- Among the best robo advisors when it comes to retirement
- 401(k) Assistance
- Automatic Rebalancing
- Low cost ETFs
- Human Advice
- Very high minimum requirements
- 0.50% annual fee on asset under management + $250 opening fee
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Are you an investor with a high 401K or IRA balance and want more advice? Maybe you’re tired of managing your account or paying the high fees your 401K sponsor charges to manage your account.
If you want to get back on track, and let someone else handle your account so you get the most out of your retirement funds, check out Rebalance IRA.
Targeted towards wealthy individuals with an established retirement account, Rebalance IRA may be what has been missing in your retirement planning.
Check out my review on how it works and who may benefit from it.
What is Rebalance IRA?
Rebalance IRA is a robo-advisor for your IRA. They use the Modern Portfolio Theory to create a goals-based, long-term plan.
The focus is on your asset allocation as a whole, not necessarily the individual investments in the portfolio. They help you grow wealth for the future so that your retirement lasts your entire life and you don’t outlive it.
Rebalance IRA invests in low-cost ETFs across a variety of asset classes. You enjoy diversification from a large number of assets without the stress of picking and watching individual stocks. It’s passive investing at its finest.
Rebalance is your second set of eyes on your retirement account.
Alerting you to unnecessary fees and expenses that you could eliminate or decrease to keep more money in your retirement account. Did you know that hidden fees can take up more than 33 percent of your retirement funds? That’s why Rebalance IRA sets out to find for you.
Ready to learn more?
How does it work?
Opening an account at Rebalance IRA is different from any other robo-advisor. Rather than completing a questionnaire or survey with the same questions regarding your goals and risk tolerance, you’ll meet with a human advisor and have a consultation. You’ll discuss your goals and risk tolerance, but with a human, not a computer. That human touch is incomparable.
Together, you’ll create a plan that either improves your existing investments, builds upon them, or starts your IRA account if you don’t have one. You’ll create a long-term plan that sees you through retirement, not just the first few years.
Deposit and withdrawal
Your account is held at either Charles Schwab or Fidelity (your choice). You can set up automatic deposits and/or initiate withdrawals when you need to with the chosen firm, but since it’s an IRA, withdrawals aren’t recommended until you’re at least 59 ½ or you’ll knock your allocation of and incur taxes and penalties.
Rebalance IRA has a much greater human touch than any other robo-advisor. Their advisors let you know what’s going on with the account at any given time.
If they rebalance or just want to check in, they will do so periodically. Each investor also gets an annual check-up, which is a live meeting where you discuss your life changes, future goals, and any other factors that may have changed that would help them properly rebalance your portfolio.
You have a lot of options including individual and joint taxable accounts; traditional, Roth, or rollover IRAs; SEP and SIMPLE IRAs and custodial accounts.
What can you trade?
Rebalance IRA trades globally diversified ETFs across 10 asset classes. Claims were made that their portfolio exceeds the average market return by including small-company stocks, bonds, real estate funds, and foreign stocks.
Rebalance IRA charges a $250 set up fee unless you have an existing account with Charles Schwab or Fidelity. They also charge a 0.70% annual management fee for accounts with under $1 million in assets and 0.50% for an additional $4 million in assets.
- Human advisors – Rebalance IRA is all about the human advisors. You’re immediately paired with two financial professionals when you sign up for an account – a retirement specialist and investment advisor. Together, this team advises you on the right investment allocations, rebalances your portfolio, and guides you through your retirement planning.
- Customer service – Because of the high level of human interaction you get with Rebalance IRA, the customer service is far superior to any other robo-advisor. Not only do they offer phone support, but they offer video support too. Representatives are available Monday – Friday 8:30 AM – 8:30 PM ET.
- Automatic Rebalancing – If you use a robo-advisor, you do so for the automatic rebalancing, right? You want a hands-off approach and Rebalance provides that to the highest degree. They automatically rebalance your portfolio as soon as it’s not performing as planned, unlike other robo-advisors that only rebalance during certain times of the year. This helps you stay on target with your retirement goals without having to repair the damage.
Rebalance IRA Pros and Cons
How does Rebalance IRA fix your retirement accounts?
The holistic approach Rebalance uses looks at the big picture. They combine their human expertise with technology to uncover where you’re overspending on fees, which investments aren’t performing the way you want, and where you can make changes to diversify your portfolio for the greatest results. They then use their expert-created checklist to gauge your portfolio’s performance and where you could improve it.
Does Rebalance choose which brokerage firm you use?
No, you are free to choose between Fidelity and Charles Schwab. You’ll receive your statements from them and have complete control over your accounts. Rebalance manages your portfolio so it’s to your benefit to let them do what they do best, but you’re still in charge of your account.
Does Rebalance IRA automatically rebalance your portfolio?
Yes, this is one of their greatest assets. You have human advisors watching your account. If it gets knocked off the desired path, they immediately regroup. They immediately sell the high-performing assets in your portfolio, using that money to invest in the lower performing assets. This is the epitome of ‘buy low, sell high’ and is how Rebalance achieves such great results for its investors.
What is the ‘Big Picture’ checkup?
Life changes and Rebalance recognizes that. This isn’t a meeting about money, but rather a meeting about life and what you’re experiencing. They’ll talk about your retirement plans. Has your timeline changed? Do you want to retire sooner or later? Did your plans during retirement change? The answers to these questions help the advisors determine if your portfolio needs adjusting to meet your new goals.
Does Rebalance IRA use passive investing?
Yes, Rebalance believes passive investing provides the greatest results. They strive to match the market’s returns, not beat them. Most advisors aren’t successful in beating the market and waste money along the way. Rebalance uses low-cost ETFs to maximize the returns in their passive investing techniques.
Why are their ETFs less expensive?
Rebalance IRA chooses globally-diversified ETFs for their low expense ratios. Because they are a passive investment (they aren’t actively managed), there are much lower fees involved. This is how Rebalance ensures you keep more money in your retirement account because you don’t have to pay commissions for constant management (buying and selling).
Why do you get two representatives assigned to you?
Just like high-wealth advisors, Rebalance offers a team approach so that someone is always available to answer your questions and oversee your account. Your dedicated investment advisor and service representative are always on the same page, monitoring your account, staying in touch with you and helping you achieve your retirement goals.
How does Rebalance IRA make money?
Rebalance makes their money off the annual assets under management fee. Even though it seems like a steep fee, if you compare it to the fees charged by human advisors, you’ll see the tremendous savings.
Rebalance IRA vs Betterment
Betterment is also a goals-oriented robo-advisor but with much lower minimum balance requirements and without the extensive human support. Betterment doesn’t have a minimum balance requirement and their fees are just 0.25% of assets under management.
Betterment is great for beginners looking to start their retirement account and don’t know what to invest in. If you want the personal touch, you can pay extra for human advisor support, giving you some of what Rebalance offers wealthier investors.
Rebalance IRA vs Wealthfront
Wealthfront is another strong robo-advisor that’s great for beginners. All you need is $500 to start your investment journey, including a retirement account. Wealthfront invests in low-cost ETFs, like Rebalance across 11 asset classes.
Wealthfront offers automatic rebalancing and a cash management account that earns interest. The process is completely automated – they don’t have a human advisor option, but it’s a great way for beginners to start their retirement savings process.
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Worth It or a Scam?
Rebalance is as real as they come, but it’s best for wealthy investors. The high minimum investment balance excludes many that are just starting to save. Its fees seem high, but the value they provide far surpasses any other robo-advisor today and the fees are much less than a traditional human advisor charges.
If you’re in the middle of your retirement saving plan and feel like you’re throwing money out the window paying fees, Rebalance can get you back on track, putting more money in your retirement account rather than the broker’s pockets.
If you’ve often wished you could have someone looking over your shoulder helping you manage your IRA – you’ve got it with Rebalance IRA. You can’t beat the human service, automatic rebalancing, and global diversification they offer.
If you have the minimum amount required and don’t mind the fee (which will likely be less than the total you’d pay elsewhere), Rebalance IRA has a lot to offer.
Michael is a senior writer at The Robo Investor. He earned his master’s at the Craig Newmark School of Journalism at CUNY, and is currently taking CFP courses at the University of Scranton. He has been an avid finance enthusiast ever since he started investing at the age of 23. Meet the Team