Dear Adam Nash: God Called…He Wants his Soap Box Back
Wealthfront’s CEO recently posted a hard-hitting blast against Betterment. The core argument was against Betterment’s fees charged to small accounts ($3 / month for accounts with less than $10k and no auto-deposit turned on). If you turn on auto-deposit of $100 per month, the fee is 35bps. Last time I checked, 35 bps is pretty darn cheap for customized financial advice…
“During Betterment’s most recent fundraising, I was shocked to learn through investor due diligence that the company brags about how much of their revenue comes from this $3 fee. Almost one-third. It’s really disappointing that Betterment has decided to build their business preying on those who can least afford it…”
Much of what Adam says is super reasonable and I imagine all independent, client-friendly advisors believe in the same credo:
The world doesn’t need another Wall Street.
We believe in our clients, and we’re willing to align our future with theirs.
Vanguard took the right path.
But why the angst?
Can’t we all just get along and focus on financial advisors/brokers with serious conflicts of interests?
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