Another new online portfolio management tool is FutureAdvisor. I want to say they were invite-only for a while, but they appear to be wide open to new accounts now. Their basic account is free “forever”, and you can add 24/7 portfolio rebalancing alerts along with an annual videoconference call with an advisor for $49/year. The process of setting things up is pretty simple with the following steps laid out:
Enter pertinent information such as current age, current income, desired retirement age, and desired retirement income. I like that they don’t just assume that you want to spend 80% of your current income in retirement. However, the total of your portfolio holdings entered here will be replace by whatever you share in the next step. I’m not really sure why they bother asking.
You can either manually enter your portfolio holdings or have them import it automatically using your username and password. Most major brokerage companies including 401k accounts are available, but I did notice some that are currently not supported. The supported list includes Vanguard, Fidelity (w/ Netbenefits), Schwab, Merrill, and TD Ameritrade. The unsupported list includes TradeKing, Zecco, and Interactive Brokers.
Based on the information given and that same ole’ multiple-choice risk questionnaire, they will suggest to you a model asset allocation. You can tweak the target by picking between Conservative (60/40 stocks/bonds), Moderate (80/20), and Aggressive (90/10). Here’s the conservative asset allocation assigned to me: