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Rebalance Review

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Rebalance

Rebalance is a low-cost digital investment platform that focuses on creating IRAs, taxable accounts and 401(k)s for small businesses. The platform charges 0.70% annual management fees and requires a minimum account balance of $100,000, but it claims it can save you 68% in fees on average. The company will take your financial goals and risk tolerance into account to create an investment portfolio for you based on modern portfolio theory (MPT).

Best for

Investors who have $100,000 to invest; Those who don't want to be too hands-on; Investors with IRAs, 401(k)s and taxable accounts.

Drawbacks

The $100,000 minimum balance requirement may be a large hurdle for potential investors to clear.

Pricing: How Much Does Rebalance Cost?

Option Name Management Fee Minimum Balance Features
Rebalance 0.70% annually $100,000 Two-person financial expert team

Rebalance

Management Fee
0.70% annually
Minimum Balance
$100,000
Features
Two-person financial expert team

To start, you will need at least $100,000 to deposit into your account. You will also need to maintain that balance in the account to keep it open. However, your investment advisor may be able to waive this requirement based on your financial situation.

You will also face a $250 one-time set-up charge when you open your account. This fee is non-refundable unless you terminate your account contract within five days of signing up.

You will pay 0.70% of your account balance, up to $1 million, as Rebalance’s annual management fee. Balance amounts above $1 carry a 0.50% fee, and balances above $5 million have a 0.25% fee. The fee is deducted from your account on a quarterly basis, determined by the funds in your account for the previous quarter. ETF fund fees average 0.15%.

Rebalance's Investing Strategy

The experts behind Rebalance don’t believe in beating or timing the market. Instead, they utilize the MPT, which focuses on maximizing your returns given a certain chosen level of market risk. Rebalance’s algorithms create a well-balanced and personal portfolio for each client. Your risk tolerance and retirement goals help determine your portfolio’s asset allocation. Rebalance can also take into account your own investment experience. This will help determine whether your retirement goals are reasonable with your funds and your portfolio’s ability to take on risk.

Rebalance focuses heavily on global diversification. This means that, according to your own preferences, Rebalance will fill your portfolio with low-cost U.S. stocks, bonds, real estate, foreign equities and stocks. With a variety of funds, your portfolio isn’t at risk of failing should a certain name or sector of the market take a hit.

When choosing the specific funds for a portfolio, Rebalance will look at exchange-traded funds (ETFs) and examine their exposure to core asset classes, asset size, fees, sponsors and index construction. You’ll want funds that provide balance, market-generated returns, safety and flexibility. This strategy avoids going straight for the popular funds of the moment. Rebalance also uses only the largest ETFs, with an average of $6 billion in net assets, to provide liquidity and reduced cost and risk. Of course, Rebalance will always provide funds from reputable providers like Vanguard and iShares.

Your portfolio will be regularly rebalanced twice a year at a cost that ranges from $35 tp $50. Rebalancing is done using the MarketRiders investment platform, methodology and rebalancing algorithms. This process adjusts your portfolio according to changes in your tolerance, goals and the market, keeping its performance at its peak. Withdrawals and contributions may also require some extra rebalancing.

Supported Accounts

  • Traditional IRA
  • Roth IRA
  • Rollover IRA
  • SEP IRA
  • Inherited IRA
  • 401(k)s
  • Taxable accounts

Unsupported Accounts

  • Trusts
  • 529 college savings plan
  • Individual brokerage account
  • Joint brokerage account

Key Features

Rebalance’s main goal is to help you save for retirement in a more informed and personal way. The advisors and experts behind Rebalance do this by getting to know you and your financial situation and goals. That way, you end up with a well-balanced, personalized and globally diversified portfolio. The platform also promises to be transparent about its fees and processes. Keeping you involved with your accounts and the world of investing allows you to make more educated decisions when it comes to your own portfolio.

Notably, Rebalance provides each client with two expert advisors. You’ll have access to a retirement investment advisor and a retirement service representative. Together, these experts will help you understand and manage your money to optimize your retirement savings. Plus, these advisors will be there for you the whole time you’re a client with Rebalance. That way, you and the same advisors can keep in touch over the years to check up on your investments and finances. 

Rebalance boasts “a compound blessing,” meaning that not only will your original deposit grow, but also the money it grows will increase and so on. This allows your money to grow at the most ideal rate. However, since your annual fee is a percentage of your assets, as your assets grow, so will the fee you pay. Rebalance does keep its fee relatively low, however, when compared to other robo-advisors so you can still keep more of your earnings.

Lastly, the experts at Rebalance don’t believe in timing or beating the market. Instead, they create portfolios according to your own goals and strategies that have historically done well. This is why your Rebalance portfolio will contain low-cost index funds to take a more passive investing approach.

Who Rebalance Is For

Rebalance is for those who want their retirement savings professionally managed by an advisor that offers a personal touch. While still a robo-advisor, Rebalance also provides each client with a two-person financial expert team. Each team stays with the client for his or her entire relationship with the platform to provide human insight and advice as your goals and finances change.

You can benefit from opening an account with Rebalance if you want to maximize your retirement savings. Rebalance will help you navigate the investing world and the fees that come with it. That way you don’t get lost in all the investing lingo.  

You will have to have an extra $100,000 lying around, however, to open an account. This is the minimum balance requirement in place, although advisors may sometimes be flexible with that minimum depending on your financial situation.

Available Features

  • Bi-annual rebalancing
  • Human advisors
  • 24/7 account access

Unavailable Features

  • Tax-loss harvesting
  • Non-retirement account management

How Rebalance Works

To get started with Rebalance, you’ll first need to schedule a call with an investment advisor. You can find a “Schedule Advisor Call” button on the homepage or a “Let’s Talk” button on all other pages. You’ll then be prompted to enter personal information, including your name, email, phone, time zone and estimated account size.

On your call with a Rebalance advisor, you can ask all your questions on retirement investing and working with Rebalance. You can even ask them about your current accounts to see how they’re performing and how they can potentially perform better with Rebalance. There’s no cost or obligation attached to this phone call, so you can decide to open an account right then and there or not. Once you start the application process, your account will usually be up and running within five to seven business days. 

Your Rebalance account is accessible through the account’s custodian, Schwab or Fidelity. Using these custodians offers Rebalance and you highly secure brokerage platforms, low-cost trading commissions and tight controls over the account’s accessibility. Plus, because accounts with Schwab and Fidelity are protected by the Securities Investor Protection Corporation (SIPC) for up to $500,000 in securities and $100,000 in cash, your money is extra secure.

What's the Catch?

Rebalance has one of the highest minimum balance requirements of the robo-advisors we've reviewed. This means you should not get Rebalance if you cannot meet and maintain that minimum. There are a number of robo-advisors out there with lower minimums and lower fees if Rebalance doesn’t work for you. 

You also shouldn’t get Rebalance if you want to be more actively involved in your investments. This management service takes a passive approach to your portfolio, rebalancing only when necessary. This strategy won’t allow you to change your investments constantly on a whim.

Competition: How Rebalance Stacks Up?

Rebalance stands out for its thorough advisory offerings and a personal touch with its financial services. Plus, the average annual fee won’t take out too much of your earnings. However, it does require a high minimum account balance. This limits Rebalance’s services to investors who can pony up $100,000 to invest.

There are a number of other options, however. One such option is Vanguard Personal Advisor Services, the robo-advisor arm of Vanguard. Vanguard Personal Advisor Services does have a pretty high minimum balance requirement at $50,000, but that’s only half of what Rebalance requires. Vanguard Personal Advisor Services also charges a smaller management fee of 0.30%, which allows you to keep even more of your earnings. You can also benefit from human advisors, personalized portfolios and a mobile app with a Vanguard account.

You may also want to check out Betterment. Betterment offers two price tiers based on your account balance. There is no overall minimum balance requirement at its 0.25% annual management fee tier. This offers a cheaper investing option for those who cannot meet high balance requirements. Betterment also offers added benefits for those with balances of $100,000 and above. This comes at an annual fee of 0.40%, still cheaper than Rebalance. At this tier, you gain access to unlimited calls with a financial advisor, Betterment advisors, Betterment Digital access and more.

Robo Advisor Management Fee Minimum Balance Human Advisors
  • 0.70% annually
  • $100,000
  • Yes
  • 0.30% annually
  • $50,000
  • Yes
  • 0.25% annually on balances less than $100,000
  • 0.40% annually on balances $100,000 and up
  • None
  • Yes

Bottom Line: Should You Use Rebalance?

Rebalance stands out for its promise to make retirement investing profitable and personal. Your goals and finances determine the kind of portfolio Rebalance creates for you. Rebalance employs modern portfolio theory to create that portfolio in the most cost-efficient way. This also means your portfolio will always be balanced and diversified to keep your investments, and your retirement, safe.

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