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This concept has led to index fund investing, robo-advisors, and a wealth of new tools designed to make investing easier and more profitable. Nexus We are pushing the efficiency frontier into new territory.
Nexus is an app that combines a checking account and an investment account into one app. As a user, you can set a cash minimum and all dollars above that cash threshold will be credited to your investment account where you can invest efficiently according to your risk tolerance.
If you are always looking for a way to eliminate cash drag Nexus could be the perfect tool for your portfolio.
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- Combine checks and investments in a single app
- Almost all of your money is spent on the market
- Nexus buys and sells investments based on your cash needs
- Investment accounts may suffer losses
No monthly fees or administration fees |
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Taxable only. Not available for IRA, 401K |
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What is Nexus?
![Nexus Savings app homepage Nexus Review: Screenshot of the Nexus homepage](https://cdn.thecollegeinvestor.com/wp-content/uploads/2023/05/Nexus-Savings-App-Homepage.png)
Nexus is the first checking account and robo-advisor combination of its kind. The Seattle-based company was founded in his 2023, and check services are provided by his Evolve Bank & Trust. Investment advisory services are provided by Financial Choice Inc., an SEC registered entity. Nexus is dedicated to eliminating the negative performance impact of cash drag on investment portfolios.
Instead of keeping checking accounts in low interest rate accounts, Nexus keeps a minimum amount in FDIC-insured checking accounts (currently earning 2.5% APY) and the rest operate in the market.
Nexus offers new technology solutions to old problems. How can I stop cash from acting as an anchor for my portfolio? The Nexus solution is to minimize cash, even if it’s money you spend on rent, groceries, or living expenses.
What do you offer?
Nexus offers a single app to manage your cash and investments. It is designed to channel cash into high yielding assets including bonds, treasury bills and even equities.
The cash is on FDIC insurance commission free checks
All cash held in your Nexus account is held in an FDIC-insured checking account. At the time of this writing, you can earn 2.5% APY on your balance and your principal is guaranteed. Nexus offers common checking account features such as debit cards, online check transfers, online bill payments, and fee-free ATM withdrawals.
Choose your own target asset allocation
Nexus offers targeted asset allocations that consider minimal cash needs and investments that match income and net worth. You can also tailor these suggestions based on your cash needs and preferred risk profile.
Manage your investments and cash directly like a single portfolio
Nexus manages cash in your checking account and assets in your investment account as if they were one portfolio. By looking at your entire portfolio, Nexus can see if you’re being too conservative despite having a lot of cash on hand. It moves you from low-yielding cash to high-yielding assets such as US Treasuries, bonds, and even stocks. If you need money to cover your expenses, Nexus will sell assets in your investment portfolio to cover your needs.
Withdrawals for Portfolio Rebalancing
If you spend more than you have cash, Nexus will sell your investments to cover your withdrawals. The Nexus Algorithm uses withdrawals to push the portfolio towards the target allocation. Sell all too many assets to balance your portfolio. When Nexus needs to sell shares, it sells the oldest shares.
Are there any fees?
![Nexus fee Nexus Review: Nexus Pricing](https://cdn.thecollegeinvestor.com/wp-content/uploads/2023/05/Nexus-Fees.png)
Nexus does not charge fees for banking or advisory services. No monthly bank fees, advisory fees or even his ATM withdrawal fees. There is no charge for overwithdrawing your account, but Nexus may prohibit future transactions while overwithdrawing.
How does it compare to Nexus?
Nexus works a bit like others Savings app powered by AIlike that Acorn, Move funds from your checking account to long-term investments. However, these apps can help you review your spending patterns and keep a good buffer in your account.
Nexus is, as far as we know, the only app that combines checks and investments. join save offers a similar concept, but it doesn’t do much for understanding how you’re earning higher-than-usual returns.
wealth front offers a similar service, but checking and investment accounts are not systematically linked. They remain two separate entities. Wealthfront does not actively transfer funds from your cash position to your investment account. Also, Wealthfront currently offers him 4.55% APY on his checking account, which is higher than his 2.5% APY currently offered by Nexus.
Frankly, Nexus worrisomely ignores the importance of cash as a personal financial tool. The market is volatile and cash is required for everything from Chipotle wak to children’s daycare. Nexus’ approach may leave you with less capital when the market goes down. Alternatively, short-term payments can be made proactively. capital gains tax When selling a position for profit.
Consider having two accounts instead of using one app for checking and investing.please choose high yield checking account For everyday banking. Then set up automatic forwarding to. free brokerage account or low-cost robo-advisor. A little more cash, but you get the money when you need it. And more efficient taxation could result in better returns overall.
How do I open a Nexus account?
To open a Nexus account, you must be 18 years of age or older and a legal resident of the United States.Download the app to open an account app store again google play. Enter your email address and a secure password to create your Nexus app account.
To begin using your account, you will be required to answer a series of questions including information about your real name, address, date of birth, household income and net worth. Nexus uses your income and net worth information to make asset allocation recommendations.
Once you have provided your personal information, you can fund your account by sending money to Nexus or by setting up a direct deposit. Your debit card will be mailed to you by Nexus.
Are you safe and secure?
From a technical perspective, Nexus provides bank-level security for checking and investment accounts. The cash portion of your account is FDIC insured up to $250,000. Investments may lose their monetary value, but the account is insured by his SIPC, so your funds won’t be lost through hacking or theft. While Nexus has processes, policies and technologies designed to keep your personal information safe, there is always a small risk that a breach could lead to identity theft.
Nexus technology may be secure, but that doesn’t mean Nexus is a secure app. Money in investment accounts can lose value, and given the fact that I spend money almost every day, Nexus’ suggested asset allocation seemed pretty aggressive.
Didn’t understand my spending pattern, suggested a minimum cash value of only $200-$300 depending on my situation. I don’t feel safe when the money I need for my daily life is exposed to market risk. The stock market is not a high-yield savings account, so I don’t want to risk my money that much.
How can I contact Nexus?
Contact Nexus by sending an email to support@nexushq.com. The company’s mailing address is PO Box 19792, Seattle, Washington, 98109.
Is it worth it?
It seems misplaced for Nexus to focus on maximizing profits. You may benefit from increased convenience and efficiency, but you risk placing short-term funds (which must be kept 100% safe) in long-term investments with no principal guarantee.
You should have cash available to meet your short-term needs while saving for your long-term goals. Nexus focuses on the long term without considering how it might affect our ability to buy groceries today. People need access to cash every day, and most financial experts recommend setting aside at least three to nine months’ worth of spending in cash or cash equivalents.
I applaud Nexus’ efforts to encourage people to invest. It is precisely inertia and lack of knowledge that keep many people out of the market. However, that approach is too aggressive and can lead to tax inefficiencies and cash flow tightness. It’s much better to automate your investments while keeping enough cash on hand.
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Nexus features
Depends on selected ETF |
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Free debit card with free ATM withdrawals |
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Email: support@nexushq.com |
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Only the cash portion of the account |
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