Ellevest

Magazine

What Goes Into Your Goals

By Sallie Krawcheck

At Ellevest, we’re here to help you reach your money goals. That’s why our investing platform is built to help you aim directly at those goals, with specific recommendations for how much you might invest, and for how long, in order to give you the best chance of hitting them.

Here’s how we come up with those recommendations.

Build Wealth

This is a gift to “Future You.” We’ll recommend deposit amounts you might start with, based on how much other people like you — with a similar age, income, and number of children — decided to start with. Then we’ll forecast those deposits over 20 years.

The Build Wealth goal is included with all Ellevest membership plans.

Retirement on My Terms

This is where we do so many calculations that the computers can start to smoke (OK, not literally). We calculate your pre-retirement salary, which is your estimated salary in the year before you retire. It's based on factors like your gender and your education level, which affect your anticipated salary curve.

We then target getting you to 90% of that pre-retirement income. We estimate you’ll spend less than you do before you retire (no more costs of commuting, no more work clothes!), but not as much less as other firms (after all, many of you tell us you plan on traveling like a nomad when you retire).

We also factor in average lifespans, based on gender-specific* mortality tables. That's important, because on average, women live six to eight years longer than men.

The Retirement on My Terms Goal is included with Ellevest Plus and Executive plans.

A Place to Call Home

For your “home goal,” we help you invest for a down payment on a home. You tell us about your dream house, and we’ll use live Zillow data to estimate how much a house like that might cost. We then help you invest enough to have 20% of that as a down payment in six years.

The Place to Call Home goal is included with an Ellevest Executive plan.

Kids are Awesome

Our “kids” goal is for the extra expenses that come with raising a child; think summer camp, additional educational expenses, weddings.** We calculate 9 months of take-home pay, getting you to this amount in 6 years.

The Kids Are Awesome goal is included with an Ellevest Executive plan.

Start a Business

Most experts say to give a new business two years to see if it can work. So we target getting you to 2 years of take-home pay, over the next 5 years. If your business will have revenues immediately, or if you are freelancing, you may want to save less.

The Start a Business goal is included with an Ellevest Executive plan.

Big Splurge

Over to you on this one. You tell us how much you need, and we work to get you there.

The Big Splurge goal is included with an Ellevest Executive plan.


These are our starting points, but they're totally flexible, and there's no minimum to get started.*** You can customize each goal’s amount and timeline — and make it fit your real life.


Disclosures

“Non-binary person” is an option for your gender identity when you sign up for Ellevest, because nobody should feel forced to misgender themself to use our product. We don’t yet have a lot of data on the financial realities of non-binary and gender non-conforming people’s lives ... but we know they don’t usually experience the same privileges that cisgender men do. So for non-binary people, we rely on our portfolios that use data on cis women’s lifespans, career breaks, and salaries. (For now.)

Good to know: Our “Kids are Awesome” goal is not a 529 college savings account. Here is more information about the types of accounts that can help you save for education.

Account Requirements
Ellevest Digital doesn’t require you to maintain a minimum account balance. However, there are portfolio-specific minimums (ranging from $1 to approximately $240). You may not receive the entire recommended portfolio until your account balance meets the respective portfolio minimum.

Rebalancing and Ongoing Management
Ellevest will not rebalance a portfolio until it meets the respective account balance minimum necessary to generate the required shares. This minimum is a function of portfolio allocation and the share price of individual holdings, which will vary.

© 2020 Ellevest, Inc. All Rights Reserved.

* “Non-binary person” is an option for your gender identity when you sign up for Ellevest, because nobody should feel forced to misgender themself to use our product. We don’t yet have a lot of data on the financial realities of non-binary and gender non-conforming people’s lives ... but we know they don’t usually experience the same privileges that cisgender men do. So for non-binary people, we rely on our portfolios that use data on cis women’s lifespans, career breaks, and salaries. (For now.)

** Good to know: Our “Kids are Awesome” goal is not a 529 college savings account. Here is more information about the types of accounts that can help you save for education.

*** Some notes on no minimums required:

Account Requirements
Ellevest Digital doesn’t require you to maintain a minimum account balance. However, there are portfolio-specific minimums (ranging from $1 to approximately $240). You may not receive the entire recommended portfolio until your account balance meets the respective portfolio minimum.

Rebalancing and Ongoing Management
Ellevest will not rebalance a portfolio until it meets the respective account balance minimum necessary to generate the required shares. This minimum is a function of portfolio allocation and the share price of individual holdings, which will vary.

The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice.

The information provided does not take into account the specific objectives, financial situation, or particular needs of any specific person.

Investing entails risk, including the possible loss of principal, and there is no assurance that the investment will provide positive performance over any period of time.

Ellevest Membership fees are as follows: Ellevest Essential is $1 per month, Ellevest Plus is $5 per month, and Ellevest Executive is $9. Other fees as described in Ellevest’s Wrap Fee Program Brochure and the Ellevest Membership Terms and Conditions Agreement will continue to apply.

DISCLOSURE TEXT

Don’t miss an update

What you need to know about managing your financial health during the coronavirus pandemic. Plus fact-based opinions and women supporting women. Delivered 3x a week.

Sallie Krawcheck

Sallie Krawcheck is the Co-Founder & CEO of Ellevest. Her life’s mission is to help women to reach their financial and professional goals.