Back in March I published the first post in what I call “The Digit + Axos Invest Experiment“.
The series of posts was designed to show just how easy it can be to save and invest using today’s automated saving and investing solutions.
To facilitate the experiment I opened two new accounts, both with free automated services that I discovered earlier this year.
The first account was an free online savings account from Digit, an account that helps take the busy work out of saving. It analyzes your checking account daily and at regular intervals it saves small amounts of money from your checking and puts it into your Digit savings account – without your intervention. It allows you to save money, a little bit at a time, without even realizing it.
The second account is a free automated investment adviser from the folks at Axos Invest. When you have an investment account from Axos Invest, their system will allow you to regularly invest in a taxable or tax advantaged retirement account, and it will automatically invest your funds in a portfolio of low cost ETF index funds. It’s a great new long term investing site, along the lines of Betterment or Wealthfront, but without any account management costs.
Digit and Axos Invest are both big on the idea of automating things in order to make them more efficient, more cost-effective and better for your bottom line. I liked the idea behind both sites, and after signing up I decided to take them on a trial run and to run an experiment.
Just how much could I save automatically for the year using Digit’s tools? How much would I be able to invest at no cost using Axos Invest? How much intervention would I need to have – and just how much could I save over time? First, let’s take a brief look at these two accounts.
Digit Savings Account
According to Ethan Bloch, the founder of Digit, the company was started to help people, “maximize their money, while at the same time driving the amount of time and effort it takes to do so as close to 0 minutes per year as possible”
So how does Digit work? You sign up for an account, and link your checking account. Digit will then analyze your income and expenses, find patterns and then find small amounts that it can set aside for you – without any pain for you.
So once you sign up and turn on auto-savings, every 2 or 3 days Digit will transfer some money from your checking to your savings, usually somewhere between $5-$50. Digit won’t overdraft your account, and they have a “no overdraft guarantee that states they’ll pay any overdraft fees if they accidentally overdraft your account.
Open Your Digit Savings Account
Axos Invest Investing Account
Axos Invest launched with the goal of being the world’s first completely free financial advisor. Their founders had a mission “to ensure everyone can achieve their financial goals, which starts with investing as early as possible. This is why there is no minimum to start and we do not charge fees.”
Axos Invest’s founders understood that one of the drags on the typical person’s portfolios is the fees that they’re paying to invest, as well as the friction point of having to invest thousands of dollars to start. They changed that with no minimums to invest, and no fees charged for investing. Axos Invest will be releasing some premium add-on products for their users, which they will charge for, but a basic investing account will not cost anything beyond the mutual fund expense ratios associated with your investments.
What do you invest in with Axos Invest? Axos Invest will invest your funds based on Modern Portfolio Theory (MPT). Your investments will be diversified, low cost and recognize the value of long term passive investing by investing in ETF index funds. Plus, when you sign up now, you’ll get a $20 Signup Bonus!
Open Your Axos Invest Investing Account And Get A $20 Bonus
The Digit + Axos Invest Experiment (D+AI Experiment)
So for my Digit + Axos Invest Experiment, the goal was not only to take these two free products for a spin, but also to show just how easy (and low cost) it can be to invest. There really should be no excuse to not get started.
When I started in early February my goal was to allow Digit to automatically pull money from my checking account and put it into my Digit savings. Whenever the amount in my Digit savings reached $75 I would transfer that money over to my Axos Invest account and invest it in their highly diversified set of ETF index funds.
Why was I doing it this way? I did it this way because Axos Invest has no minimums and you can buy fractional shares, so why not? I can transfer money in small chunks, and engage in a bit of dollar-cost averaging while I’m at it.
So how are things going now that we’re in the 4th quarter?
The Experiment In Progress
After setting up my Digit and Axos Invest accounts I put the plan in action and allowed my Digit account to start saving on my behalf.
Digit started saving small amounts in my account when I first began. $5 here, $15 there. Over time multiple transfers and deposits ended up adding up to larger amounts in my Digit account. My first transfer to my investment account was about $186.
From then on every time the amount reached around $75-$100 or more, I transferred the money to Axos Invest.
Amounts Withdrawn And Invested So Far
I’m now around 8 months into my little experiment, and I’ve withdrawn my Digit savings balance and invested it in my Axos Invest Roth IRA 20 times.
Here are the amounts that I have withdrawn and invested, with the most recent investment first:
$445.41
$173.84
$419.66
$112.68
$155.20
$142.02
$74.36
$79.76
$121.75
$82.03
$95.67
$81.27*
$93.28
$109.47
$76.20
$99.08
$99.32
$90.88
$74.72
$186.00
A total of $2812.60 has been invested in my Roth IRA over these months.
Here’s a screenshot from my Digit account showing my latest $445.41 withdrawal for the purpose of investing.
After withdrawing the money I then transfer it from my checking account over to Axos Invest. Here’s a screenshot from my latest deposit with Axos Invest. The screenshot shows how deposits can be used to purchase fractional shares of the ETF index funds used in the account.
Now that the latest deposit of $445.41 has gone through, I have $2,750.06 invested at Axos Invest, slightly less than the amount deposited since the investments (and the markets) have gone down almost 2.5% since I started.
Here’s my portfolio’s asset allocation in my Axos Invest account. It is a bit more aggressive than in my other retirement accounts.
The funds that Axos Invest currently uses, and their expenses, are shown below (but are subject to change)
Vanguard Total Stock Market ETF (VTI): 0.05%
Vanguard FTSE Developed Markets ETF (VEA): 0.09%
Vanguard FTSE Emerging Markets ETF (VWO): 0.15%
Vanguard Intmdte Tm Govt Bd ETF (VGIT): 0.12%
Vanguard Short-Term Government Bond Index ETF (VGSH): 0.12%
iShares Investment Grade Corporate Bond ETF (LQD): 0.15%
State Street Global Advisors Barclays Short Term High Yield Bond Index ETF (SJNK): 0.40%
iShares Barclays TIPS Bond Fund (ETF) (TIP): 0.20%
Vanguard REIT Index Fund (VNQ): 0.10%
We’ll see what kind of returns my account sees over the coming months/years, but I’m sure it will be close to what the market does. Since I’m not paying any account management fees to invest, I’ll be coming out ahead as compared to some other automated investment advisers.
A Recap Of My Progress So Far
So how is the experiment going 3/4 of the way through the year? In my book it’s been a rousing success. I’ve saved $2812.60 over the 8 month period. If we divide that over 8 months, it means an average saved of about $351.58/month.
Multiply the $351.58 by 12 months and it means that if I continue this experiment for an entire year, I could expect to see somewhere in the neighborhood of $4218 saved for the year.
If you look at that $4218 amount, it’s about three quarters of the annual $5500 contribution limit for a Roth IRA. So essentially, 3/4 of my year’s Roth IRA contributions are happening without me having to actually think about it.
The money is slowly coming out of my accounts – usually in amounts that don’t even really register. The savings amounts tend to be in the $10-50 range, although a few have been $100+. It’s amazing how fast those small amounts really add up!
The Power Of Investing Over Time
Let’s say you were in your 20s and you were to do something similar to what I’m doing with this experiment. You could end up with a pretty nice start to your nest egg over time.
Just setup automated savings and investments, and in my case that $4218 contribution for the year when extrapolated out over 30 years at an average 8% interest, will end up as just over $516,000 over 30 years.
To me that’s the power of long term investing. You can take small savings and investment amounts like this, and make it grow. In the end those small amounts end up adding up to a large lump sum in retirement. That’s pretty powerful. Why not get started now?
Join In The Digit & Axos Invest Experiment
I’ll be maxing out the Roth IRA this year when taking into account my small regular auto-investments with Betterment in addition to the Roth IRA from this experiment. Not too shabby for setting things on auto-pilot, and not even noticing the saving is happening!
Interested in joining the “Digit and Axos Invest Experiment”? I invite you to join in!
Open your accounts here:
After your accounts are open, sit back and wait for the savings to pile up – then invest! Piece of cake! Give it a shot and let us know how it goes!
Disclaimer: Bible Money Matters has entered into a referral and advertising arrangement with Wealthsimple US, LTD and receives compensation when you open an account or for certain qualifying activity which may include clicking links. You will not be charged a fee for this referral and Wealthsimple and Bible Money Matters are not related entities. It is a requirement to disclose that we earn these fees and also provide you with the latest Wealthsimple ADV brochure so you can learn more about them before opening an account.
In the past couple of years I’ve written about quite a few investing startups that offer easy ways to invest that take the human component out of the equation.
They’re typically simple enough for anyone to understand, low cost and try to capture market returns via low cost ETF index funds. Many people call them robo-advisors.
As I was researching some of the best robo-advisors I came across one that had previously only been available in Canada, Wealthsimple. As of earlier this year they have now crossed the border, and are now available to U.S. users (You can also get up to a $10,000 managed for free as a reader of Bible Money Matters).
Wealthsimple is a hot company, and there is a lot to like about this newer online investment manager.
Today I thought I would take a close look at this automated investment advisor in this Wealthsimple review. How does Wealthsimple work? How do they invest your money? What are the pros/cons of their service?
Wealthsimple Background
Wealthsimple was founded in September of 2014 in Toronto, Ontario Canada. Shortly thereafter it acquired ShareOwner Investments, the country’s first robo-advisor.
Wealthsimple Financial Inc. is an online investment management service focused on making “investing easier for millennials.” The firm was founded in September 2014 by Michael Katchen and is based in Toronto. As of August 2019, the firm had over C$5,000,000,000 in assets under management.
Wealthsimple has over $5 billion Canadian dollars in assets under management ($3.75 million U.S.) and over 175,000 clients as of August 2019. They’re growing at a decent rate, and with the jump to the U.S. market in January 2017, that can only accelerate.
The company has garnered several awards in it’s first few years including:
Fintech 100 – Top 100 Global Financial Technology Companies
2017 Webby Winner – Best Financial Services/Banking Website.
2016 Webby Winner – Best Financial Services/Banking Website.
2016 – Fintech Five – Hottest and most promising financial technology companies.
2015 Product Hunt Toronto – Product of the Year Award.
How Does Wealthsimple Work?
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Wealthsimple was founded on the idea of simplifying and automating investing in order to give newer and experienced investors alike a diversified long term portfolio, without any hassle.
How do they do that? They create diversified stock and bond portfolios that are typically made up of ETF index funds. The funds are low cost and diversify your holdings across different sectors of the global economy to increase your gains, and lower your risk.
When you sign up you’ll be given a personalized portfolio, based on your answers to a survey at the beginning of the process. It will be tailored to your personal level of acceptable risk, be automatically re-balanced (so that your investments stay in line with your goals) and dividends will automatically be reinvested.
In short, it’s a simplified, low cost and automatic investment portfolio that can help you to reach your long term goals.
Opening A Wealthsimple Account (Get Up To $10,000 Managed Free!)
Opening an investing account with Wealthsimple is easy, and users in the USA, Canada and UK are eligible.
To get started, and to get your sign-up bonus, just go through this process:
Go to Wealthsimple.com via this link. (Our link gives you up to a $10,000 managed for free as a bonus.)
Start the online application: From the landing page click “Claim your bonus” and follow the prompts.
Enter basic details: Enter some basic personal information, answer a few questions about your previous investment experience and e-sign one or more Investment Management Agreements.
Bank verification:Verify your banking information via one of the approved methods.
DONE!
No need to worry about providing your banking details as Wealthsimple is fully secure, using 128 bit encryption. They’re also SIPC insured up to $500,000.
After you verify your banking information, your Wealthsimple account should be up and running within 5 business days, according to their FAQ.
Wealthsimple Basic Vs. Wealthsimple Black
When you’re opening your account and making your initial deposits, one thing you may want to consider is just how much your initial deposit is. With a deposit of less than $100,000 you’ll be signed up for a Wealthsimple Basic account, which gives you everything you need to invest in a diversified portfolio, at an annual fee of 0.5%. Signing up for the Basic account will give you a $50 bonus through our link.
If you deposit more than $100,000 in your account you’ll be upgraded to a Wealthsimple Black account, which means you’ll have a lower annual fee of 0.4%, along with the following benefits:
Financial planning with a Wealthsimple advisor
Access to tax-efficiency benefits like tax-loss harvesting and tax efficient funds.
VIP Priority Pass access for you and a guest to more than 1,000 airline lounges in over 400 cities.
If you already have a large amount to transfer in, the added benefits of Wealthsimple Black are nice to have, and in many cases puts Wealthsimple ahead of the competition. In addition to the $50 bonus for opening a new Wealthsimple account, you’ll get an additional $50 bonus if you deposit over $100,000 and open a Wealthsimple Black account.
Wealthsimple Investment Portfolios
The Wealthsimple portfolios mainly invest in diversified ETF index funds and are based on Nobel Prize winning ideas behind Modern Portfolio Theory. Here’s how they explain it:
Our approach is based on Modern Portfolio Theory, introduced by the Nobel Prize-winning economist Harry Markowitz, who proved you can minimize volatility (risk) and maximize reward (money!) by diversifying your investments. We invest your money across thousands of companies using Exchange Traded Funds (ETFs) that track different sectors of the global economy. This way, you bet on bigger slices of the economy while taking advantage of market diversification, without being impacted by the growth or loss of one company. In a few easy steps, we’ll determine the right mix of investments you should have based on your personal goals. We also designed a socially-responsible portfolio that prioritizes low carbon emissions, advances cleantech innovation, and promotes sustainable growth in emerging markets.
So their portfolios are based on a proven investment strategy, and are designed to maximize reward while minimizing risk. It’s a strategy similar to the ones used by other robo-advisors, although the details are a bit different.
Available Portfolios
When signing up there are 3 main portfolios that you can choose from:
Conservative: 65% Stocks, 35% Bonds
Balanced: 50% Stocks, 50% Bonds
Growth: 80% Stocks, 20% Bonds
As of 2017, the following low cost investments are in the portfolios:
Vanguard US Total Stock Market ETF (VTI)
Vanguard Mid-Cap Value ETF (VOE)
Vanguard Small-Cap Value ETF (VBR)
Vanguard FTSE Europe ETF (VGK)
WisdomTree Japan Hedged Equity Fund (DXJ)
Vanguard FTSE Emerging Markets ETF (VWO)
iShares National Muni Bond ETF (MUB)
iShares TIPS Bond (TIP)
Vanguard Total Bond Market ETF (BND)
VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL)
Socially Responsible Investing
Wealthsimple recently released socially responsible investing options for investors who want to invest with their values. Those investments include:
iShares MSCI ACWI Low Carbon Target (CRBN)
PowerShares Cleantech Portfolio (PZD)
iShares MSCI KLD 400 Social ETF (DSI)
SPDR® SSGA Gender Diversity Index ETF (SHE)
PowerShares Build America Bond Portfolio (BAB)
iShares GNMA Bond ETF (GNMA)
Socially responsible investing options will carry a slightly higher fund cost associated with managing the funds to keep the investments “socially responsible”. Keep that in mind when choosing this option.
Investments in all of the portfolios can change over time, so check for current investment mix when you sign up.
Wealthsimple Roundup
Wealthsimple added a new feature in October of 2018 called Wealthsimple Roundup that helps you to save and invest in small increments, based on your daily spending in a linked account.
Spend $4.50 at Starbucks? The amount will get rounded up to the nearest dollar, $5 in this case, and once a week your combined roundups will be invested.
How can you take advantage? From their FAQ:
If you’re already a Wealthsimple client, open your mobile app and click on “Add funds.” There will be an option to turn on Roundup. Then just select the credit and debit cards you want to connect, and the Wealthsimple account you want your roundups to go to. Bingo, you’re done. Every time you spend money with one of your linked debit or credit cards, the amount gets rounded up to the nearest dollar, and once a week that money gets invested.
Investing 50 cents at a pop may not seem like much, but when the roundups are added together it can be a surprisingly significant amount of money.
In the past when I’ve used a roundup feature it can lead to saving $100-200 in a single month if I’ve spent enough. Definitely a cool feature and one to take advantage of.
Wealthsimple Mobile Apps
Wealthsimple has beautiful mobile apps for both iOS and Android. The apps were redesigned from the ground up at the end of 2016, and are now even more beautiful and functional.
Some of the functions you can perform in the app:
View your portfolio.
Track account activity.
Setup auto deposits, or make one time deposits.
Access educational content.
Update your profile information.
Wealthsimple Service Fees And Minimums
So how much will you be paying to use Wealthsimple? What are the fees and minimums for using the service?
Wealthsimple currently has no minimums on an account, and there are no trading, account transferring or rebalancing fees either. You can start investing when you deposit $500.
Low Annual Management Fees
The account management fees with Wealthsimple are pretty easy to break down.
While the fees for the service aren’t the lowest in the industry, they are often much lower than going with a traditional human advisor or a large mutual fund company. They are very much in line with much of the industry on pricing, especially if you’re investing more than $100,000 where they include meetings with advisors, lower fees and other perks.
Simplified & Automated Investing
Wealthsimple was launched in the U.S. market in January 2017, and has quickly become one of the premier options for people looking to have a simple, effective and automated investment portfolio. (If you’re a Canadian, check out this Wealthsimple review that was written specifically for a Canadian audience.)
Their portfolios are created and based on the ideas of Modern Portfolio Theory, and those proven strategies are the sound basis for a good long term investing portfolio for anyone.
Their fees are lower than you’d likely see when using a traditonal financial advisor, and are in the range of what other providers charge (although some are lower). The fact that they’re offering a $100 sign-up bonus through our link should give you plenty of time to test the service out, before deciding if you want to use them for the long term.
I think their service is top notch, and I’d recommend giving them a try.
Sign Up For Wealthsimple, Get Up To A $10,000 Managed Free!
For most people contributing to a 401(k) retirement plan at their workplace is the main way they’re investing for the future.
Sometimes those retirement plans are easy to understand, low cost, and offer great options to invest, but other times they’re confusing and complicated.
Blooom is an automated investment advisor and advice engine that can make managing your 401(k) a little bit easier.
Blooom is a robo-advisor for your 401(k). Let’s take a look at who Blooom is, and what they do.
Blooom History
Blooom was founded in March 2013 in Overland Park, Kansas by three friends, co-founders Chris Costello, Kevin Conard and Randy AufDerHeide.
The idea behind the company was to help give better advice and management for 401(k) plans, for regular people.
The firm’s researchers analyzed close to 90,000 401(k)s, with over $3 billion in total assets, and they found that over 80% of them were managed poorly.
That’s where Blooom decided to step in.
Blooom helps people to manage their employer sponsored retirement plans. They can manage your 401(k), no matter where your plan is held, or who your employer is.
They’ll give you good advice, and manage the 401(k) in your best interest, since they are a fiduciary and are required to by law.
Here’s an overview of the company from the folks at Blooom:
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What Does Blooom Do?
Blooom will automatically manage your 401(k) retirement account for you. It is a robo-advisor that will help you to maximize returns within your company sponsored retirement plan.
If you work for a company that has a 401(k) plan, often the company won’t give you much advice on how to manage your investments, once you’re signed up for a plan.
They basically tell you there’s a plan, that they’ll match your contributions up to a certain level, and give you a login for your account.
Simple enough. But what happens once you start contributing money? Where does that money go, and what should you invest in? What are the expense ratios on the different funds?
If you’re in your 20s and just starting out these concepts can be a bit difficult to grasp, especially if you’re more focused on building a career.
Blooom can step into this knowledge gap and help you to make sure your investments are aligned with your future goals.
They’ll find out some basic information from you like your age, target retirement date and a few other things, and then Blooom will recommend an allocation for your portfolio.
For younger people they’ll typically recommend a 100% stock allocation, and as you age the portfolio will begin to be more heavily weighted towards bonds. In other words, you’ll be taking on more risk in your early earning years, and move towards more stable investments as you age. If you don’t like their recommendation you can opt for a different ratio of stocks to bonds.
Whenever possible Blooom wil select a low cost index fund to help you meet your goals, and if you’re someone who has accidentally selected high cost mutual funds, this could bring some significant savings for you right off the bat. They’re looking to get you into investments that will be low cost, and track the performance of the market.
Based on their algorithm, Blooom will rebalance your portfolio every 90 days to make sure your desired stock to bond ratio is maintained. If you want to adjust your allocations, or target retirement date, you can do that at any time as well.
In addition to managing your 401(k) account, Blooom will allow users to ask financial questions from experts and real advisors. Should you invest or pay extra towards your mortgage? Should you be worried about market downturns? Ask them and they’ll be happy to help.
Get Started With A Free 401(k) Checkup
Blooom offers a free 401(k) checkup before you even sign up for their services, no promo code needed.
They’ll take you through a quick questionnaire where they ask you for your name, date of birth and when you expect to retire.
Next, they’ll ask you for an email address and password to secure your account.
Third they’ll confirm that you do in fact have a 401(k), 401(a), 403(b), 457 or TSP account, and ask you to link that account.
Finally they’ll analyze your retirement account, and you’ll see how your account is doing, and what you might be able to do better. It will show you how you can do better with fees, with allocation, and with the diversity within your portfolio.
Finally it will give you a summary of your 401(k) checkup telling you just how much Blooom can save you, and how they can help.
To get started with your free 401(k) checkup, head on over through our link here:
After Your Free Checkup
After your free 401(k) analysis, if you choose to continue with Blooom within 30 days they’ll adjust the investments in your account so that it aligns with your goals.
the average Blooom client cuts their hidden investment fees by 44%. (Based on Blooom clients‘ median pre-Blooom expense ratios and median post-Blooom expense ratios as of August 5, 2018)
First they’ll check your 401(k) and remove any funds that aren’t worth having. They’ll prioritize index funds, and typically only use actively managed funds to gain investment exposure in an area that you’re light.
Then Blooom will use their algorithm to select the best portfolio based on costs and manager experience.
Any time a change is made, they’ll advise you of the changes, and you’ll get a full break down of what has changed with your investments, how your investments look now and how you can save more.
Finally, every 90 days or so Blooom will check your account for opportunities to rebalance your portfolio. If the investments are out of balance, Blooom will rebalance them. Regular rebalancing can add an additional 0.5% to the annual returns on investment.
What Types Of Accounts Will Blooom Manage?
Blooom only manages employer-sponsored retirement accounts at the current time. That means that you can sign up and use them if you have one of these types of retirement account:
401k
403b
401a
457
TSP
IRAs, Roth IRAs and other taxable account types need not apply.
Blooom Security
If you’re concerned about the security of Blooom, and whether or not your retirement accounts are safeguarded, they are. Here is how they’re protecting your information:
256 bit encryption, bank level security: The website is secured with secure socket layer encryption, and bank level security. Their servers are secure and encrypted to ensure private online transactions.
Third party verification: They take extra measures to ensure you are really who you say you are any time changes are requested.
What Is The Cost To Use Blooom?
What does it cost to use Blooom?
Currently it costs only $10/month to have Blooom manage your 401(k). If you have additional 401(k) accounts to manage under the same login it is an additional $7.50 per account.
Depending on how much you have invested, the fee may be a large percentage of your portfolio, or it could be an extremely reasonable fee. Let’s look at why that is.
The more you have in your 401(k) account, the better deal Blooom will be for you. For example, let’s compare Blooom to the fees charged for assets under management by Wealthfront or Betterment. They both charge 0.25% annual fee for assets under management. On the other hand a human financial advisor will often charge somewhere around 1%.
Let’s say you have $1000 invested in your 401(k) (not very much), then the $10 monthly fee will come out to $120/yr, or a 12% fee. That’s not going to make much sense for most people.
If you have a larger account, however, say $100,000, the $10/month fee will come out to about a 0.12% fee. At $50,000 it will be a 0.24% fee.
Once you reach a certain level it’s very reasonable and low cost to have your 401(k) fully managed by Blooom. The more you have in your 401(k), the more cost effective it is.
Reasons To Use Blooom
There are a lot of reasons to like Blooom, and to give them a try:
They’ll give your 401(k) a free once over: Even before you pay for their service, they’ll analyze your 401(k) for free, and give you some recommendations. If you don’t like the recommendations, don’t sign up.
Their service is unique, and helpful: They are one of the only full service 401(k) management services available, and what they’re offering is helpful, and at a reasonable price.
Cancel the service at any time: There are no long term management contracts. Just cancel through your blooom account before your next billing cycle and you won’t pay additional fees.
Fees are paid directly with credit or debit card: Often investment companies will take their fees directly from your investments, decreasing returns you might gain. Blooom will charge your linked card for the $10 monthly fee.
Their analysis will give insight into your plan’s fees, funds: Once they analyze your plan, they’ll give you insights into our investment options in the 401(k) plan that you may not have had before. Things like which funds have the lowest expense ratios.
You have access to a real advisor through email and chat: Not only will you get the automated financial advice, you’ll also have access to a real person through email and chat if you have questions. It doesn’t necessarily have to be about your 401(k).
Reasons To Not Use Blooom
There are a few reasons to avoid Blooom. They may not be for you if:
Have a non employer sponsored type retirement account: If you don’t have a 401(k), 401(a), 403(b), 457 or TSP account, you won’t be able to work with Blooom.
Don’t agree with their aggressive stock allocations for younger investors: Most investors under the age of 40 receive a stock allocation of 100%. If that’s too aggressive for you this might not be for you.
If your account is too small to make the fee worthwhile: If your account is small enough the fee may be too large or a percentage of your assets under management. You’re probably better off managing it yourself for the time being, and working hard to max out your contributions. Sign up later.
Blooom Is The Low Cost Robo-Advisor For Your 401(k)
Blooom is a low cost automated investment advisor for your 401(k).
Most people will contribute to a 401(k), but aren’t really fully aware of what they’re investing in, or why. If you don’t have the time or the inclination to research your 401(k), it can be like fishing in the dark. Which funds are the best for my situation?
Blooom can step in, and fill in the gap. They have the expertise, knowledge and the technology tools in order to turn your 401(k) around.
They’ll analyze your account for fees, allocations and diversity of investments. They’ll find ways that you can improve your investments and then help you to implement their suggestions.
In short, they’ll manage your 401(k) and allow you to focus on things that are more important to you.
Many people think of large national banks when they think of banking. However, regional banks can often offer a more personalized and localized banking experience. They may also have lower interest rates and fees than larger banks.
In this article, we’ll examine the best regional banks in terms of customer service, fees, and interest rates. This list is a great place to start if you’re looking for a new place to do your banking or simply want to compare your current bank to others in your area.
Best Regional Banks in the West
Bank of the West
Bank of the West is a large regional bank based in San Francisco, with hundreds of locations nationwide. It offers standard deposit accounts, such as checking, savings, CDs, and money market accounts.
Checking accounts have varying terms and fees, some of which can be waived by signing up for paperless statements. The bank also has a low-interest Choice Interest Checking account and two savings accounts with fee waivers for maintaining a minimum balance.
First Interstate Bank
First Interstate Bank is the largest bank in Montana and 73rd in the US. Established in 1916, it has 313 locations.
Its headquarters are in Billings, but it has locations throughout the states of Idaho, Montana, Oregon, South Dakota, Washington and Wyoming.
Umpqua Bank
Umpqua Bank is the largest bank in Oregon and 75th in the US. Established in 1953, it has 219 locations, headquartered in Roseburg.
It offers a unique Go-To app that allows customers to text a banker for questions or advice. The bank also offers multiple checking accounts, money market accounts and CD terms, with a low deposit requirement to open a money market or savings account.
Union Bank
Union Bank is a full-service bank based in San Francisco, with over 350 branches in California, Washington and Oregon. It offers online, mobile, and telephone banking options in addition to traditional branch banking.
Products include checking, savings, money market, CDs, credit cards, mortgages, loans, insurance and investment services.
Best Regional Banks in the Southwest
BOK Financial
BOK Financial is the largest bank in Oklahoma and 55th in the US. Established in 1910, it has 118 locations and is headquartered in Tulsa. It offers a variety of financial products, including savings, checking, money market, CDs, IRAs, credit cards, and mortgages.
First National Bank Texas
First National Bank Texas (FNBT) was founded in 1901 in Killeen, Texas. Today, it serves customers at over 300 locations across Texas, New Mexico, and Arizona.
The bank offers a variety of personal banking products, including checking accounts, savings accounts, money market accounts, and CDs, and more.
Frost Bank
Frost Bank is based in San Antonio, Texas. Established in 1868, it has 171 locations and 1,700 ATMs throughout Texas.
The serves customers in most of the state’s larger metro areas. It offers a range of products including checking and savings accounts, loans, investing, insurance and wealth management services to help customers manage and grow their money.
MidFirst Bank
MidFirst Bank is the largest privately owned bank in the US. It operates 75 branches in 3 states, with most located in Oklahoma, Arizona, and Colorado. Its headquarters is in Oklahoma City.
MidFirst provides a range of banking options, including multiple types of checking accounts, and the possibility to waive monthly service fees.
Best Regional Banks in the Midwest
Arvest Bank
Arvest Bank is a regional bank based in Bentonville, Arkansas, with over 240 branches in Arkansas, Kansas, Oklahoma and Missouri. It offers checking accounts, savings accounts, money market accounts, and CDs, and its mobile banking app is highly rated in app stores. Accounts can be opened online, but only by residents of the four states the bank serves.
BMO Harris Bank
BMO Harris is the 8th largest bank in North America by assets, headquartered in Chicago and is a subsidiary of the Bank of Montreal. It has over 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Missouri, Minnesota, and Wisconsin.
Fifth Third Bank
Fifth Third Bank is based in Cincinnati, serving customers in 11 states with over 1,100 branches. It offers various checking and savings accounts, money market account and a wide range of CD terms.
The Fifth Third Momentum Checking account boasts no monthly service fee and provides fee-free access to over 50,000 ATMs across the country. The bank also has low deposit requirements and 24/7 access via its highly rated mobile app.
Huntington National Bank
Huntington National Bank is a full-service bank with over 1,100 branches in 12 states, primarily in the Midwest and Southern regions. It provides a range of products and services including banking, wealth management, and insurance.
The bank offers a free checking account, and 24-hour overdraft forgiveness which allows an extra day to make deposits to avoid overdraft and return fees, and other features.
Best Regional Banks in the Southeast
Cadence Bank
Cadence Bank, a regional giant based in Tupelo, stands tall as the largest bank in Mississippi and ranks 51st nationally. It has a network of 448 locations spread across six states: Alabama, Florida, Georgia, Mississippi, Tennessee, and Texas.
Cadence offers a comprehensive range of financial products, from checking and savings accounts to credit cards, lines of credit, and mortgages.
First Citizens Bank
First citizens Bank, founded in North Carolina in 1898, has a rich history of providing reliable financial services. Its offerings encompass a diverse array of products, such as checking, savings, CDs, credit cards, loans, mortgages, investments, and insurance.
With 586 branches in 22 states, the bank makes banking easy and accessible. It also offers free checking and savings account options with a low minimum deposit requirement.
SouthState Bank
SouthState Bank, the largest regional bank in Florida, was founded in 1992 in Winter Haven. With a presence in six states – Florida, Georgia, Alabama, Virginia, North Carolina, and South Carolina – the bank boasts a network of over 240 branches.
SouthState offers a wide range of banking and investment services to individuals and businesses alike.
Synovus Bank
Based in Columbus, Georgia, Synovus Bank operates 309 branches in five states – Alabama, Florida, Georgia, South Carolina, and Tennessee.
The bank provides a comprehensive range of financial services, including loans, deposit products, investment services, financial planning, and wealth management, empowering its customers to reach their financial goals.
Best Regional Banks in the Northeast
Fulton Bank
Fulton Bank, based in Lancaster, Pennsylvania, is a regional bank with a presence in 5 mid-Atlantic states – Delaware, Maryland, New Jersey, Pennsylvania, and Virginia. With over 250 branches, Fulton Bank offers an array of personal banking products, including checking, savings, money market accounts, and certificates of deposit.
M&T Bank
M&T Bank is a major regional bank headquartered in Buffalo, New York, serving customers in 13 states, with a strong presence in New York, Connecticut, Maryland, Pennsylvania, and New Jersey.
The bank offers a wide range of financial products, including checking and savings, loans, retirement accounts, credit and debit cards, and investment services. With M&T Bank’s basic checking account, there’s no monthly fee.
Valley National Bank
Valley National Bank was established in 1927 and is headquartered in Wayne, New Jersey. It boasts 200 convenient branches across several states, including New Jersey, New York, Florida, Alabama, California, and Illinois.
The bank offers a range of checking and savings accounts, including Rewards Checking and Interest Checking.
Webster Bank
Webster Bank, based in Stamford, Connecticut, operates 177 branches across Connecticut, Massachusetts, Rhode Island, and New York. It offers a comprehensive range of financial products, including checking, savings, and money market accounts, CDs, and lending products.
With 5 different checking accounts to choose from, including an Opportunity Checking account for those seeking second-chance banking, Webster Bank caters to a wide range of banking needs.
Big Regional Banks with Locations in Multiple Regions
Citizens Bank
Citizens Bank is based in Providence, Rhode Island and is the 15th largest bank in the US. It operates over 1,000 branches across 11 states in New England, Mid-Atlantic, and Midwest regions.
It offers various retail, small business and commercial banking products. The bank also has online-only savings accounts and CDs with competitive interest rates and no monthly fees.
KeyBank
Headquartered in Cleveland, Ohio, KeyBank operates over 1,000 full-service branches in 15 states, offering a range of banking products including personal checking, savings, money market, and CDs. The bank is committed to providing excellent customer service, with 24/7 phone support available.
Regions Bank
Regions Bank is the largest bank in Alabama, with its headquarters in Birmingham. Operating over 1,500 branches in 15 states across the South and Midwest, the bank offers 24/7 phone customer service.
In addition to traditional banking services, Regions Bank also provides convenient digital banking features, including mobile and online banking, account management, bill pay, and remote check deposit.
TD Bank
TD Bank is headquartered in Cherry Hill, New Jersey-based with a presence primarily along the East Coast in 15 states. The bank operates 1,200 branches and is the ninth-largest bank in the nation.
TD Bank offers a range of financial products including checking, savings, and money market accounts, certificates of deposits, and credit cards. Additionally, its physical locations offer extended hours to accommodate customer needs.
Truist
Truist Bank is based in Charlotte, North Carolina, with a presence in 17 states and the District of Columbia. With over 2,100 branches, the bank primarily serves customers in the Southern states but also has locations in Indiana, Maryland, New Jersey, Ohio, and Pennsylvania.
Truist offers a range of banking products including checking, savings, money market, CDs, credit cards, and more.
U.S. Bank
U.S. Bank it headquartered in Minneapolis, and it’s the fifth-largest bank by assets in the United States. Its services are primarily in the Western and Midwestern parts of the country with over 2,000 branches in 26 states.
U.S. Bank provides customers with a vast network of ATMs, including those in the MoneyPass network. They offer a comprehensive selection of products, such as deposit accounts and mortgages. Customers can choose to open accounts either in-person or through the bank’s online platform. Its mobile app is also highly rated.
Factors to Consider When Choosing a Regional Bank
When it comes to selecting a regional bank, there are several important factors to keep in mind to ensure you make the right choice for your financial needs. These include:
Location: Ensure the bank has branches and ATMs conveniently located near your home and workplace for easy access and transactions.
Fees: Compare fees such as monthly maintenance fees, overdraft fees, ATM fees, and others to make sure they are reasonable and in line with other regional banks.
Interest rates: Evaluate interest rates and annual percentage yields (APYs) for checking and savings accounts, as well as loans, to get the best deal possible.
Online and mobile banking: Assess the bank’s digital offerings such as online banking and mobile app capabilities to make sure they meet your needs and are user-friendly.
Customer service: Look into the bank’s customer service reputation by reading reviews and asking others. Choose a bank with a strong reputation for assisting customers with their financial needs.
Security: Verify that the bank has robust security measures in place to protect your personal and financial information.
Frequently Asked Questions
What are regional banks?
Regional banks, as per the Federal Reserve Board, are financial institutions with assets between $10 billion and $100 billion, putting them in between community banks and larger national or international banks. However, the definition may vary among different sources.
These banks serve a designated geographic region, usually within one state or a few states, and offer a variety of commercial banking services like checking accounts, savings, mortgage loans, and more.
How do regional banks differ from national banks?
National banks cater to a broad geographical area, spanning across several states and sometimes the entire country. Unlike national banks, regional banks concentrate more on meeting the requirements of their local communities. The scope of service for regional banks can greatly differ, with some serving small regions, while others offer services to larger territories.
What’s the difference between a regional bank and a community bank?
Regional banks are typically bigger and offer a wider range of services compared to community banks. They have multiple branches and ATMs across a state or region, and provide more advanced financial products.
In contrast, community banks are focused on serving the local community and are generally smaller with fewer branches and ATMs. They put a strong emphasis on personal banking services like checking and savings accounts, home loans, and consumer loans. Additionally, they have close ties to the community and often prioritize lending to small businesses and community organizations.
What are some benefits of using a regional bank?
Regional banks often provide a more personal touch and in-depth local knowledge. Additionally, they are connected to the community and offer more flexible lending options. Furthermore, their fees tend to be lower compared to bigger banks.
For those who prioritize low fees, online banks are another option to consider. These banks, also known as digital or online-only banks, have the lowest fees of all banking options, thanks to their lower overhead expenses. They pass the savings on to their customers.
Are there any downsides to using a regional bank?
Regional banks may have fewer branches and ATMs compared to big banks, which can be a disadvantage for some customers. Moreover, they may not offer as many types of accounts or financial products as large banks.
What should I look for when choosing a regional bank?
When choosing a regional bank, take into account elements like its reputation, monthly fees, and available accounts. Additionally, think about its proximity and if it provides online and mobile banking services.
Can I open an account with a regional bank if I don’t live in the region they serve?
It depends on the bank’s policies. Some regional banks may require that you live in the region they serve to open a bank account, while others may be more flexible.
How many regional banks are there in the U.S.?
Based on the Federal Reserve Board’s definition of a regional bank, of $10 billion to $100 billion in assets, there are around 120 regional banks in the U.S.
When you leave your job, either voluntary or not, you have to make an important decision regarding your 401(k). Many aren’t familiar with all their options on what they can do with their 401(k), but making the wrong choice could cost you. Most people are familiar with the 401(k) rollover concept but still need some help through the process. Here are your options if you are faced with this decision.
Cashing out is not the Best Option
What money you put it in yourself, you can cash out and take it with you. If your employer has a match, you maybe subject to some sort of vesting schedule. Many people choose to cash out their 401k’s. The most common reasoning I here, especially for 401k plans that have matching, is that it’s “The company’s money” not “theirs“. Wow! Isn’t that great reasoning?
By taking “The company’s money”, now that person is stuck with a 10% early withdrawal penalty plus ordinary income tax. Typically, when you cash directly from your 401k they will hold 20% standard plus the 10% early withdrawal penalty.
If you really need money, you could consider borrowing from your 401(k). The problem here is that most companies want the loan balance paid off when you leave – whether you leave work by choice or not.
Leave your 401k alone.
You always have the option to just leave the money with your old plan. The money will remain invested, and the financial firm handling your 401(k) will keep mailing you quarterly statements telling you how it is doing. Any future growth will be tax-deferred.
But this passive choice comes with an opportunity cost. If you just leave the 401(k) assets in the plan, you’re giving up control and flexibility. Your investment choices may be limited, the plan fees may be high, and you may not be able to quickly access your money or do what you want with it. If you have a trail of old 401(k)s left with a bunch of former employers, things can get really complicated when you retire – especially when you have to take Required Minimum Distributions (RMDs). Leaving the money in the plan may not be the wisest choice.
Transfer the 401k to a New Employer
Most people have the option to transfer their old 401k into their new 401k with the new employer. In the past, this used to be more difficult, but with recent government regulation changes, it’s much easier. While this could be a good decision, a lot depends on the new options that are in the new 401k.
You could roll your 401k into an IRA
This is the choice that usually makes the most sense. You can move the money into an IRA through a rollover or trustee-to-trustee transfer. Or, you could direct the money into a so-called “conduit IRA,” a traditional IRA created to hold your old 401(k) assets until you move the money into another qualified retirement plan.
There’s no tax penalty when you do an IRA rollover or trustee-to-trustee transfer. After you do it, you have total control of the money, continued tax-deferred growth, expanded investment choices, and possibly lower account management fees.
Rolling over the money into a Roth IRA might be a great move, provided you can meet two conditions. First, your adjusted gross income has to be less than $100,000 for the year in which you make the rollover. Second, you’ll have to pay taxes on the assets you convert. The upside is considerable: you get tax-free compounding, tax-free withdrawals if you are older than age 59½ and have owned your account for at least five years, and the potential to make contributions to your IRA after age 70½ without having to take RMDs. Contributions to a Roth IRA are not tax-deductible, but there are fewer restrictions on withdrawals.
In 2009, you can fund a Roth IRA with after-tax contributions to a 401(k), 403(b) or 457 retirement savings plan – you can take those contributions and convert them to a Roth IRA tax-free, provided your AGI is $100,000 or lower. There is no limit on the conversion amount. Incidentally, in 2010, anyone can convert a traditional IRA to a Roth IRA – the AGI restriction on such conversions disappears.
What if you have to shiver through a 401(k) freeze?
A “freeze” is when your employer reduces or suspends matching contributions to your retirement plan. FedEx, General Motors and Motorola have all recently chosen to do this. The answer: don’t let up on your personal contributions. If you can manage it, adjust your 401(k) contribution to a level where you effectively replace what your employer contributed. Saving for retirement should remain one of your highest priorities.
If you still need help with your 401(k) rollover, be sure to seek counsel from a Certified Financial Planner™ professional.
The good people at the Debt Pay Companies sent me the following press release to share. I’m happy to do that but honestly, I don’t get how this is big news and seems like a lot of fluff and words.
As I said to them, “I’m happy to publish that, but honestly, it just comes off as a standard puff rebranding piece nobody cares about.
Do you have a story to share rather than marketing?”
The answer was nothing more was forthcoming.
Maybe I’m missing something here but what I got out of this is we are great and just changed our name. Please feel free to post a comment if that observation seems off-base.
I wonder how many people will read that new name as Fourth?
So, here is the press release.
Press Release
The Debt Pay Companies are now Forth
The Debt Pay Companies, leading providers of CRM and payment services to the debt relief industry, today launched a major rebranding initiative that reflects the integration of service offerings to seamlessly support debt settlement companies and their customers. Under the new Forth, Inc. brand, the companies will be led by the same trusted teams at Debt Pay Gateway and DebtPayPro. Existing partners and consumers can expect a seamless transition, while Forth continues to demonstrate its commitment to “Paving the way for financial wellness.”
Founded in 2009, Forth has served debt relief service providers with robust solutions that include CRM, marketing automation, payment processing and dedicated account management offerings. With a focus on security, compliance and reliability, they have fostered close relationships in the debt relief space that inspire the Forth team to find new and better ways to serve the industry.
Do You Have a Question You’d Like Steve to Answer? Click Here.
The decision to integrate the two companies under a single, unified brand emerged from a robust strategic planning effort that began in 2021. Juan Cahue, Chief Operating Officer, states, “We have witnessed tremendous growth across our businesses over the past 13 years, while watching strong synergies emerge. Recognizing these synergies — and choosing to invest in them — allows us to bring a wealth of resources and industry experience into focus to achieve a singular, unified mission.”
Establishing the Forth brand has allowed the company to repackage its services and capabilities to better serve the debt relief ecosystem. Michael Duckett, Chief Information Officer, shares details. “Forth functions as our overarching brand that today includes Forth CRM — end-to-end cloud-based solutions that securely integrate data, tools and functionality to create a seamless experience for debt relief solutions teams and their consumers and Forth Pay — our transaction management and accounting platform that offers dedicated accounts and a creditor portal that is native to Forth and works seamlessly with the Forth CRM. These products can be used together or separately, depending upon the needs of our partners and their customers. Over time, the umbrella brand gives us both the structure and the flexibility to seamlessly introduce new products and services as our industry continues to evolve and needs change.”
“The debt relief world has evolved over the past 15 years as the industry has made great strides to become more tightly regulated and transparent,” explains Chris Queen, Co-founder and Co-CEO. “And as the options for settling debt have been legitimized and standardized, consumer attitudes have begun to turn more positive. This allows us the opportunity to serve a new generation of debt-holding consumers who see third-party debt relief as their best path to financial wellness.”
Kris Kehler, Co-founder and Co-CEO elaborates, “As our confident, optimistic name implies, we have eyes on the future, and we’re dedicated to leveraging our exemplary team, track record, technology and operational platform to help consumers exit debt. With every passing year, we continue to observe that when consumers are supported through debt relief with integrity and dignity, they embark on a powerful path to financial wellness that can transform their quality of life — and that of their families — for the long haul.”
The rebranding initiative began in July 2021 with the help of brand consultancy, Otherwise Incorporated. Nancy Lerner, Otherwise Co-founder and Chief Brand Strategist explains, “The new name works as a declaration and an invitation; a starting point. It captures a moment in time when the past and the present turn toward the future, fueled by enormous possibility.”
Lerner continues, “Guided by the new name, we set out to design the visual identity, with a mark that represents a kind of passage or gateway to stability and peace of mind. The symbol is also a trompe l’oeil, since it makes a flat object appear to be three-dimensional; this adds energy and serves as a provocative focal point for attention. And finally, the right side of the mark is also an arrow, leading the way to change and progress.”
The brand was initially introduced to partners in the debt relief industry in October 2022 at the annual American Fair Credit Council conference. The full launch is supported with a fully-integrated, holistic buildout of the brand, including new website, marketing collateral and consumer communications. – Source
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
Dependable Home Warranty was founded in California in 1974. When they became a subsidiary of Old Republic International in 1982, they continued to provide reliable coverage to all of their customers.
They have since earned a spot among the top three home warranty companies in the country with an A+ rating from the Better Business Bureau.
Old Republic offers efficient and friendly service with comprehensive plans and straightforward pricing.
Their goal is to be a long-time service provider for your household by building a relationship with your family and earning your trust.
Old Republic Home Protection Review: Main Features
Table of Contents
Old Republic offers many ways to protect your investment by covering common home repairs to help keep your house safe and sound.
With Old Republic, you can expect to find a variety of plans tailored to meet your coverage needs. Across plans, there are a number of features that stand out.
The following are some of our favorite Old Republic coverage features included in all plans, features which put it on our list of top home warranty companies.
Heating System
Heating units not exceeding five tons are covered under all of Old Republic’s warranty plans, and they don’t limit the number of units you can cover.
Most companies only allow coverage for one unit, and you have to pay extra for additional units, so this is a really excellent coverage option.
If you have multiple heating units in a large house or you have an outbuilding you use for your hobbies and projects, this coverage provides you with a great solution. Heating system coverage includes parts like the heat pump, ducts, thermostat, floor heater, and drain pumps.
Plumbing System
When a part of your plumbing isn’t working, it can disrupt your entire routine from dishes to showers to bathroom breaks.
Old Republic’s plumbing system coverage includes the following:
Drain line stoppages
Toilet tanks
Pipe leaks
clogs/leaks: in your water heater, water dispenser, garbage disposal, sump pump, and water pressure regulator parts
Electrical System
You use your electrical system for almost every part of your day. Making toast for breakfast, watching TV in the afternoon, and playing games with your kids in the evening all require electricity.
To keep the lights on, Old Republic covers your outlets, switches, panels, breakers, wiring, fuses, fans, and more.
If something goes wrong with your electrical system, they’ll restore power quickly so you can keep moving.
Home Appliances
Old Republic covers home appliances like your oven, cooktop, range, dishwasher, exhaust fan, built-in microwave, and trash compactor.
Every component of these systems is included in the event you experience normal wear and tear or an unexpected outage.
With this coverage, you can keep your kitchen in proper working order to cook meals, do dishes, or gather with family and friends.
Old Republic Warranty Plans
Old Republic offers customizable warranty plans based on location. While there’s not a standard set of plans for you to preview, Old Republic has brochures available that detail the specific coverage in your area.
Old Republic offers location-based plans to provide better coverage based on common problems in your region.
For instance, you won’t pay for air conditioning coverage when your home doesn’t have an air conditioner.
They can provide superior options and more valuable service by segmenting their warranty plans this way. Experts servicing your location will be more knowledgeable about the problems you encounter and be able to fix them more quickly.
The Good – Old Republic Home Protection
Old Republic offers some benefits in addition to their exceptional features, giving you not only great coverage but fantastic conveniences that make your life easier. Here are just a few of our favorites.
Easy Quotes
You don’t have to call Old Republic to request a quote, and you won’t be hassled by their representatives.
They provide online brochures listing the coverage options in your area so you can do the research on your own and find what’s right for you.
The quoted estimate is highly accurate and lists the service call fee along with the warranty plan price.
Online Claims
Most of your home warranty claims can be handled online, adding convenience to the process. If you find faulty wiring in the basement and you can live without spending time in that space for a few days, the online option is easy to use and eliminates the need for you to pick up the phone.
You should always call instead of filing a claim online in the event of an emergency or if you need to make multiple requests like bringing up previous services or getting the status of an existing claim.
Great Reputation
Old Republic prides themselves on having an outstanding reputation, and they do everything they can to maintain it. They’re reliable, professional, and competent.
The company lists their values online so you can always see how important it is to them to provide you with the best possible service.
They value honesty, and they are always open with their customers. With this kind of transparency, you can rest assured they’ll do whatever they can to give you the best service at the best prices.
Online Resources
Old Republic’s website includes a number of educational tools that can help you make an informed home warranty purchase.
With a blog full of home improvement tips, real estate marketing tools, information about home warranties, and more, you’ll be able to find what you need quickly.
The FAQ page includes answers to the questions that customers ask Old Republic most frequently, so when you’re on the hunt for more information about the company or their plans, it’s all right there.
Real Estate Professional Options
For real estate professionals who prefer to add perks to their sales, Old Republic has packages just for you.
You can cover all of the homes you sell with a fantastic starter warranty, enticing your buyers and giving you an edge.
These plans include extensive tools like customizable e-cards and newsletters, open house kits, and other marketing items.
The Bad – Old Republic Home Protection
As with anything you buy, Old Republic has some downsides, none of which are too significant.
Coverage Areas
They don’t provide nationwide service, so their warranty plans aren’t available everywhere.
However, Old Republic has chosen to focus on areas where they feel they can offer the best value, so in the areas where service is available, it’s the best service you can get.
Customer Support
Old Republic doesn’t offer email or online support. Sometimes the most convenient thing you can do is hop online and chat with someone if you have a quick question.
Support Options Limited
The lack of online support forces you to call in a situation where it would typically be simpler to chat.
However, they do have phone representatives, and their online help section is more comprehensive than many other providers. They have an extensive FAQ section as well as a blog that provides even more advice and answers.
Pros
Cons
Comprehensive Coverage
Old Republic Home Protection offers a wide range of coverage options, including for major appliances, systems, and optional add-ons such as pool and spa coverage.
Ease of Use
Old Republic Home Protection makes it easy to request service and track claims online or through their mobile app. They also have a network of pre-screened contractors to provide service.
Strong Reputation
Old Republic Home Protection has been in business for over 45 years and has a strong reputation for customer service and claims handling.
Customizable Plans
Old Republic Home Protection offers a variety of plans and optional add-ons, allowing customers to tailor their coverage to their specific needs and budget.
Alternatives to Old Republic
Old Republic is one of several great home warranty companies. Take a look at the top alternatives below to decide which provider is best for you.
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The Bottom Line – Old Republic Home Insurance Review
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While Old Republic doesn’t have online chat support or coverage in all areas, they do have a fabulous reputation for being honest and upfront with customers.
Their integrity standards are some of the best in the business, giving you peace of mind that your warranty coverage will be honored.
Their quotes are easy to find without having to reach out to a representative, they have a no-pressure sales process, and they offer location-specific coverage for more comprehensive plans and solutions.
When it comes to home warranty coverage, Old Republic provides excellent options for all of your home warranty needs.
FAQs – Old Republic Home Insurance
What does Old Republic Home Protection cover?
Old Republic Home Protection offers a range of coverage options, including for major appliances, heating and cooling systems, plumbing, and electrical systems. Optional add-ons, such as pool and spa coverage, are also available.
How does Old Republic Home Protection work?
If a covered item in your home breaks down, you can file a claim with Old Republic Home Protection either online or over the phone. Old Republic will then send a pre-screened contractor to your home to assess the problem and perform any necessary repairs.
How long does a contract with Old Republic Home Protection last?
Old Republic Home Protection requires a one-year contract. The contract automatically renews each year unless canceled.
Product Description: Old Republic Home Protection is a home warranty company that offers coverage for home systems and appliances.
Summary of Old Republic Home Protection
Old Republic Home Protection is a home warranty service that offers coverage for major repairs and replacements for important home systems and appliances. It provides coverage for items such as heating and cooling systems, plumbing, electrical, water heaters, and more. The company also offers additional services such as repair scheduling, 24/7 emergency service, online account management, and an annual maintenance plan.
Cost and Fees
Customer Service
User Experience
Product Offerings
Overall
3.9
Pros
Predictable Coverage: A one-year contract with automatic renewal means that homeowners can count on having coverage for a set period of time without having to worry about renewing the contract themselves.
Continuous Coverage: Automatic renewal ensures that there is no gap in coverage, which is especially important for homeowners who rely on their home systems and appliances.
Budgeting: With a one-year contract, homeowners can budget for the cost of the home warranty and plan accordingly for the renewal.
Cons
Long-Term Commitment: A one-year contract means that homeowners are locked into the service for a set period of time, even if they are dissatisfied with the coverage or service provided.
Cancellation Restrictions: Cancelling the contract before the end of the term may result in penalties or fees, depending on the terms of the contract.
Automatic Renewal: Automatic renewal means that the contract will renew automatically unless cancelled, which may catch some homeowners off-guard if they forget to cancel before the renewal date.
A while back I wrote a review of Betterment.com, an investing website that aims to make investing easier and more accessible to everyone. The site has a ton of great features for beginning investors including that they allow for automatic investments in great low cost funds, and allocations are automatically adjusted on a regular basis. Betterment takes a complex topic and makes it accessible to everyone via their easy to use interface.
When I wrote the review I had almost all good things to say about the website. In short, I loved just about everything about it, except for one thing. Their fees.
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Betterment Fees
At the time I wrote the review Betterment had a fee structure that was a little bit more expensive than I was comfortable with. Their fees, for most beginning investors with $0-$25,000 in the account, it was going to mean paying a 0.9% annual management fee. Even if you had more in the account than that – it would mean anywhere from 0.3%-0.7% in annual fees. Here’s a look at their fee structure.
While those fees may make sense for some, it wasn’t something that made sense for a lot of people.
Betterment Fees Are Now MUCH Lower
The fees, while they weren’t outrageous, certainly put it in a position where I didn’t feel I would be using it for too much of my own investing. I only had a small amount in my Betterment account. You could probably do better by finding some low cost index funds from a company like Vanguard or another low cost mutual fund company. At the same time, I still liked what they were doing with their site, and how easy they make investing for the beginner.
This week, however, Betterment is announcing some big changes for their service. First, and most importantly in my eyes, they’re announcing that they’ll be lowering their fees across the board to make Betterment an even more attractive option, with fees extremely competitive in the industry. Here’s a look at their newer better fee structure:
So we go from a service that was charging .90% for most low balance investors, to one where the costs are much more affordable. They now have 3 plans, the “Builder”, “Better” and “Best” plans.
Builder Plan: Minimum balance of $0 and $100/month minimum deposit with a .35% annual fee.
Better Plan: Minimum balance of $10,000. Includes next day transfers. .25% annual fee.
Best Plan: Minimum balance of $100,000. Includes next day transfers and custom portfolio options. .15% annual fee.
If you just max your Roth IRA out for 2 years ($10,000), you’ll be paying the lower .25% fee. For balances lower than $10,000 you’ll still only be paying .35% – that’s a lot lower than the .90% we were paying before.
If someone is an existing customer and doesn’t want to deposit $100 per month, they can opt to stay in the old fee structure (if that makes sense for them). Alternatively, both existing and new customers with balances under $10K who do not want to deposit $100 per month can upgrade to the “Better” plan for a fee of $3 per month in lieu of the 0.25% annual fee. With that, auto-deposit would be optional and they would get next-day transfers.
Finally, all new customers get to use the site for free for the first 30 days! So if you’re not sure about this Betterment thing, you can give it a shot without having to worry about fees at all.
UPDATE:2/1/2017 Betterment has changed their fee schedule once again. The fee is now a flat 0.25% annual fee for all users on the main “Digital Plan”, regardless of account size. The fee is capped at 2 million dollars. Other plan types, Plus and Premium have the ability for you to talk to CFP professionals, and have more hands on account management. They cost slightly more. There are now three main plans.
Digital Plan: The plan that most people will end up using, the Digital Plan, charges a flat pro-rated yearly fee that is 0.25% for all users regardless of your account balance.
Plus Plan: If you opt for the Plus Plan, where you get access to a team of CFP® professionals which includes an annual phone consultation. The cost is 0.40% annual fee (with a $100k account minimum).
Premium Plan: The Premium Plan gives you unlimited phone consultations with the Betterment CFP® professionals and costs 0.50% annual fee per year. It carries a $100k account minimum.
Custom Portfolio Option
It probably won’t apply to most of my readers, but I was wondering what Betterment meant when they referred to a “custom portfolio” option for people in their “Best Plan”. I reached out to a contact that I have at Betterment and this was their reply.
The custom portfolio option, which comes with the “Best” plan, is the option to actually get a customized portfolio to meet your specific needs. For example, if international exposure just doesn’t make sense for your particular situation (maybe you own an international business and do not need additional exposure here), you will have a consultation with our CEO, Jon Stein, and he will help you develop a custom portfolio with less international exposure. You will still be investing in this portfolio through the Betterment platform.
New IRA Options For All Users
Another thing that Betterment is announcing is that all users will now be able to invest in IRAs via their platform. That option was already available to users who have a regular Betterment investing account, but now all users can invest in IRAs, both Roth IRA and Traditional IRA.
In addition users now have the ability to rollover an old 401(k) or IRA to Betterment. That should make it even more attractive to a lot of folks who are looking for an option that is easier, and that has better investing options.
Conclusion
Before Betterment made changes to their fees I was already a big fan of the service. They take a complicated thing – investing – and make it so much easier for the layman. You just choose your allocation, how much to invest, and sit back and reap the rewards.
Now that Betterment has lowered their fees substantially I’m sure I’ll be using the service even more than I was before. It really is now becoming a legitimate option for millions of investors out there who don’t want to have a lot of day to day involvement in their investments, but who still want to get some good returns for their retirement nest egg. Throw in the fact that the site now allows for tax advantaged IRA accounts, and you’ve got a true winner.
Open A Betterment account and get a signup bonus.
The links on this page to Betterment.com are affiliate links. While I will make a small amount money if someone signs up for an account through my link, I only recommend others use sites or services that I would use, or have personally used myself.
As investor interest in peer-to-peer (P2P) lending grows, a number of automated investment services that act something like robo-advisors to P2P investors are springing up to help investors manage their portfolios of notes. One of them is BlueVestment.
This is becoming increasingly important. Diversification on a P2P lending platform can involve hundreds or even thousands of individual notes, since those notes can be purchased in denominations as small as $25. If it’s difficult to manage a portfolio of 30 or 40 individual stocks, it’s infinitely more difficult to manage a portfolio 500 or more loan notes.
Here’s what BlueVestment has to offer in the cause of automating your P2P investment activities.
Who Is BlueVestment?
Founded in 2013, BlueVestment is a P2P account management service. It gives you the ability to configure automatic management of your investments on Lending Club.
The platform actually has two primary components. The first is the BlueVestment website, which you use to configure the second component, which is the BlueVestment engine. The BlueVestment engine runs on the platform’s servers and is not something that you need to install yourself.
BlueVestment is a third-party service that only interacts with Lending Club, but is not directly affiliated with Lending Club. However, you do need an account with Lending Club in order to use BlueVestment.
BlueVestment performs your investing activities on Lending Club on your behalf. For that reason, you will need to provide the platform with your Lending Club API. The information will be securely stored on BlueVestment servers. The service then runs continuously throughout the day to take advantage of investment opportunities as they arise.
Here is a summary of just some of the tools and features that BlueVestment has to offer investors in the P2P space:
Multiple account support. If you have two or more accounts with Lending Club, BlueVestment can manage them all for you. Best of all, the account will be combined to determine the fee that you will pay. This is good news because BlueVestment uses tiered pricing, with lower fees charged for a higher volume of account activity. See the BlueVestment Pricing section below for more details.
“Lightning quick investing.” Since investor participation in P2P lending, particularly with Lending Club, is increasing rapidly, speed becomes ever more important to investor success. An automated system like BlueVestment can give you the speed that you need to get access to the most attractive notes to invest in, before they’ve been scooped up by the growing pool of P2P investors.
Automatic investing. You create simple loan filters, or use advanced loan filters which enable you to filter on over 90 different metrics. You can also prioritize your loan filters, if you decide that certain filters are more important than others. You can also specify the dollar amounts to invest in each note, and even invest in multiple notes on the same loan. The platform enables you to maintain a minimum available cash balance, beyond which no additional funds will be invested.
Fee refunds on charged off notes. If BlueVestment acquires a note for you and charges you a fee, and the loan is charged off, the fee will be refunded to you.
Security. BlueVestment uses industry-standard SSL encryption to protect all data transmitted between your web browser and the BlueVestment servers. All sensitive data is encrypted, using the same encryption methods used by banks. In addition, your payment information is stored off-site in BlueVestment’s PCI compliant payment processor.
BlueVestment Pricing
BlueVestment has four separate pricing tiers, based on your account activity (not account size).
Less than $1,000 invested per month – Free – the fee is based on notes issued only
Between $1,000 and $5,000 – 0.45%
Between $5,000 and $20,000 – 0.30%
Over $20,000 – 0.20%
The fees are applied to the investments made each month in loans that are actually issued that month, and not to your total account balance. As an example, if you were to invest in notes totaling $50,000 in one month, the fee structure would look like this:
On the first $1,000, no fee
On the next $49,000 – 0.20%, or $98, since $50,000 in total investments for the month is over $20,000, and therefore qualifies for the 0.20% fee rate
Total fee – $98
There is a $2.00 minimum of all monthly non-zero fees. In addition, the fee is based on the sum of all of your P2P accounts managed by BlueVestment. This is similar to other investments like Betterment or Wealthfront.
It’s also important to understand that notes invested into in one month may not be issued until the following month. In that case, the fee will be applied when the notes are actually issued.There is no annual fee, and no charge for un-invested cash. In addition, fees do not apply to notes that have been charged off at any point. That means that if a note is charged off at any time that you own it, and you paid a fee to BlueVestment to acquire it, the initial fee charged on the acquisition will be refunded to you.
Will BlueVestment Work For You?
Let’s start this part of the discussion with the obvious strike against BlueVestment – it only applies to Lending Club. If you invest through Prosper, Funding Circle or any other P2P lending platform, BlueVestment will not be available.
But assuming that you have one or more accounts with Lending Club, then BlueVestment is definitely a service worth investigating. Not only does the platform offer lightning-fast investing, but they also provide support for multiple accounts, and fee refunds on charged off loans. That last benefit is almost unknown in the investing universe.
But the basic fee is another area where BlueVestment stands out. Not only is the free investing of up to $1,000 per month attractive to new and small investors, but the tiered fee schedule, that lowers the fee to 0.20% retroactively on all of your investing for the month in excess of $20,000, is a real bargain compared to competing services.
And just as important, the fee is applied only to notes that you purchase in a given month, and not on your cumulative note portfolio. This means that BlueVestment is acting primarily in a broker capacity for the purchase of your loan notes, rather than in complete management of your portfolio. That’s a fee structure that would make traditional investment managers extremely nervous.
Given the level of service that BlueVestment provides, as well as the fee structure that is more than fair, this is a service that you need to check out. Seriously.
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