Exposing the Downsides about Acorns, Stash, Wealthfront, and Others

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증권·핀테크 앱(Stash, Acorns, Betterment, Wealthfront, M1 Finance, Vanguard, Fidelity, Varo)을 비교 평가한 영상. Stash 카드 캐시백 0.125%, Acorns 라운드업 투자액이 소액이라 비판. Wealthfront는 저축 2.57%와 FDIC 보험, 추천 혜택이 있어 우수 평가. Vanguard·Fidelity는 자동투자와 세금손실수확 부재를 지적하며 조건부 승인. Varo는 2.8% 금리에 여러 조건이 붙어 탈락. 특정 자산 가격 전망은 없음.

다듬은 글

※ 자동 자막 원문(다듬기 전)

01. a few days ago I did a video on a wealth front and how to invest and plan for the future including how to catapult your wealth with really good deals in real estate well you folks went crazy in fact over 1600 of you smash that like button and a lot of you left comments asking about what about this well today we're gonna talk about this by exposing all of these other investing apps and platforms giving you the meet Kevin report that is the me Kevin expose opinion on all of these various different services which one I ultimately choose to use let's go through each and every single one and give it the meet Kevin approve or the meet Kevin reject let's see how it goes so it's a pretty regular day that I end up crawling in what ends up being generally a very typically dark a studio here mostly because then it keeps it nice and chill and cool in here cuz all these lights are a little hot and what do I do well I start journalizing in my composition notebook that is I start reading contracts and disclosures on my iPad so without further ado let's get into analyzing and the following a company's stash acorns betterment and wealthfront m1 Finance Vanguard fidelity and Baro or Varro or whatever I honestly I don't even know why this one is on the list so first up we're going to bash a stash and yeah that's a pretty terrible pun that I came up with but here's the scoop stash came up with this very novel concept that in my opinion appeals very well to Millennials and that is if you pay either a one dollar three dollars or nine dollars per month you will be able to receive a debit card that for every time you make a purchase attempts to purchase stock in that vendors company so for example if you go and buy $100 worth of product at Apple which I don't even know if it's possible to only spend 100 in the Apple sort but let's say it was possible maybe you need to replace a charger and you're like oh my gosh a charger hundred dollars then you would get stock in Apple the concept is brilliant because it hits all those millennial feelings that oh I'm being frugal I'm using a tepid card I'm not spending money I don't have I don't borrow money huh oh and you get stock back so basically you're an investor - here's the scoop first of all I think most of us already know that there are some major downsides to using debit cards we won't get into those two extremely other than to say honestly if you're spending any decent amount on your debit cards you should really at be asking yourself why are you not using a credit card and just paying off the balance every single month see when you use the stash a debit card you are not getting purchased protection you are not getting extended warranties you're not getting any fraud protection at least that I can see on their website which ordinarily you'd think they'd want to be advertising that pretty clearly and I did read through their disclosures as well and had a hard time finding any kind of real protections you're getting with this debit card but I was very easily able to find how much money you're actually getting back by swiping that debit card from stash the Discover and American Express cards give you a 1% back you go on over to stash guess what you're getting back you're gonna get 12.5 cents that's right you heard me right you spend a hundred dollars on the Discover debit card you get one dollar back you spend a hundred dollars using a CD double cash card you get two dollars back you spend a hundred dollars at Apple using the stash card you get twelve point five cents back but you get it dressed up as stock so what does it do it becomes a tool for Millennials to say they are investing in sucks they are frugal and they are on the way tough fire while using a debit card come on folks this is too good to be true and therefore we must reject this for being a terrible tool for people to use I'm sorry but 12.5 cents on a hundred dollars and expenses ain't gonna be where I'm swiping my card especially with no fraud and purchase protections I'm out of here stash gets zero meet Kevin endorsement all right so now we're going to talk about acorns here's the scoop acorns is basically a way for every time you go buy something like a you go buy a grande latte at Starbucks for three dollars and fifty cents you have the option to round up that transaction amount to the next nearest $1 and invest that difference so you spent three dollars and 50 cents on that latte without an added shot which is kind of boring but we'll put that aside you will now have actually spent for $1 but by spending four dollars you're actually investing 50 cents towards your future and golly that sounds a really great for the Millennials hey wow we are investing towards our future but there are two problems with the acorns model first and foremost the amount that you're actually investing with acorns is pretty pathetic let's be real here if you're putting aside 50 cents on every transaction and say you make 30 transactions per month using a debit card which let's just pause for a second did we not just bash stash for being a debit card there are no protections here that we can talk about like those that credit cards have using a debit card in my opinion is relatively dumb but let's say somehow you're making these roundup transactions in your acorns checking account maybe you're writing checks and for some reason acorns is rounding those up well what do we end up with great let's say you have 30 transactions a month you're rounding up let's say 50 cents every single transaction and that's $15 that you're investing towards your future bottom line is investing 15 dollars every single month towards your future is probably not going to get you anywhere now you get the opportunity to 2 X 5 X or 10 or any increment in between your actual round up which is good but the problem is most people probably won't most people that are going to set up the acorns are going to miss out on the credit card protections and the credit card cash back benefits while at the same time using a debit card to round up nominal purchases and ultimately invest very little into their future that is unless of course they're investing additional outside money but if you're investing additional outside money beyond the round up feature you'd be much better off investing it into things like a high yield savings account or directly into Vanguard which we're going to talk about in the rest of this video so for me acorns is a bunch of crap it's to me a millennial targeted service that isn't really designed to be for investors that's my opinion I'm sorry if you use it I'm not trying to hate on you but the bottom line is let's bring you to the psychology there's something known as the pain of paying and when we use a debit card or credit card there is a relatively low pain of paying you're not taking out a $20 bill and breaking that to pay for your $3 and $0.50 latte it's a lot easier to swipe the credit card than it is to take out cash well guess what's a lot easier to use also venmo PayPal and Apple pay those are almost exciting to use which lead to you spending more money than if you are using debit cards and credit cards well now let's take it a step further imagine this imagine Harvard does a research study and says what is the pain of paying for paying with a debit card that now rounds up your transaction to invest for you this is much like the same problem that stash would have except we buried stash before we could even get to this part and the bottom line is holy crap now all of a sudden you're motivating yourself to swipe that debit card because you think oh my gosh look at me I'm an investor every time I swipe this debit card to me honestly it's a joke their nominal sums of money I'm all for you investing regularly I built this channel around you investing regularly I talk about how much I love real estate because it forces you to invest regularly every single month but this acorn's thing to me not only is it likely to be nominal in your investing career but the psychology of it is doubly bad associating spending with investing this is literally the opposite of what we should be doing in our lives terrible idea for me acorns and I'm sorry to anybody who uses them a big fat meat Kevin Richie well now we are going to talk about wealthfront aversive betterment so here's the scoop I've had a lot of questions about wealth front verse betterment and rightfully so because we might ask ourselves what's the difference well guess what Kevin does when he's alone in this dark room researching topics and ideas well I get on the phone with the actual companies and I find out hey what are your pitfalls and don't think I phrased the question like that in fact in the real estate investing course I teach you how to ask questions correctly so you get the answers you're looking for and that's what I also apply to these companies so let's get right into it now let's work in the middle of the screen here and start analyzing well first of all what do wealthfront and a betterment have in common well first of all wealth front and betterment both charge you 0.25 a percent as a portfolio advisement fee if you use their investing account both of them offer you the ability to automatically invest your money which is also great I love automatic transfers but you know what a lot of companies do that not that big of a deal but unfortunately this is where things start to break down see when you go to open a savings account at betterment guess what you earn you earn 2% per year on your money in the savings account at wealthfront you earn 2.5 7% but you might think ah Kevin it's just a point five percent difference it's small it's not that big of a deal but wait a minute these both very different see at wealthfront you get a savings account that not only yields you two point five seven percent but it's FDIC insured up to $1,000,000 they do that pretty ingeniously by spreading your deposits amongst four different banks so that way you can multiply the FDIC insurance limit by $250,000 times four which is how they get to that one million dollar FDIC insurance limit which means basically your two point five percent return is risk-free on your savings at wealthfront whereas on the other hand you get the two percent from betterment but the two percent at betterment is actually not really a savings account it is actually an investment into bonds that yield you an average of two percent which guess what that means no FDIC insurance sure you might get some securities insurances but those are significantly weaker than deposit insurances as with savings accounts now both the wealthfront and betterment of course offer you the ability to be able to refer your friends and family because why wouldn't they in today's culture well betterments offer is that if you refer somebody and they sign up for an investment account betterment will manage your investment assets before 30 days for free which I guess if you have a lot of assets it's not that bad unfortunately the benefit kind of goes away see if you have ten thousand dollars invested with betterment sure you might be able to save two dollars for that 30 days but it's really not that big of a deal on the other hand if you refer somebody to wealth front you will get your first two $5,000 managed for free if you were for another person you get $5,000 again managed for free forever see for every person you refer to wealthfront you get $12.50 per year for doing nothing you refer ten people that's like literally every single year getting $125 in he's waved which makes wealthfront somewhat desirable because all of a sudden sigh huh it becomes a whole lot cheaper to use wealthfront as the service betterment is cool and it gives you a fro bonus but it only lasts 30 days which does go away pretty fast o winner here by far well throttle all right folks now we're going to talk about m12 financier so here's the scoop a lot of people were commenting about m1 finance and I thought all right let's go check him out and at first I have to tell you I was really impressed but then when I signed up for the account I realized it was really just sort of a way of suggesting hey Kevin you like Apple stock you like Microsoft you like Facebook you like these index funds tell us which of these you want to invest in and then we'll go ahead and just split everything up and assign it for you automatically and I'm like well that's not really an index fund of index funds that's really just me telling you I want to invest 25% an apple 25% in I don't know Netflix and 25% into some funds and 25% into another fund and you're just going to place it for me it really didn't feel like I was being Robo advised so all of a sudden it became clear to me that I wasn't really being advised for free it was just a way for me to create a portfolio for free so I wasn't super jazzed about this mostly because when I was also in the actual database it was much more complicated than it would have liked to see most people don't have the time to decide what index fund do I want to invest in you know what this is this is too overwhelming most people will just shut down and end up doing nothing so to me too many minuses and therefore I'm out m1 finance now let's touch on a vanguard I think Vanguard is unfortunately a little convoluted this sort of paradox of choice you get which is a reference to being in sort of the aisle at the grocery stores where all the cereal boxes are and it's like oh there are so many choices I'm kind of shutting down as to which one to pick I unfortunately think Vanguard is a victim of that there are so many funds to pick from there are so many confusing acronyms there are so many different expense ratios there are so many different levels of risk that it's overwhelming and the vast majority of people even if you're one of those people that opened up a Vanguard account you're probably not somebody that has automated your investment into Vanguard and I think that's a problem so for most people look they should be using Vanguard but they just won't because it's over whelming the second problem with Vanguard is no tax loss harvesting and I think that tax loss harvesting aspect I think it's going to prove to be pretty dang big to have computers automatically save you taxes without actually you losing money huh it's freaking amazing I mean that's like look at all this money you made on your portfolio then look at how much you saved in taxes I like that so Vanguard will go ahead and give them an approve with an asterisk now I just want to make a quick note about fidelity here fidelity also offers funds that are very similar to a vanguard except fidelity goes one step further and says hey you know what if you start a relationship with us forget about like a point zero three percent you know fund management a fee that we're going to charge you instead will just let you buy into this fund for free obviously the goal for fidelity is to earn your business and this is great but again you suffer the same problems no tax loss harvesting and the paradox of choice but which fund are you going to buy that's a little bit more complicated so I think there are some downsides that come along with free so for me Vanguard and fidelity look if you know what you want if you know you want to invest in the total stock market index fund of the United States that's it you don't care about dividend stocks real estate emerging markets or all the stuff that's not fine fine go ahead buy the Vanguard buy the fidelity I won't be mad at you for that great way to reduce costs me personally I throw my money if I'm going to invest in index funds into the wealth front refer some people and then I don't have to worry about the fee and it's the same thing for me except it's automatic and it's diversified yes you could set up automated transfers with Vanguard and fidelity as well but again I'm not choosing and that is a big aspect fidelity we'll go ahead and give them an approve with an asterisk now the last one I want to hit on here is something called a vero money and now I'm not exactly sure if that's vero or Varro but I can tell you they are trying to advertise heavily against a wealth front by offering 2.8 percent on savings or so it appears and huh 2.8 percent is greater than 2.5 7% this is great this is like the race to the top of who's gonna pay me the most money for my savings but then I scroll down and realize oh wait a minute I really only offer you two point one two percent if you do nothing if you want the two point eight percent you have to do what are known as qualifying activities and those qualifying activities are as follows to get a two point eight percent yield you need to have a balance of up to fifty thousand dollars that is they're only going to give you the sealed on up to fifty thousand dollars and wealthfront it's unlimited but okay whatever I think most of us are probably going to put less than fifty thousand dollars into savings anyway because we have more than that will probably throw it into getting wedge deals and real estate like we talked about in the course all the time but anyway so you have up to fifty thousand dollars but then on top of that you have to do two more things which really make this a no-go for me you have to make at least five vero Visa debit card purchases every month I don't use a debit card this is annoying this would be it sure this is frustrating now you're making me work for an extra what point three percent screw you I'm not gonna go make five debit card purchases I'd rather use my double cash card or another card that's going to earn me way more rewards then I could ever imagine to redeem with this extra nominal amount then on top of that you also have to receive a payroll or government direct deposit of at least $1,000 each calendar month directly into your vero bank account well all of a sudden it's like wow they really want your entire relationship over at their account otherwise enjoy two point one two percent come on it's like seriously you're gonna put me into your little system and then force me to go to work for the extra yield screw you guys so for me vero big fat reject so folks there you go there you have my rundown of these different apps and investment services why I like some more than others why I don't like stash and acorns and I think those are lame excuses for investing I do really love Vanguard and fidelity don't get me wrong if you have the discipline to automatically invest and choose your own funds I think Vanguard and fidelity are excellent choices if you don't have any interest in learning about these different funds which I don't blame you go ahead go to wealthfront use that referral link below so you can get your first $5,000 managed for free and then go refer some other people so you just don't have to worry about it automate it no matter where you put your money and get into investing for your future I think we all realize investing automatically is the best way to possibly invest especially if you saw my last video and you watched all the way to the end where we talked about the reddit info graph it can really proved the aspect of investing regularly really really cool infographic but anyway make sure in the meantime to follow me on instagram at me kevin you can also follow me on twitch at me kevin will probably start doing some live streams there just for fun maybe we'll play some Red Dead Redemption too or some Call of Duty when that comes out who knows what we'll do we'll see what we'll do and what we'll do it but follow me there at me Kevin again and we'll look forward to seeing you in the next video and if you've made it this far make sure to leave a comment below with any questions that you have or any future topic ideas that you have that you want me to talk about and we'll get to it ]