Which is better: robot or human?
When it comes to financial advisors, the answer isn’t always clear.
Robots are less emotional and more predictable; humans are more fun to talk to and sense things some robots don’t.
But thanks to an app called Wela, you might not have to choose between the two.
What is Wela?
Wela launched in January 2016. Its co-founder and CEO, Matt Reiner, came from a traditional personal finance background. He’s both a certified financial planner and a chartered financial analyst.
Wanting to expand his offerings beyond high-net-worth individuals and “add more value to the world,” Reiner created Wela — a tool he jokingly calls “Mint on steroids.”
Like other financial planning software, Wela offers the ability to aggregate all your accounts in one place. It can connect to 19,000 institutions, including investment and bank accounts, credit cards, student loan debt, and mortgages.
But what sets Wela apart — besides a few features I’ll review below — is its integration with real, live financial advisors.
Reiner cited a study that showed advisors could add 3 percent to the value of an individual’s portfolio — and not because they were better at playing the stock market.
“It was the human effect,” he said. “In investing, the key isn’t picking and choosing stocks; it’s being able to manage yourself, to keep yourself from buying too much when the market is up and selling out when the market is down.”
For newbie investors, Reiner said, the advisors provide this hand-holding.
“You need someone to help you understand why things are happening in the market to keep you from doing things you’ll kick yourself for later. … Investing is emotional, and I think a human is necessary for those emotional times,” he explained.
3 unique features of the Wela app
If you want to manage your money better, Wela offers a snapshot of all your financial accounts as well as tools for budgeting and saving.
And while many financial planning software platforms offer similar services, here are a few unique features that set Wela apart.
1. Daily spend limit
This simple but innovative feature is a twist on traditional budgeting (which everybody hates).
“The daily spend limit is a way of working with behavioral economics and psychology to get you to focus on what you really want out of a budget,” explained Reiner. “You want to be able to spend money — not cut money.”
To get started, the app looks at your after-tax income, core expenses such as rent and insurance, and savings goals and investments.
Wela then calculates your “daily spend limit” — the guilt-free amount of money you can spend on anything you choose. It rolls over, so if you spend too much one day, it’ll be lower the next; if you spend less, it’ll be higher.
“It allows you to focus on one number,” said Reiner. “You don’t have to trade numbers within your budget. You know at the end of the month, you’ll have enough to cover your expenses. … You’re able to reward yourself every single day if you’re able to accomplish that.”
I love this idea because it makes budgeting less about restrictions and more about freedom. You also can adjust the daily spend limit if, say, you want to retire younger or take that vacation sooner.
Think of it as “Weight Watchers for your budget,” Reiner said.
2. Benjamin the chatbot
When you download the Wela app, you’ll have all the features of the web platform — plus a new chatbot friend named Benjamin.
“Ultimately we want to change the way that financial advice is delivered,” said Reiner. “Ben is our way of doing that. He’s really your financial coach; he analyzes the info you’ve put in system and helps guide you through becoming better spender and better saver.”
You can ask him questions about the app or about saving and spending in general. Although he isn’t super advanced yet, he’ll become more sophisticated with age, according to Reiner.
And if he doesn’t answer your question, you can turn to the humans.
3. Free consultation with a financial advisor
For all its users, Wela offers a complimentary one-hour session with a financial advisor. During this call, you’ll be able to talk general strategies and advice but won’t receive specific investment recommendations.
If you want tailored advice, you’ll have to invest your money with Wela Strategies, the company’s wealth management arm. Although there’s no minimum to get started, you’ll pay a 1 percent annual fee on investments up to $250,000.
You also can take part in the company’s “debt destroyer” program. For $12.99 per month, you’ll get a comprehensive debt-elimination plan along with quarterly check-ins. Reiner noted that this program is mostly geared toward credit card debt, not student loans.
Should you give Wela a try?
I downloaded Wela and played around with it for a few days. Although the user experience wasn’t perfect — I wasn’t always sure what I was supposed to do next, for example — Wela is undoubtedly an innovative idea.
It’s grounded in economic theory and has some unique features — cough, humans, cough — that make it stand out from the crowd.
In other words, it’s worth a try if you want an investing app with a human touch.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.97% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.57% – 6.97%1||Undergrad & Graduate|
|2.51% – 8.09%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.50% – 7.24%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|