Robo-advisor Wealthfront hits $2 billion in assets (Wealthfront)
Robo-advisor Wealthfront has reached $2 billion in assets in just over three years. The advisor now ranks in the top 100 in total assets managed for RIAs, and believes it is just scratching the surface of what it can accomplish. According to Wealthfront, its services are "free under $10,000 for a reason. No gimmicks. No gotchas. No surprise fees.
Military families are falling behind in financial literacy (Think Advisor)
Military families are becoming increasingly disconnected with their financial realities. A report commissioned by First Command Financial Services Inc. and the First Command Educational Foundation showed middle-class military families posted an average score of 69 on its financial literacy test, the first failing grade since the program's launch in 2012. "These folks have been deployed continuously for 12 years in the longest period of at war our country's ever experienced," Scott Spiker, CEO of First Command Financial Services noted.
How professional athletes can avoid financial trouble (Wealth Management)
Financial Advisors Insight has previously covered Tim Duncan suing his financial advisor and the 80% of former NFLers who go broke within three years of retirement. Wealth Management suggests athletes suffer from financial difficulties because of "a lack of financial literacy, misguided advising, and a small (and uncertain) earnings window." So what can financial advisors do to make sure their clients avoid these problems? According to Wealth Management, "Emphasize the importance of budgeting, vet all investment opportunities, and properly insure investments."
Trade stocks commission-free on your iPhone with the Robinhood app (Bloomberg)
Two former college roommates turned Wall Streeters have built an app that provides commission-free stock trades. Vladimir Tenev and Baiju Bhatt met at Stanford University before taking their talents to Wall Street where they built high frequency trading systems. So how will the company make money on commission-free stock trades? Bloomberg reports, "by gleaning some of the interest on cash held in customer accounts and soon will charge users to borrow to make trades."
Howard Marks discusses investing (Advisor Perspectives)
Howard Marks, the co-chairman and founder of Oaktree Capital Management spoke with Advisor Perspectives about luck and skill in investing. According to Marks, the luckiest break of his career came when he was turned down for a job at Lehman Brothers while interviewing in college. Advisor Perspectives gathers from its discussion with Marks, "If you want to outperform, then you have to think differently and act differently with higher level thinking," and that "if you have enough aggressiveness at the right time, you don't need any skill."