Andy Rachleff is back on the NGPF podcast (previous appearance here) and provides us with an update on both Wealthfront's progress and the recent trends in financial services. Andy discusses new features offered by Wealthfront, consumer reaction to their new Cash Account, and how financial advice is ripe for creative destruction. Listen to this podcast and you will get insights on how AI (artificial intelligence) will change how we manage our money.  

Details:

• 0:00~1:29 Introduction
• 1:29~6:19 Background as a venture capitalist 
• 6:19~10:41 Starting Wealthfront
• 10:41~13:54 New features coming to Wealthfront
• 13:54~16:59 The arduous process of opening a bank account
• 16:59~21:03 The automated advice engine 
• 21:03~21:30 A word from NGPF
• 21:30~24:24 The future of financial advice 
• 24:24~26:31 Investment behavior after a market correction
• 26:31~29:18 Behavioral aspects of investing
• 29:18~32:08 Passive investing and Wealthfront
• 32:08~37:05 Competitive reaction to the success of Wealthfront
• 37:05~42:02 How Wealthfront’s Cash Account works
• 42:02~45:05 The future of Wealthfront
• 45:05~46:00 Conclusion

Resources:

• Wealthfront
• A Random Walk Down Wall Street

Details: 

• “We would like to be the preferred provider of financial services to millennials who save. We are going after people who are frustrated that banks are making money off of them instead of them making money. Through automation, we are able to have a margin that we can pass along to the consumer.”

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Interested in investing? Check out our STAX investing game and see if you can beat the market. 

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Additional podcasts that you might enjoy:

• Burton Malkiel, author of Random Walk Down Wall Street
• Investing panel with Jonathan Clements and Bill Bernstein
• Jim Rowley of Vanguard talks index funds

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.