Open thread, Nov. 23 - Nov. 29, 2015

MrMind

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If it's worth saying, but not worth its own post (even in Discussion), then it goes here.

Notes for future OT posters:

1. Please add the 'open_thread' tag.

2. Check if there is an active Open Thread before posting a new one. (Immediately before; refresh the list-of-threads page before posting.)

3. Open Threads should be posted in Discussion, and not Main.

4. Open Threads should start on Monday, and end on Sunday.

I have a secondary question to that. These things seem to all operate online only, without bricks and mortar. How do I assure myself that a website that I have never seen before is trustworthy enough to invest, say, 6-figure sums of money in? Are there official ratings or registers, for probity rather than performance?

You may want to check if the brokerage firm/custodian is a member of SIPC, which provides a level of insurance against misappropriation. I think all the big names are members (Vanguard, Schwab, TD Ameritrade, Fidelity, etc.)

http://www.sipc.org/for-investors/what-sipc-protects

7Vaniver10y

That's easy to answer for Vanguard, which has been around since 1975 and has $3T under management. It's not going anywhere. Both Wealthfront and Betterment were founded in 2008, in Palo Alto and NYC respectively, and have about $2B and $3B under management. I don't think there are any official ratings of probity out there; I'm not sure there's a good source besides trawling through the business press looking for red flags.