Investing can be an overwhelming undertaking, especially for those new to it. It can be nearly impossible for those fresh out of college, who are low on money, but high on income potential. As FutureAdvisor Founder Bo Lu tells Fortune regarding his early post-college years, “None of us really had any money, but we thought we had the opportunity to accumulate some.”
So instead of continuing to scour the internet for advisors and investment methods, co-founders Bo Lu and Jon Xu set out to make their own investment tools and the end result was FutureAdvisor. Founded in 2010, and acquired by BlackRock in 2015, FutureAdvisor is making waves as an online financial advisor thanks to their use of modern portfolio theory, a home-brewed algorithm to assess risk, and the realization that millennials were sorely being forgotten in the world of investing.
You can sign up for FutureAdvisor for free and it works with both your existing investment accounts. You can link your accounts or manually enter your holdings. FA then gets to work and analyzes everything you’ve entered and comes back with recommendations that are specific to your portfolio and needs. You can modify the plan to lean more conservative, moderate, or aggressive as you go along. For example, an aggressive allocation might feature 85% in stocks, and only 15% in bonds.
Once that is completed, FA will start offering specific buy/sell recommendations. As you tweak your investments, FA’s recommendations will update, showing how you’re doing on 9 of the best practices, including Diversification, Fee Efficiency, and Tax Efficiency. You continue to work through different screens with the buy and sell recommendations. FA also offers some premium features that will help you move your assets over to TD Ameritrade or Fidelity, to allow you to start using FutureAdvisor to its full potential and options like automatic investment rebalancing to keep you inline with your plan.
That’s the basics of FutureAdvisor and the company continues to go strong in 2016. In fact, US Bank Wealth Management recently announced they will work with the company to offer their affiliate U.S. Bancorp Investments clients automated investing capabilities through FutureAdvisor.
This post is part of our contributor series. It is written and published independently of TNW.
This post is part of our contributor series. The views expressed are the author's own and not necessarily shared by TNW.