Still has 100k in WF. But feeling way safer now :)
Moved 250k from Wealthfront cash account to Fidelity brokerage account
What issues did you have with Wealthfront?
Same as Yotta. They can freeze you fund anytime
So could any bank. Better keep it under your mattress.
NAH. WF used a middleman, if the middleman fucked up, your fund is frozen although it’s under FDIC insurance. On the other hand, fidelity as a brokerage is too big to fail
Yotta used a third party service. Not WF. get facts straight.
Still I’d chosen the safer place to put my money. Unless WF can release a statement about the fund safety
I thought Fidelity uses the same “sweep” method https://www.reddit.com/r/wealthfront/s/JDZIGn97FV
You realize that many places use sweep accounts. Raymond james, which is a massive brokerage offers sweep accounts.
it literally says 'most if not all' in the case of bankruptcy. thats good enough for you?
If you are in excess of FDIC or SIPC, you would not get it all.
fdic or sipc wouldn't be relevant in a wealthfront bankruptcy case
Wf doesn't use middlemen though. Yotta did. WF lists on their website that they don't use a middleman.
Also while fidelity is huge, WF has >50bn. Yotta had 115 million.
Lol. So confident, even though you're wrong.
There has been ZERO indication so far of this ever happening to WF, you’re just fear mongering like every other doofus that is still active on this sub for some odd reason
I did the same but different amounts. for my own piece of mind.
What’s the point of this post?
This is most likely a hacked Reddit account used by someone with an agenda to tarnish WF and other fintechs that are innovative competitors to traditional mammoth brokerages.
Yotta was a gambling casino masquerading as a finance solution. It had $112M in AUM compared to Wealthfront’s $50B, Betterment’s $45B, and even M1’s $5B.
Don’t let trolls influence your decision-making.
As a person impacted by the Synapse-Evolve issue and who is choosing to keep most of my cash with WF, the claims in this comment are absurd. It is always a good idea to diversify and the motivations of folks who are scared off from the fintech model are valid.
I didn’t say that anyone should keep their cash only with one party. I said that this tack of using Yotta and their reliance on unproven middlemen as a means to condemn or cast doubt on other fintechs is a false narrative.
And if I saw someone posting Yotta-related messages on multiple subreddits and directly or indirectly trying to link that to WF or other fintechs, I would question their agenda.
lol you made your conclusion with no basis
The irony.
yea. 250k to amex for emergency fund. the rest to fidelity in t bills to avoid state tax. less liquid but better returns anyway
250k as your emergency funds?!? How much do you have altogether?
Yeah, it’s weird times with still no assurances from WF. I think you did the right thing.
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Better off invested than held as cash anyway.