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Marcus Invest review: Automate your investment and retirement accounts with Goldman Sachs’ new app

  Summary List Placement Marcus Invest is an app that offers automated investment accounts and IRAs. The app has a $1,000 minimum account size requirement and a 0.35% annual asset-based fee. You can choose from three investment portfolios with different risk levels. Click here to set up an account with Marcus Invest. Table of Contents: Masthead...

 

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Summary List Placement

  • Marcus Invest is an app that offers automated investment accounts and IRAs.
  • The app has a $1,000 minimum account size requirement and a 0.35% annual asset-based fee.
  • You can choose from three investment portfolios with different risk levels.
  • Click here to set up an account with Marcus Invest.

Table of Contents: Masthead Sticky

Is Marcus Invest right for you?

Launched on February 16, Goldman Sachs-owned Marcus Invest is best for passive, or hands-off, investors who want automated, professional guidance on their investment or individual retirement accounts (IRAs). You’ll need at least $1,000 to get started, and the investment app provides more than 50 stock ETF and bond ETF portfolios.

In addition, all of Marcus Invest’s portfolio options take your investment timeline and risk tolerance into account. You can utilize any of its three investment strategies — Goldman Sachs Core, Goldman Sachs Impact, and Goldman Sachs Smart Beta — for individual or joint investment accounts. And if have a smartphone, the company provides mobile access both for iOS and Android users.

One thing to consider before signing up is that Marcus Invest doesn’t provide additional access to human financial advisors or certified financial planners (CFPs). This is a common offering amongst other automated advisors like Ellevest and Betterment. In addition, the $1,000 minimum requirement may be a bit high, given that many automated advisors require $0, $100, or $500.

Marcus Invest (Goldman Sachs) Logo
Editor’s rating 4.0 out of 5
Fees 0.35%/year
Account minimum $1,000
Promotion None at this time.
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Marcus Invest pros and cons

Pros

  • Investment portfolios tailored toward investor risk tolerance and time horizon
  • More than 50 stock and bond ETF portfolios available
  • App offers individual investment accounts, joint investment accounts, and IRAs
  • Account includes strategic asset allocation and portfolio monitoring

Cons

  • App doesn’t include financial advisor access
  • $1,000 minimum is relatively high compared to other popular automated investing apps
  • Goldman Sachs Smart Beta portfolios not available to IRA account holders

How does Marcus Invest compare?

Marcus Invest (Goldman Sachs) Logo Ellevest Logo Betterment Logo

Min. Investment

$1,000

Min. Investment

$0

Min. Investment

$0 ($100,000 for premium)

Fees

0.35%/year

Fees

$1-9/month

Trading fees

0.25% to 0.40%

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Ways to invest with Marcus Invest

Automated investing accounts

Marcus Invest offers three account types: individual investment accounts, joint investment accounts, and individual retirement accounts (IRAs). In addition, the $1,000 account minimum and 0.35% advisory fee grant you access to 50 different stock and ETF bond portfolios.

Marcus Invest says its advisory fee covers asset allocation, all trade commissions, portfolio monitoring, portfolio rebalancing, and ongoing management. Fees also include ETF expense ratios and ancillary fees.

The investment app’s portfolios rely on three key investment strategies:

  • Goldman Sachs Core
  • Goldman Sachs Impact
  • Goldman Sachs Smart Beta

Goldman Sachs Core portfolios invest your money in market-cap index tracking ETFs that include a blend of investment grade bonds, US and international stocks, and real estate securities. 

If you’re looking for socially responsible or impact investing options, the Goldman Sachs Impact portfolio could be a good fit for you. According to Marcus Invest’s website, these portfolios invest in funds that meet environmental, social, and governance (ESG) criteria. 

Finally, the Goldman Sachs Smart Beta portfolios strive to provide higher long-term returns through Goldman Sachs ETFs.

Automated retirement accounts

You can also automate your individual retirement savings. Though the investment platform doesn’t offer employer-sponsored retirement plans like 401(k)s or 403(b)s, it provides Roth IRAs, traditional IRAs, and SEP IRAs.

With the Roth and traditional IRAs, you can contribute up to $6,000 in 2021 (plus an additional $1,000 if you’re 50 or older). If you’re self-employed, you can open a Marcus Invest SEP IRA and contribute up to $58,000 in 2021 (the 2020 contribution limit was $57,000).

It’s also important to note that you can only use the Goldman Sachs Core and Goldman Sachs Impact strategies for IRAs.

Is Marcus Invest trustworthy?

Marcus Invest is part of Marcus by Goldman Sachs, a Goldman Sachs-owned company. The Better Business Bureau has given Marcus by Goldman Sachs an A+ rating. Since the bureau’s ratings range from A+ to F, this indicates that the company has a successful track record when it comes to customer interaction.

It’s also worth noting, however, that the BBB’s ratings don’t necessarily mean a company will exhibit trustworthiness or perform well. For this reason, it’s wise to conduct your own research too.

Since Marcus Invest launched on February 16, 2021, it hasn’t been in business long enough to collect any major lawsuits or public scandals. As for Marcus by Goldman Sachs, its record also appears to be free of any scandals within the last few years.

Marcus by Goldman Sachs has closed 115 complaints in the last 12 months, according to BBB data.

What is Marcus Invest?

Marcus Invest is an automated advisor offering investment accounts and IRAs. The investment app relies on expertise from Goldman Sachs’ Investment Strategy Group (ISG), Alternative Investment and Manager Selection (AIMS) team, Portfolio Management Group (PMG), and Digital Investing and Advice team.

Marcus Invest is a division of Goldman Sachs & Co. LLC, which is in turn a subsidiary of The Goldman Sachs Group, Inc. As mentioned above, it’s also part of the Marcus by Goldman Sachs offering, a platform that previously only offered savings accounts and personal loans.  

Headquartered in New York, Marcus Invest has been in business since February 16, 2021. You can find more information about the company by reviewing its Form ADV.

Rickie Houston is a wealth-building reporter at Personal Finance Insider who covers investing, brokerage, and wealth-building products.

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