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About Wells Fargo Intuitive Investor
Similar to some of the best robo-advisors, Wells Fargo Intuitive Investors has individual and joint brokerage accounts, IRAs, margin accounts, and more. It even offers a self-directed brokerage account option for active investors.
It doesn't offer many advanced charting or goal-building tools, but investors do get access to dividend reinvesting, automated portfolio rebalancing, and tax-loss harvesting. You also get unlimited access to human financial planners.
Despite its limited investment options, it has a high
Wells Fargo Intuitive Investors also doesn't offer mutual funds, individual stocks, cryptocurrencies, or fractional shares. You can only invest in ETFs with this account.
The one exception is the Do-it-yourself investing WellsTrade brokerage account, which does offer mutual funds, stocks, and more. As Wells Fargo's only other investing account option (besides Intuitive Investors), it's worth mentioning.
Is Wells Fargo Intuitive Investors Right For You?
Active traders may benefit from this self-directed account, but you won't get the same benefits as the robo-advisor. For example, smart-beta portfolios and portfolio rebalancing won't be available for self-directed accounts.
However, it has a
Also, investment options are limited as it only invests in ETFs. You won't be able to invest in options, fractional shares, mutual funds, or cryptocurrencies with a Wells Fargo Intuitive Investor account.
See Insider's picks for the best investment apps>>
Wells Fargo Intuitive Investor: Overall Rating
| Feature | Insider rating (out of 5) |
| Fees | 4.00 |
| Investment selection | 4.00 |
| Access | 4.25 |
| Ethics | 2.00 |
| Customer support | 3.50 |
| Overall score | 3.58 |
Wells Fargo Intuitive Investor Pros and Cons
| Pros | Cons |
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Is Wells Fargo Intuitive Investors Trustworthy?
Wells Fargo currently has an F rating with the Better Business Bureau. The BBB gives businesses grades ranging from A+ to F. Ratings represent how well a company interacts with its customers, and Wells Fargo has received the lowest possible score. The BBB states that the reason for the low rating is due to Wells Fargo's failure to respond to customer complaints, plus government actions filed against the business.
In 2022, The Consumer Financial Protection Bureau accused Wells Fargo of wrongfully charging users fees that led to the loss of homes and vehicles. The bank was also accused of wrongfully charging various checking and savings account overdraft fees. Wells Fargo agreed to pay a $3.7 billion settlement.
How to Invest with Wells Fargo Intuitive Investors
Individual and Joint Brokerage Accounts
Wells Fargo Intuitive Investors offers individual and joint automated brokerage accounts for passive investors looking to invest in cost-effective ETFs. To get started, you'll fill out an online investment questionnaire about your investing goals, risk tolerance, and time horizon. Intuitive Investors' algorithm then generates a portfolio comprised of a blend of 7 to 11 ETFs.
Wells Fargo offers two investment styles for you to choose from:
- Globally diversified: A blend of low-cost investments from domestic and foreign markets for long-term returns.
- Sustainability focused: A blend of low-cost globally diverse investments from domestic and foreign markets, but with an emphasis on environmental, social, and governance (ESG) processes. These portfolios have similar risks and return rates as traditional investment portfolios.
Wells Fargo's robo-advisor automatically rebalances your investments as needed. You'll also get tax-loss harvesting features, dividend reinvesting, and human financial advisors.
If you have an existing Wells Fargo checking or savings account, you can link your Intuitive Investor account to access Brokerage Cash Services features. With this feature, you can quickly transfer money between your accounts, make investment deposits, deposit checks through the Wells Fargo Mobile app, and directly get cash through an automated clearing house (ACH).
Retirement Savings Account
You can start saving for retirement with a Wells Fargo automated retirement savings account. You have access to the following IRAs:
- Traditional IRA: Funded by pre-tax dollars, you don't pay taxes until you withdraw your funds when you're at least 59 1/2. The 2024 contribution limit is $7,000 if you're under age 50, and $8,000 if you're 50 or older.
- Roth IRA: Funded by after-tax dollars, which means withdrawals are tax-free. Just like with a traditional IRA, you can't access your funds until you're 59 1/2, and the same contribution limits apply.
- SIMPLE IRA: An individual retirement account offered by small businesses for their employees. Employees contribute a portion of their income, and employers can match up to 3% of that employee's salary. In 2024, the contribution limit is $16,000 for those under age 50. People age 50 or older can contribute up to $19,500.
- SEP IRA: A Simplified Employee Pension (SEP) IRA is a retirement savings plan for small business owners and self-employed individuals (including freelancers). Funds from this account grow tax-free until you withdraw, much like a traditional IRA. In 2024, folks under age 50 can contribute up to 25% of their income or $69,000, whichever is less.
Wells Fargo also offers inherited Roth and traditional IRAs, which are accounts inherited by beneficiaries after the original owner of the account has passed away. Funds continue to grow tax-advantaged in an inherited IRA, but you can't make contributions or rollover funds from this account during the first 60 days of owning the account.
Education Savings Accounts
A Coverdell Education Savings Account (ESA) is a tax-deferred savings account opened by a parent or guardian for a beneficiary under 18 to save for a child's future education expenses. Withdrawals from an ESA may be free from federal income tax as long as they are used for qualifying educational purposes before the beneficiary turns 30.
Qualifying expenses include:
- Tuition and fees
- Room and board
- Books, necessary equipment, and supplies (including computer equipment)
- Supplementary items and services
- Academic tutoring
- Uniforms
- Transportation fees
You can only contribute up to $2,000 a year per beneficiary.
Wells Fargo Intuitive Investors also supports 25 different 529 plans for folks looking to save for higher education expenses, like undergraduate, graduate, and post-grad expenses. You can even pay off student loans with a 529 plan. These plans are tax-advantaged accounts with varying features and benefits that differ from state to state.
However, Wells Fargo doesn't specify on its website which plans it is currently supporting. So if you're interested in opening a 529 plan through Wells Fargo, the business suggests that you meet with a financial advisor through Wells Fargo Advisors for planning tools and goal strategizing.
Margin Accounts
With a margin account, you can get a loan from Wells Fargo to finance securities purchases or borrow against securities held in your account to purchase investments or meet financial goals. You must have a Wells Fargo brokerage account first to access margin trading.
Margin accounts are a great way to avoid triggering capital gains and potential market gains, but there are several risks involved. For example, you need to have sufficient equity in your account by the settlement date or Wells Fargo may force the sale of your securities or other assets without contacting you. Also, your account is vulnerable to market fluctuations and economic conditions.
Wells Fargo Intuitive Investors requires a minimum of $2,000 in cash or fully-paid eligible securities to open a margin account.
Self-directed Brokerage Account
Although Wells Fargo Intuitive Investors is a robo-advisor, you can customize and manage your investments with Wells Fargo's only other investing option, the Do-it-yourself investing WellsTrade brokerage account. You can pick and choose your diverse investment portfolio of mutual funds, US stocks, options, ETFs, bonds, and more. Buy and sell assets on your terms.
Remember that with this account, you won't get access to the same features and benefits as the Intuitive Investors account. The Do-it-yourself investing account isn't a robo-advisor.
A WellsTrade brokerage account supports traditional IRAs, Roth IRAs, SEP IRAs, and a Coverdell Education Savings Account (ESA).
This account provides enhanced market research, access to news, dividend reinvestment, asset allocation tools, and screen tools. One of the screener tools is the Wells Fargo Advisors Mutual Fund Screener, which allows users to access research on thousands of mutual funds across different asset classes. With this tool, you can sort by Morningstar categories, your risk tolerance level, and other sectors.
One of the best perks of this account is that you can get access to extended trading hours for eligible stocks and ETFs, but only through the Wells Fargo Mobile App. Extended trading hours take place from 4:01 p.m. ET to 6:30 p.m. ET Monday through Friday.
Investment Options
Wells Fargo recommends that its investors make recurring transfers into their investment accounts for long-term investment growth. This way, your money can grow with compound interest and dollar-cost averaging.
The smart-beta portfolio utilizes an algorithm to create a diverse portfolio of 7 to 11 ETFs based on your risk tolerance, time horizon, and financial goals. ETFs are made up of individual stocks, bonds, and other assets. Here's an example of a moderately conservative portfolio:
Wells Fargo Intuitive Investors Fees
There's a
Investors who link their account to an existing Wells Fargo checking account pay only a 0.30% fee. And accounts linked to a Premier Checking account or a Private Bank Interest Checking account only pay a 0.25% annual advisory fee.
Expense ratios for ETFs range from 0.07% to 0.15% and vary based on the kinds of ETFs in your investment portfolio.
It's also important to note that you'll be charged a $95 fee if you terminate an IRA account or transfer your account's funds to another broker.
Wells Fargo Intuitive Investors FAQs
What is Wells Fargo Intuitive Investors?
A Wells Fargo Intuitive Investors account is an automated investing account for passive traders to buy and sell diverse portfolios of domestic and foreign market ETFs. With a
What is the minimum balance for Wells Fargo Intuitive Investors?
The Wells Fargo Intuitive Investors account requires a
Is Wells Fargo Intuitive Investors worth it?
A Wells Fargo Intuitive Investors may be worth it for hands-off investors wanting to buy and sell ETFs. But it's not ideal for advanced traders or active traders wanting to invest in other assets, such as crypto or mutual funds. It also doesn't offer many advanced charting features.
How Wells Fargo Intuitive Investors Compares
Wells Fargo Intuitive Investors vs. Betterment
Wells Fargo Intuitive Investors and
Betterment has a drastically lower account minimum, only requiring $10 to start investing, compared to Wells Fargo's
If unlimited access to human financial planners is important to you, then Wells Fargo Intuitive Investors is a better option.
Wells Fargo Intuitive Investors vs. SoFi Invest
You only need $1 to start investing with SoFi, and only $5 to trade fractional shares. SoFi Invest is better for folks who want more investment options. But it doesn't offer tax-loss harvesting.
Traders looking to invest on behalf of a minor are better off with Wells Fargo Intuitive Investors as it offers a custodial account option and education savings accounts for future tuition expenses. SoFi Invest doesn't currently offer custodial accounts or education savings accounts.
Methodology: How We Reviewed Wells Fargo Intuitive Investors
We applyPersonal Finance Insider's rating methodology for rating investment products to compare pricing, investment options, access, ethics, and overall customer experience when reviewing robo-advisors. The best robo-advisors offer various types of accounts, multiple investment options, advanced charting tools, market access, and human advisors with low fees.
Certain robo-advisors are best for beginners, while others are more fitting for advanced investors. Wells Fargo Intuitive Investors was evaluated with a focus on how well it performs in each category compared to similar investment platforms.
Read the original article on Business Insider
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As a seasoned financial expert with a deep understanding of investment platforms, let's delve into the concepts discussed in the provided article about Wells Fargo Intuitive Investor.
Wells Fargo Intuitive Investor Overview: Wells Fargo Intuitive Investor is an automated investing platform employing smart-beta portfolios. It utilizes algorithms to create and manage investment portfolios, focusing on low volatility and long-term growth through diverse, cost-effective ETFs from domestic and foreign markets.
Account Types: Wells Fargo Intuitive Investor offers individual and joint brokerage accounts, IRAs, margin accounts, and a self-directed brokerage account for active investors. The self-directed account allows customization but lacks some benefits of the robo-advisor, such as smart-beta portfolios and automated rebalancing.
Features: While lacking advanced charting tools, Wells Fargo Intuitive Investor provides dividend reinvesting, automated portfolio rebalancing, and tax-loss harvesting. Investors also have unlimited access to human financial planners.
Investment Options: The platform exclusively offers ETF investments; however, Wells Fargo's WellsTrade brokerage account is an exception, providing access to mutual funds, stocks, and more.
Account Minimum and Fees: Wells Fargo Intuitive Investor has a high account minimum and charges a 0.35% annual management fee. Existing Wells Fargo members may qualify for discounts, potentially lowering the fee to 0.25%.
Trustworthiness: Wells Fargo currently has an F rating with the Better Business Bureau, primarily due to its failure to address customer complaints and government actions against the bank. In 2022, the Consumer Financial Protection Bureau accused Wells Fargo of wrongful fees, resulting in a $3.7 billion settlement.
Investment Accounts Offered:
- Individual and Joint Brokerage Accounts: Diversified portfolios based on risk tolerance.
- Retirement Savings Accounts (IRAs):
- Traditional IRA
- Roth IRA
- SIMPLE IRA
- SEP IRA
- Education Savings Accounts:
- Coverdell Education Savings Account (ESA)
- Support for 25 different 529 plans.
Margin Accounts: Allows investors to borrow against securities, but requires a minimum of $2,000 in cash or eligible securities to open.
Self-directed Brokerage Account (WellsTrade): For active investors who want to manage their investments independently. Offers various investment options and tools, including extended trading hours through the mobile app.
Investment Options: Utilizes smart-beta portfolios, creating a diversified portfolio of 7 to 11 ETFs based on investor preferences.
Fees: A 0.35% annual advisory fee, potentially reduced for Wells Fargo account holders. ETF expense ratios range from 0.07% to 0.15%.
Comparison with Other Platforms: The article compares Wells Fargo Intuitive Investor with other robo-advisors like Betterment and SoFi Invest, highlighting differences in fees, investment options, and account benefits.
Methodology for Review: The review methodology includes evaluating pricing, investment options, access, ethics, and overall customer experience based on Personal Finance Insider's rating methodology for investment products.
In summary, Wells Fargo Intuitive Investor is suitable for passive investors seeking automated, diversified ETF portfolios. However, its limitations in investment options and the bank's recent regulatory challenges should be considered by potential investors.
