Tag Archives: Adam Nash

Tax-Loss Harvesting for Everyone

In October 2012, Wealthfront became the first automated investment service to offer daily tax-loss harvesting to its clients. Tax-loss harvesting is one of the most important ways to both lower the taxes you’re likely to incur from your investments and also dampen the effect of a down market. Like most of our innovations, tax-loss harvesting was previously only available to the ultra-wealthy. Wealthfront automated the strategy through advanced software, improved it, and brought it directly to the individual investor. Since that launch, we’ve worked tirelessly to make our tax-loss harvesting even better. Wealthfront daily tax-loss harvesting now features enhancements like intelligent recovery, optimized harvesting triggers, predictive deposits and tax-sensitive withdrawals. In fact, our research shows that our third generation daily […]

Two Billion Reasons to Believe

“A revolution is coming — a revolution which will be peaceful if we are wise enough; compassionate if we care enough; successful if we are fortunate enough — But a revolution which is coming whether we will it or not. We can affect its character; we cannot alter its inevitability.”                                                                                                            — Robert Kennedy, May 6, 1966 Like many who join Wealthfront, it all started for me with […]

Why You Shouldn’t Just Invest in the S&P 500

Diversification matters. Diversification is the key to long-term investment success because it can insulate you, to some extent, from losses. If you feel insulated, you are more likely to stay invested and keep investing through market volatility. Being properly diversified also enables the actions that help you during market corrections: rebalancing and tax-loss harvesting. Investors often think they have a diversified portfolio when, actually, they don’t. One of the common questions we get from investors who don’t use Wealthfront is: “Why shouldn’t I just invest in the S&P 500®?” They seem to believe investing in an index that gives them exposure to a broad selection of securities means they have a diversified portfolio. Having a broad selection of securities is […]

The $7 Trillion Opportunity

The best way to predict the future is to invent it.” — Alan Kay We are on the cusp of a momentous inflection point in finance. For the first time in decades, two titanic demographic shifts are happening in the United States simultaneously. The Baby Boom generation, the 78 million Americans born after WWII, have finally reached the edge of one of the most difficult financial transitions in life: the transition to retirement. They are caught between an array of multi-trillion dollar financial superpowers waging battle over the Boomer generation’s $10 to $15 Trillion in liquid assets. Simultaneously, the Millennial generation, the 90 million Americans born between 1981 and 2000, are reaching adulthood. The leading edge of this generation has now reached their […]

Happy Birthday, Tax-Loss Harvesting

Back in October 2012, Wealthfront became the first automated investment service to introduce tax-loss harvesting. While tax-loss harvesting has been around for a long time, it traditionally has only been offered to the ultra-wealthy and it was almost always done just once a year by hand. Wealthfront, of course, offered something different — a service watching your account continuously, every day, looking for opportunities to recognize tax losses while still keeping your portfolio properly diversified. Now two years later, Wealthfront has over $900M in client assets invested in tax-loss harvesting accounts, and in that time we’ve performed over 750,000 free tax-loss harvesting trades for our clients. For no extra charge, Wealthfront provides two different levels of sophisticated tax-loss harvesting for […]

What To Do in a Falling Market

We ran an earlier version of this post on the Wealthfront blog in June 2013 after a turbulent run in the market.  For many, it’s hard to remember that June 2013 was a volatile month given how great 2013 turned out to be by the end of the year. Given the recent market volatility in September 2014, we thought an update of this post with fresh data would be valuable to our readers. The global equity markets have been increasingly turbulent over the past few weeks. The S&P 500 began September at over 2000, and proceeded to drop 2.9% through September to close at 1946.16 on October 1st. Small caps performed more poorly, with the Russell 2000 dropping 7.6% in the same […]

Announcing Adam Nash as CEO

Today I am thrilled to announce that Adam Nash has succeeded me as CEO of Wealthfront.  When Dan Carroll and I co-founded Wealthfront, we had one mission in mind, to democratize access to sophisticated investment management.  We knew that to achieve our audacious goal would mean building great software and fostering a culture that would attract outstanding talent. We also knew our limitations. Prior to co-founding Wealthfront I was a career venture capitalist who retired to teach entrepreneurship at Stanford Graduate School of Business.  My background prepared me to find product/market fit, but I knew I wasn’t the most appropriate person to scale the business. So we were unbelievably fortunate one year ago to have Adam join us as our […]

Does It Ever Make Sense to Stop Saving For Retirement?

This Knowledge Center post was adapted from Wealthfront COO Adam Nash’s answer to a question on Quora — Ed. The Question: Let’s say I’m 30 and have $250K in my 401k. If I stopped contributing now I would have $2.5M in my account by the time I’m 60 and am allowed to make a withdrawal. That should be enough right? Even if it isn’t, there must be some point where it makes sense not to max it out anymore. The short answer is no. What you have saved is very likely not enough. I know what you are thinking. You’re thinking that $250K is a mountain of cash to build on for the next 30 years. And it is, no […]

What To Do In A Falling Market

The global equity markets have been increasingly turbulent over the past few weeks. After peaking on May 21st, the S&P 500® fell in June by more than 5%, and emerging market equities have declined by over twice that amount. Many of our clients are asking us: “What should I do in a falling market?” There are three rational actions to take in response to a falling market, actions that research shows will serve you well in the long run: Keep investing. Rebalance. Harvest your losses. But investors aren’t solely rational. They’re human: When there is turbulence in the markets, people typically have one of three emotional responses. • You want to sell everything in an attempt to “limit” the loss. […]