How SmartAsset Can Help You Manage Your Personal Finance
SmartAsset is an online personal finance platform that provides users with a variety of tools and resources to help them manage their money. As with any financial service, it's important to understand SmartAsset's reliability and fees. In this article, we'll explore some of the most frequently asked questions about SmartAsset, including its reliability, whether it operates as a fiduciary, how it makes money, its user base, and the cost of its services.
Is SmartAsset a Reliable Source?
SmartAsset claims to be a reliable source of financial advice and guidance. The company aggregates data from a variety of sources, including government agencies, financial institutions, and other industry experts, to provide users with accurate and up-to-date information. In addition, SmartAsset uses a proprietary algorithm to analyze and interpret the data it collects, which it claims improves the accuracy and reliability of its advice. However, like any financial service, it's important to do your due diligence and consider multiple sources when making important financial decisions.
SmartAsset has received mixed reviews from users. Some users praise the platform's ease of use and helpful resources, while others have criticized the accuracy of its advice and the reliability of its data. It's important to read reviews and do your own research to determine whether SmartAsset is the right financial tool for you.
I personally use the site for the financial calculators they have. They are super easy to use and cover a very wide range of personal finance topics/tools.
Is SmartAsset a Fiduciary?
A fiduciary is a financial advisor who is legally obligated to act in their client's best interests. While SmartAsset does provide financial advice and guidance, it is not a fiduciary. This means that it is not legally required to act in your best interest, and may have conflicts of interest that could impact the advice it provides.
In comparison, other online financial platforms like Personal Capital, for investors over a certain amount invested, do have a fiduciary duty to clients. The wording I found doesn't say "all advisors at Personal Capital (now called Empower) have their Certified Trust and Fiduciary Advisor certification" so I'm a bit skeptical of that wording without clearly stating that each advisor has passed the CTFA exam. There is also the CFF certification and Empower does not mention that either.
If having a fiduciary is important to you, it may be worth considering alternatives.
How Does SmartAsset Make Money?
SmartAsset generates revenue through a variety of sources. One of the primary ways it makes money is through referral fees it receives from financial institutions when users sign up for their services through SmartAsset's platform. For example, if a user uses SmartAsset to find a new credit card and then signs up for that credit card through the SmartAsset platform, SmartAsset may receive a referral fee from the credit card company.
SmartAsset also offers a premium service called SmartAdvisor, which connects users with financial advisors who can provide personalized advice and guidance. SmartAdvisor charges a percentage-based fee on the assets it manages, which can range from 0.25% to 0.50%.
It's important to be aware of these revenue streams and potential conflicts of interest when using SmartAsset's services.
How Many People Use SmartAsset?
SmartAsset has become a popular platform in the personal finance industry. According to the company, it has helped over 65 million people with their financial decisions since it was founded in 2012. The platform has also received significant funding from investors, including JPMorgan Chase, TTV Capital, and IA Capital.
While SmartAsset's user base is significant, it's important to remember that it is just one tool among many in the personal finance space. Depending on your specific financial needs and goals, there may be other platforms or resources that are a better fit for you.
Fiduciary vs. Financial Advisor: Which is Better?
When it comes to choosing between a fiduciary and a financial advisor, it really depends on your individual needs and preferences. Fiduciaries are legally required to act in your best interests, while financial advisors may have conflicts of interest. However, financial advisors can provide a wider range of services than fiduciaries, including investment advice and tax planning. Ultimately, the best choice for you will depend on your financial goals and priorities.
SmartAsset Reviews
If you're still unsure about whether SmartAsset is the right choice for you, you can read reviews from other users on websites like Trustpilot and ConsumerAffairs. These reviews can provide valuable insights into the experiences of other users, and help you make an informed decision.
Other Personal Finance Tools
If you're interested in exploring other personal finance tools, there are several other options worth considering. Personal Capital is a popular choice for managing investments and tracking net worth, while PocketSmith is a great tool for budgeting and forecasting and it has a pretty great app and bill management. SigFig is another investment management platform that provides personalized investment advice FOR FREE, and Fundrise is a real estate investment platform that allows you to invest in private real estate funds.
Conclusion
SmartAsset is a reliable source of financial advice that provides a wide range of tools and resources to help you better understand your personal finances. While the site is not a fiduciary it still gives you great direction and information to help you make wise money decisions.
SmartAsset has a large user base and has received positive reviews from many satisfied customers. However, it is important to remember that there are other personal finance tools and services available, such as Personal Capital, PocketSmith, Sigfig, and Fundrise, that may better suit an individual's specific financial needs and goals. Ultimately, whether one chooses a fiduciary or a financial advisor depends on their personal circumstances and preferences. By using SmartAsset and other personal finance resources, individuals can make informed decisions and achieve their financial goals.