As an investor, you won’t always beat the market, but finding ways to reduce your tax liability can lead to better long-term returns.
The famous investor Burton Malkiel (current director of Wealthfront) wrote: “Remember: selling winners means paying capital gains tax while selling losers can produce tax deductions. So if you need to sell, sell your losers. At least this way you get a tax deduction rather than an increase in your tax liability.
Of course, paying less tax is one thing. Knowing how to do it is another. It’s there that game book between. Playbook is a fintech app which helps you “beat the taxman” by scanning your portfolio and recommending the most tax efficient accounts as well as collection of tax losses opportunities.
But who is Playbook best suited for and is it worth the price? I’ll cover those details and more in this Playbook review.
- Recommends the right account for your investments.
- Analyzes your portfolios looking for opportunities to harvest tax losses.
- Transparent paid pricing
$29/month (or $19 if paid annually)
High income earners ($100,000 and over)
What is PlayBook?
Launched in July 2021 by David Hegarty, Playbook combines elements of a robo-advisor and tax advisor in one application. The San Francisco-based startup recommends tax-advantaged savings on all your accounts, whether they’re managed by Playbook or not.
You can use Playbook for advice only (it will read information from your accounts and make recommendations), or you can opt for active management by allowing Playbook to move funds and invest more money in accounts tax-wise. advantageous.
Although Playbook does not try to beat the market, it takes every opportunity to help you maximize your returns. Accounts managed by Playbook are invested using a low-cost investment strategy, and they have no investment fees (other than ETF fees charged by investment companies.)
What does it offer?
game book will appeal to high-income earners looking for a way to reduce their tax burden. Here are some of the key features you can expect to see when you sign up for Playbook.
Playbook creates a plan to help you get the most out of tax-efficient accounts. It starts with making sure you get the 401(k) match at your employer, complete your Roth IRA, max out the rest of your 401(k), then invest in a brokerage. If you aren’t eligible for some of these moves, Playbook helps you identify alternatives, so you can invest in a tax-efficient way. You can set financial goals for up to five years or more.
Automatically moves your money
Once you have a plan, Playbook can move your money for you. But that doesn’t mean Playbook is a simple automated savings app. It uses robust algorithms to ensure that you allocate funds to the right account at the right time. You will designate accounts for your financial goals, for your emergency funds, and of course your Roth IRA or equivalent. Playbook won’t move money without your permission, but it will allow “easy” transfers to and from your accounts so you can invest easily.
Set up playbook accounts in just a few clicks
If you haven’t set up the correct accounts, you can create new ones with just a few clicks. If you use Playbook accounts, Playbook invests on your behalf using a low cost index fund strategy. Playbook does not charge for assets under management, which makes it a good deal for most users.
Fixed monthly fee
Unlike most robo-advisors, Playbook charges a flat monthly fee. You can choose to pay $29 per month (for monthly advice and management) or $228 per year ($19 per month). It might not be worth it for users with small account balances, but it’s a pretty good deal if you have over $100,000 under Playbook management. Even those with less cash can benefit from Playbook’s automation and recommendations for tax loss harvesting.
Are there any fees?
Unlike most robo-advisors, Playbook charges a flat monthly fee. After the 7-day free trial, you can choose to pay $29 per month (for month-to-month consulting and management) or $228 per year ($19 per month). The fee may not be worth it for users with small account balances, but it’s good value if you have over $100,000 under Playbook management.
Even those with less cash can benefit from Playbook’s automation and recommendations for tax loss harvesting. Playbook does not charge any additional fees apart from the small RFG on their exchange-traded funds (ETFs).
How does Playbook compare?
Playbook is impressive in its ability to automate difficult things. It will open accounts, transfer money, and make sure you put your hard-earned money where it works the most for you. Thanks to the heavy dose of automation, Playbook is a leader among Robo-Advisors, if you like what Playbook automates for you.
From a fee perspective, Playbook is also very competitive. M1Finance (which offers free asset management) is the only Robo-Advisor cheaper than Playbook for investors with more than $100,000 invested. wealth front has higher fees, but it also offers automated tax loss collection.
One problem with Playbook is that it’s pretty prescriptive on its recommendations without understanding the full financial picture. It focuses on the finances of an individual even if that person is married and files jointly.
He doesn’t consider whether a Roth 401(k) can make sense. It doesn’t even do much to understand secondary hustle income (and recommend whether it should go into a tax-advantaged account.
In fact, it doesn’t even ask how many children a person has (which affects taxes), or whether that person has access to a Health savings account. At this point, Playbook is no substitute for a human financial advisor who can consider even more factors. I suspect that over time Playbook will begin to incorporate more of these factors into its algorithm to better serve a broader base.
How do I open a Playbook account?
Since Playbook can transfer money between accounts or even open an investment account in your name, you will need to provide a lot of information to open an account. Go to the Start buttonand provide your name and email address, which will then be verified.
Then your phone number is verified. Playbook also collects your address, social security number, date of birth, and other details, to ensure you can invest through the platform. Although you provide a lot of information, Playbook simplifies the onboarding process.
Is it safe and secure?
You can rest assured that your personal information is safe with Playbook. They use the same 256-bit SSL encryption that major banks use for their online banking platforms, as well as read-only access.
How to contact Playbook?
Playbook’s corporate headquarters are located at 1 Letterman Drive, San Francisco, CA. The customer service number is 415-805-2040. You can also contact the company at email@example.com. The company is eager to teach users how to use the product, so you can have a human on the phone without too much trouble.
Is it worth it?
If you are a single person earning over $100,000 a year and want to pursue your financial independence, Playbook is a great tool for you. This can help you maximize your investments, so you pay less tax in the long run. The cost of Playbook is minimal compared to the amount you could save.
Tax plans didn’t seem as appropriate for married couples sharing finances. The plans don’t consider two workplace retirement accounts or how to maximize tax efficiency when considering a wider range of options. Plans may not work as well for self-employed people who use solo 401(k) plans or other self-employed pension schemes.
$29 ($19 if paid annually)
ETF management fees (if applicable)
1 Letterman Drive, San Francisco, CA