June 16, 2018

Ally Managed Portfolio Review

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Ally Managed Portfolio offers automated investing. But is it worth the fees? Read this review to find out how it compares to other top robo-advisors.

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Overall Score

4.0

Annual Fee

4.0

Minimum Deposit

4.0

Human Advisors

3.0

Customer Service

5.0
5-point scale (the higher, the better)

Pros and Cons

  • 24/7 customer service
  • Seamless integration for Ally bank clients
  • Preview your strategy before signing up
  • Higher fees than competitors
  • No tax loss harvesting
  • Higher minimum deposit

Bottom Line

Solid robo-advisor with great customer service if you have $2,500 to start

With Ally Managed Portfolio, you answer a basic questionnaire and the system determines your risk tolerance and how to help you reach your financial goals. Ally Invest then creates a portfolio comprised of ETFs from nine different asset classes.

Where Ally Invest Managed Portfolios differs is its offerings of all third-party ETFs. You'll see mostly iShares and Vanguard ETF choices, whereas other robo-advisors offer their own ETFs. This separation of funds could work to your benefit as you try to create the most productive portfolio.

How It Works

Investing with Ally Invest Managed Portfolios starts off the same way as with many other robo-advisors. You answer six questions that help Ally determine your risk level. They then create an investment strategy for you. If you choose to accept it, you open up an account and fund it with a linked checking or savings account.

Ally Invest Managed Portfolio's software then monitors your investments and rebalances them as things change. Ally Invest Managed Portfolio keeps your ETF expense ratios around 0.09%, helping you to keep more of your investments as profit rather than paying expenses.

Who Is It Best For?

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Ally Invest Managed Portfolios offers a valuable service for investors, whether beginners or experienced. Those who benefit the most include:

  • Beginning investors who don't understand how to invest
  • Investors who are too busy to manage their portfolios
  • Current Ally Bank or Ally Invest customers

Anyone who would benefit from professional investment experience without paying the hefty advisor fees can benefit from their services.

Ally Invest Managed Portfolios offers options for many types of investors. Whether you want to open an individual or joint taxable account, traditional or Roth IRA, or a custodial account, Ally has you covered. This opens up the possibilities for investors of any magnitude, whether saving for a short-term goal or retirement.

What Are the Fees?

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Ally Invest Managed Portfolios charges an annual fee of 0.3% of your assets under management. They withdraw the fee on a monthly basis.

For example, if you have $50,000 invested, you would pay $12.50 a month for the Ally Invest Managed Portfolios services.

Is Ally Invest Managed Portfolios Safe? Your investments with Ally Invest Managed Portfolios have the security of SIPC coverage. This covers your investments of up to $500,000 should Ally Invest Managed Portfolios and/or its affiliate Ally Invest Securities go out of business. It doesn't protect you against bad investment decisions or investments that plummet.

They also provide supplemental insurance through Lloyd's of London for investors who have more than $500,000 invested with Ally Invest. This coverage is also strictly if Ally goes out of business and your investments are lost.

The Platform and App

Ally Invest Managed Portfolios' platform is basic. It's certainly not a standout point for this robo-advisor. The same is true for their mobile app, mostly because they don't have one specifically for Ally Invest Managed Portfolios.

Ally has an app that is a central app for all Ally services. This makes it easy to log into one place and see how all of your accounts with any Ally service are performing at any given time. Download it on the App Store or Google Play.

Reasons We Like Ally Invest Managed Portfolios

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  • They offer around-the-clock customer service. Sometimes it's hard to find good customer service with a robo-advisor. Some companies live up to the "robo" part of the name and only offer support online. Ally Invest Managed Portfolios takes it a step further by offering 24/7 phone and online chat support to help you when you need it.

  • You can seamlessly transfer funds from your Ally Bank account. If you are a current Ally Bank customer, transferring funds is easy and instant. You don't have to wait the typical waiting period for funds to be available either to invest or to be available in your checking account after withdrawing funds.

  • You can customize your portfolio. While Ally Invest Managed Portfolios does recommend a specific portfolio based on your risk tolerance, you can customize it. You are free to play with the allocations until you find the right balance between risk and return to help you reach your goals.

  • Ally Invest Managed Portfolios automatically rebalances your portfolio. The market changes often, and your portfolio could get knocked off target with those changes. When that happens, Ally automatically rebalances your allocations to get you back on track to meeting your goals.

  • If you are an Ally Invest or Ally Bank customer, you have one dashboard. You can log into one account and view all of your investments and deposit accounts in one place. This can help eliminate confusion and help you keep your finances straight.

  • You can have a hands-off approach to investing. If investing overwhelms you or you don't have the time to manage your portfolios, Ally Invest Managed Portfolios does the work for you. Once you set your portfolio, you sit back and let them do the work while you watch your portfolio grow.

  • Each portfolio contains approximately nine ETFs. With a wide range of asset classes to choose from, you can diversify your risk and lower your chances of loss. Without all of your eggs in one basket, you lower the risk of experiencing a total loss when one sector of the economy suffers.

  • Ally Invest Managed Portfolios keeps a small portion of your portfolio as cash. The amount is usually equal to just 1% or 2% of your account balance. This helps to diversify risk as well as give you a little leeway when Ally needs to rebalance your portfolio (in the event that more cash is needed to purchase other investments).

  • Ally offers five portfolio options. They base your chosen portfolio on your risk tolerance. They offer conservative, growth, and aggressive growth options. Ally bases your chosen portfolio on your answers in the original questionnaire, but you can change your portfolio at any time.

  • You can see your chosen portfolio before signing up for an account. You answer Ally's basic questionnaire and let them put a portfolio together before you enter any personal information. This gives you a chance to decide if Ally is right for you before ever signing up.

Reasons You May Want to Look Elsewhere

  • You need at least $2,500 to start investing. Although Ally Invest Managed Portfolios doesn't have a minimum investment requirement to open an account, you cannot start investing until you have at least $2,500 in the account. Compared to other robo-advisors on the market, this is a rather high minimum that could exclude many investors.

  • They don't offer tax loss harvesting. Tax loss harvesting helps minimize your tax liability while offsetting your capital gains with losses. This isn't a service that Ally offers, but one that several other robo-advisors do offer. If taxes are of a concern to you, Ally may not be the right option.

  • The fees are a little on the high side. While there definitely are robo-advisors that charge more than Ally, the average robo-advisor fee is around 0.25%, putting Ally a little on the higher side and taking away from your potential profits.

How It Compares

Ally Invest Managed Portfolios vs Betterment:
Betterment offers similar services as Ally Invest Managed Portfolios. Both companies invest in low-cost ETFs and automatically rebalance your account. Betterment only charges 0.25% and they offer tax loss harvesting, which could give them the edge over Ally.

 

Ally Managed Portfolio

Betterment

SPECIAL OFFER
Automated Investing to Help Save Your Time - Learn More

 

Benefits and Features

Annual Fee
0.30%
0.25% for accounts under $100,000; 0.40% for accounts $100,000+
Minimum Deposit
$2,500
$0
Phone Support
24/7
Yes
Live Chat Support
24/7
No
Email Support
Yes
Yes
Human Advisors
Yes
Yes
Assets Under Management
$4.7 Billion
$10 Billion
Tax Loss Harvesting
No
Yes
Goal Tracker
Yes
Yes
Automatic Deposits
Yes
Yes
Online Platform
Yes
Yes
iPhone App
Yes
Yes
Android App
Yes
Yes
Fractional Shares
No
Yes
Taxable Accounts
Yes
Yes
401k Plans
No
Yes
IRA Accounts
Yes
Yes
Roth IRA Accounts
Yes
Yes
SEP IRA Accounts
Yes
Yes
Trust Accounts
Yes
Yes
529 Plans
No
No
 Learn MoreLearn More

Ally Managed Portfolio: Pricing information from published website as of 06/14/2018

Betterment: Pricing information from published website as of 04/04/2018

Ally Invest Managed Portfolios vs Self-Directed
If you prefer to manage your own investments, including buying, selling, and deciding when the time is right, Ally Invest Self-Directed is a better option. You can trade stocks, bonds, options, ETFs, and mutual funds, all for a higher fee.

 Ally Invest
 Learn MoreVisit Site
 

Ally Managed Portfolio

Ally Invest

SPECIAL OFFER
Automated Investing to Help Save Your Time - Learn More

SPECIAL OFFER
Get Up to $3,500 Cash Bonus and Commission Free Trades for 90 Days - Learn More

 

Benefits and Features

Minimum Deposit
$2,500
$0
Stock Trading $4.95 per trade ($3.95 per equity trade special pricing for high-volume/high-balance traders)
Options Trading $4.95 base + $0.65 per contract (50 cents per options contract special pricing for high-volume/high-balance traders)
 Learn MoreVisit Site

Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details.

Ally Managed Portfolio: Pricing information from published website as of 06/14/2018

Ally Invest: Pricing information from published website as of 09/18/2017

Ally Invest Managed Portfolios vs Wealthfront
Wealthfront is another frontrunner when it comes to robo-advisors. Wealthfront charges a lower fee (0.25%) than Ally and they offer tax loss harvesting. Wealthfront also has a robust retirement calculator and goals tracker to help you stay on pace with your goals.

 

Ally Managed Portfolio

Wealthfront

SPECIAL OFFER
Automated Investing to Help Save Your Time - Learn More

 

Benefits and Features

Annual Fee
0.30%
0.25%
Minimum Deposit
$2,500
$500
Phone Support
24/7
Yes
Live Chat Support
24/7
No
Email Support
Yes
Yes
Human Advisors
Yes
No
Assets Under Management
$4.7 Billion
$10+ Billion
Tax Loss Harvesting
No
Yes
Goal Tracker
Yes
Yes
Automatic Deposits
Yes
Yes
Online Platform
Yes
Yes
iPhone App
Yes
Yes
Android App
Yes
Yes
Fractional Shares
No
No
Taxable Accounts
Yes
Yes
401k Plans
No
No
IRA Accounts
Yes
Yes
Roth IRA Accounts
Yes
Yes
SEP IRA Accounts
Yes
Yes
Trust Accounts
Yes
Yes
529 Plans
No
Yes
 Learn MoreLearn More

Ally Managed Portfolio: Pricing information from published website as of 06/14/2018

Wealthfront: Pricing information from published website as of 04/04/2018

Bottom Line

Ally Invest Managed Portfolios offers similar services to other robo-advisors with the exception of tax loss harvesting. If you are already an Ally customer, it may make sense to throw some money towards their robo-advisor.

If you aren't an Ally customer, there are many options out there. Make sure you weigh the pros and cons of each before choosing the robo-advisor that is right for you.

Disclaimer: Opinions expressed here are author's alone. Please support CreditDonkey on our mission to help you make savvy decisions. Our free online service is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content.

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