Robo-advisors have revolutionized the investment world by offering low-cost, automated investment services. Their popularity has skyrocketed in recent years as they provide a convenient, user-friendly solution for managing investments.
However, high net worth individuals (HNWIs) have unique financial needs and require specialized attention. To cater to this segment, Robo-advisors have introduced services specifically designed for HNWIs, offering features such as personalized portfolios, advanced financial planning, and dedicated support from human advisors.
At Robo-Advisor Finder, we keep a close eye on over 80 Robo-advisors worldwide. With so many options available, it can be overwhelming to choose the right one. That's why in this article, we'll highlight the best Robo-advisors for HNWIs and explain why we believe they are some of the top automated wealth management platforms.
If you're new to the world of Robo-advisors and want to understand their functioning, services, and suitability for your needs, we suggest checking out our article 'What is a Robo-advisor?'
inbestMe: Best for international investors (non-US)
Robo-advisors for High Net Worth Investors
High net worth investors have unique investment needs and often require a more tailored approach to wealth management. The most important factors these investors look for in a Robo-advisor include personalized investment portfolios, low fees, human advisor access, and tax optimization strategies.
In the next section, we’ll provide an overview of the best Robo-advisors for HNWIs, taking into account these four factors. Let's dive into each platform and see how they can help you achieve your investment goals.
With over 3.4 million users and $23.5 billion in assets under management (AUM), Personal Capital is considered one of the best Robo-advisors for high-net-worth individuals (HNWIs). They provide advanced personal finance management tools for free and a comprehensive wealth management service, including access to dedicated financial advisors.
Personal Capital creates portfolios using a sector weighting approach known as Smart Indexing, which aims to achieve a balanced exposure to different sizes, styles, and economic sectors for a well-diversified investment portfolio. For clients with investments above $200,000, Personal Capital offers two dedicated financial advisors to assist with tax management, estate planning, and retirement planning.
In addition, Personal Capital provides socially responsible investment options for clients who prioritize sustainability in their investments. Their sustainable portfolio retains all the benefits of their non-socially responsible investment strategies, including Smart Weighting, tax management, disciplined rebalancing, and access to a personal financial advisor.
Personal Capital has been acquired, as is now part of Empower.
Vault Wealth is the UAE’s first digitally-enabled private wealth management app designed for HNWIs. It offers personalized guidance from dedicated financial advisors who prioritize clients’ best interests. Vault provides a suite of investment opportunities, including diversified portfolios of equities and bonds, private market opportunities such as private equity and venture capital, and a high-yield cash management solution.
💰Tax-loss harvesting: Yes (limited to some portfolios)
💁 Access to financial advisors: No
Interactive Advisors (IA) is a Robo-advisor offering a user-friendly platform with a wide range of investment options. They provide two main categories of portfolios: those managed by IA and those managed by external advisors. Each category has various portfolios, each with different fees and minimum investments.
If you have an Interactive Brokers account, you can easily link it to your Interactive Advisors account, and its management fees range between 0.08% and 0.75% per year. Although they have good customer support, Interactive Advisors doesn't offer access to dedicated human advisors, and the platform has recently added tax-loss harvesting for some portfolios. Despite these gaps, Interactive Advisors remains a strong option for those who want a wide range of investment styles.
Vanguard Personal Advisor Services is a Robo-advisory service offered by Vanguard, one of the largest investment management companies in the world. The platform provides personalized investment advice to individual investors through its team of financial advisors.
Vanguard Personal Advisor Services has tiered annual advisory fees, with the fee decreasing as the asset value increases. The fee is 0.30% for assets less than $5 million and drops to 0.05% for assets greater than $25 million.
One of the key features of Vanguard Personal Advisor Services is the personalized investment portfolios created for each client based on their financial situation and goals. The portfolios are constructed using a combination of low-cost Vanguard ETFs and automatically rebalanced to ensure they remain aligned with the client's investment objectives. The portfolios might also incorporate socially responsible investing (SRI) investment strategies.
Another key aspect of Vanguard Personal Advisor Services is the access to a team of financial advisors available to give investment coaching, personalized financial plans and ongoing portfolio advice. Moreover, once the amount invested reaches $500,000, you will get a dedicated financial advisor with access to actively managed funds.
💵 Minimum balance: $0 for Betterment Digital, $100,000 for Betterment Premium
💰Tax-loss harvesting: Yes
💁 Access to financial advisors: Yes
Founded in 2008, Betterment is the oldest Robo-advisor in the U.S. It offers a set of automatically managed portfolios built using a combination of Modern Portfolio Theory (MPT) and a proprietary algorithm that considers factors such as the investor's goals, risk tolerance, and investment time horizon. The portfolios are automatically rebalanced and optimized for tax efficiency through tax-loss harvesting, and the platform also offers portfolios focusing on socially responsible investing.
In addition to portfolio management, Betterment also offers financial planning tools, including personalized retirement plans, and cash management features. The platform provides two service options: Betterment Digital and Betterment Premium.
Betterment Digital offers a low-cost, automated portfolio management service with a management fee of 0.25% AUM. The service also includes access to financial advisors for an additional cost and does not have a minimum balance requirement.
Betterment Premium offers unlimited access to certified financial planners in addition to the features offered by Betterment Digital. This service is best suited for HNWIs looking for personalized financial planning and portfolio management services. The minimum balance requirement for Betterment Premium is $100,000, and the annual fee is 0.40%.
If Betterment is unavailable in your country, check this article for Betterment alternatives.
💲Fees: $1, $5, or $9 monthly fee (depending on account plan); between 0.25% to 0.90% per year for private wealth management
💵 Minimum balance: $0 for Ellevest plans, $1,000,000 for private wealth management services
💰Tax-loss harvesting: Yes (Not automated)
💁 Access to financial advisors: Yes
Ellevest is a digital wealth management firm that offers services such as banking, investing, coaching, and learning. It provides Robo-advisory services that create personalized investment portfolios for clients with financial guidance. Targeting mainly women, Ellevest has three membership plans with affordable fees, starting at $1 per month for the Essential plan, $5 per month for the Plus plan, and $9 per month for the Executive plan.
The portfolios are constructed using a mix of ETFs focused on impact investing, meaning that companies with women in leadership, higher sustainability and ethical standards, and companies that support women-owned businesses and those in need are preferred.
High net worth individuals with assets over $1 million can access private wealth management services where they work with a team of financial professionals. The fees for this service range from 0.25% to 0.90% annually, based on the invested amount. The portfolios are created using a combination of ETFs and are tailored based on the client's risk tolerance, financial situation, and investment goals. Although they don't offer automatic tax-loss harvesting, they constantly monitor accounts and perform tax-loss harvesting as necessary.
If Ellevest is unavailable in your country, check this article for Ellevest alternatives.
💵 Minimum balance: $/€5,000 for International investors
💰Tax-loss harvesting: Yes
💁 Access to financial advisors: Yes
inbestMe is a Spanish Robo-advisor that offers a range of automatically managed portfolios, including socially responsible portfolios with advanced features such as automatic rebalancing, tax-loss harvesting and the ability to customize your portfolio to fit your needs.
For HNWIs with over €100,000, inbestMe offers a premium service called inbestMe Plus. This service provides personalized assistance from a financial advisor who will give tailored advice and provide ongoing guidance.
InbestMe is suitable for international investors looking for a low-fee Robo-advisor with some degree of portfolio customization. InbestMe is available worldwide except in the U.S., Japan, Hong Kong and Australia. You can read our inbestMe review for further insights.
Best Robo-Advisors for HNWI Compared
Best Robo-advisors for HNWI compared
Conclusion
In conclusion, Robo-advisors became a popular option for HNWIs to manage their investments. They offer low-cost, automated, and convenient investment management tailored to individual financial goals and risk tolerance.
Finding the right Robo-advisor for high net worth investors requires careful consideration of their unique investment needs and goals. The key factors for HNWIs are personalized investment portfolios, low fees, human advisor access, and tax optimization strategies. Our article aims to provide a comprehensive overview of the best Robo-advisors on the market that cater to these needs.
Remember, if you have any questions, feel free to comment below.
A reminder that the above should not be construed as investment advice and should be considered information only. Investors should do their own research and due diligence about the services and opportunities best suited for their risk, returns, and impact strategy.
Happy investments!
FAQs
What is the best Robo-advisor for High Net Worth Investors (HNWI)?
inbestMe: Best for international investors (non-US)
Why would an HNWI consider using a Robo-advisor?
HNWIs may consider using a Robo-advisor to access professional investment management services at a lower cost and with greater convenience than working with a traditional financial advisor.
Do Robo-advisors offer any extra services for HNWIs?
Some Robo-advisors offer additional services for HNWIs, such as dedicated financial advisors, tax-loss harvesting, and access to alternative investments.
What are the fees associated with using a Robo-advisor for HNWIs?
Most Robo-advisors charge a yearly management fee based on a percentage of the assets under management (AUM) which might reach 1.00% per year, depending on the amount invested. Some Robo-advisors may charge additional fees for premium services such as access to human, financial advisors or alternative investments.
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