How does it work?

Like most people, you probably have a number of financial goals, questions, and concerns.

Answering any one of them might seem simple enough, but financial planning doesn’t come at you one question at a time. Juggling retirement planning with nightmares about college tuition, understanding which debts to prioritize when, and getting a handle on the big picture surrounding it all can be tough. What’s worse is that there’s an ocean of bad and self-serving financial advice out there that’s difficult to trust and even harder to escape.

  • When you join, you’ll learn:
  • 1) How your net worth stacks up compared to a set of real people just like you.
  • 2) How to allocate your money to maximize your future net worth and meet your financial goals.
  • 3) How your net worth will grow based on our default recommendations or the custom plan you build for yourself.

We think our process and advice will beat anyone else’s, but we want you to know it for yourself. That’s why we put you in the driver’s seat: you can test out any scenario you want and see a range of outcomes.

  • Doing the math

    For WeVest to work best, we need to know a few things about you.

    First, we’ll want to get an understanding your personal financial picture. That includes your assets, debts, income, age, and family makeup. Second, we need to understand your goals. Do you want to save for retirement, build a college fund for your new baby, pay off your credit card debt — or maybe all of the above?

    Based on the answers you share with us, we can give you a clear picture of where you stand and how you compare to people similar to you.

    Then, once we know where you are and where you want to go, our algorithms go to work.

    Our goal is to optimize the growth of your net worth in a way that achieves your goals. We do this by creating a plan for the money that you’ve said you can invest in yourself — from paying off debt, to contributing to your retirement account, to socking away in an emergency fund.

    We call this number the WeVest%. Its the total % of your income that will be put towards growing your net worth.

    Your WeVest% is allocated into different buckets based on your needs and goals. You’ll have separate buckets for different kinds of debt, one for your emergency savings, and more for retirement, college, your house, and any other investment accounts. Our algorithm finds the most efficient way to allocate your WeVest% through those buckets so that you can grow your net worth faster and more effectively.

    But that doesn’t mean we’re dogmatic: after all, this is your money.

    You have the freedom to make changes to our recommendations or try out your own ideas — with WeVest, you’ll be able to compare different plans and programs and choose the one that’s right for you.

    The best part? Instead of wasting money going to a financial advisor once a year, you have the full freedom and flexibility to check up on your plan anytime you want and make changes at the drop of a hat. Market went up 10%? Got a raise? Have an extra $200 on your credit card this month?

    Log in and update your plan — no matter what happens or what idea you want to try out, WeVest will abide.

  • How does it work? Setting priorities

    Your WeVest% is distributed into “buckets” based on what will maximize your net worth and meet your personal goals in the most efficient way possible. In other words, we find the fastest route to your destination — but we make sure it’s a road that you actually want to be driving on.

    In the WeVest algorithm, the highest priority bucket is your minimum payments towards debt — for pretty obvious reasons. Don’t pay your mortgage, and you’ll lose your house. Don’t pay your credit card, and the phone will never stop ringing.

    Next is emergency savings. We calculate a target amount based on your income and spending and help you start building this critical financial cushion. The importance of emergency savings can’t be overstated: without cash in the bank most people turn to credit cards in times of need, which can make a bad situation far worse.

  • Choosing between debt and savings

    Once we’ve tackled the most basic priorities, it’s time to optimize.

    The money that you have left in your WeVest% can be split between debt repayment and investment. But how do you choose between them, and how much do you pay towards each?

    Our algorithm ranks the options based on the interest rates on your debt, the range of returns you can expect to generate in your investment accounts, and any relevant tax benefits or deductions.

    Generally speaking, if the after-tax return on your investments is higher than the after-tax interest charges on your debt, you’re better off investing. This is why it almost never makes sense (mathematically speaking) to pay your mortgage off early.

    But as we all know, in reality your future investment returns are unknown.

    To address that uncertainty, we work from a range of possible returns rather than a simple assumption. This gives you the biggest chance of utilizing your WeVest% in the most efficient and advantageous way possible.

  • Prioritizing debt payments

    Your debt payments are prioritized in order of interest rate — higher rates get higher priority. For most people, that means credit cards come first, followed by personal loans, student loans, and — at the bottom of the pile — your mortgage.

    We make your life easier by doing all the number crunching and optimizing for you: all you have to do is make the payments.

  • What about investments?

    Unlike debt, which is relatively simple, investment accounts can be hard to compare and prioritize. Do you focus on your 401(k), which has tax benefits but is relatively inaccessible, or your brokerage account, where you pay taxes but have the option to cash out if needed?

    In making these decisions, we focus on the net worth benefits and the practical characteristics of your different account options — including a few factors you might not have thought about before.

    For example, 401(k) accounts don’t just come with tax advantages, they often come with an employer matching contribution (“free money” in industry lingo). Your 401(k) might also have a loan option, which is a major advantage over your IRA. On the other hand, IRAs usually have more investment options than your 401(k). The right choice for you depends on all of these moving parts.

    Once we’ve gotten the most value from tax-advantaged retirement accounts we’ll direct you to funnel money to other types of accounts, including standard brokerage accounts, which are generally less efficient.

  • Wondering why we haven’t mentioned 529 plans yet?

    Philosophically, we think you’d be doing your children a disservice if you pay for college… only to move in with them a few years later because you didn’t save enough for retirement.

    That’s why WeVest prioritizes retirement savings over college savings. Once you’re on the road to retirement security, we’ll help you meet education goals for your kids.

    Don’t agree? That’s okay: it’s why we give you the full freedom to make changes to our suggested route. After all, this is your road map.

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