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What's The End Goal for Wealthfront and Betterment? (2016)

larrysukernik.com

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Re: What's The End Goal for Wealthfront and Betterment? (2016)

#131

Post by proquant »

_wgnp wrote: post #53

Since this is a community of programmers, you might be interested in doings things like this yourself instead. There are a couple of options: - Quantopian ( http://quantopian.com/ ): Python based, kinda a little bit open source (backtesting only), live trades on Interactive Brokers or Robinhood. Has a big community for stocks. - QuantConnect ( http://quantconnect.com/ ): .NET based, more open source (includes live tr…

Also don't forget about Quantiacs (https://quantiacs.com/) -- Quantiacs supports both Python and Matlab, and is focused on managed futures -- not equities. It's open source, and unlike quantopian or quantconnect -- Quantiacs actually matches your algos with institutional investors and shares the profits with you....and you retain 100% of your own IP.

Re: What's The End Goal for Wealthfront and Betterment? (2016)

#132

Post by mrkurt »

dragontamer wrote: post #105
mrkurt wrote: post #102

Earlier quoted context omitted.

The cap is on deductions from regular income if you have a capital loss for a year. So if you have $50,000 in capital gains and $53,000 in capital losses, your gains are "free". And you can deduct the extra $3k from ordinary income. You can also carry capital losses forward each year.

Yeah. If you have $50,000 in gains but $53000 in losses, then that's called a bad year. You still aren't getting around the fact that you made a crappy investment somewhere to generate that loss.

That's not really how tax loss harvesting works. You can have a portfolio that's up a total of $50k and _still_ have $50k in losses.

Re: What's The End Goal for Wealthfront and Betterment? (2016)

#133

Post by mrkurt »

pscsbs wrote: post #114
mrkurt wrote: post #101

Earlier quoted context omitted.

Wealthfront buys the individual shares that track an index. When shares lose value, they'll sell those and buy other shares that are equivalent. It worked pretty well for me in 2016. I was up ~11% total and about to deduct about 6% in losses.

However, that 6% is capped by the IRS at $3,000 per year.

No, it offsets my other capital gains that year. $3k per year after that can be applied to normal income. Or it can all be applied to future capital gains.

Re: What's The End Goal for Wealthfront and Betterment? (2016)

#134

Post by krallja »

fullshark wrote: post #41
krallja wrote: post #31

Earlier quoted context omitted.

Betterment has $8B as of March 16, 2017: SEC form ADV page 8, "Regulatory Assets under Management" https://www.adviserinfo.sec.gov/IAPD/content/ViewForm/crd_ia... edit: Wealthfront $5B https://adviserinfo.sec.gov/IAPD/content/ViewForm/crd_iapd_s...

Thanks. That seems healthy but not enough based on this blog's conjecture. I'd guess they are eventually acquired if I were to bet on their future.

I think acquisition is a totally legitimate exit strategy, as long as they're aware of the direction they are heading.
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