Reviewed by
Stang Gappa
Reviewed by
Stang Gappa
Updated on May 30, 2024
Learn about our Editorial Process
Wealthfront offers an automated IRA with low-fees and a user interface that's simple and easy to use.
Merrill offers a simple, automated IRA with customizable portfolios and potential fee discounts for existing Bank of America and Merrill Lynch customers.
Wealthfront is a great choice for investors looking for a robo-advisor account that allows them to set it and forget it. This is an automated investment platform with low fees. Since Wealthfront does not offer access to a human advisor, it’s ideal for people who are comfortable with software driving their retirement savings, or who are working with a financial advisor on their own to tackle their financial planning needs.
Wealthfront’s user-friendly website offers investors access to great planning tools that are helpful for both experienced and novice investors. Because these tools are integrated directly into the website’s user interface, they’re easier to access than similar tools offered by other brokers. Plus, Wealthfront features include automatic rebalancing and daily tax-loss harvesting to help you get the most bang for your buck, whether you invest in its low-cost index funds and mutual funds or buy fractional shares of individual stocks.
A Merrill Guided Investing IRA is a great option for beginner and hands-off investors who want a straightforward, automated portfolio with human oversight. Current Bank of America or Merrill customers may be eligible for a discount on the annual account management fee.
Wealthfront stands out from other robo-advisors thanks to its expert-curated investment options. When you set up your Wealthfront account, you’ll answer a series of questions about your financial situation, goals, and preferences. This is known as a risk tolerance questionnaire. It’s a common starting point when creating an investment portfolio.
Based on your answers, Wealthfront will calculate your risk score and create a portfolio for you. The money in your automated investing account will be allocated across a combination of asset classes like equities (stocks), fixed income (bonds), and international investments. Like other roboadvisors, Wealthfront tends to invest your money in exchange-traded funds (ETFs) and low-cost index funds that allow you to get easy access to a diversified mix of investments in these asset classes.
Wealthfront also separates out its investment options into categories based on your goals and preferences. For instance, you can choose to invest in ETFs focused on technological innovation or put your money into cryptocurrency trusts, or you can opt for socially responsible portfolio options that align with your values. While the funds themselves are pre-arranged (and therefore pre-diversified), you have a lot of say when it comes to where your money is going.
Bank of Ameria customers and current Merrill customers who meet required account balance minimums may be eligible for Merrill’s Preferred Rewards – a perk that includes lower management fees.
Wealthfront offers one of the best robo-advised IRAs on the market, with a wealth of different asset classes and sectors available to investors. Plus, it has additional offerings, including a college savings plan and an interest cash account that works like a checking account, that allow you to save and invest for a number of goals.
Wealthfront is a good choice for “set-it-and-forget-it” investors who want to keep all their financial accounts in one place. Just remember: Wealthfront advisers are not easily available for those looking for real, live, human interaction.
Beginner and hands-off investors might appreciate the simple, customizable portfolios offered by a Merrill Guided Investing automated IRA, especially if they currently have an account with Merrill or Bank of America. However, an account will come with higher management fees and account minimums than some other providers who offer a similar service.
If you’re looking to fund your Merrill Guided IRA with a 401(k) rollover, Capitalize can help. We’ve made it our mission to make this process easier for everyone. We can handle the entire process for you. Most of the process can be done online and our rollover experts will guide you through any of the manual parts. Get started with your 401(k) rollover in just a few minutes.
