Wealthfront Managed Account Agreement

As an investor or someone interested in financial planning, you may have come across Wealthfront, a popular investment management service. Wealthfront offers a range of investment portfolios and advisory services to help you meet your financial goals.

One of the services offered by Wealthfront is their Managed Account service. This service provides investment management services, including account monitoring, rebalancing, and tax-loss harvesting, to help investors reach their goals.

If you`re considering Wealthfront`s Managed Account service, it`s important to review and understand the Wealthfront Managed Account Agreement. This agreement outlines the terms and conditions of the service, as well as the responsibilities of both the investor and Wealthfront.

The Managed Account Agreement covers several important aspects of the service, including fee structure, investment strategy, and account monitoring. Below, we`ll take a closer look at each of these elements of the agreement.

Fee Structure

When you sign up for Wealthfront`s Managed Account service, you`ll be charged an annual advisory fee. This fee covers the cost of investment management services, including rebalancing and tax-loss harvesting. The fee is based on the total value of your investment account and is calculated as a percentage of your account balance.

Investment Strategy

Wealthfront`s Managed Account service is designed to provide investors with a diversified investment portfolio that`s tailored to their individual goals and risk tolerance. The investment strategy is based on the Modern Portfolio Theory, which is a mathematical framework for constructing investment portfolios.

The Managed Account service uses a combination of ETFs (Exchange Traded Funds) to create a diversified portfolio that`s designed to minimize risk and maximize returns. The portfolio is adjusted periodically based on market conditions and changes in your financial situation.

Account Monitoring

Wealthfront`s Managed Account service includes ongoing monitoring of your investment account. This includes regular reviews of your portfolio to ensure that it remains aligned with your goals and risk tolerance.

In addition, Wealthfront monitors your account for tax-loss harvesting opportunities. Tax-loss harvesting is the practice of selling investments that have decreased in value and buying similar investments to offset capital gains. This can help reduce your tax burden and increase your overall investment returns.

In conclusion, if you`re considering Wealthfront`s Managed Account service, it`s important to carefully review and understand the Wealthfront Managed Account Agreement. This agreement outlines the terms and conditions of the service and will help ensure that you`re making informed investment decisions. By signing up for the Managed Account service, you`ll have access to a range of investment management services that can help you reach your financial goals.