Saw some posts asking why and for postmortems. I am not the founder, not in the retail industry but adjacent space to understand enough of why.
1) there are already competitors in this space that have been there for a decade or longer. Higher fees but not significantly so to counter the risk of doing business with a startup.
2) If you use their calculator is a bit disingenuous, starting balance of $1mm. Those clients exist but that’s the minority. If you bring that number down to a more typical average or median for someone with a 30 year horizon you see that the difference is not material compared to their default assumptions.
3) if you are a high net worth individual where tax low harvesting matters, the product does not feel that compelling.
Indeed, this is ideally suited as a small team in a brokerage or other asset management firm, marketed to existing high net worth customer relationships either as part of the asset under management fee or some cut of tax savings realized. It is not a sustainable standalone business.
1) there are already competitors in this space that have been there for a decade or longer. Higher fees but not significantly so to counter the risk of doing business with a startup.
2) If you use their calculator is a bit disingenuous, starting balance of $1mm. Those clients exist but that’s the minority. If you bring that number down to a more typical average or median for someone with a 30 year horizon you see that the difference is not material compared to their default assumptions.
3) if you are a high net worth individual where tax low harvesting matters, the product does not feel that compelling.