Our Take

SigFig is a robo-advisor platform that works with banks, wealth managers, insurance agents, and individual investors to provide custom portfolios to the investing public. Over the last year, SigFig has added features for its advisor clients to automate their back-office functions and leverage new AI-powered tools. In terms of the individual investors' experience, however, not much has changed for this robo-advisor. SigFig works like a bolt-on service, providing digital investment management for clients with accounts at Charles Schwab or Fidelity. For investors looking for low-cost access to automated investing and guidance from licensed in-house advisors, SigFig offers a clean user experience and robust account integration for easy cash management.

Pros & Cons

Account Overview

Account Setup

If you want to set up an account with SigFig, you can do so easily online. There’s a seamless tool to walk you through the account setup process, though you’ll need a minimum of $2,000 to open an account—more than is required by many robo-ad🅠visors. Balancing out the high minimum is the fact that the a🦋ccount is managed for free until your balance reaches $10,000, and then the 0.25% fee is only charged on the amount in excess of that. 

When you finish going through SigFig’s account setup tool, you can see your custom portfolio prior to funding your account. If you are transferring an existing portfolio and some of those investments serve the same purpose in terms of diversification and exposure, SigFig will keep them to avoid tax consequences. If y🅺ou want to change your recommended portfolio in the f𓂃uture, you can only do so by changing your risk tolerance.

When signing up for SigFig, you can utilize eight different types of accounts. These include the standard types of individual retirement accounts (traditional, Roth, rollover, and SEP IRAs), as well as individual, joint, and trust accounts. SigFig currently does not support 401(k) or 529 plans nor corporate accounts.

Goal Planning

SigFig offers goal-planning tools in the form of a quick allocation calculator based on your age, income, time horizon, and risk tolerance. These allocations adhere closely to 澳洲幸运5官方开奖结果体彩网:modern portfolio theory (MPT). SigFig’s goal planning tools are not focused on anything particular, like large purchases (buying a home or paying for college), but you can do projections with sliders to change the variables including initial investment and monthly deposits👍. Overall, SigFig lacks the robust goal-planning support found at some other robo-advisors. It is important to note, however, that SigFig clients will also have access to the robust calculators and education resources at either Schwab or Fidelity. You will have to go outside the SigFig platform to access these resources, of course.

Account Services 

SigFig integrates with banking and other brokerage accounts for ♐easy account transfers at both the basic and premium levels. Funds can be easily withdrawn to a linked bank account. Beyond the basics of account transfers, SigFig also offers unlimited access to human advisors. This type of human advice is generally reserved for premium tiers at other robo-advisors, but SigFig offers it to all clients. SigFig also has the aforementioned portfolio tracker tool for syncing and tracking external brokerage accounts, but that is the sum of its limited account services. 

Cash Management

SigFig does not 澳洲幸运5官方开奖结果体彩网:sweep cash into a high-yield savings account. SigFig uses a cash threshold approach where funds are invested as soon as there is enough in the account. While the lack of interest on idle cash isn’t great, the goal is to have as little cash id༺le as possible.

Portfolio Construction

SigFig portfolios are built based on investor risk tolerance and time horizon according to the principles of modern portfolio theory. Portfolios range fromꩲ a 🐼conservative 26% equities and 74% bonds to 90% equities and 10% bonds on the aggressive end. Depending on investor risk tolerance, SigFig constructs a portfolio that includes exposure to the following asset classes:

• Emerging market bonds
• Emerging market equities
• Treasury inflation-protected securities (TIPS)
• International equities
• U.S. equities
• Short-term treasury bonds
• U.S. investment-grade bonds
• Municipal bonds

SigFig will hold on to any assets a portfolio already holds when it is transferred in, provided these are roughly equivalent to what is needed in the recommended allocation. 澳洲幸运5官方开奖结果体彩网:Cryptocurrency and other alternat♍ive asseඣt types are not available.

Available Assets

Portfolio Customization

SigFig is limited when it comes to customizing portfolios. The portfolio i♉s made up primarily of ETFs, with the possible exception of investments you transfer in that are kept. To chan꧑ge your recommended portfolio, you need to redo your risk survey or adjust the stated timeline. There are no socially responsible or environmental, social, and governance (ESG) selections. SigFig allows for reasonable restrictions, but according to the disclosures, too many could end up with the portfolio being removed from the program. 

As SigFig is mainly about getting you into a welဣl-diversified portfolio of stocks and bonds via ETFs, there is no individual tr🃏ading of assets.

Portfolio Management

SigFig offers automatic portfolio rebalancing as needed whenever there are new funds deposited or the overall allocation has drifted more than a few percent. 澳洲幸运5官方开奖结果体彩网:Tax-loss harvesting is also available through SigFig and you can see your real-time account balances. SigFig’s portfolio tracker can take in external brokerage accounts and provide analysis, but this data is not used for the management of your SigFig portfolio.

User Experience

SigFig’s public-facing online experience is generally simple and straightforward. Navigation is relatively intuitive for seasoned investors, and it’s easy to find what you’re looking for. The tool for setting up an 🍷account is also relatively simple, though it may get a little confusing if you try to make changes later.

Desktop

SigFig offers users a web login to its site. The user dashboard is clean and relatively intuitive for a digital-savvy audience. There’s a guided tool to set up a new acco𓂃unt and it’s easy to find support from the service team if necessary.

Mobile

In addition to its desktop site, SigFig also offers bot♏h iOS and Android apps for mobile accessibility. The apps are clean with tracked portfolios and SigFig-managed portfolios available for viewing. You can also schedule a meeting with a financial advisor through the app.

Customer Service

• Phone: Monday through Friday, 9 a.m. to 6 p.m. ET
• Client support email
• Advisor consultations by appointment
• FAQs

SigFig customer service is available weekdays from 9 a.m. to 6 p.m. ET. Customers can also submit service requests by email. The site’s chat function pushes you towards emailing or scheduling an advisor appointment, but there is also an extensive FAQ section that can answer most⛎ questions. 

SigFig clients can speak to financial advisors, but SigFig does not discᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚlose🔯 the licenses these advisors hold.

Security

The login portion of SigFig’s website is encrypted, but two-factor authentication currently isn’t available. SigFig is covered by SIPC insurance to a maximum of $500,000 per customer.

Education

SigFig doesn’t have much in the way of educational content. There is a consumer-facing blog, but it is not regularly updated. Most of the content is either SigFig-specific or very high level around investing and technology. Here again, you can find full educatio💯nal resources external to SigFig by going to the broker that actually holds your account (Schwab or Fidelity).

Commissions and Fees

SigFig doesn’t charge a monthly fee for accounts under $10,000. For accounts over $10,000, the firm charges an annual management fee of 0.ꦕ25%. Investors also pay 0.15% on average in underlying fees for ETFs.

SigFig does not charge any extra fees for account holders to speak with an advisor, nor does it charge account termination fees. The free offeri♉ng on the first $10,000 puts SigFig in ⛎the running with competitors like Fidelity as the best offering for smaller account balances.

The Bottom Line

SigFig is best thought of as a bolt-on digital investment manager for a portfolio held at either Schwab or Fidelity. It is a streamlined robo-advisor that offers investors a cost✤-effective portfolio built around modern portfolio theory. The addition of tax-loss harvesting and human financial advice are key features that make SigFig a very attractive bolt-on service. 

While SigFig has strong core offerings and is incredibly low-cost (there are no management fees for accounts under $10,000), the platform has fewer bells and whistles than its competitors. This is particular🥂ly noticeable when it comes to goal-planning tools, but the human advice angle may well make up for this lack for some investors. Simply put, SigFig has some gaps if you are looking for extensive goal-planning tools and educational 🍷content through your robo advisor. If you are looking for a streamlined path to a managed portfolio with tax-loss harvesting and human advice, however, SigFig makes a strong case by giving it to you for free until you exceed $10,000.

How Does SigFig Help You Save Money on Taxes?

SigFig allows investors to activate tax-loss harvesting in taxable accounts. When enabled, tax-loss harvesting algorithms look for opportunities to realize losses in the portfolio to offset gains elsewhere. The timing of sales and the replacement of similar assets to maintain diversification is done to avoid 澳洲幸运5官方开奖结果体彩网:wash sales.

How Much Does SigFig Cost?

SigFig is free for the first $10,000. The platform only charges an investment management fee of 0.25% per year on the balance in excess of $10,000. The ETFs held in your portfolio will have separate expense ratios that are charged by the fund companies and not SigFig. The expense ratios at SigFig are generally low-cost, averaging 0.15%, but some funds will have higher expense ratios.

Is SigFig FDIC Insured?

Funds deposited with SigFig are insure𝓡d by the Securities Investor Protection Corporat🦩ion (SIPC), not the FDIC. The SIPC insures investors up to $500,000 in the case where funds are at risk from the financial solvency of the firm holding them. This doesn’t protect investors from investment losses.

Is SigFig Safe?

SigFig employs a robust security system, including encryption of sensitive client information, to ensure the safety of its users’ investments and personal data. The company is also regulated by the U.S. Securities and Exchange Commission (SEC), which is responsible for periodically inspecting advisory firms like SigFig and enforcing relevant rules and regulations. While SigFig takes 🐬steps to protect clients, investing always ♛comes with risks, including the risk of a data breach and/or investment losses due to changing market conditions.

How Do I Withdraw Money From SigFig?

Withdrawing money from a SigFig account is a simple process. First, you log into your account. Next, you navigate to a tool used for transferring funds into or out of your SigFig account. Once there, make sure the account you want to transfer money to is linked to your SigFig account. Then, initiate a transfer from your SigFig acc🥃ount to your desired account. You’ll need to specify the amount you want to withdraw and may need to liquidate investments from your SigFig account to fund the withdrawal. 

Once you initiate a withdrawal from SigFig, you’ll likely need to wait a few business days for the funds to be transfer♛red to your desired account.

Who Is the CEO of SigFig?

The CEO of SigFig is Mike Sha. Sha was previously the CEO of Wikinvest (the predecessor firm to SigFig).

How We Picked the Best Robo-Advisors

Providing readers with unbiased, comprehensive reviews of digital wealth management companies, moဣre commonly known as robo-advisors, is a top priority of Investopedia. To collect data for our 2024 best robo-advisor a⛄wards and rankings, we sent a digital survey with 64 questions directly to each of the 21 companies we included in our rubric. Our team of researchers verified the survey responses and collected any missing data points through online research and conversations with each company directly. The data collection process took place from Jan. 8 to Feb. 9, 2024.

We then developed a quantitative model that scored each company to rate its per🦩formance across nine major categories and 59 criteria to find the best robo-advisors. The score for each company’s overall star rating is a weighted average of the c🌃riteria:

• Goal Planning - 21.00%
• Portfolio Contents - 17.00%
• Portfolio Management - 17.00%
• Fees - 15.00%
• Account Services - 10.00%
• Account Setup - 5.00%
• Customer Service - 5.00%
  
• Security & Education - 5.00%
• User Experience - 5.00%

Many of the companies we review for our projects grant our team of expert writers and editors access to live accounts so they can perfor⛎m hands-on testing. Robo-advisor companies allowed us to do this, as w𒉰ell.

Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of the top robo-advisors. Read more about 澳洲幸运5官方开奖结果体彩网:how we ♔research and review robo-a𝔍dvisors.

The above material and content should not be considered to be a recommendation. Investing in digital assets is highly speculative and volatile, and only suitable for investors who are able to bear the risk of potential loss and experience sharp drawdowns. Digital assets are not legal tender and are not backed by the U.S. government. Digital assets are not subject to FDIC insurance or SIPC protections.