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Ellevest Review 2021 - Is It The Right Investment Choice For You? - YouTube
Channel: QuinnTalksMoney
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hello and welcome back so today we're
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going to talk about
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elvest recently my sister-in-law was
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asking me about elves she uses it to
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invest her money on a month-to-month
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basis
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i was trying to get an understanding of
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if that's a good option for her or she
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should be looking at other things
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then by the end of this video hopefully
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you'll have some good understandings of
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how it actually works and the different
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products they offer and if it's
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something that will work for your
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situation
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so let's jump right in now there's a
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little bit of irony in the fact that i'm
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doing this video because elves is
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actually targeted more towards women the
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main reason that they're doing what
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they're doing is because
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historically in the financial industry
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the financial industry has been
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predominantly male
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and a lot of times what happens is with
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the investment advice that you're given
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or some of the tips that you're given a
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lot of times it's actually factored
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around being a male compared to being
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female and that could relate to certain
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things of
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you know the length of time you're
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actually in the workforce it could
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relate to maternity leave and parental
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leave
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but a lot of different things that you
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know systemically have been more male
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oriented so elves is just trying to
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break down some of those barriers i'm
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just gonna try and give you an
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unbiased opinion of some of the
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different products that they offer and
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hopefully you know you'll be able to
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understand if this is a good option for
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you or not
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one really awesome thing that i love
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about elves is they have something
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called impact portfolios that's
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basically where they give the option to
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invest
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in let's say like women-led companies or
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companies with a high
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proportion of women on boards or
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sustainable companies or socially
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conscious companies
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so one other thing that we're going to
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talk about as we go through this video
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probably a little bit more
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towards the end of the video is based
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off the price of how much elves cost or
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the fees that they charge per month
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how much money should you have invested
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and is that fee actually worth it for
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you compared to some of these other
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services that you
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might consider using i would like to say
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that my opinion of elves is very high i
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think it is a very reputable company
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started by an incredible founder they're
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doing some really great things that are
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socially conscious
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they're trying to break down some of
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these systemic barriers and so in
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general although i'm not a financial
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advisor
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i think that having your money in elves
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it's not something that you should be
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stressed about
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elvest is a high quality company very
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reputable so if you do have your money
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in elves right now or if you were to put
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your money in elves after this video or
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just other research that you're doing i
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think it's a perfectly fine
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option and it's not something that you
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need to be like completely stressed
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about right now
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so elves is essentially a robo advisor
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and there's a couple different services
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that are out there like you might have
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heard of wealthfront or betterment
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and elves is kind of similar to that
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where basically they're going to figure
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out who you are they're going to ask you
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some questions based off your age
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maybe where you live your financial
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status your job status
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employment status and they're basically
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going to take all those factors into
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account and develop a portfolio for you
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based
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off of different risk factors that might
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be related to you so
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maybe you're young and you're willing to
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take a lot of risk or you want to invest
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in socially conscious businesses
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elves is basically going to use an
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algorithm to determine a lot of
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different investments that you might be
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able to be invested
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in and that algorithm is going to
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automatically generate a portfolio of
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investments for you
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so one of the benefits of elvest just
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right off the bat is that a lot of times
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they're going to have lower fees because
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the algorithm or the robo advisor
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it's not an actual human that you have
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to interact with all the time so a lot
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of times these companies are able to
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keep their costs a little bit lower
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and pass those savings on to you in the
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form of a lower
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monthly fee or annual fee depending on
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how they actually
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charge customers and we'll talk about
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how elves charges customers as well as
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we kind of move on in this video
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but essentially this roboadvisor it's
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just kind of lowering the fees compared
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to if you were to actually work with a
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human financial advisor someone that
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you're actually going to their office or
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call a lot of times and they're going to
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do a lot of the same things it's just in
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a more automated
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fashion so that's basically what a robo
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advisor is and how lvest works in that
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sense
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so now let's kind of jump into the
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different products that they offer and
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what you're going to actually get
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by signing up with elvis so in terms of
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the pricing let's walk through the three
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options that elvis has just so you can
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kind of understand what the differences
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are and which option might be a good one
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for you
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now there's no minimum that you have to
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have to actually invest in elvest
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you can put any amount of money in there
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and they also do something where
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with each paycheck you can actually
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deposit directly into elves a certain
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amount of money and they will
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automatically invest that
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so that is a really easy and great
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feature that they have a lot of
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different advisors and
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brokerage services will have something
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like that but it's really great just to
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kind of reduce stress it's not something
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you have to be extremely active with
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you can just automatically send money
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there and just know that over time your
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investments
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uh the amount that you actually have
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invested will be increasing i think one
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of the main benefits of that is just you
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know the stress reduction and something
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that you can have
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you know off your mind and know that
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someone trustworthy is actually
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going to be investing your money into
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something that you know also is
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factored into who you are as well as an
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individual so just looking at some of
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these options here in terms of the
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pricing
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so they have three different options the
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first one is called the essential
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package and this is gonna be one dollar
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a month you have the plus package which
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is five dollars a month
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and then you have the executive one
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which is nine dollars a month so with
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the different plans that they offer
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there's a couple different sections
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of features and products that they have
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which might differentiate
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which plan you would want to be going
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with so the first one is investing
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you also have learning you have banking
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coaching access retirement and
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multi-goal investing so we'll walk
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through all these right now
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so with investing this is where
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basically you would invest money deposit
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money into elvest
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they would create a portfolio customized
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to you based off different questions and
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factors in your life
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and over time you can add money to this
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it'll reinvest your dividends
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and it'll also allocate the money over
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different periods of time and just kind
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of understand
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if your stock went really high it might
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reallocate so that you have more bonds
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or stocks and it'll
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do this automatically as well just so
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you don't have to be thinking about it
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too so that's kind of the investing
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section is just the standard
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put money in they'll invest in a
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portfolio or some funds
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bonds different things like that and
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then you'll be able to kind of see the
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returns over time from there as well
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you also have the learning section so
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this is just kind of their online
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learning section for workshops
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webinars different things that might
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happen just different resources for you
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to keep understanding
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what's going on with personal finance so
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if there's certain things i might not be
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talking about on my channel here
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they have some awesome resources online
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as well so all these plans have access
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to that
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you also have banking so this is where
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uh depending on
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how you actually want to use elves you
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can use it almost like a debit card or a
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savings account as well
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um so that if you're using multiple
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different banks you can kind of
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consolidate it into one bank here as
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well
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they don't have any atm fees so
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basically what happens here is
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if you were to go use any atm they'll
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actually reimburse you for the fee there
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so that's a nice benefit a lot of banks
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are actually starting to do that now too
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as well
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the one not necessarily negative but one
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thing just to kind of keep
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in mind here for the banking section
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compared to other banks or just other
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services that are out there
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is that elves doesn't actually have a a
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savings rate for you or savings interest
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rate at least at the moment doesn't seem
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like they do so where some banks you
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might be able to get like a half percent
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uh interest rate on your savings account
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or one percent two percent which was
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kind of like a year ago um but they
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don't have at the moment any savings
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rate so that's just something to kind of
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keep in mind uh if you did want to
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get an interest rate on your savings
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account it doesn't seem like elves
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currently offers that
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but in general all these accounts here
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still will have the banking option as
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well
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coaching access is where you can
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actually talk to someone face to face
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and depending on which package you'd be
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on
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you get different discounts for the
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one-on-one sessions as well
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and where we kind of start hitting the
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differences in terms of which products
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are actually offered it's with the
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retirement and multi-goal
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investing so the retirement option does
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not come with the
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essential package the one dollar a month
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package and this would basically be
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if you want to start a 401k or you want
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to kind of get a retirement account set
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up
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if you're on those two middle packages
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or the middle package or the higher
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package
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those do come with the option to do
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retirement but the essential package
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does not so that's also just kind of a
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thing to think about as you're going
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through this as well and then the last
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one
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is called multi-goal investing so this
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is if you want to create multiple
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different accounts
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that have different risk tolerances so
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it kind of allows you to have different
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goals for each of those accounts that
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you might have
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so again something that you can kind of
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use to consider uh
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if you want to choose one package over
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the other one so i mentioned at the
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start of the video we're going to kind
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of talk about
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how much you potentially need to
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consider investing for this fee to
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actually make sense for you so i break
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that down now for you so as i kind of go
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through these monthly fees
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and the price that it would actually
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cost depending on these plans i think
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the really important thing to remember
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is
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do not stress about this and i know by
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saying do not stress about this
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it might actually make you start
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stressing so let me flip that around and
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say
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stay calm everything's going to be okay
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again because if you're using elves it's
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a reputable company
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and it's not necessarily something that
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you need to panic about and
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switch automatically there are some
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other things that you can think about
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when you're actually coming up with your
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own investment decisions
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but again it's a reputable company
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they're investing your money in high
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quality funds with high quality
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investment advisors that actually work
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for elves
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so again stay calm it's okay we'll learn
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together and we'll figure this out
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so with the essential package at a
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dollar a month know how you can kind of
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think of this
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is if you were to invest a thousand
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dollars with elvis
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a thousand dollars and you would be
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paying one dollar per month so that's
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twelve dollars per year
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that's essentially a one point two
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percent fee that you're going to be
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paying on all of your money
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every year there's also going to be some
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really small fees as well that'll be
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associated with the actual annual
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expense ratio
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of some of these funds that you're
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invested in but essentially you can just
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think
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1.2 is the cost of elvest for the year
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which is about
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1.2 percent of a thousand dollars if
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that's the amount you actually invest
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so as you invest more in elves if you're
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on that one dollar per month package
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then your fee your fee percentage
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actually goes down so let's say you were
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to invest ten thousand dollars in elves
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then at twelve dollars per year your fee
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is only point one two percent which is
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actually a really low fee
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so ten thousand dollars compared to one
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thousand dollars your fee is going to be
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slightly different so that's just
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something to kind of think about
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in your mind um if you have a really
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small amount
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and by really small amount it's all
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comparative but you know if it's a
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thousand dollars or less
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then that fee might actually be a
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substantial piece but as you kind of
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build up your wealth and start uh adding
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more money in month to month if that's
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something you're going to do with direct
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deposits
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that fee percentage actually goes down
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as well so if you're just on that
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essential plan just kind of investing
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no retirement or no multi-goal investing
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then a dollar a month i'd say
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after about a thousand dollars that fee
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percentage is going to continue to go
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down and it's really
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i'd say below average at that point as
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well so
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one dollar a month i think is a
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completely reasonable fee uh
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for you to invest and i'd say you know
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anything above a thousand dollars that's
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going to be like an above
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or a better than uh market rate for what
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you'd be able to get for that
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now with the plus package i'd say at
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five dollars a month that's then sixty
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dollars a year
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so if you only have let's say a thousand
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dollars to invest
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i would say a sixty dollar fee per year
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is actually pretty hefty
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so in that case i'd say a thousand
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dollars might be too small
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um to invest in that plus option again
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i'm not a financial advisor so please
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just understand that i'm just giving my
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uh
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best advice based off my own experience
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uh but i'd say
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at a thousand dollars a month that six
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percent like a six percent fee
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on that for the plus free per year is
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pretty significant
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so i'd recommend maybe looking at a
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different option or
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trying to you know work to save up a
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little bit more money before you
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actually start your investment account
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then if you were to invest ten thousand
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dollars for the year on that plus
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account
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then you're really only looking at a
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point six percent fee
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which is i'd say pretty average um it's
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still slightly above maybe what you
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could get in other places but
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again not something you have to stress
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about um so i'd say
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ten thousand dollars for that middle
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package is relatively reasonable at this
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point in terms of maybe what i would
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recommend starting out with
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say with the executive option which is
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nine dollars a month that's almost about
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100
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you know close to 100 per year that
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you're gonna be paying in fees to elves
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so i'll just say before you move on to
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that one just kind of consider
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how much you're actually going to be
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investing up front because that fee can
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actually take out a large chunk of
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that investment per year if you don't
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have a more significant amount actually
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invested in that so thanks for sticking
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around if you are considering
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elves after this video uh you can go to
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elves.com i have
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absolutely no affiliation with elves i
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will just say that right there i get
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zero money for actually telling you to
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go to their website if you were to sign
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up
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no affiliation there i'm going to
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provide that information if after this
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video
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it is something that you want to use to
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actually manage your investments and
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kind of grow your financial situation
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throughout your life
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so elves.com you can sign up for any of
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their packages on there you can deposit
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money in there
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but i really appreciate you watching i
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would love if you could comment below
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just let me know what you think if
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there's any other questions you have
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anything i missed
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anything you really liked about this or
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you think about elves or betterment or
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wealthfront or any of these other
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robo-advisor companies
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but really thanks so much for being here
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appreciate it and i will see you next
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time
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