In the beginning, I was skeptical…very skeptical. Now I’m a raging fan.
Robo-Investing is the best thing to happen for investors since index funds were invented.
In Robo-Investing, a computer—not a person—creates and manages a portfolio of index funds and ETFs. What are advantages for you, the investor?
The price is right. Fees are very low (0.15% to 0.50% compared to 1%-2% for human advisors). Plus there’s either no, or a very low, minimum required to open an account.
It’s easy to start. You fill out a short questionnaire to assess your situation, goals and risk tolerance, then choose among suggested portfolios based on your answers. That’s it…you’re ready to invest.
Great customer service, at no extra charge. Offerings include automatic rebalancing so your portfolio doesn’t get out of whack; tax harvesting to offset capital gains; retirement planning; and a variety of educational classes.
Compare Robo-Investing to traditional advisors or managed funds, which require much higher minimums, charge much higher fees, yet consistently underperform indexing (often called passive investing) over time.
No wonder Robo-Investing has experienced explosive growth since it started in 2008.
Interested? Here are my recommendations. Check them out.
- Betterment and Wealthfront, were the first ones to launch in 2008 and still are the highest rated,
- Vanguard is the largest and most popular.
- Ellevest was created by women especially for women.
Have you tried Robo-Investing? Share your experience.