WiseBanyan is the first fee-free robo-advisor. This allows you to invest in a managed portfolio for the lowest possible price. Using a robo-advisor can be an easy and affordable way to start investing. This WiseBanyan review will help you decide if it’s the best investment platform for you.
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To begin investing with WiseBanyan, you only need $1 to make your initial investment. For subsequent investments, you can commit $0 or as much as you want. Regular monthly installments are not required, but, it is recommended to make regular monthly contributions to your investments account(s) even if you do not choose to use WiseBanyan. Routine investing allows you to earn compound interest and reduce the effect of the market ups and downs. By only choosing to “buy low” and trying to time the market can cause your earning potential can sharply decrease.
When you begin the five-minute signup process with WiseBanyan, you will be asked several personal questions including your e-mail address, salary, personal net worth, and questions to develop an investment plan. To create your investment plan, you first need to choose an investment milestone as that can affect the way WiseBanyan will invest your money. Don’t worry, you can add additional milestones later.
Some of the questions in the investment plan questionnaire will gauge your risk tolerance. One hypothetical question will ask if you would buy more, hold, sell some, or sell all your assets if a sharp market correction occurred. Additional questions will ask your desired portfolio rate of return and your investment goals and time horizon.
After you have completed the investment questionnaire, WiseBanyan will take you to a screen with a recommended asset allocation based on your questionnaire responses. For example, if you are 20 years old and willing to risk it all, you might invest in 100% stocks, but, a 55-year-old planning to retire in five years might have an asset allocation of 60% stocks and 40% bonds. You can adjust your asset allocation to be more aggressive or conservative if you do not want to follow WiseBanyan’s recommendations.
Once you have finalized your asset allocation, it is time to fund your account. In a matter of seconds, WiseBanyan can link to your online bank account and schedule the first withdrawal. You can complete the signup process and monitor your account from your computer or their mobile app.
Both the web interface and mobile app are easy to use for scheduling and tracking investments. One small complaint is that the WiseBanyan website and app are relatively “spartan” and lack many of the features that other brokerages offer like investment news, research reports, and financial calculators. But, this is how WiseBanyan can be a free online brokerage.