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How does Wealthfront use my linked accounts to help me with financial planning?

When you link your financial accounts to Wealthfront, we factor your account details into our research-driven financial planning model to project your finances and net worth over time. Based on these projections, you get insights and advice to help you make smarter long-term financial decisions.

Specifically, here are some of the account details we consider, and how we use them:

When you link a...

We look at your...

To project your…

Checking or savings account

Spending patterns

  • monthly spending in retirement, adjusted for inflation

Average annual savings rate

  • savings rate today and over time

Interest rate on your savings

  • savings growth today and over time

IRA, 401(k), or other retirement account

Average annual contributions

  • savings rate today and over time

Investment portfolio and fees

  • account value today and over time

Individual or joint investment account, or a trust

Average annual deposits

  • savings rate today and over time

Investment portfolio and fees

  • account value today and over time

Home and/or mortgage

Home location, mortgage terms, and monthly mortgage payment

  • Home value today and over time
  • equity in your home today and over time
  • debt-to-income ratio over time

Equity compensation account

Equity portfolio

  • equity value over time

529 or other college savings account

Investment portfolio and fees

  • Account value today and over time
  • projected 529 savings compared to the specific costs of nearly any school in the country

Credit Card

Current balance

  • net worth today and over time

Loan (e.g., student loan, car loan, personal loan)

Loan terms and monthly loan payment

  • net worth today and over time
  • debt-to-income ratio over time

Health savings account (HSA)

Current balance

  • net worth today and over time

 

 

Projection information is based on hypothetical performance calculations, which are not an indicator of any investor’s actual current or future experience and is provided for illustrative purposes only. All investing involves risk, including the loss of money you invest. Hypothetical performance calculations are developed with the benefit of hindsight and have inherent limitations. Specifically, these results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Wealthfront assumed we would have been able to purchase and/or sell the securities recommended by our models, that markets were sufficiently liquid to permit those trades, and the expected returns are in no way guaranteed. You should evaluate this information carefully before you invest, and consider Wealthfront’s processes, the data we used, and the assumptions we made in developing our hypothetical calculations. Hypothetical results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented net of fees.

Nothing in this blog should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. Financial advisory services are only provided to investors who become Wealthfront Inc. clients pursuant to a written agreement, which investors are urged to read carefully, that is available at www.wealthfront.com. All securities involve risk and may result in some loss. For more information please visit www.wealthfront.com or see our Full Disclosure. While the data Wealthfront uses from third parties is believed to be reliable, Wealthfront does not guarantee the accuracy of the information.

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