Cloud-Based Financial Advisers

/Cloud-Based Financial Advisers

Cloud-Based Financial Advisers

By | 2017-08-18T17:08:02+00:00 August 28th, 2012|Research Insights|1 Comment
Wall Street is VERY afraid!

There are a wave of internet-based financial advisers working hard to save you fees.

The Quick Math:

$1,000,000 at a “reasonable” financial adviser fee of 50bps a year is $5,000/year

$1,000,000 managed by an individual who spends $500 (generous) on a cloud-based tool, has $4,500 left over. Let’s say it takes an investor 2hrs a month to rebalance their portfolio across a bunch of ETFs. 2hrsX12months =24hrs/year. $4,500/24 =$187.5/hr in ‘shadow pay’.

Is your time in retirement worth more than $187.5/hr? For many, it probably is not!!!

The Lesson Learned:

Think hard about your financial adviser decision. Many can be worth 10x their fee; but a lot should be fired and the cloud-based solution should be hired.

Good luck!



  • The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Alpha Architect, its affiliates or its employees. Our full disclosures are available here. Definitions of common statistics used in our analysis are available here (towards the bottom).
  • Join thousands of other readers and subscribe to our blog.
  • This site provides NO information on our value ETFs or our momentum ETFs. Please refer to this site.

Print Friendly, PDF & Email

About the Author:

Wes Gray
After serving as a Captain in the United States Marine Corps, Dr. Gray earned a PhD, and worked as a finance professor at Drexel University. Dr. Gray’s interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management that delivers affordable active exposures for tax-sensitive investors. Dr. Gray has published four books and a number of academic articles. Wes is a regular contributor to multiple industry outlets, to include the following: Wall Street Journal, Forbes,, and the CFA Institute. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago and graduated magna cum laude with a BS from The Wharton School of the University of Pennsylvania.