Wealthfront, a startup intent on replacing financial advisors with its wealth management software, just released a tool that enables employees receiving stock as compensation simulate different the sales of their stock.
This Website Is For Financial Professionals Only
Funded by deep-pocketed Silicon Valley venture capitalists, Wealthfront is targeting clients advisors are not interested in serving: young executives at technology companies that do not meet minimum investment requirements set by advisors.
Over the next five or 10 years, Wealthfront plans
to learn how to serve clients advisors do not want and, after it gets good at it, start taking away high-net-worth clients that advisors serve. Wealthfront is free to investors with less than $25,000 and charges 25 basis points for investors placing more than $25,000 on its platform.
While many of companies make wealth management software for the non-wealthy masses, Wealthfront’s CEO Andrew Rachleff is a founder of Benchmark Capital and Stanford University professor and the company is backed financially by smart, successful and patient investors who are methodically pursuing a long-term strategy. For example, Wealthfront for now is focused on providing wealth management advice only to Silicon Valley company executives, which is why it has provided its tool for simulating scenarios that might occur in selling your stock in a technology company.
“In a few weeks, working with data culled from several third-party providers, we plan to publish a post that evaluates the optimal stock sale strategy for all of the 1,176 IPOs that took place between Jan. 1, 2000 and Dec. 31, 2008,” Wealthfront says in a blog post
. “We also plan on updating our simulator to include more companies and sales strategies.”