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This is part two of a three-part series. To read part one, go here.
As I mentioned in part I of the series, the basics are to consider what type of service you are looking for and the fees associated with those services. In this piece, I review three additional robos: Albert, Ellevest, and Stash. Overall, each of these robo-advisors provide a distinct experience with the objective of helping individuals in different circumstances save for retirement (and other goals, but we focus primarily on retirement here) through a streamlined and convenient process.
While this series focuses on freelancers and gig workers, this analysis has useful information for anyone interested in starting to save or growing their savings via a robo.
Albert – Great tool for budgeting, but not retirement saving
Albert, founded in 2015, supports savings, investment, and insurance products. Notably, it does not support IRA accounts.
With broad functionality, this app is aimed at a general customer base looking for help budgeting, investing for different goals, and in the market for other financial products. Users can set up an Albert savings account with no minimum balance.
Like Digit, Albert has an automated feature, “Smart Savings,” that algorithmically determines a transfer of about $25–$100 per week from your app-linked bank account into your Albert savings account. The algorithm decides the exact amount to transfer based on your spending and account balance. More advanced savings automation and investment services comes with its Portfolio by Genius service, which the company indicates should cost at least $4 a month, though the exact cost is voluntary. In this way, it slightly undercuts Digit.
Stash – Aimed at more self-directed investors
Stash, which also launched in 2015, allows customers to start investing without an account minimum. It is aimed at inexperienced investors who have some sense of how they would like to direct their investments, e.g., to a particular industry. Stash has investment accounts and IRA options, so better serves those saving for retirement in a tax-deferred vehicle than Albert. Moreover, its abundance of auto-stash tools, such as set schedule, round ups, and smart-stash, help new investors who need encouragement on how to incorporate more frequent investment contributions into their budget. Smart-stash analyzes spending habits and transfers extra money automatically. The middle tier, which includes an IRA account, costs $3 monthly with Stash.
Ellevest – the robo that prioritizes women
Ellevest is a female-focused robo founded in 2014 with the objective of closing gender gaps in wealth through market participation, saving, and investing strategies aimed at female investors. (That said, all gender identities and expressions are welcome to use the service). Ellevest offers the option to set up recurring direct deposits from your paycheck, so your money is invested as income is earned. Uniquely, Ellevest offers in-depth career coaching and financial advising sessions as a separate service, available to members and nonmembers alike.
Like some of its competitors in the robo market, Ellevest offers three tiers of membership services, with the middle tier, which includes an IRA option, costing $5 a month. Ellevest does not require a minimum account balance for its membership services.
In addition to a retirement savings option, Ellevest’s middle tier, Plus, offers a personalized investment plan and concierge team assistance for questions that come up regarding investments. Under this membership plan, Ellevest creates and manages your portfolio using an algorithm purportedly designed to support women’s financial needs, such as pay gaps, career breaks, and longer lifespans.
How to choose
Are you someone who is more self-directed? If so, then Stash may be for you. Are you interested in a service focused on women investors? Then Ellevest is for you. Are you looking for budgeting and investing help at a low cost? Then Albert is for you. Those options are reasonably priced and deliver value. While performance of each robo portfolio is impossible to assess at any one point in time, most robos are low cost and simple to utilize.
Robos offer an accessible gateway into saving for retirement and other financial goals – get started saving today!
Jasmin Sethi is the CEO of Sethi Clarity Advisers (SCA), a boutique consulting firm providing expert regulatory and business strategic advice to companies in the financial services industry. As a Harvard trained lawyer-economist, she is a thought leader on issues pertaining to how the asset management industry and financial regulation impact ordinary individuals, and particularly, freelancers.
Isabel Brown has worked as a research associate at SCA and is currently an Excelsior Fellow at the New York State Department of Financial Services. She is a 2021 graduate of Fordham Law School, where she served as an editor of the Fordham Intellectual Property Law Journal.
Megan Gallagher is a research associate at SCA and will be graduating from Brooklyn Law School next year. She is joining the Capital Markets group at Linklaters LLP’s London office upon graduation.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.