401(k) and 403(b) plans, helping you manage your retirement savings effectively.Conclusion
In summary, Ellevest leverages AI to provide personalized investment portfolios, automatic rebalancing, and other financial management tools, all while offering the support of human financial advisors and a range of educational resources. This holistic approach helps users, particularly women, in achieving their financial goals and managing their wealth effectively. Ellevest - Performance and Accuracy
Performance
Ellevest is known for its goal-based investing approach, which is a significant strength. It creates personalized investment portfolios based on factors such as age, income, financial goals, and risk tolerance, taking into account women’s longer lifespans and salary curves.Portfolio Construction
Ellevest uses low-cost ETFs from 21 asset classes to construct its portfolios. The core portfolios have expense ratios ranging from 0.05% to 0.10%, which is competitive and ranks among the top robo-advisors. For impact portfolios, which include ESG and women-focused funds, the expense ratios are slightly higher but still reasonable, ranging from 0.13% to 0.19%.Goal Achievement
Ellevest projects a 70% likelihood of reaching specific financial goals, which is higher than the 50% estimated by other services. This is achieved through automated portfolio rebalancing to keep investments on track.Accuracy
Ellevest’s algorithm is transparent and considers unique factors affecting women investors. Here are some points on its accuracy:Personalized Portfolios
The platform generates portfolios that are highly personalized, taking into account individual financial goals and timelines. For example, if a client aims to buy a home, Ellevest calculates the target amount based on the average home price in the client’s area.Tax Optimization
While Ellevest does not offer tax-loss harvesting, it does minimize taxes by avoiding short-term capital gains and placing higher-taxed assets in tax-protected accounts. This approach is based on the belief that tax-loss harvesting only defers taxes rather than eliminates them.Limitations and Areas for Improvement
Despite its strengths, Ellevest has some limitations:Fees
Ellevest charges a flat monthly fee of $12, which can be prohibitive for small investment amounts. This fee structure makes it more suitable for high-net-worth individuals rather than those with smaller portfolios.Account Types
Ellevest offers a limited selection of account types, including individual taxable accounts and standard retirement accounts, but it does not offer joint accounts, trusts, or 529 accounts.No Tax-Loss Harvesting
Unlike some other robo-advisors, Ellevest does not provide tax-loss harvesting services. This could be a drawback for some investors who value this feature.Cash Management
Ellevest eliminated its cash management account in 2022, which was a step back from its previous offerings. This move reflects a focus on investing rather than competing in all financial service areas.Engagement and User Experience
Ellevest is praised for its user-friendly interface and educational resources. Here are some points on engagement:Education and Support
Ellevest offers strong educational content and access to certified financial planners (CFPs) at a discounted rate for its clients. This support is particularly beneficial for women who are new to investing.Goal-Based Interface
The platform’s goal-based framework makes it easy for users to set and track their financial objectives, which enhances user engagement and motivation. In summary, Ellevest performs well in terms of personalized and goal-based investing, but it has some limitations, particularly in its fee structure, account types, and lack of tax-loss harvesting. Despite these, it remains a strong option for those seeking automated investment management with a focus on women’s financial needs. Ellevest - Pricing and Plans
Ellevest Pricing Structure
Ellevest offers a straightforward and user-friendly pricing structure, which can be broken down into several key plans and features.Monthly Membership Plan
The most common plan is the Ellevest membership, which costs $12 per month. Here are the key features included in this plan:- Access to globally diversified wealth strategies and automated investment portfolio recommendations and management.
- No minimum balance requirement to open an account.
- Educational resources and access to certified financial planners (CFPs).
- Up to 50% off all financial planning sessions.
- Management of an emergency fund at no extra cost, though this fund is not invested in the market.
Investment Portfolios
Ellevest offers two main types of investment portfolios:- Ellevest Core: This portfolio invests in a blend of ETFs and mutual funds to achieve your financial goals, with fund fees ranging from 0.05% to 0.10% per year.
- Ellevest Impact: This portfolio focuses on socially responsible investing, with up to 53% of your funds invested in ESG and impact funds. The fund fees for this portfolio range from 0.13% to 0.19% per year.
Private Wealth Management
For individuals with $1 million or more to invest, Ellevest offers Private Wealth Management services. The fees for this service are based on the total assets under management and include comprehensive financial planning and investment management.Historical Money Membership Programs
Although no longer available for new members, it’s worth noting that Ellevest previously offered a Money Membership program with three tiers:- Essential: $1 per month
- Plus: $5 per month
- Executive: $9 per month
Additional Features
- Auto-deposit: You can set up automatic deposits from your paycheck into your Ellevest account.
- Tax Minimization: Ellevest includes features to help minimize tax liabilities.
Summary
In summary, Ellevest’s primary offering is the $12 monthly membership plan, which includes comprehensive investment and educational resources, with additional options for Private Wealth Management and historical membership programs that are no longer available for new users. Ellevest - Integration and Compatibility
Ellevest Overview
Ellevest, a goal-focused robo-advisor, integrates with various tools and maintains compatibility across several platforms to enhance the user experience.Bank Account Integration
One of the key integrations Ellevest offers is with Plaid, a service that allows users to connect their bank accounts directly to their Ellevest accounts. This integration simplifies the sign-up process, eliminating the need for users to leave the Ellevest platform to find their bank account information.Platform Compatibility
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 an iPhone 6 or newer, while the Android app requires version 8.0 or newer.Desktop
The platform is fully functional on desktops, supporting the two most recent versions of Chrome, Internet Explorer, Firefox, and Safari web browsers. All account functionality available on desktop is also available on mobile devices.Financial Tools and Services
Ellevest integrates various financial tools and services to provide a comprehensive experience:Automated Investment Portfolios
Users can choose between Ellevest Core and Ellevest Impact portfolios, which are managed automatically and diversified globally to mitigate risk.Financial Planning and Workshops
Ellevest offers access to online workshops led by financial planners and provides monthly market insights from industry experts. Users can also work one-on-one with financial planners, although this may incur additional costs.Data and Security
Ellevest ensures data security and compliance:Data Handling
The platform collects and handles user data, including financial information, contact details, and usage data, in accordance with its privacy policy. This data is used to personalize the user experience and ensure security.Custodian Services
Goldman Sachs acts as the custodian for Ellevest accounts, providing an additional layer of security and trust.Conclusion
In summary, Ellevest integrates seamlessly with bank accounts through Plaid, is compatible with a range of devices and platforms, and offers a suite of financial tools and services to support users’ investment goals while ensuring data security and compliance. Ellevest - Customer Support and Resources
Customer Support
Phone Support
The primary and most commonly used method of contact is through the toll-free phone number: 844-355-7100. This line is available Monday through Friday from 9 a.m. to 5 p.m. EST, with the longest wait times typically on Fridays and the shortest on Saturdays. The average call time is about 2 minutes.
Email Support
Users can send written requests to various email addresses depending on their needs. For general customer service, use support@ellevest.com. For business-related inquiries, use partnerships@ellevest.com, and for media questions, use press@ellevest.com. Responses typically take 5-7 days.
Live Chat
Ellevest provides a live chat feature accessible through the green chat icon at the bottom right corner of their website. This allows users to ask questions and receive suggested articles that may help address their concerns.
Additional Resources
Help Center
The Ellevest Help Center is a comprehensive resource where users can find answers to frequently asked questions. It can be accessed by scrolling to the bottom of the Ellevest website and clicking on the “Help Center” link under Support.
Financial Planning Sessions
New account holders can schedule a free 15-minute call with a financial planner to determine which type of financial planning session they might need. Ellevest also offers various financial planning packages, including the Financial Foundation Package, Comprehensive Planning Package, and Financial Plan Refresh Package, all of which include sessions with Certified Financial Planners (CFPs).
Educational Resources
Ellevest provides a wealth of educational materials through its Learn dashboard. This includes virtual workshops, email courses, and downloadable worksheets, all designed to help users learn about money and career topics at their own pace.
Workshops and Webinars
Ellevest offers free and paid workshops led by their team of financial planners. These cover a range of topics, including money management, retirement planning, and career development.
Impact and Goals-Based Investing
Ellevest’s platform includes resources for impact investing and goals-based investing, allowing users to invest in ways that align with their personal and financial goals, such as retirement planning and making a positive social impact.
By leveraging these support options and resources, users can get the help they need to manage their accounts, address any issues, and make informed financial decisions.
Ellevest - Pros and Cons
Pros of Ellevest
No Minimum to Open
You can start an account with Ellevest without any minimum balance requirement, making it accessible to a wide range of investors.
Goal-Based Investing
Ellevest stands out with its goal-based approach to investing, allowing you to organize your investments by specific goals, such as buying a house, retiring comfortably, or going on a vacation. This approach helps in making informed budgeting decisions based on high-probability outcomes.
Automated Investment Management
The platform offers automated investment portfolio recommendations and management, which is ideal for those who prefer a hands-off approach to investing.
Access to Financial Experts
Ellevest provides access to Certified Financial Planners (CFPs) and offers financial guidance, which can be particularly valuable for those seeking professional advice.
Impact Investing
Ellevest offers impact portfolios that invest in companies promoting environmental, social, and governance (ESG) goals, including those that have a positive impact on women. This is a unique feature that sets it apart from many other robo-advisors.
Low-Cost ETFs
The platform uses low-cost ETFs from 21 asset classes, with expense ratios ranging from 0.05% to 0.10% for core portfolios and 0.13% to 0.19% for impact portfolios, making it a cost-effective option.
Cons of Ellevest
Monthly Subscription Fee
Ellevest charges a $12 monthly subscription fee, which can be prohibitive for small investment amounts. This translates to a 14.4% annual fee on a $1,000 portfolio, which is higher than the industry standard.
Limited Account Types
Ellevest does not offer joint accounts or certain other account types like trusts and 529 accounts, which might limit its appeal for some users.
No Tax-Loss Harvesting
Unlike many other robo-advisors, Ellevest does not offer tax-loss harvesting. However, it does minimize taxes by avoiding short-term capital gains and realizing tax losses when appropriate.
High Minimum for Private Wealth Services
Access to private wealth services and one-on-one financial planning requires a high minimum investment, which may not be feasible for all users.
No Cash Management Account
Ellevest eliminated its cash management account in 2022, which means users need to look elsewhere for this type of service.
Limited Features for Couples
The platform is not ideal for couples as it does not support joint investment accounts, making it more suitable for women managing their finances independently.
Overall, Ellevest is a strong option for women or individuals with multiple financial goals who value automated investment management and impact investing, but it may not be the best fit for those seeking joint accounts, tax-loss harvesting, or a cash management account.
Ellevest - Comparison with Competitors
Unique Features of Ellevest
- Goal-Based Investing: Ellevest uses a goal-based investing approach, allowing users to invest separately for different goals such as retirement, buying a house, or other significant financial objectives. This approach helps in tracking progress and motivating users to reach their goals.
- Financial Planning and Advice: Ellevest offers access to certified financial planners (CFPs) at a discounted rate, providing personalized financial planning and guidance. This is particularly beneficial for those seeking human advice alongside automated investment management.
- Impact Investing: Ellevest provides impact investing options, allowing users to invest in portfolios that support women and other social causes, which can be a unique selling point for those interested in socially responsible investing.
- No Minimum Account Requirement: Unlike some competitors, Ellevest does not require a minimum amount to open an account, making it accessible to a wider range of investors.
Potential Alternatives
Betterment
- Features: Betterment offers personalized portfolios, socially responsible investment options, and access to human advisors, but only unlimited CFP guidance is available with the premium plan, which requires a $100,000 minimum. Betterment also supports cryptocurrency investments, which Ellevest does not.
- Fees: Betterment has different fee structures, but it does not charge a monthly subscription fee like Ellevest. Instead, it charges a percentage of the assets managed.
Wealthfront
- Features: Wealthfront is a better option for those looking for tax-loss harvesting and a wider range of investment options, including index funds and crypto trusts. However, it requires a $500 minimum for automated investing and does not offer ongoing one-on-one advisor guidance.
- Fees: Wealthfront’s fees are based on the assets managed, and it does not have a monthly subscription fee.
Key Differences
- Tax-Loss Harvesting: Both Betterment and Wealthfront offer tax-loss harvesting, a feature that Ellevest lacks. This can be a significant advantage for users looking to minimize tax liabilities.
- Joint and Custodial Accounts: Ellevest does not offer joint or custodial accounts, which might be a drawback for some users. Betterment and Wealthfront may offer more flexibility in this regard, although specific details on these account types are not provided in the sources.
- Investment Options: While Ellevest invests only in ETFs and mutual funds, Wealthfront offers a broader range of investments, including index funds and crypto trusts. Betterment also supports cryptocurrency investments.
In summary, Ellevest stands out for its goal-based investing, access to financial planners, and impact investing options, but users seeking features like tax-loss harvesting, joint accounts, or a broader range of investment options might find Betterment or Wealthfront more suitable.
Ellevest - Frequently Asked Questions
Frequently Asked Questions About Ellevest
What is Ellevest and what services does it offer?
Ellevest is a digital investing platform that is specifically designed for women, although it is open to anyone. It offers a range of services including investment management through its robo-advisor, banking, money and career coaching, and access to educational materials. The platform aims to address the unique financial needs of women, such as higher life expectancies and lower incomes.How much does Ellevest cost?
Ellevest offers different membership plans. The basic Ellevest Essential plan costs $1 per month and includes access to educational materials, money and career coaching, banking, and the robo-advisor service. The more comprehensive plans, however, come with a flat monthly fee of $12 for the robo-advisor service, which can be more costly for smaller investment amounts compared to the industry standard of a percentage-based fee.What kind of investment management does Ellevest provide?
Ellevest’s robo-advisor service uses AI-driven algorithms to create investment portfolios based on individual goals and risk tolerance. It factors in gender-specific financial data, such as longer life expectancies and different salary curves, to provide more precise investment strategies. The service includes goal-based planning and a broad portfolio of low-cost ETFs.How does Ellevest’s banking service work?
Ellevest’s banking service is integrated into its membership plans and includes features like an automatic roundup to save money. This service is part of the overall package that aims to make financial management more accessible and user-friendly.What kind of educational resources does Ellevest offer?
Ellevest provides a variety of educational resources, including sessions on money management during recessions, coping with job uncertainty, paying off debt, and remote networking. These resources are designed to help users manage their finances effectively and address specific challenges related to the pandemic and general financial health.Can I access financial advisors through Ellevest?
Yes, Ellevest offers access to financial advisors, although this may come at an additional cost. Users can get a la carte access to advisors, which can be particularly beneficial for those who need personalized financial advice.How does Ellevest handle accessibility issues?
Ellevest is committed to providing an accessible website and services. 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 work to address these issues promptly and provide alternative communication methods as needed.What are the different membership plans offered by Ellevest?
Ellevest offers several membership plans, starting with the basic Ellevest Essential plan for $1 per month. This plan includes access to educational materials, money and career coaching, and banking services. More comprehensive plans are available, but the specifics of these plans, such as the Ellevest Plus and Ellevest Executive, are not detailed in the sources provided.How do I get started with Ellevest?
To get started with Ellevest, you can visit their website and sign up for one of their membership plans. The process involves setting up your account, which includes providing some personal and financial information. You can find detailed steps and guidance in the “Getting Started” section of their FAQ.Does Ellevest offer any private wealth management services?
Yes, Ellevest offers private wealth management services through its Ellevest Private Wealth Management division. This service is geared towards high-net-worth clients and provides more personalized and comprehensive financial planning and management.How can I contact Ellevest for support or questions?
For any questions, feedback, or support, you can contact Ellevest via email at support@ellevest.com or call their support line at 844-355-7100. They also have a comprehensive FAQ section on their website that addresses many common queries.