While you won’t always beat the market as an investor, finding ways to reduce your tax liability can lead to better returns in the long run.
Prominent investor Burton Malkiel, now president of Wealthfront, wrote: capital gains tax On the other hand, selling the loser may be tax deductible. So if you have to sell, sell the loser. That way, at least you get a tax credit instead of an additional tax liability. ”
Of course, reducing your tax bill is another matter. Figuring out how to do that is another story.there playbook come in. Playbook is a fintech app It helps you “beat the tax man” by scanning your portfolio and recommending the most tax efficient accounts. loss recovery chance.
But who are playbooks best suited for, and are they worth the price? This playbook review covers all these details and more.
- We recommend an account suitable for investment.
- Scan your portfolio for opportunities to recover your tax losses.
- Transparent fee-based pricing
$29/month ($19 if billed annually) |
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High Income ($100,000 and above) |
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What are playbooks?
Launched by David Hegarty in July 2021, Playbook combines elements of a robo-advisor and a tax advisor into one app. The San Francisco-based startup encourages tax-effective savings on all accounts, whether or not they’re Playbook-managed.
Playbooks can also be used for advisory purposes only (reading information from accounts and making recommendations). Alternatively, you can choose to actively manage by moving funds into playbooks, allowing you to invest more cash in tax-friendly accounts.
Playbooks don’t aim to beat the market, but they help you take every opportunity to maximize your bottom line. Playbook-managed accounts are invested using low-cost investment strategies and do not charge any investment fees (other than his ETF fees charged by investment firms).
What do you offer?
The handbook will appeal to high-income earners looking for ways to reduce their tax burden. Here are some of the key features you can expect when you sign up for the playbook.
tax planning
The playbook creates a plan for maximizing your tax-advantaged account. It starts with making sure she fits her 401(k) with an employer, fills out the Roth IRA, and maximizes the rest of his 401(k) before investing in a brokerage firm. . Even if some of these measures are not applicable, Playbooks can help identify alternatives and allow you to invest in a tax-efficient way. You can set financial goals for up to five years or more.
move money automatically
Create a plan and let Playbook move the money for you. But that doesn’t mean Playbook is a simple auto-savings app. We use robust algorithms to ensure funds are allocated to the right accounts at the right time. Specify financial goals, emergency funds, and of course a Roth IRA or equivalent account. Playbooks don’t move money without your permission, but you can easily invest in and out of your account with an “easy button”.
Set up a Playbook account in just a few clicks
If you don’t have a suitable account set up, you can create a new one with just a few clicks. When you use a Playbook account, Playbook invests on your behalf using a low-cost index fund strategy. Playbooks don’t charge for managed assets, which is a good deal for most users.
Monthly flat rate
Unlike most robo-advisors, Playbook charges a flat monthly fee. You can choose to pay $29/month (for monthly advice and management) or $228/year ($19/month). It may not be worth it for a user with a low account balance, but it’s a very good deal if he has over $100,000 under playbook control. Even those on a tight budget may find the recommendations for automating playbooks and recovering tax losses worthwhile.
Are there any fees?
Unlike most robo-advisors, Playbook charges a flat monthly fee. After a 7-day free trial, you can choose to pay $29/month (monthly advice and management) or $228/year ($19/month). This fee may not be worth it for users with low account balances. But if you have $100,000 or more under your playbook’s control, it’s well worth it.
Even those on a tight budget may find the recommendations for automating playbooks and recovering tax losses worthwhile. No extra charges for playbooks except for a small fee MER About Exchange Traded Funds (ETFs).
How does it compare to playbooks?
Playbooks are impressive for their ability to automate difficult tasks. Open an account, move your money, and make sure your hard-earned money goes where you can work the hardest. If you like the automation features of Playbook, Playbook is the leader in robo-advisors thanks to the large amount of automation.
From a pricing perspective, Playbooks are also very competitive. M1 Finance (which offers free wealth management) is the only robo-advisor cheaper than Playbook for investors over $100,000. Wealthfront has higher fees, but also offers automated tax loss recovery.
One of the problems with playbooks is that their recommendations are very prescriptive without understanding the overall financial landscape. It focuses on personal finances, even if the person is married and jointly filing.
Whether a Roth 401(k) is meaningful is not considered. It’s also not very helpful in understanding side income (and can’t even recommend whether it should be moved to a tax-friendly account).
In fact, it doesn’t even ask how many children the person has (which affects taxes) or if the person has access to a medical savings account. At this time, playbooks are no substitute for human financial advisors who can consider many more factors. Over time, I suspect Playbook will begin to integrate these elements into more algorithms to better serve a wider audience.
How do I open a playbook account?
Playbooks can move funds from account to account or open an investment account on your behalf, so you need to provide a lot of information to open an account.going to “Start” buttonenter your name and email address to be authenticated.
The phone number is then verified. Playbook also collects your address, social security number, date of birth and other details to ensure that you can invest through the platform. While providing a lot of information, playbooks make the onboarding process easier.
Are you safe and secure?
With Playbooks, you can rest assured that your personal information is safe and secure. We use the same 256-bit SSL encryption and read-only access that major banks use for their online banking platforms.
How can I contact Playbook?
Playbook’s headquarters are located at Letterman Drive 1 in San Francisco, CA. The customer service number is 415-805-2040. You can also contact the company at hello@helloplaybook.com. The company is keen on teaching users how to use their products so they can call a human without too much effort.
Is it worth it?
If you’re single, earning over $100,000 a year and interested in pursuing financial independence, Playbook is the perfect tool for you. You’ll pay less tax in the long run because it helps you optimize your investments. Playbook costs are minimal compared to the amount of money you save.
The tax plan doesn’t seem very suitable for couples who are married and share finances. The plan does not take into account his two retirement accounts at work or how to maximize tax savings when considering a wider range of options. This plan may not work well for self-employed individuals with solo 401(k) plans or other self-employed retirement plans.
Check out the playbook here >>
Handbook features
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$29 ($19 if paid annually) |
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ETF administration fee (if applicable) |
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1 Letterman Drive, San Francisco, California |
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