Why Invest with Aura?
Since 2008, Robo-Advisors have leveraged technology to help individuals generate passive wealth. However, their one-size-fits-all, “set and forget” approach has done little for managing financial anxiety and in fact, can contribute to harmful avoidance behavior.
At the beginning of my financial journey, I was stressed. I had my first real job with a comfortable income but a massive amount of student debt. I also was being told to “be smart” about money but no one actually taught me what that meant.
As it turns out, I was not alone. Over 77% of Americans are experiencing financial anxiety and more than 20% of people making over $250,000 are living paycheck to paycheck. Financial security is not about how much you have in your bank account – it’s about building the confidence to take control of your finances and designing a plan that enables you to live your best life today and tomorrow.
How Did I Get Started?
When I finally started investing, I created a strategy (thank you Goldman Sachs model portfolios). I built an excel spreadsheet to stick with said strategy, tell me exactly how much to invest and what to invest in. On a monthly basis, after I got paid, I’d open up my spreadsheet, input how much money I had left over to save after my expenses and loan payments and it would spit out exactly what trades I needed to execute. All in, the process took about 40 minutes.
While I loved the practice because it kept me on top of my portfolio and the market, I’d be lying if I didn’t find myself tugged emotionally every time I clicked “buy” or “sell.” And even though I wasn’t day trading and was sticking to a strategy, I was actively involved with the process. I was causing myself stress.
What is my Investment Strategy Now?
Years later, I am building the platform I wish I had at the beginning of my journey. One that acknowledges the emotional side of money, removes bias, and allows me to invest in alignment with my values.
Algorithms almost always beat instincts. When I was investing before, I found myself second guessing my decisions although I knew “time in the market is better than timing the market.” Our mind simply plays tricks on us no matter how much knowledge we hold (This is why many wealth advisors outsource their wealth management to others).
How does Aura invest differently?
Most robo-advisors put you in a few ETFs through their “one-size fits all model.” Aura believes investing is not “one size fits all’,’ but should fit you. That is why we offer direct indexing – a feature typically only available to six-figure minimums. This means you’re directly holding shares of the stocks in your portfolio.
We believe the best investment plan is the one you can stick with, and the one you can stick with is the one you believe in. Therefore, through direct indexing, we allow you to align your investments with your values with our customizable ESG screens. Don’t want to invest in tobacco or oil, just filter it out. I personally filter out tobacco companies as I’ve lost a family member to lung cancer.
Direct indexing also allows us to remove hidden fees. While many robo advisors appear to have low fees, many hide high ETF expenses. With Aura, you have full fee transparency.
And finally, direct indexing allows for much more efficient tax loss harvesting. All Aura portfolios have automatic tax-loss harvesting, which can help improve your portfolio’s after-tax performance.
** Aura Finance Inc is an SEC-registered Investment Adviser. All investment advisory services are provided by Aura Finance, through its sub-adviser, Helium Advisors LLC.