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Wealthfront Custom Portfolios Review - Passive Investing Made Easy - YouTube
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If you're interested in investing
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in individual stocks,
but you still want the peace of mind
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of passively investing in index funds
with a robo advisor,
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then Wealthfront's new customizable portfolios
can help you achieve just that.
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And if you're not familiar
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with Wealthfront,
it's actually one of the top robo advisors
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for investors who really want to automate
their investments through diversification
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and also tax efficient
investment strategies.
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Now, robo advisors,
one cool thing about them is they really
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do take the guesswork out of timing
the market by automating your investments,
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really from the moment
that you fund your account.
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And when it comes to Wealthfront,
they're no different.
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They're automated trades really do handle
everything for you to ensure that your
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ideal asset allocations
stay intact over time.
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Not only do they provide automated
investment strategies, though,
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but they also provide a cash management
account and also automated financial
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planning, as well as
a dedicated interface.
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One of my favorite features to really
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track and monitor all your investment
brokerages and bank accounts.
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But in this video, guys, specifically,
we're not going be talking about that.
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We're going to be talking about the new
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customized portfolios
coming to Wealthfront.
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And the reason I want to break this down
is because this new customization feature
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really does give you more control over
your investments on the Wealthfront app.
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Now, after the video,
you would like to learn more about
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Wealthfront and other investment
and savings features.
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I'll be sure to link down my full
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Wealthfront review down below
in the description box.
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And also, if you want to jump ahead or
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jump back to any part of today's video,
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I'll be sure to include the timestamps
down below in the description as well.
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And of course, for more free
stock and sign-up bonuses.
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Be sure to check out my website,
InvestingApps.com.
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Let's now hop into the portfolio
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customization features
coming to Wealthfront.
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So up until this point,
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one of the biggest limitations
with Wealthfront was the fact
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that the control you had over your
investments was kind of limited.
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But with this recent update,
this limitation is now being removed
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because previously with Wealthfront,
they would determine your risk level
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and assign you a pre-built portfolio based
on your risk tolerance,
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your investment horizon,
and ultimately your investment objectives.
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And while they still offer this robo
advisor like functionality for investors
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who really want to just
set it and forget it,
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with that type of investment approach,
they're now giving you the investor
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the ability to take more control
over what you invest in.
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For instance, let's say that you're
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passionate about making the world a better
place and you really would like a whole
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portfolio of socially
responsible investments.
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Right.
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Or maybe you would enjoy one
of Wealthfront's recommended portfolios,
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but you want to change just
one or two asset classes.
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You see, investing is a very personal
thing and your choices do matter.
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While Wealthfront's recommended diversified
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portfolios of index funds is a great way
to invest passively in the stock market
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you may also want more control over being
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able to construct a portfolio
that you truly believe in.
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Now, with Wealthfront,
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you can easily adjust the weights
and asset classes and add ETFs
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based on your personal preferences.
And whether that's socially responsible
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investments or simply more
exposure to various asset classes.
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It's nice to know that Wealthfront
has listened to its users.
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Now, regardless of how you build your
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portfolio, whether you implement
Wealthfront recommendations,
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you modify those portfolios, you simply
start with a blank slate, or even transfer
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a portfolio from another brokerage,
you can now automatically create your own
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ideal portfolio and let
Wealthfront automate the rest.
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Now let's talk about Wealthfront ETFs,
because one of the biggest investment
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vehicles for robo advisors is exchange
traded funds or ETFs. And ETFs
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are basically a group of related
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stocks bundled together
in a single investment.
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Now, exchange-traded funds are great
for passive investing because they're
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diversified, tax-efficient,
and you really can find ETFs for any
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sector, market, commodity
or investment strategy.
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And while many robo advisors typically
allow you to invest in preselected pool
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of ETFs, many asset classes are
not available on those platforms.
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Now, Wealthfront portfolio customization
feature gives you back some of this
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control because let's say you're
feeling a bit bullish on tech.
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You can easily add a tech ETF
like QQQ to your portfolio.
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On the other hand, if you want to invest
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in innovative companies,
you can always invest in Cathie Woods
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award-winning ARKK ETF
on the app just the same.
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And if you want to even add more
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diversity, you can easily invest across
multiple sectors like real estate,
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energy, and even several ETFs that invest
in socially responsible companies.
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Now, while it's not available yet,
Wealthfront also does plan to eventually
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allow you to hold crypto
in your portfolio as well.
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Talk about diversification
of your investments, right?
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So let's now talk about Wealthfront
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investing automation,
because whether you invest in one of their
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recommended portfolios or you customize
your own investments to better meet your
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needs, Wealthfront will help you
automate your account either way.
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Because once you've set up and created
your portfolio on Wealthfront there,
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robo-like characteristics
really start to kick in.
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And I'm talking about
automation features such as smart dividend
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reinvestment, tax-efficient rebalancing
and even tax-loss harvesting.
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And oftentimes their automated tax
loss harvesting alone can really.
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Generate enough tax savings for you
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to more than offset their advisory
fees for their recommended portfolios.
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Now, if you would like to learn more about
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these automated investment features inside
the app, I do discuss them a lot more
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in depth in my full
Wealthfront review video.
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But the main gist of these features is
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simply that they really do provide your
portfolio an advantage by maximizing your
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after tax returns with no
additional effort on your end.
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Now, let's take a second, guys,
to look at a product demo that Wealthfront
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put together to really help me show you
what their clients are experiencing when
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it comes to customizing
their portfolio on the app.
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So in order to customize your portfolio
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on Wealthfront,
whether it be an individual investment
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account or an IRA retirement account,
it's a pretty straightforward process.
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Either way, you're going to scroll down
from the home page to your account.
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And again, like I said,
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it could be an IRA or a taxable
individual investment account.
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Simply click on the account
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you want to customize. You're then going
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to scroll down a little down below
where it says edit portfolio.
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When you click on edit portfolio.
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this is going to show you
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the current breakdown of your
portfolio on Wealthfront.
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And again, remember, on Wealthfront,
you can hold multiple portfolios.
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I'm just showing you an example in their
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product demo of one particular
investment account right here.
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So once you're inside your investment
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portfolio, you can see the current
breakdown of ETFs as well as their
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percentage, which is the asset
allocation of that particular portfolio.
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So let's say you want to customize this
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portfolio, you can simply
click on add investment.
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Now, if you click on add investment here,
you can see there are a lot of investment
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options and opportunities that were not
previously available on Wealthfront.
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So you can invest in U.S. stocks
available in the United States.
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Now, this these are not individual stocks
technically, but are ETFs that are
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composed of individual stocks
based on different sectors.
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So as you could see here, you have ARKK,
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which is again,
Cathie Woods Innovation ETF.
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You also have QQQ,
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another very popular ETF that is a
heavily focused technology ETF.
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And there are several others here as well.
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You have Schwab, U.S. SmallCap.
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Those are up and coming companies.
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So you have a lot of different ETFs here,
real estate as well as growth stocks.
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You have materials, energy, financial,
industrial, more technology,
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consumer staples, utilities,
health care, consumer discretionary.
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So as you can see,
there are a lot of ETFs.
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You can really go in here and customize
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your Wealthfront portfolio,
and that's just one section.
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You can also add in bonds to your
portfolio if you want to add a little bit
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of bond exposure, which is never
a bad idea, that's completely fine.
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You can go in there as well.
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There's also foreign and emerging markets.
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So you want some international
exposure to your portfolio portfolio.
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You don't just want all your
investments in U.S. stocks.
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Well, here you can find ETFs that invest
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in different emerging and foreign
markets across the world.
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Next up, we have different sectors.
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Like I said, guys, you can invest in real
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estate, materials, communication
services, energy, financial.
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The list goes on and
on as you can see.
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You really have a lot of freedom to go
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in here and fine tune your portfolio
to really what you want to invest in.
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So that's really cool.
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Sectors, there are also
investment strategies
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like innovation, global robotics.
You have dividend ETFs.
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If you're a big dividend investor,
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you can invest in a dividend ETF like the
Vanguard Dividend Appreciation ETF here.
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There's also value stocks, growth stocks.
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So you definitely have a lot
of strategies here as well.
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Also socially responsible for my friends
out there who want to invest in companies
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that are trying to be sustainable
with socially responsible practices.
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You have that option here as well
with several socially responsible ETFs.
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You can add to your portfolio
and of course, commodities,
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if you want to invest in, say,
gold or energy, you can invest in ETFs
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that are heavily focused
on those commodities.
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So all in all,
you do have a lot of freedom to add
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and customize your portfolio
on Wealthfront now.
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Now, for example,
let's say you want to invest in some real
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estate and add some real estate
to your Wealthfront portfolio.
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To do that, you can go to sectors here
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and let's click on VNQ, that is
the Vanguard Real Estate ETF.
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Click on VNQ and you can
simply choose add to portfolio.
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Once you do that, it's going
to add value to your portfolio.
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As you see, it currently has zero percent.
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Now, just like with all investment apps,
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you cannot exceed 100
percent in your portfolio.
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Right.
It's a pie basically.
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So if you want to add some real estate,
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some of this real estate ETF to your
portfolio, you have to remove some
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percentage from some of your
other existing investments.
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So let's say I want to reduce some
of my total stock market ETFs.
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Let's say I cut this down to,
let's say 25%
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that gives me the ability to add
10% to real estate.
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So now I can click continue here.
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And that would officially add real estate
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ETF, a real estate ETF
to my investment portfolio.
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Again, it's a pretty simple,
straightforward process.
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This is just an example here
with their product demo.
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But if you click continue here,
it's going to give you the option
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to update your portfolio
and they'll rebalance it over time.
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It would simply click
on update right there.
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And that would now, as you could see here
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we go back to your portfolio
here in this example.
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And now has real estate currently zero
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percent, but again,
they're going to automate and rebalance
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this portfolio over time so
that it does become 10 percent.
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Again, guys, after you've made any changes
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to your portfolio, asset allocations,
Wealthfront takes over from there.
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All of the buying and selling are handled
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automatically to ensure again that your
ideal allocations stay intact over time.
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And when it comes to customizing your
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portfolio and Wealthfront, you can
change your asset allocation any time.
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So really, whether you want whether your
values change over time or you simply want
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to increase or decrease exposure
to certain asset classes can all be done
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with just a few clicks on the app
any time, like I said.
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Now, also, keep in mind, guys,
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that you are allowed to open multiple
investment accounts on Wealthfront.
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And the benefit of this is that you can if
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you already have an existing Wealthfront
investment account of one of their
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recommended portfolios,
let's just say you don't have to modify
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its asset allocations if you don't want
to, because while you can do that,
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you can easily just open up an additional
investment account on Wealthfront that is
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solely dedicated to a new
custom portfolio.
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Right.
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So this can definitely be extremely
helpful if you want to keep your more
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conservative investments separate
from your more aggressive investments.
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Right.
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So it's definitely a way to help
keep those separate.
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Now, of course, guys,
one of my favorite features
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on the Wealthfront app is the ability
to track and monitor all your investment
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brokerages and bank accounts,
all from a single dashboard.
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And while you can't customize your
external investment portfolios through
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the Wealthfront app,
it's pretty convenient to be able to track
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and monitor all your investment
accounts, all from one place.
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Now, if you would like to see how you can
easily track and monitor all your
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investment accounts and bank accounts all
through the Wealthfront app from a single
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dashboard, be sure to check out my full
other Wealthfront tutorial videos as well,
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which show you how to do just that. Now,
when it comes to Wealthfront
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it's no secret that the platform
excels as a robo advisor.
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The app can help you automate your
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investments,
manage your cash and ultimately help you
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save invest towards reaching
your financial goals.
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Right.
So if you would like to try Wealthfront
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for yourself,
my friends over at Wealthfront have been
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generous enough to offer viewers of
Everyday Investing a special promotion
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where you can sign up and get your first five
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thousand dollars managed completely
for free without any advisory fee.
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So definitely check that out.
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If you're interested in that,
you can claim this special
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promotion through my partnership link
down below in the description box.
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So if you enjoyed Wealthfront portfolio
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customization features,
be sure to check out some of my other
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Wealthfront Investing app
tutorial videos right up here.
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And if you want to see how Wealthfront
compares to other robo advisors today,
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be sure to check out some of my other robo
advisor reviews right down here. For more
[752]
investing app reviews,
tutorials, and comparisons
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be sure to check out some
of the other videos on the channel
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and I look forward
to seeing you guys there.
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