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Android and IOS app allows you to manage your personal investments directly.
SigFig (short for Significant Figures) is an excellent way to manage your investments without being overwhelmed with information. The app allows users to sync their investment accounts and track stocks, funds, 401(k)s and IRAs in real-time. An attractive and easy-to-use dashboard displays all of your account balances in one secure location. Simply put, SigFig allows people to serve as their own financial advisers. Users can view charts to review performance, allocation, risk and more. News and price charts for each stock holding are also provided in a clear and easy-to-read manner.
Additionally, SigFig diagnoses your portfolio and gives you data-driven investment advice for making changes. SigFig suggests how to fix bad investments (those that are underperforming, too risky for your profile, etc.) and eliminate costly fees and helps you figure out if you are being overcharged or underserved by your investment advisers.
The app is free to install and use. However, there is a paid, managed account level for those who desire it. SigFig Managed Accounts cost $10 per month for a diversified portfolio invested in a mix of funds according to personal risk level, daily account monitoring, and automatic rebalancing. They do not charge commission, transaction or trading fees.
How It Works
SigFig connects directly to your accounts (it is compatible with more than 100 brokers) and shows your balances and holdings, refreshing the information periodically. It does not currently support accounts outside of the United States, however. You can monitor any accounts that you currently use for investment. To add an account, the user adds the appropriate broker(s) and then logs into each account. Once the login information is verified by the broker, all accounts associated with that login will be automatically added to SigFig and updated. Holdings, balances, etc., are then displayed. Going forward, there will be no need to log in to the accounts again. No one can trade, withdraw or transfer funds from the application (not even the user), so users can have peace of mind.
Users receive periodic update emails highlighting gainers and losers for the period. Once preferences are set, SigFig monitors the portfolio daily and rebalances as often as necessary, automatically.
SigFig allows users to set their risk level based on personal preference. The application will then compare their holdings to their stated risk tolerance and make suggestions based on SigFig's proprietary algorithm. Additionally, the algorithm will calculate and make suggestions based on similar products with a lower cost or better performance. The algorithm is built off of modern portfolio theory. Users must keep in mind that the algorithm, while powerful, is not a human and cannot account for unique factors and needs. Therefore, careful consideration is necessary before any action is taken based on the advice received in this app. Nonetheless, for a free app, the investment advice given is powerful.
In addition to the app, a comprehensive website is available with all of the app’s features.
In terms of security, SigFig uses 256–bit SSLencryption, the same level banks and brokerages use, to safeguard users’ financial information. The company also does not store users’ personal security information. Data is encrypted from login to logout. The application is read-only, meaning no money can be moved by using it. The website has been independently verified by TRUSTe & VeriSign. Over $30 billion has been synced to SigFig. More information is available on their website if you have other questions concerning security.
Accounts can be easily created within the SigFig app or on the website, and users can change their settings in either place. The application is free to use and free to download. In our opinion, SigFig has gone a long way toward achieving its goals of helping users start investing, simplify investing, cut fees, diversify, consolidate and save time. The app is available for iOS and Android.