Earthfolio Review 2023: Is It Legit?

Are you an investor wishing to green in your investments? How do you invest sustainably? Well, go through our Earthfolio review to see how.

Any person seeking a sustainable investment company should consider Earthfolio. It’s an automated investment company with sustainable portfolios for potential investors.

Think about it. You can invest sustainably. Platforms like Earthfolio provide you with this opportunity. You get to make money, while still minding your impact on the planet.

While not many companies follow good ethos, there are some that are quite strict about it. These are run and managed sustainably to benefit and better the environment.

So, do you want to know how to invest sustainably?  This Earthfolio review offers all these answers and more.

What is Earthfolio?

The world continues to grapple with different issues facing the environment. Matters like increasing climate change have necessitated new ways of doing things. Among these changes is a need for a more sustainable way of investing.

That need resulted in the creation of new investment opportunities. An example of a growing sustainable fund is Earthfolio. Earthfolio gives investors a stake in a better future that protects the earth. Its commitment is continuous sustainability.

The company opened its doors in 2000 to fill a need for sustainable investment options in a changing world. Its customers get a chance at investing their money using practices that benefit the planet. Earthfolio is an automated investment firm resembling other funds.

However, the main difference is in its ethos. Clients get to engage in sustainable investing covered in this Earthfolio review. Are you considering sustainable investing? Well, this Earthfolio review will help you learn more about the company and its values.

That way, you can engage in more socially responsible investing that focuses on more than just a simple transaction. It’s best to start by learning the key features of Earthfolio.

What Are the Key Features of Earthfolio?

1. Online Platform

Everything is done online, from opening an account to transacting. There are no physical advisors to assist.

2. Specific Portfolios

Earthfolio investment portfolios have 7 to 12 mutual funds. At the same time, these hold about 1000 individual stocks and bonds.

3. Online Questionnaire

You can get a tailor-made portfolio suitable for your investment needs. It all boils down to how you answer the Earthfolio questionnaires when opening an account.

Who Can Benefit from Earthfolio?

Sustainable investing options like Earthfolio are growing in popularity. But, it’s essential to understand who benefits from them. It’s undeniable that sustainable investing is having a positive impact on the world. And, the fact that it works is drawing more customers to firms such as Earthfolio.

Earthfolio focuses on investment that benefits the earth and promotes solutions for the environment. In turn, the communities and environment benefit from the investments.

Traditional notions about investing continue to change with the growing rise in sustainable investing. That means people who are more eco-conscious get to benefit from Earthfolio. If you want to invest your money sustainably, this is the way to go.

Earthfolio incorporates ESG (Environmental, Social, and Governance) practices which dictate its entire investment strategy. Now new investment opportunities are resulting from more asset classes suitable for a broad group of people.

Investors are now on the lookout for sustainable companies to invest in. Communities and regions, in turn, benefit from this change in investment.

Benefits of Investing in Earthfolio Compared to Other Investment Platforms

In this Earthfolio review, you get to learn why this is the best investment platform to use.

1. It’s the Future

Sustainable living is the future of the planet. Already there’s so much change in the way things are done that its impact is felt everywhere.

Even investing is now taking note of how crucial sustainability is. So, start as soon as possible to get a foot into the future.

Sustainable investing isn’t a fluke or something that will pass. Calls for investing that observe ESG have resulted in firms like Earthfolio doing exceptionally well.

There’s a shift in global investing, which means more people will need to better look at sustainable funds and investing.

2. ESG Funds are Popular

No one wants to be seen as responsible for destroying the planet. That’s why fund companies like Earthfolio are releasing ESG funds.

These funds follow specific criteria when it comes to companies to invest in.

3. Better Risk Management

Earthfolio focuses on companies with sustainable practices. While others try to use sustainable funds to subvert scrutiny, Earthfolio funding focuses on companies implementing sustainable practices. So when you open an account, you know your funds are working for sustainability.

Who Does Earthfolio Appeal to?

Many young people are getting into investing but with a twist. Their focus is on sustainable companies working towards practices that don’t harm the environment. An increase in demand for such sustainable investing is why Earthfolio was formed.

Millennials, for instance, find Earthfolio appealing when searching for investment opportunities. It follows ESG practices in the letter and aims at creating better sustainable investing opportunities.

Is Earthfolio a Long or Short Term Investment Platform?

Earthfolio is a long-term sustainable investment platform. In this Earthfolio review, you will learn how to open an account. At the same time, you can note how to invest, and the amount necessary to start.

While other sustainable funds suit short-term investing, Earthfolio focuses on the long term. The good news is your money is still accessible. You can have all or part of your investment sold when the markets are open.

But, it’s better to have the investment for a more extended period. That way, you make more profit from it.

What are the Upfront Costs of Earthfolio?

After learning more about the company, it’s better to address the upfront costs. How much will it cost you to run an Earthfolio investment account?

When you open an Earthfolio account, the cost is $25000. You also need to maintain the same amount in your account at all times to maintain it. If at any time the amount drops, you get charged.

Once you open an account with $25000, there’s an annual management fee payable. It’s 0.50% of the $25000. But, when your account balance is less, you are charged a flat fee of $31.25 on top of the maintenance fee.

However, the firm gives you a chance to consolidate if the amount drops. You can consolidate with similar accounts like a 401(k) or a traditional IRA. One can have a value of $18000 and the other $7000, creating a total of $25000.

But, be sure to talk to a tax advisor first. Consolidating accounts is a good idea but has some consequences. Also, remember, sustainable investing isn’t risk-free. Like any other fund, there are some risks to consider.

Types of Earthfolio Investment Accounts

Earthfolio has six types of accounts. These are:

• Individual Account

It suits investors who want to open an account alone and not as a group. You can open with $25000 or consolidate depending on your preference. It’s a minimal-requirement account and simple to set up online.

• Earthfolio Joint Account

Two or more people can open an Earthfolio Joint account. You can opt to each open with $25000 or use one amount for all members.

The Joint account is accessible to each member of the partnership.

• Earthfolio Trust Account

A trust account differs from an Individual account. It’s an account that you can open as an individual then permit another person to run it. They, in turn, become the account trustee. Just be sure to learn more about the agreement.

• Earthfolio IRA Rollover

When you open an IRA Rollover account on Earthfolio, you can direct your retirement fund from your previous employer to it.

The account enables you to preserve the status of your retirement fund. It means you won’t need to pay any penalties when you withdraw early or taxes on the money.

• Earthfolio 401(k) Rollover

A rollover 401(k) account permits you to bring money from your 401(k) to the Earthfolio investment account. However, it’s crucial to learn how this impacts your account.

• Earthfolio SEP

SEP stands for Simplified Employee Pension account. It’s an IRA account applicable in the US that you can open as an individual. Your boss who runs a business can set it up for you.

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Steps of Opening an Earthfolio Account

Part of this Earthfolio review is helping you learn how to set up an account. You need the account to start making sustainable investments.

It takes only 10 minutes to create an Earthfolio account since the process is quite simple. All you need is to locate the ‘Get Started’ button on the homepage of the Earthfolio website.

The first page you come across asks you simple details like your name, email, and level of investing experience. Answer the questions before proceeding to the next page. Once you complete the questionnaire, click on ‘Next.’

The following questionnaire helps you narrow down the type of account that suits you. It’s based on the answers you gave on the first page. Earthfolio provides you with a portfolio of the best investment options to go for.

On this page, you get information on the right portfolio to start with, the performance of the portfolio, and how much fee to pay Earthfolio for managing it. The company also helps you consolidate an existing account with the recommended investment options.

After that step, you proceed to the Application portion of account opening. Here you get step-by-step instructions on how to begin using your new Earthfolio account.

You can take time to view the historical performance of the recommended Earthfolio portfolio. It’s crucial to analyze it carefully and even seek further investment advice, especially as a beginner. That way, sustainable investment can work to your advantage.

All the portfolios are managed online since this is a digital investment platform. Everything is done on a computer or other smart device. Blue Marble Investment, which is a Registered Investment Advisory firm, runs all of Earthfolio’s portfolios.

Pros of Earthfolio

• Adheres to ESG Criteria

For an investment firm to offer sustainable portfolios, it needs to follow set ESG criteria. From this Earthfolio review, it’s easy to see that this is the case. The firm offers clients seeking suitable investment just that.

• Account Variety

There are six types of accounts you can choose from when working with Earthfolio. It’s crucial to note that Earthfolio employees are always available to help you understand each account before starting your investment journey.

• Simple to Open an Account

All you need is access to a computer and the internet. Next, you get on the Earthfolio official website and set up an account. Depending on your answers to specific questions, the company recommends specific portfolios that suit you.

• Promotes a Sustainable Environment

For Earthfolio, it’s more than just transacting. The firm aims to offer investors the chance to be part of companies with sustainable practices at every level.

• Easy Access to your Money

While it’s impossible to withdraw the funds immediately, you can still access them in a week. You can sell part of your entire portfolio and access the funds after three business days. Long-term investment is preferable, but it’s not a must.

See Related: Green Century Funds Review: Is it Worth?

Cons of Earthfolio

• Everything is Online

While many people can invest online without hesitation, it’s still not ideal for some. They want access to human, financial advisors who can take them through the entire application process.

Also, if they have any questions, it’s better to have a face-to-face conversation. Earthfolio doesn’t offer such interactions. The only way you can reach Earthfolio employees is by email or call customer service agents.

• It’s Expensive

The first account you open will cost you $25000. That is a substantial amount that locks out many investors interested in Earthfolio. The company goes further to put restrictions on the amount. You get charged if it falls below the set sum.

• Annual Maintenance Fee

You have to pay Earthfolio 0.50% of the sum in your account annually. Such maintenance fees take away from the profit you can earn annually from your portfolio.

• Few Investment Options

While other sustainable investment companies have more options, Earthfolio has only a few. The limited number isn’t appealing to many.

• No Bank Guarantee

If there’s ever a situation where your portfolio fails, there’s no guarantee to recover the funds. It’s a risk that each sustainable investor takes when investing in Earthfolio ETFs, for instance.

Such lack of security is a cause for concern for many considering it.

See related: 16 Awesome Impact Investing Examples to Know

Earthfolio Customer Service

Any client with an issue that needs addressing can contact Earthfolio via email or place a phone call. Unfortunately, the company doesn’t offer a live chat option on its website. That can limit the response time to your questions.

Earthfolio customer service has specific support hours. The hours are from Monday to Friday, 9 am to 5 pm PST. It’s pretty limiting, considering this is a digital investing platform.

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