Discover the Best Wealth Management Tools
According to Statista, the wealth management market is expected to see assets under its management reach an estimated value of $122.20 trillion in 2023. Wealth management tools have become common due to the increasing complexity of personal finance, technological advancements, data aggregation capabilities, automation, personalization, cost efficiency, and changing demographics. These tools offer individuals a convenient and accessible way to manage their wealth and achieve their financial goals.
Quicken
Quicken is a personal finance management application that has been rapidly gaining popularity due to its user-friendly interface. It offers budgeting, investment tracking, and bill management features, allowing users to review their portfolio performance during past economic downturns and anticipate potential outcomes if the next recession mirrors past ones.
Quicken’s range of powerful money management tools, such as expense tracking, investment management, and rental property management, helps users stay within budget, monitor bills, and manage investments effectively.
The tool offers the functionality to generate customized invoices and categorize income and expenses into personal, business, and rental categories, enhancing its capabilities as an all-around personal finance solution.
Image source: Google Play
Acorns
Acorns specializes in the concept of micro-investing, which means it allows users to invest small amounts of money. The app rounds up their everyday purchases to the nearest dollar and invests the spare change. For example, if you buy a coffee for $3.50, Acorns would round up the purchase to $4.00 and invest the remaining $0.50. It's an excellent option for those who want to start investing with small amounts.
Acorns can set up automatic recurring investments on a daily, weekly, or monthly basis. This feature helps users consistently grow their investments over time without having to think about it.
Last but not least, the app is user-friendly and accessible, making it easy for individuals who might be new to investing to get started. The app is available on both iOS and Android devices.
Image source: Google Play
Wealthfront
Wealthfront is a robo-advisor that uses algorithms to manage users’ investments. It offers low-cost ETF portfolios and automated rebalancing. It's a great option for hands-off investors. Wealthfront's primary function is to provide automated investment management. After a user creates an account and answers a series of questions about their financial goals, risk tolerance, and time horizon, Wealthfront's algorithm builds and manages a diversified investment portfolio for them.
The apps’ key characteristics:
- Passive investment strategy: Wealthfront follows a passive investment strategy, which means it focuses on building and maintaining a portfolio designed to achieve long-term goals. It uses Modern Portfolio Theory and aims to maximize returns for a given level of risk.
- No minimum investment: One of the advantages of Wealthfront is that it doesn't have a minimum investment requirement, making it accessible to investors with various levels of financial resources.
- Portfolio rebalancing: The platform automatically rebalances when the user's portfolio drifts from its target allocation. This helps the investors maintain their desired level of risk and return.
Image source: Google Play
Betterment
Betterment is another robo-advisor that provides automated investment management. It's known for its user-friendly interface and goal-based investing, making it easy for individuals to save and invest for specific financial goals.
Image source: Google Play
Stash
Stash might be a good choice for individuals who are looking for an intuitive platform to begin their investment journey. Its emphasis on education, customizable portfolios, and low-cost investing options makes it a suitable option for those who want to align their investments with their personal values and learn about financial markets in the process.
Stash allows users to invest in individual stocks and exchange-traded funds (ETFs). Unlike some other investment platforms that require users to purchase whole shares of stocks, Stash enables people to buy fractional shares. This means they can invest in high-priced stocks with a small amount of money, making it accessible to users with limited capital.
Stash offers users the ability to set up recurring automatic investments, helping them build their portfolios over time. This can be beneficial for those who want to invest consistently and steadily.
Image source: Google Play
Empower
Empower, formerly known as Personal Capital, is a comprehensive financial app that provides a wide range of tools and services to help individuals manage their money, investments, and financial goals.
Empower allows users to link and aggregate all their financial accounts, including bank accounts, credit cards, loans, investments, and retirement accounts. This gives users a holistic view of their entire financial landscape, making it easier to trackincome, spending, and net worth.
The app helps users manage and pay down debt by providing insights into loan balances, interest rates, and payment schedules. It can suggest strategies to reduce one’s debt and improve their overall financial health.
Image source: Google Play
Summary
Wealth management tools gain increasing traction. It comes as no surprise as, selecting the right wealth management tool can help effectively manage and grow personal wealth or assist clients in achieving their financial goals. By understanding the importance of wealth management, assessing financial goals, comparing features and functionality, and considering pricing and support options, consumers can make an informed decision and choose the best tool for their needs.
