Asset Allocation Made Easy

As a DIY investor without a broker, I have been looking around (for a while now) trying to find a tool that will help me allocate my investments in different asset classes and help me rebalance them occasionally. As I will probably elaborate on in an upcoming post, I haven't really been happy with any of the tools that I've tried so far. The tools have either been too simplistic, way too complicated, or the numbers just don't seem to add up. I should note that I have been trying out free tools, when I probably just should have broke down and pay for some advice.

Today I came across the marketriders.com website. The site offers advice on asset allocations in a few flavors. In its most basic form you can pay a $9.99/mo fee for automated advice by answering questions about your time horizons, appetite for risk and age. If you prefer, for $399 you can talk to an advisor who will walk you through things. Or, if you need more help yet you can move your portfolio over the Market Riders and pay them a .50% commission. The company has based its philosophy on the idea that if you get your money in a low cost investment (preferably an ETF that tracks an index) and have the right allocation there's really no need for an expensive broker. They seem genuine when they say they really prefer if people do the investing themselves and don't hire them as their planners. They even impose a requirement that you fire them each year and decide if you want to rehire them.

I think its a good concept. I haven't tried their service out yet, but since they offer a free 30 day trial I will be soon and will post a full review at that time. Market Riders apparently has a database that has over 700 ETF's and provides users with a sample portfolio of ETF's to meet their respective allocation. Why ETF's? Because as counter-intuitive as it may sound, they generally beat the experts. The company also monitors the performance of the investments and will send you an email when it is cost effective to rebalance things. In this sort of market that could prove to be some valuable advice.

Does anyone have experience with Market Riders? I like the concept a lot, we'll see how the model plays out in the service itself. I will report back once I have a chance to kick the tires. I wish them the best, it's about time there was some solid unbiased advice at a fair price.

Link: MarketRiders.com

Image Credit: The New Fine Art's Lab @ Flickr