Future Advisor – Market & Positioning

https://www.futureadvisor.com/

#126 on Geekwire’s Top 200

Future advisor is an investment advisory service positioning itself to avail actively managed, holistic investment advisory services to the everyday investor for approximately half the cost of traditional advisors/money managers (*Note:  the service is also provided for free, but requires one to input the same personal investment-level information, recommendations are then made, leaving it to the account owner to effect any account changes within their respective brokerage accounts).  The services are provided based on a series of questions asked of each investor.  To do so, Future Advisor offers a combination of:

  • Index investing
  • Personalized diversification
  • Low fees
  • Periodic portfolio rebalancing
  • Introduction to Small Cap/Value investments

In reviewing the service, it appears Future Advisor is targeting individuals with investment portfolios.  Through answering a series of questions and opting in, Future Advisor will make holistic portfolio changes tailored to each individual investor based on risk profile and stage in life.  The segment Future Advisor is starting with are those investors with actively managed investments portfolios being charged the industry standard fee of 1% (or more) of assets managed.  Future Advisor charges 0.5% of assets managed for the service; this positions themselves as a lower cost provider of investment advisory services than traditional money managers.  I also don’t think they’re interested in giving away the service for free and surviving, for example, on ad revenue.  They do make mention of a free “do it yourself” service, but it’s buried as the last question in FAQ.

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