Rally is a relatively new robo-advisor that aims to provide customized investment portfolios and financial planning services to clients. With easy account opening, low fees, and strong investment performance, Rally has attracted lots of investors in recent years. This article will provide an in-depth analysis of Rally’s services, fees, account options, investment strategy, and customer reviews. Multiple key aspects like security, customer support and user experience will be examined to help investors better understand this robo-advisor. The analysis will focus on the core question – Is Rally a good choice for investing your money?
Simple and Low-Cost Account Opening Process
Rally makes it very easy for investors to open new accounts on its platform. You can complete the application online in around 10 minutes. Only basic personal details like name, email, address and SSN are required. There are no minimum balance requirements, so you can start investing with as little as $1. The signup process is smooth and intuitive. Rally also has a clean mobile app for opening and managing accounts on the go.
Low Management Fees and No Commissions
A huge benefit of Rally is the low fees it charges clients. There are zero commissions or trading fees to buy and sell investments. The annual advisory fee is just 0.50% on assets under management for digital plans and 0.75% for full service plans. These fees are very competitive with top robo-advisors like Betterment and Wealthfront which also charge around 0.25% to 0.50%. There are no fees to open, close or transfer your Rally account. The fees are clearly presented upfront during the sign-up process.
Wide Range of Customized Investment Portfolios
Rally provides investors with fully customized investment portfolios tailored to their financial goals. This customization sets Rally apart from robo-advisors that solely use pre-built model portfolios. When you open an account, you complete a risk assessment questionnaire and input your investing preferences. Based on your inputs, Rally designs an investment allocation using low-cost ETFs and stocks. Investments are automatically rebalanced and optimized over time as markets change. Portfolios can be focused on goals like retirement, investing for children, or building long-term wealth.
Strong Historical Investment Performance
Analysis of Rally’s past performance shows that its customized portfolios have delivered very strong returns for clients. The company tracks and publishes the historical returns of its investment strategies. On average, Rally’s portfolios have handily beat common benchmarks like the S&P 500 over 3, 5 and 10 year periods. For example, their benchmark 60% stock portfolio has averaged 10.5% annual returns over the past decade – surpassing the S&P 500’s 10.2% return. This level of transparency and performance helps build trust with investors.
Top Tier Security Protections for Accounts
Rally utilizes bank-level security and encryption to protect client data and accounts. User information and data is encrypted both in transmission and storage using 256-bit SSL. Rally undergoes regular comprehensive security audits by third parties. Accounts are protected via 2-factor authentication. Overall, Rally meets high industry security standards which is vital for any financial services company.
In summary, Rally provides a very competitive and attractive robo-advisor option for DIY investors. The easy account opening, low management fees, customized portfolios, strong investment performance and high security standards make it a great choice for investing your money. User reviews of Rally are overwhelmingly positive due to the combination of great technology and solid investment advisory services.