Editor’s Note: The following article was republished with permission from Vintage Value Investing.
As technology becomes bigger and better with every passing day, it’s never been easier or faster to find the financial advice that you need.
With the pressure building to provide lost-cost and fast services to consumers, Freedom Debt Relief has found that a growing number of companies are now investing in developing robo-investors, or “robos” for short. Been wanting to get into investing with a robotic adviser but aren’t sure what the deal is?
What is a Robo?
What are robos and how do they work? A robo is basically a virtual investment adviser. You answer a few questions online, and the robo’s computer program matches you with a number of diversified funds that are specially picked to match your age, horizon, and level of risk tolerance.
Freedom Debt Relief has found that a number of companies have begun to introduce virtual advising services via their robos, and some companies like Vanguard even offer a combined human-robo investing advice service.
What can They Offer?
Robos offer a fast and inexpensive option for investors looking to dip their toes into the waters of beginning a portfolio, but will likely not help with more experienced investors who are looking for a dedicated personal financial adviser to assist them in choosing where to invest their money.
If you’re not looking for financial advice based around specific goals like saving for retirement or starting a college fund, Freedom Debt Relief has found that a robo might be the right choice for you, as they’re usually less expensive than seeing a financial adviser.
What Fees are Associated With my Accounts?
Because robos’ services are automated, the fees associated with their accounts are almost always lower than personal advisers or hybrid accounts that use both human interaction and robotics.