Why our fee is what it is.
Since taking this gig, I’ve had several people ask me why our fee is so high, and how can they justify paying us .75% when Betterment (and other competitors) charge little to nothing. It’s true that we charge significantly more than other roboadvisors – we make no attempt to hide that fact. But it’s also true that just like when you splurge for that pair of Jimmy Choo pumps or a Swedish massage at a Four Seasons, you’re agreeing to pay a premium to get a superior product or service. We believe investing should be no different. While there are cheaper alternatives out there, the fact is that they have an extremely limited track record and investment models based on unproven algorithms. (If that doesn’t trip your red flag sensor, it should.)
And since we’re talking about your future, should you really be interested in “cheaper alternatives”? If you’re presumably trying to build a nest egg to purchase a home, save for retirement, or a variety of life-altering events, shouldn’t you be more willing to pay a premium for investment guidance backed by decades of experience and highly seasoned financial experts? We think it’s a no-brainer, but in case you’re not convinced, here are the facts:
– Virtually every roboadvisor in existence was not around during the last financial crisis—period.
– Evergreen Gavekal was founded over 25 years ago and has extensive experience navigating clients through multiple market cycles.
– Most roboadvisors use algorithms to invest clients’ money, arbitrarily rebalancing investments based on a calendar date – not prevailing market conditions
– Evervestment portfolios are constantly monitored, invested, and rebalanced by our seasoned investment team. They consider a host of factors like current interest rates, international developments, and internal and external research
– Many roboadvisors use remote “call centers” to service clients
– Evervestment’s parent – Evergreen Gavekal – employs seasoned financial professionals all around the world, dedicated to growing your financial legacy
– Most roboadvisors manage less than $100 million
– Our firm manages over $2.4 billion
One last thing I’d like to point out: I’ve been asked by prospective clients, “If you guys use a portfolio based on ETFs, why don’t I just invest in them on my own?” Quite honestly, if you want to take a stab at investing on your own, go for it. We’re not going to try and convince a DIY investor that they can’t get some decent amount of performance by throwing a dart at a list of ETFs and hoping for the best. But again, this is your future. Would you rather gamble that you’re going to randomly pick the right investments, or have the peace of mind that professionals are constantly monitoring and assessing whether or not you’re in the right spots? Not to mention, who has the bandwidth to research, monitor and effectively invest their own money? We all have kids, jobs, social lives, etc—ain’t nobody got time for that.
Leave it to Evervestment and you’ll sleep better at night knowing we’re putting your money to work for you.
Get started now and have your money invested in as little as 10 minutes.