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Let's talk about it on this new approach to financial planning and doing names online -- -- comfortable.
Having your finances manage that way we have the chief operating officer of wealth front -- -- joining handset.
Good morning I don't think you for coming on with us today.
-- to tell me about your company started in December of 2000 -- That's right we lost about eighteen months ago.
What front is the largest software based financial advisor we manage over a quarter billion in assets now.
And we're trying to provide the same sophisticated financial advice that people with millions of dollars previously got.
From human advisors and put that -- -- that everyone can have access to their feet for it.
-- it's free for accounts under 101000 dollars above 101000 dollars we charge just a quarter of a percent of the assets -- -- Okay and your average assets 80000 dollars under management that's our average client has about 80000.
So a quarter percent I needed -- for the art imitate them similar give or take the first 101000 -- -- On the it's not a quarter percent for each ten -- after that it's for the upside.
It's that it's yeah it's a quarter percent for everything about them.
So how do you how are you managing this money.
We do it all -- soft for -- so if you went to wealth fund today and you would go through a questionnaire to assess.
Both your objective financial situation but also subjective -- -- about how you feel about risk and market volatility.
We use that to give your risks for.
Yet we then calculate a portfolio across eleven different asset classes in a different portfolio for retirement accounts which are tax advantage -- -- or taxable accounts.
And then if you decide to open an account with -- we'll execute that plan for you and keep it continuously -- balanced.
And even do sophisticated things like tax loss harvesting for you.
If you have more than a 100000 dollars.
It's okay and how many times do you.
We have a little over 3000 clients with sizes ranging from 5000 dollars which is our minimum and all the way up to over five million dollars you feel customer phone costs.
We do have a phone number although most of our clients don't use it.
How and and it and it masking it as he spoke about gazing at risk for market volatility what we have -- market volatility this week.
Most analysts and brokers would come on and say that -- -- not the option now is the -- -- go back to 141000 hours at an -- up to 161000.
Is that something here customers and just you know surprise but they're definitely interest and it.
But there are no phones ringing off the hook I mean -- average client is in their thirties -- basically.
It's nothing wrong -- they check online at any given time 24/7.
My point is they prefer to communicate with a transparent service all -- where they get all the detailed information they won't.
And -- talked to someone on the phone who may or may not know the details of what's going on with Erica.
So basically you're saying that this new generation is thirty something who is accumulating more wealth because they're advancing in their careers.
On that more up to speed they know that they can get the answers to their questions like -- things and therefore they want their money and a place where they trust that -- up to speed Islam.
He had a great thing about this generation as they grew up with computers they know computers do well and what they don't do well what humans do well and don't -- Computers are great for certain things they don't sleep.
They're rational and if there watching your money there watching it 24 sat right -- take a service like -- balancing our tax loss harvesting.
Our clients love the fact that they can check any time and they don't the computer's going to be watching their money just as well as anyone else using -- so what -- some.
Fun -- funds -- -- people's money and yet we use some.
Broadly diversified -- indices reevaluate every ounce of class it for the ETF.
That has the lowest costs of -- And it sticks that asset class mathematically as closely as possible and then we diversify the portfolio based on risk.
Across those different.
Do you have an indication of what.
The average account was up in the past year.
Is it better than them S&P 500 you know I would know the truth is.
Because we use only index funds right -- -- Gil who wrote -- random walk down Wall Street.
Obama's our chief investment officer so we're very deep in the idea that most of your return -- about.
Staying low cost being Smart about taxes and then diversify your portfolio -- asset classes so.
It's hard -- comparative benchmarks because we actually invest in the benchmarks.
That -- -- -- funds are following.
The S&P 500 that's right okay.
Even -- disruptive what you're doing what your company's doing how do you respond.
-- -- obsolete -- there's no question.
I mean that in the best possible way yet.
A human financial advisor.
There's a lot of great things but the truth is a person can only take on about fifty to a hundred clients.
Software -- and how that limitation right we can take on a thousand clients today.
And I wouldn't make our servers but when I was that -- eBay or linked in right we both services today that handle hundreds of millions even billions of -- -- so.
-- front we don't have the limitations that a human advisor doesn't turn to providing that service and we're making money off each client.
Which is why we can offer service free under 101000 dollars and also why we can charge so much less than traditional financial and you would argue that.
Despite having the bodies he still had the human touch -- mr.
personalizing this technological services that we have a -- a fantastic investment research team right Soviet.
Great software engineers building fantastic software but also.
It's not like a computer's gonna go through -- the latest academic research about how to diversify portfolio.
That's where you need people with Ph.D.s.
People like her mouth kill our investment team to build a model that -- the computer acts acute.
And I'm asking because it's a constant debate especially only -- periods of market volatility that we try to justify.
In need of human trader.
As opposed to your computer room and a and a so that's -- things.
Yeah I think Vietnam once again because we invest possibly into index -- I think there's less of that need and right difference right well lots of luck team -- who competitors and comparisons -- You know -- there's a lot of different companies but the truth is for our audience which is young audience and the number one competitors doing now.
Most people who open accounts with -- front right where their First Financial advisor I mean these are accounts sizes 50101000.
Even a 100000 dollars.
Those journal accounts that traditional financial advisors would take.
And so we are providing the services what were so disruptive we're providing a service to a huge market that hasn't had access to it.
And we're providing the advice that traditionally used to have 510.
Even 25 million dollars -- -- Yet it is very interesting I hadn't heard it hadn't had not heard this before and you aren't convincing me that.
This -- -- -- and it's been exciting and the growth this year -- as more and more people discover the service.
They're loving it I mean we get more than a third of our clients from all -- referrals from existing clients.
-- we don't do advertising currently so we are getting our customer base -- amazing growth.
But word of mouth both offline and on everybody's looking for -- -- not time consuming team and that has you know.
Attack mark because of franchisees and it's been successful in -- and this generation.
Twenties and thirties are disrupting.
The world -- -- now with our use of social media and technology what they -- yeah -- and it it's it's it's amazing what's going on right now.
They care about social -- I think the reason the Almonte referrals -- so well for us it.
It's because the most likely way that you'll trust wealth -- is knowing someone else is already using well.
Yes and gen -- in particular really values the opinions but the folks that they don't trust I mean this -- -- went -- That's -- and this is what we're doing -- that it's as simple lesson.
One of the smartest thing I've heard yet he can't and anyway.
I'm very text that the person and I don't -- at summit on can count on one.
Events but every app that I don't have something down from -- -- -- them.
About ten foot I think that's not -- money is important right so yeah what's interesting about -- -- this.
Will talk about apps with a lot of different people then you wouldn't talk about money with just anyone.
But they're probably are people here like you do talk about money -- and and the great thing about -- -- in this generation -- that they're using the service to talk about money.
With people like -- when they discover the service they say hey and we see this in the notes that they talked to other users right.
And you can see that oh absolutely.
But that's our invitations on on the site ultimately it yet and you're getting -- when they're young enough and not rich enough.
-- -- -- -- Must not as a million dollars saying getting the the customary young enough.
Poor -- and then you can help them there.
It's a window of the plane out you're out a lot of management at 59 dollars I management I will say you know a lot of our clients are extremely successful multi million dollars but.
I will tell -- I'm very optimistic.
That work the very early stage of -- generation making money so we delight our customers today.
We think they'll be with us forever it -- again hopefully it's.
That are so you -- -- that thank you so much great stuff.
Web front to your website left front dot com we will put it.
On the screen and why managing your investments.
Online with you.
Is a novel idea --
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