Wealthfront Investment Advisory Agreement: What You Need to Know

Wealthfront is a leading digital investment platform that offers automated investing services to its clients. With its user-friendly interface and low fees, Wealthfront has become a popular choice for individuals looking to invest their money. However, before you start investing with Wealthfront, you need to sign an investment advisory agreement. In this article, we`ll give you an overview of what the Wealthfront investment advisory agreement is all about and what you need to know before signing it.

What is an Investment Advisory Agreement?

An investment advisory agreement is a legal contract between you and Wealthfront. The agreement outlines the terms and conditions of the investment advisory services that Wealthfront provides to you. It also states how Wealthfront is compensated for its services and outlines the roles and responsibilities of each party. In other words, it sets out the rules of your relationship with Wealthfront.

What Does the Wealthfront Investment Advisory Agreement Cover?

The Wealthfront investment advisory agreement covers a range of topics, including:

1. Investment Objectives: The agreement outlines your investment objectives, which are used to determine the investment strategy that Wealthfront will use to manage your portfolio.

2. Investment Strategy: The agreement describes the investment strategy that Wealthfront will use to manage your portfolio. This strategy is based on your investment objectives, risk tolerance, and other factors.

3. Fees: The agreement outlines the fees that you will be charged for Wealthfront`s services. These fees include an annual advisory fee and other expenses, such as trading costs and fund expenses.

4. Financial Situation: The agreement requires you to disclose your financial situation to Wealthfront, which includes your income, net worth, and investment experience.

5. Investment Restrictions: The agreement outlines any investment restrictions that may apply to your portfolio, such as restrictions on investing in certain types of assets.

6. Termination: The agreement outlines the circumstances under which you or Wealthfront can terminate the agreement.

Why Should You Care About the Investment Advisory Agreement?

The investment advisory agreement is a legally binding contract that sets out the terms and conditions of your relationship with Wealthfront. By signing the agreement, you are agreeing to the terms and conditions of the agreement, including the investment strategy that Wealthfront will use to manage your portfolio. It`s important to review the agreement carefully to ensure that you understand the fees and investment restrictions that may apply to your portfolio. If you have any questions or concerns, you should contact Wealthfront before signing the agreement.

In conclusion, the Wealthfront investment advisory agreement is an important document that outlines the terms and conditions of your relationship with Wealthfront. By understanding the agreement, you can make informed decisions about your investments and ensure that you are comfortable with the investment strategy that Wealthfront will use to manage your portfolio. If you have any questions or concerns, don`t hesitate to reach out to Wealthfront for clarification.