Ally Invest Managed Portfolios is a robo-advisor option from a trusted online-only financial institution.
It can make managing your money simple: Just answer a few basic questions about your goals and risk tolerance and your funds are invested for you. However, youâ€™ll need a big chunk of change to get started thanks to a high minimum balance requirement. And, while fees are competitive, they arenâ€™t the lowest among other robo-advisorsâ€™ offerings.
If you have the $2,500 minimum deposit necessary to open an Ally Invest Managed Portfolio, you donâ€™t mind not getting a bonus for opening the account, and you want to take a hands-off approach to building wealth, Ally Invest may be a good option.
If youâ€™re looking for a robo-advisor that allows you to build a diversified portfolio without a lot of advanced knowledge about investing, Ally Invest Managed Portfolios has you covered.
Youâ€™ll answer a few questions about your age; timeline for investing and risk tolerance; and whether youâ€™re investing for retirement, wealth-building or a big purchase. Then, Ally Invest comes back with a recommended portfolio you can accept or tweak.
You can open a joint, custodial or individual taxable account with Ally Invest Managed Portfolios, or can opt for a traditional IRA, Roth IRA or rollover IRA. Unfortunately, unlike with Ally Investâ€™s self-directed accounts, thereâ€™s no promotion or bonus for transferring funds into a managed portfolio. And, youâ€™ll need quite a bit of money to get started â€” more than many competitors in the robo-advisor industry require.
Still, if you donâ€™t mind a bigger initial deposit or a lack of physical branches, Ally Invest is a worthy competitor to consider when looking for help managing your money.
|Account fees (annual, transfer, inactivity)||
|Tax loss harvesting|
|Tax loss harvesting detail||No tax-optimized portfolios are currently offered but Ally plans to roll out tax loss harvesting in 2019.|
|Offers fractional shares|
|Ease of use|
|Mobile app||iOS, Android, Windows Phone|
|Customer support||Phone, 24/7 live support, Chat, Email|
Ally Invest Managed Portfolios has some significant advantages worth considering:
Youâ€™ll also want to consider the potential downsides of choosing Ally Invest Managed Portfolios.
Whenever you invest your money, thereâ€™s a risk you may lose some or all of it. This is no different with Ally Invest Managed Portfolios. The assets your robo-advisor invests you in could decline in value and your portfolio could lose money.
But Ally Invest is as safe as any trusted online brokerage, and thereâ€™s little risk of losing assets if the investment firm goes bankrupt. Ally Invest is in compliance with regulatory requirements according to FINRAâ€™s Broker Check tool. Ally Invest is also a member of the FDIC and SIPC, both of which ensure cash in bank and brokerage accounts respectively.
Ally Invest Managed Portfolios is a viable choice for investors looking for an easy, hands-off way to invest and seeking responsive customer service. But the $2,500 minimum balance requirement, lack of a promotional offer, higher management fees, and the fact tax loss harvesting isnâ€™t currently offered makes Ally a less-than-ideal option for investors looking for the most affordable way to build a diversified portfolio. If you want a lower-cost option that does offer tax-loss harvesting, consider robo-advisors such as Betterment or Wealthfront.