What is SigFig? A Review of SigFig and the end of Wikinvest

SigFig has been lurking on the investment periphery for a few months and the creators have decided to finally unveil their product this week. The creators of Wikinvest have decided to upgrade their product and create SigFig. The premise seems to be that users wanted a cleaner, more professional look and additional financial advice.

I received an email telling me that Wikinvest was now SigFig and that all of my information had been rolled into SigFig’s system. Various assurances accompanied the email to help me feel more secure, however it is a bit disconcerting to know that they could simply move all of my accounts, passwords, and logons to a new website without my permission. It may very well be that this rollover was noted in their Terms & Conditions, however I do not recall reading it there. In the end, I was happy with the bank level security and read-only access provided by Wikinvest and the SigFig is configured the same way.

SigFig Overview

The first thing you notice when transferring over from Wikinvest is that SigFig just looks a lot nicer.The same charts and graphs exist but SigFig is easier to read and better organized. The other thing you notice is that the market research and “money school” sections are gone.SigFig wants you to focus on their customized advice that points you toward improving your portfolio.

I was frankly not that impressed with their advice. I was expecting something that would recommend a better asset mix or something that would help me improve my portfolio on some level. I got that but the advice was simply that I should move my money out of my company’s 401(k) and into an IRA. Then it provided links to three company’s that would be glad to help.

SigFig takes a referral fee if I sign up. There’s nothing wrong with what they recommend, but the tour of the site had me excited about the possibility of something more akin to MarketRiders or Wealthfront.

In the end, I like the new look and feel, but I miss some of the discussion and analysis that

SigFig Charts

Wikinvest was a nice tracking tool and SigFig definitely improves on Wikinvest. As an aggregator SigFig works well.

 

Comparison of the Best Personal Finance Investment Software Online

There are a few different types of online personal finance investment software emerging. Some track your portfolio, others allow you to mirror an advisor, and others help you create your own portfolio of index ETFs. Here is a quick primer on each of the major online investment management software companies and what they offer.

PersonalCapital.com
Services: Track spending and aggregates investment accounts for free. Asset management services for high end users.
Fees: Free core services. Tiered fee structure that does not exceed 1% for personalized financial management service.

MarketRiders
Services: Recommends a risk adjusted ETF portfolio. Notifies you when you need to rebalance your portfolio. No brokerage service.
Fees: Flat annual fee of $149 or monthly fee. This is the low cost leader.

Wealthfront
Services: Recommends a risk adjusted ETF portfolio. Sets up a brokerage account on your behalf for the purchasing of the stocks and for portfolio rebalancing.
Fees: 0.25% Management fee. Free for investors with less than $25,000.

Wikinvest
Services: Account aggregation for up-to-the-minute portfolio position. Research and analysis through crowdsourcing.
Fees: Free

Covestor
Services: Select a money manager based on your risk profile. covestor sets up a brokerage account and executes trades to mirror the chosen manager.
Fees: 0.5% to 2.5% depending on the fund and manager. No load or hidden fees.

MarketRiders, Wealthfront, and PersonalCapital want to replace the traditional financial advisor by helping you to create your own portfolio. Covestor wants you to choose an advisor and will then help you match their investments. Wikinvest simply wants to help you follow the wisdom of crowds and to see your realtime portfolio.

Each service has its benefits. The questions is what do you need? Online financial management is here and it is lower costs and changing the role of the financial advisor. Fees are dropping and services are rising. How will it change your investing?