Disclosures
PROMOTIONS
Comprehensive Planning | $500 Investment Credit
The “Seasonal Offer | $500 Investment Credit” Promotional offer is for those who 1) are first-time purchasers of a Comprehensive Planning package on or before 11:59 PM EST on 12/31/2024 (the “Promotional Period”), 2) make an initial deposit of $1 or more into an Ellevest non-retirement investment account before 11:59 PM EST on 12/31/2024, and 3) are an Ellevest membership client at the time the $500 is applied to your non-retirement investment account. The credit may be applied to your account up to 90 days after the Promotional Period ends. This Promotional Offer cannot be applied to a previous comprehensive planning package purchase, and is only available to those who complete the purchase before the Promotional Period ends.
This Promotional Offer is not valid in conjunction and cannot be combined with any other offers or promotions, excluding membership client financial planning discounts. Clients who purchase a Comprehensive Planning package before the end of the Promotional Period will pay an Ellevest plan fee starting on the date the Ellevest Plan Terms and Conditions Agreement is acknowledged (the “Effective Date”).
Refunds: If purchasers requests a refund of the Comprehensive Planning package before the $500 has been added to their Ellevest investment account, our normal refund policies apply and they would no longer be eligible for the credit. If a refund is requested after the $500 credit has been added to their Ellevest investment account, Ellevest will deduct $500 from the purchase price and refund the remaining balance. Client takes on market risk if they choose to refund.
Digital clients who purchase a Comprehensive Planning package during the Promotional Period and make an initial deposit of $1 or more to a non-retirement investment account within the Promotional Period will receive $500 added to their Ellevest investment account. Ellevest’s processing time for depositing $500 into a client’s Ellevest account may be up to 90 days after the Promotional Period ends.
Ellevest reserves the right to refuse to award you the Promotional offer if it determines, in our sole discretion, that the promotion was claimed under wrongful or fraudulent circumstances, that your participation is against the spirit of the program, that making payment would constitute a violation of your Ellevest Plan Terms and Conditions Agreement or applicable federal or state law, or that incomplete or inaccurate information was provided. Ellevest reserves the right to end or modify any promotion at any time.
Ellevest fees and additional information can be found at www.ellevest.com. Other fees as described in Ellevest’s ADV Part 2 and the Ellevest Plan Terms and Conditions Agreement will continue to apply.
Projections
$100/Month Projection
For investing, we assume this person makes a $1,200 contribution a year for 40 years into a taxable investment portfolio. We assume this portfolio starts with a 91% allocation to the stock market, which gradually shift over time from more stocks to more bonds. Then we used a Monte Carlo simulation — a forward-looking, computer-based calculation in which we run portfolios through hundreds of different economic scenarios to determine a range of possible outcomes. The results reflect a 70% likelihood of achieving the amounts shown or better, and include the impact of the Ellevest annual plan fee ($129 per year) and taxes on interest, dividends, and forecast gains. This project assumes a constant rate of contribution, while the Ellevest portfolio projections are dynamic over time based on a salary curve.
For saving, we assume a $1,200 contribution a year for 40 years into a money market account with a constant after-tax interest rate of 3%.
The displayed returns are model outcomes, which means they do not depict the trading results of real Ellevest client assets. Forecasts or projections of investment outcomes are just estimates based upon assumptions about future capital market returns and economic factors, including the assumptions detailed above. These hypothetical performance estimates are limited by our ability to predict the inherently unpredictable market, and cannot guarantee future results.
$300/Month Projection
For investing, we assume this person makes a $3,600 contribution a year for 40 years into a taxable investment portfolio. We assume this portfolio starts with a 91% allocation to the stock market, which gradually shift over time from more stocks to more bonds. Then we used a Monte Carlo simulation — a forward-looking, computer-based calculation in which we run portfolios through hundreds of different economic scenarios to determine a range of possible outcomes. The results reflect a 70% likelihood of achieving the amounts shown or better, and include the impact of the Ellevest annual plan fee ($129 per year) and taxes on interest, dividends, and forecast gains. This project assumes a constant rate of contribution, while the Ellevest portfolio projections are dynamic over time based on a salary curve.
For saving, we assume a $3,600 contribution a year for 40 years into a money market account with a constant after-tax interest rate of 3%.
The displayed returns are model outcomes, which means they do not depict the trading results of real Ellevest client assets. Forecasts or projections of investment outcomes are just estimates based upon assumptions about future capital market returns and economic factors, including the assumptions detailed above. These hypothetical performance estimates are limited by our ability to predict the inherently unpredictable market, and cannot guarantee future results.
$500/Month Projection
For investing, we assume this person makes a $6,000 contribution a year for 40 years into a taxable investment portfolio. We assume this portfolio starts with a 91% allocation to the stock market, which gradually shift over time from more stocks to more bonds. Then we used a Monte Carlo simulation — a forward-looking, computer-based calculation in which we run portfolios through hundreds of different economic scenarios to determine a range of possible outcomes. The results reflect a 70% likelihood of achieving the amounts shown or better, and include the impact of the Ellevest annual plan fee ($129 per year) and taxes on interest, dividends, and forecast gains. This project assumes a constant rate of contribution, while the Ellevest portfolio projections are dynamic over time based on a salary curve.
For saving, we assume a $6,000 contribution a year for 40 years into a money market account with a constant after-tax interest rate of 3%.
The displayed returns are model outcomes, which means they do not depict the trading results of real Ellevest client assets. Forecasts or projections of investment outcomes are just estimates based upon assumptions about future capital market returns and economic factors, including the assumptions detailed above. These hypothetical performance estimates are limited by our ability to predict the inherently unpredictable market, and cannot guarantee future results.
RATINGS AND REVIEWS
Nerdwallet Rating as of October 2023.
All investing is subject to risk, including possible loss of the money invested.
Ellevest, Inc. has engaged NerdWallet (“the Promoter”) for referral services. The Solicitor can receive a cash payment of up to $90 from Ellevest. The Promoter may promote and/or may advertise Ellevest’s investment advisory services and may offer independent analysis and reviews of Ellevest’s services. You won’t be charged anything in connection with this referral, and this arrangement won’t affect the membership fees you’ll pay to Ellevest compared to other Ellevest advisory clients. The Promoter and Ellevest are not affiliated with one another and have no formal relationship outside this arrangement, the Promoter is not a client of Ellevest. Please read the important information about Ellevest and our digital advisory services contained in its Form ADV Part 2 and Part 3 CRS available at https://www.ellevest.com/.
References
Missing out on $100 a day by saving:
Source Ellevest. To calculate “about $100,” we compared the wealth outcomes for a woman who begins investing at age 30 with one who began investing at age 40 after having saved in a bank for 10 years. Both women begin with an $85,000 salary at age 30 and all salaries were projected using a women-specific salary curve from Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc., which includes the impact of inflation. We assume savings of 20% of salary each year. The bank savings account assumes an average annual yield of 1% and a 22% tax rate on the interest earned, with no account fees. The investment account assumes an investment with Ellevest using a low-cost diversified portfolio of ETFs beginning at 91% equity and gradually becoming more conservative during the last 20 years, settling at 56% equity by the end of the 50-year horizon. These results are determined using a Monte Carlo simulation—a forward-looking, computer-based calculation in which we run portfolios and savings rates through hundreds of different economic scenarios to determine a range of possible outcomes. The results reflect a 70% likelihood of achieving the amounts shown or better, and include the impact of Ellevest fees, inflation, and taxes on interest, dividends, and realized capital gains. We divided the calculated cost of waiting 10 years to invest, $341,181, by 3,650 (the number of days in 10 years). The resulting cost per day is about $93.47. Dividing that result by 24 hours results in $3.89 per hour.
To translate that result into pay rates, we assume a 30-day month, resulting in a cost per month of $2,843. We then assume the average number of hours worked per month is 160 (40 hours per week multiplied by 4 weeks), resulting in an hourly cost of $17.77.
The results presented are hypothetical, and do not reflect actual investment results, the performance of any Ellevest product, or any account of any Ellevest client, which may vary materially from the results portrayed for various reasons.
Lack of financial knowledge could cost you $5,059/year:
Source: Investment News. A recently released Allianz study showed that almost a third of Americans lack sufficient skills and knowledge to make sound financial decisions and that this ignorance costs the average household as much as $5,059 a year. Over a decade, this lack of awareness could amount to a deficit of $84,458 compared to households led by people who understand financial basics.
“Women earn 83 cents for every dollar earned by men. That’s a $900k disparity (or more) over a lifetime” as of January 2023. Over a 40-year career where wage growth is assumed to be 3% annually, lifetime earnings come to $5.2 million for the average male worker and $4.3 million for the average female worker when compensable factors are uncontrolled. The difference amounts to roughly $900K as a result of gendered opportunity barriers to holding higher-level, higher-paying jobs. This estimate does not account for lost benefits, investments, promotions, or other compounding factors on lifetime wealth.
“Sixty-two percent of women said they have unique investment needs” as of August 2020.
“74% of women die single” as of July 2018.