An open letter to Ellevest

As a woman, I looked up to you. As a woman wanting to put my money where my mouth and morals are, I rolled over my old 401ks into your IRAs, and elected your “Impact” Portfolio. As a financial coach for budding entrepreneurs, divorcees, widows and women from all socioeconomic statuses, race and walks of life, I championed you as a company for good my clients could trust with their money. I bragged about your 100% Women Financial Advisor staff. About your board diversity and your women and minorities in leadership stats. An investment company for the rest of us. I shared and re-shared basically anything Sallie Krawcheck published. I cheered for you when you rang the opening bell on Wall Street and I celebrated with you when you hit 2B AUM. I applied to work for you several times and constantly told friends and colleagues that working for Ellevest would be “the dream.” In fact, here’s an excerpt from one of my applications:

“I have loved and admired Ellevest for many years and I’m excited about the opportunity to work with a team of like-minded individuals who are passionate about empowering women and closing the gender wealth gap. Ellevest’s mission, values, diversity, and commitment to driving industry-wide change fires up my soul with a greater hope and purpose than I’ve felt anywhere else. I have long yearned for a company and work environment that aligns with my values, uses their voice for good, and facilitates profound differences in the lives of the historically marginalized. I believe the world is a better place when women have money and I’m thrilled at the prospect of being part of a team who is working towards making that a reality for women everywhere.”

And now….

I take it all back. Your decision to eliminate the portfolio management of anyone with less than $500k in investable assets completely disenfranchises the grassroots movement of the women who helped build you. I used to be so proud of having my IRA in THE ONLY company “by women for women” that took my longer lifespan and lower lifetime earnings into account when building their robo-investing algorithm.

But now, you’ve chosen to alienate us. You’ve turned your back on the upper, mid, and low middle class earners who are doing everything they can to put something away for the future.

“With a mission to get more money in the hands of women, Ellevest will continue to offer financial planning and wealth management services to high and ultra high net worth individuals, families, and institutions looking to invest $500,000 or more.” (PR Newswire Feb 26)

As a financial coach, my motto is “the world is a better place when women have more money.” But how do we help women have more money? By only helping the “high and ultra high net worth individuals”? WRONG. By helping those in debt change their behavior and get out of it, so they can fund their goals and start an IRA. By helping those who make decent money figure out where it’s going, and get them organized enough to set up payroll deductions to an IRA. By helping the MASSES do 1% better, NOT by helping the (mostly white) 1% do massively better (with your now all-white advising team).

As we’ve seen since the Reagan years, trickle-down economics is a fallacy. But one, apparently, that you’ve now subscribed to. You’ve turned your back on the very women you purported to champion. The ones Sallie created Ellevest for. And in under three months of a CEO change, you’ve slapped us all in the face.

Instead of using your mighty platform to effect change for all the women historically disenfranchised from the financial industry, you shut us up and shut us out with a 10pm email you hoped would go quiet as the night. Most of all, you’ve proven that you’re just another financial giant for the rich, cutting benefits for the middle and lower class to serve the wealthy. Smells of something familiar in Congress right now.

Congratulations on helping the rich get richer. You’re no better than the rest of them. 

Sincerely Disappointed,

The Rest of Us