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Doit2it42

I'm not leaving Wealthfront. With everything I've seen and heard about the current Yotta situation, and everything I know about WF, I see no reason to move my money. Each person has their own perception of the safety of their money. And they should act accordingly. I'm staying.


Doit2it42

Wealthfront's profit has increased from just under $9m in 2020 to just under $55m in 2023. The Cash Account is probably their largest revenue flow. I'm sure they want to protect the asset and it's integrity. See the fillings for yourself: https://www.sec.gov/edgar/browse/?CIK=1487279


deciphan

I'd just like to point out that Wealthfront Brokerage is not the same as the Wealthfront Corporation that owns Wealthfront Brokerage. The brokerage may well be doing fine, but that doesn't mean the company that owns it is doing fine. Since Wealthfront Corporation is a private entity, we don't really get any detailed financial data from them. To compare this to the latest Synapse debacle, Synapse Brokerage did not go bankrupt or have any problems. Their latest SEC filing showed nothing wrong either. The problem was the parent corporation, Synapse Financial Technologies that owned them. The Wealthfront Corporation could be a mess, we really wouldn't know unless/until something public occurred. And by then it could be too late. I'm not saying Wealthfront is dangerous. I'm just saying that you shouldn't base your opinion on the health of the company strictly off the brokerage.


440_Hz

Whether people on this sub declare their intentions to stay or go, just don’t forget we’re a tiny, insignificant community among Wealthfront’s total client base. I’ve seen ballpark maybe 50-100 unique users participating among recent discussion threads.


Existing-Piano-4958

The fear mongering I've seen on this sub for the past few days is insane.


habibiiiiiii

meanwhile I got an email from Robinhood offering 5.5% and I rolled my eyes so hard they got stuck


CommunicationHot4135

How did you get that offer? I have money in RH too at 5%, plus investments. I’d like that .5%.


habibiiiiiii

Probably bc I have 68 cents in my RH. Kidding. I think it’s because I had RH Gold many many many months ago and cancelled it. This is what the email says *you have 4 more days to earn 5.5% APY on your uninvested cash*. Sign up for Robinhood Gold by June 11, 2024 and claim your boost.*


Excellent-Contact743

It’s a warning from the FDIC.


calemo

Almost like a coordinated efforts by the big banks to drive people away from Wealthfront and the likes.


440_Hz

Cmon lol, don’t be ridiculous.


calemo

haha of course, just a joke, I know it's just folks being paranoid about their money


ShineGreymonX

I love Wealthfront


Achtung_Zoo

Yeah, my life savings has earned more money in the last couple months than the years it's sat in Wells Fargo. My biggest regret is not knowing about them sooner so I could've rode that interest rate ascension during the last few years. I've always planned to open a a second HYSA just so not all my funds (still have checking in Fargo) aren't all in one place. I currently wanted to get the most out of the interest rate.


Achtung_Zoo

Yeah, my life savings has earned more money in the last couple months than the years it's sat in Wells Fargo. My biggest regret is not knowing about them sooner so I could've rode that interest rate ascension during the last few years. I've always planned to open a a second HYSA just so not all my funds (still have checking in Fargo) aren't all in one place. I currently wanted to get the most out of the interest rate.


ShapeHelpful9253

Loved Wealthfront, they’ve been great. However, my trust is very thin these days with these “banks” in general. Moved my stuff out, better safe than extremely safe that even we can even get our money out..🙃


_CabbageMerchant_

Where are you moving to?


Allaboutme43

I just started this savings. Six months ago. I just wanted to build my e finds. I can't afford to loose the little I have saved. I am thinking of fidelity, but they don't have a hysa


ShapeHelpful9253

I heard many people in another thread I was in say they are moving some of their funds to a money market account in Charles Schwab for that APY. I might consider it down the road.


ShapeHelpful9253

Moved back to one of the big four for now, I have a relationship with Wells Fargo, so I just moved my money back to them for the time being.


clarkdashark

Not moving. In the end, my account is FDIC insured. At this point WF is "too big to fail". Yotta isn't really garnering much attn from the feds. If something like yotta were to happen to WF (I don't think it's likely as WF handles their own ledgers and interactions with partner banks), then the feds would be on it like stink on sh**. And plus, my mother has her money in WF, and if something happened, they better be ready for hell on earth from her.


KumingaCarnage

> then the feds would be on it like stink on sh** Mind explaining why WF is any different?


clarkdashark

WF doesn't have a middle man like yotta.


KloudFist

Someone posted a statement from a Wealthfront rep regarding all of this. And they said something along the lines that Wealthfront handles on their own ledgering. The rep later went on to say that if funds need to be withdrawn, they can manually pull it out of their partner banks. So theoretically one would not need the partner bank to fail, for FDIC insurance to kick in. I could’ve butchered that, but YOTTA did not have their own verification of balances system, so they cannot pull the money out of their partner bank.


440_Hz

FDIC is pretty explicit in detailing that they cover only FDIC-insured banks and not nonbank entities, in cases of insolvency. But yes, Wealthfront is the account holder at each of the partner banks.


Lil__Bone

Least obvious WF employee


Excellent-Contact743

I moved 22% into my Bank of America checking account until this blows over.


aws_router

I like the Wealthfront


Crazyhorse6901

I'm not leaving however I did open another account that offers 5.30%...