In business school, I developed an interest in finance. Technology and finance share many traits. For example, when, at school, some former financiers appeared to think they owned a monopoly on smart logic, I argued that a financial model looks a lot like the algorithms I’d seen in tech. Each solves complex problems with a series of if/then scenarios. So, to prove that technologists could take on finance, I took many of the same courses as my fiance peers like Investment Strategies and Stock Picking. I loved both.
As I continue my career in technology, I hope I can one day merge my passions for both tech and finance, and create a financial product based on technology that makes investing and saving more transparent and accessible.
The announcement that Fidelity will offer no-cost ETFs this past week is a move towards the direction I want to see. I want to invest my personal assets in products with low, and preferably no, fees when possible. And, I want to ensure that fees, when added, include understandable disclaimers that enable non-experts to understand how even small fees will compound. I believe Fidelity’s move (and the moves of the subsequent firms that will inevitably follow) will make ETF fund investing, and the fees that come with some ETFs, clearer to a broader population.
We are still a long way from providing asset allocation and financial planning (how much to save when) advice as broadly as it should be provided; however, if Fidelity’s move encourages people to question fees on non-free products, then we’ve made progress in the right direction.