SigFig Review: Automated Investing that keeps your best interests in Mind
|Types of Accounts available||Taxable, Joint, Roth IRA, Traditional IRA, Rollover IRA, Custodial, SEP IRA& SIMPLE IRA|
|Advisor type||Robotic + Human(Optional)|
|Asset Under Management||$400 Billions|
|Access||Computer, IOS, and Android|
Back in 2006, Mike Sha and Parker Conard, two entrepreneurs with a background of information technology created a website called as "Wikinvest". This website was based on the platform which is very similar to wiki pages, their idea behind this was to create a website which is simple to understand and provides one of the best advice when to comes to investing. Wikinvest caught many great eyes and as a result, they were awarded a few awards for their great work.
After "Wikinvest" Mike Sha went on the create SigFig which provides high-quality investment advice accessible and affordable to investors of all wealth levels. SigFig have empowered their platform with high-end data science implementations and best of the best human advice from investors who have great experience in investing. SigFig helps the investors in making the best decisions when it comes to investing by providing them the with information and guidance they need to make smart decisions while investing.
Unique Feature of SigFif
Diversified Income Portfolio is the one feature of SigFig that make it different from other Robo-Advisors. This portfolio is designed to invest in income-generating assets and attempts to generate a minimum of 4% annual return rate. SigFig use both common and unknown sources of income which allows them to create more opportunities for diversification and better returns. As the market moves, SigFig optimizes your portfolio to earn income and protect against downside risk.
Best Features of SigFig
Tax Loss Harvesting
Tax Loss Harvesting is an automatic tool which helps in reducing your tax liability. It applies the tax code to decrease the amount of payable taxes. By selling your investments which are sustaining losses you can offset any gains that you make on other investments. The capital you raise by selling your win-loss investment is reinvested back into the system resulting in direct tax benefit. SigFig offers this feature which has become seemingly common to all the Robo-Advisors services. SigFig applies a more holistic approach to the reinvesting part. SigFig also engages in "whitelisting" when you start your account with them. Instead of completely revamping your existing portfolio, SigFig tries to keep the most part of your portfolio by keeping all those investments which are similar to their approach on investment. This minimizes the gains you get on your investment resulting in better tax-optimization.
Automatic Dividend Reinvestment
SigFig has automated the process of dividend reinvestment. All the new cash that is contributed to the account is also invested in your portfolio. The purpose behind this logic is to reduce the cash drag thus resulting in maximize gain on your capital. SigFig keeps a balance in your account which is enough to pay the management fees, everything else is invested into your portfolio.
SigFig adheres to "Bank-Level" security which means the same security standards followed as a standard by your bank. Routine audits are run by SigFig to make sure their security system is up to date. To keep your funds secured, SigFig actually keeps them in Fidelity, Schwab or TD Ameritrade accounts. Each broker has to maintain a coverage of your funds through SPIC which simply means that your account is protected for up to $500,000 in cash and securities in the event of broker failure.
SigFig has created a separate platform which is created especially for enterprises. This platform is built on an open architecture that's designed to integrate easily into your platform. They provide an end-to-end solution for through this platform integration besides digital client experience. The enterprises can scale this platform to great levels as it is the battle-tested product that serves 2.5M accounts and $400B in assets on the web, mobile, tablet and watches.
Services provided by SigFig
SigFig guides you towards better investment decisions. In the managed account services SigFig will help you from the beginning to create a portfolio that suits your requirement and provides the best returns.
You will start with sharing your investment goals where a simple questionnaire will help SigFig evaluate your investment goals. Based upon the inference upon which SigFig arrives after evaluating your questionnaire, SigFig will provide you with the recommendations which will depend on your goals and risk preferences. SigFig will recommend an investment portfolio tailored to you. SigFig will provide you an option to choose between 3 brokerages that they are associated with to keep your money. You can choose between TD Ameritrade, Schwab, or Fidelity.
SigFig manages your account and makes sure your money is always working for you. It monitors your investment daily and rebalances automatically, whenever you have extra dividends. All in all, SigFig helps you in choosing, investing and managing your portfolio to get the tailored result for you.
SigFig allows you to see all your investments in one place using their portfolio management section. SigFig sync your 401(k), IRA, brokerage and advisor accounts from over 80 brokerages, then automatically pull all your investments into a single dashboard. To keep you updated on your portfolio performance, SigFig sends you weekly emailers. These emailers also include top news that impacted your investment. SigFig, analyze your portfolio to uncover hidden fees, overexposure to a single stock or industry and shows if you are taking too much or too little risk.
SigFig, bring you up-to-the-second market quotes, news and commentary from over 500 sources. It also allows you to compare your portfolio to your peers and dozens of market indexes. Our easy-to-use charts and tools crunch the numbers so you don't have to.
SigFig is one of the best Robo-Advisor available in the industry. With its amazing features like free portfolio tracker and free portfolio review, it sets out a what they believe in. Helping out investors in making the smartest decisions when it comes to investing is what makes them what they are.
SigFig also needs to improve on certain aspects in their platform. Some users have mentioned that they have received inaccurate advice from the system which downgrades their credibility. Recommended funds and diversified income portfolio have high fees which have a direct impact on the returns of the investors.