Using Software to Keep Pro Athletes and Startup Millionaires From Going Broke

In the race among startups to dominate the automated money management industry, otherwise known as robo-advising, give Wealthfront credit for creativity. The Palo Alto company was the first to amass $1 billion under management largely by focusing on young Silicon Valley workers. Wealthfront blogs about initial public offerings, IRS 83(b) forms, and stock options. It created a program for Twitter and Facebook employees that helps them sell company shares slowly over time.

Members of the millennial generation, the theory goes, are predisposed to distrust old-line financial advisers and welcome the idea of letting Web-based software invest their money in mostly low-cost index funds.