Is A Robo Advisory Service Right For You?
Remember the movie Terminator and how scary that robot was?
Well there is one robot you need to get to know, if you like the idea of growing and managing your investments yourself…
It’s called a Robo Advisor. These robots are friendly robots, that are actually online investing platforms that use computer algorithms and advanced software to help people like you build and manage their portfolios.
Here are a few reasons why people use Robo Advisory services:
Reason #1) They are easy to set up and start investing right away.
Reason #2) They do not require a lot of money to get started.
Reason #3) They are fully automated, just answer a few questions and it will suggest a diversified portfolio to meet your investing goals and risk tolerance levels.
Reason #4) Some Robo Advisors will automatically rebalance your portfolio and incorporate tax harvesting techniques to increase your returns.
Reason #5) Most Robo Advisors will manage individual retirement accounts like a Roth or IRA, and also taxable accounts.
One of the best reasons to use a Robo Advisor is the low fee’s compared to using a registered investment advisor (RIA). Most charge between .25% and .50% annually, compared to 1% or more for an RIA.
Whenever choosing a Robo Advisor or a human financial advisor, do your homework first before investing a dime.