Successful investing is difficult. We can’t all have hit on Apple before its stock skyrocketed. Plus, the cost for quality wealth management is often prohibitive.
As a result, millennials are investing less and opting for cash saving methods. According to a study done by Bankrate.com in July, one in three millennials said savings accounts are the best way to save money for the next ten years. Only 21 percent of older generations preferred that option.
Dan Bauer saw this trend and realized cost is typically the limiting factor for investment management.
So, he created Altruistic Investing, a Colorado Springs based fintech company, as a way to bring the resources typically reserved for the 1 percent to the masses.
“We want to provide investment management to all, not just the ultra-wealthy. We offer professionally managed accounts starting with a $1,000 investment size,” Bauer said.
The company has no hidden fees and uses Exchange Traded Funds (ETFs) rather than Mutual Funds, because they typically allow diversification at a lower cost.
The Altruistic algorithm monitors the market, making automatic adjustments to your portfolio in real time. Clients have the ability to choose how much they want to risk and can adjust that figure.
“Clients have more control over Altruistic – they do a risk questionnaire, we put them into one of four investing models for what works best for the client, or a blend designed to change over time based on a timeline or goal,” Bauer said.
Rather than having clients aim to hit the jackpot with Apple or Microsoft-type investments, Bauer said the key is limiting loss during downturns.
“If you lose less in the down markets, you can risk less in up markets and still outperform,” he said.
Altruistic Investing isn't just a catchy name, it has meaning for the Colorado Springs-based team. One percent of every client’s financial service management fee is given to a charity of their choice. Altruistic then provides updates on how your money was used by the charity.
The company has raised a small amount of money through friends and family Bauer said, and are currently working with VC's on a potential upcoming Series A.
In the next five years, Bauer said the company will look to provide high-end, in-person wealth management for everyone, while also offering insurance and cash management.
