it's been a little longer than I would have liked between my last update and
this one however wealthfront has been making some changes and additions to their product
offerings if that sounds interesting to you then you're in the right place hello I'm Wanderer001
and this is my seven year update for using wealthfront as my primary investing vehicle
I have one of the longest run streaks on YouTube for updates using wealthfront well if you're here
for the quick hits of hey what's happened what's changed we'll get that out of the
way now before we start talking about the new things that wealthfront has implemented first
off in my last video review over there in the corner I stated that nothing changed with the
UBS buyout of wealthfront well as we all know by this point it actually fell through and did not
happen if this is a first you're hearing about it don't worry nothing's changed because well
front is still an independent company the next thing is in your cash accounts notice now the
apy is 4.05 percent this has steadily increased from September when it was back to 2.55 percent
and one of the things that I really like about the cash count and how wealthfront handles it is that
within a short amount of time of the FED actually raising the rate within three to four days well
front is raising their cash account rates right now this is one of the highest cash account apis
that you can get without having to jump through hoops which I greatly appreciate now if you're
here for updates about my other accounts we'll hit those really quick with my Roth account I did have
I don't want to say a change but some different methods of adding money in fact I only as you can
see here added 3600 to the Roth IRA so that kind of flat lines it out here during some of the most
volatile times of 2022. now I did not do that because of the volatility of the market I was
mostly concerned about going over the contribution limit for Roth IRA because of some side jobs that
I was picking up so that kind of plateaued it and might have skewed the data a little bit because
normally I would just every month add money to this but right now what we're looking at right
here you can see I have a 71 percent increase so it's still green uh for all time but that's all
time if we come to 2022 you can see right there that is a 17.45 decrease but if we go back to
our all time and then click our little eye icon here this lets us know our time weighted and money
weighted returns so what I'm going to do is here we could see the time weighted is currently for
all my investing time with wealthfront which is seven years at this point I have 71.44 last time
I did this update with everybody it was 62.24 so this has gone up even with that really bad
Market that we just went through and for the money way to return I'm currently at 43.20
and previously this was 32.31 again this is still green but this is over the lifetime of the account
but if I pop back to 2022 and we come in here and see that you can see for 2022 things were
bad everything was down if you are using this as intended and just investing over the lifetime of
your account these little blips in things will only be a flip in your radar here you can see
this is the really bad parts of 2022 right here but things have been steadily going up without
me adding anything to this account speaking of accounts I also have an investment account this
one I have been adding to uh throughout the course of the volatility and here we could see overall it
is 48.51 so that's seven years of adding things you will notice one of the key benefits of the
investment account with wealthfront is that they do pretty much daily taxable servicing and you
can see I've harvested 758.87 if we come into 2022 you can see 397. and 54 cents was harvested
meaning the Lion's Share of my taxes harvesting happened during that very volatile Market that's
what you want tax loss harvesting to do and it's why I really appreciate that wealthfront kind
of gives that to you as part of the investment account but if we come up and select the I here
we'll talk about our total returns we have our time weighted return currently at 48.51
last time we did this the time weighted was 47.88 so it went up but not by much our money
weighted currently is 32.14 last update this was at 30.86 again small increase it shows you
the dividends there if you care about that and I will say that the investment account is set for a
risk score of 7.5 percent with a little tweaking adding technology uh sector into this which uh as
you might know also got beaten down in 2022 and if you're interested the risk score for my IRA
is 6.5 with some mild tweaking of decreasing My overall exposure into bonds and putting it into
stocks but not by much only one or two percent the big change that wealthfront has introduced
if you come up to your top menu here and select explore well guess what you now have the ability
to invest in single stocks using wealthfront the thing with wealthfront originally was that
it would basically invest you in index funds and it automated all of that now you have the ability
to invest in single stocks some notable points for this type of account you could start it with
just a single dollar you will need a different investment account so you saw I had an investment
account already but if I want to do single Stock Investing I will have to create a new investment
account the single stock investment account will allow you to do fractional shares which I think
they have their eyes set on M1 Finance right there and we'll talk about that a little more
you have zero trade commissions and for the most part I found most of the stocks that I was looking
for when I sent them through here what you see right here are what I'm going to call baskets of
stocks very similar to M1 finances pies so right now we could see streaming Apple suppliers walled
Gardens wide moats self-driving they kind of let you know and then if I click into there there's 17
stocks so it's saying hey here's all the stocks that are part of this I can click on any one of
these and it will let me know current price day performance three year performance market cap
and then right here since I don't have it it wants me hey open up your investment account
I can also view information on this again very similar to what you can do with M1 finance and
you can see a chart here information about it and then what collection it's a part of and then other
information if I select back over here under the self-driving car suppliers it gives you a
little information as to what it's about and then I can also say show me the prospectus and it goes
okay here's the opportunity for this and then the trade-off now similar to M1 Finance the stocks in
here can change without notice and what do I mean by that well there was one in particular that I
happen to notice under everyday essentials and if I open this up here we could see everything
that's under the everyday essentials what was also in here at one point when this was first
created was 3M and if we come back and use this here to take a look at 3M we'll know that it has
not been doing too well lately and here you can see the collections that it's a part of but not
that household one that I showed you before the problem with this type of change and this is what
I had with M1 Finance for my wife's account when something is removed it would then be liquidated
and you would incur a taxable event there's also no saying why it was removed there there's nothing
there saying uh you know 3M was removed from this basket because of high volatility the shares or
you know tanking whatever just something letting you know that one other thing that I noticed and
if we come back to Unique sectors under electric gas and water if I select more again M1 Finance
has a pie very similar to this that seems a a little more Diversified because these seem
very specific to a region of stocks and I don't necessarily know how I feel about that also I
kind of wish that there was a way that I could see all of the baskets in one location instead
of having to hunt and Peck through these kind of off-road baskets so here I have newly added
I could see all of the newly added but that that's that's not enough I want to go and say show me all
of the baskets that you have if we come up to the top if I select 3M as the stock well it's going to
show you all of the baskets that it's a part of currently same thing with like Texas instrument
here's all the baskets that it's a part of and I like that I can click into any of these and see
here's Texas instrument here's how it's doing and then View and again I really like all of
this information but I'm not sure how I feel about the or these baskets that's not to say that this
is not an interesting option but I know one of the other things that you're wondering is well
if I can do fractional shares how does wealthfront determine if I put in 500 where that 500 go well
right here we could see that you can customize the allocation so here we've got 3M in this particular
example has 15 Pfizer has 15 and Lucid has 14. so you can either distribute this equally or you
can customize it and move these little charts around yourself which is a very cool feature to
have one thing that I don't know how I feel about compared to the regular investment account with
the individual stock account you cannot just put money in from an external bank account you will
need to have a wealthfront cash account to use this and based on the reading that I was doing
that's because the cash count is where they actually are going to make their money since
they do zero trade commissions on these now again I like the cash account I have a full review over
there in the corner but if you just wanted to have an investment account with individual stocks in it
just know you're gonna have to open something else in order to do that I like the fact that
wealthfront is opening itself up to more advanced investors because when I started yes I just wanted
to do index investing I still kind of want to do that but I like the fact that they're giving other
people option if you appreciate the information consistency and time that it takes to go through
wealthfront and pass this information along to you consider giving a like And subscribe unlike
some YouTubers I'm not sponsored by wealthfront now the last bit of housekeeping I will say is
if you're interested in opening up any one of the wealthfront accounts whether that's the indexed
investing that it started with the cash account or this new single stock investment account I
will have a link in the description which is a referral code which will allow you to get five
thousand dollars managed fee free for the classic index investing portion with that being said I
have been Wanderer001 if you have any questions or comments please feel free to leave them in
the area below and as always thanks for watching if you found this video helpful consider giving
it a like as that will help other people find the video as well if you like what I'm doing
here you can always help fuel the next review by buying me a coffee Link in the description below
last but not least if you want to be notified when I upload a new video you know what to do
thank you