If you watch CNBC or other news channels you might have heard of “Robo-Advisors”. Basically, it allows investors to sign up, connect their bank account to an investment account and then they’re off and running. The investor has little impact on investment selections because the Robo-Advisor generally has a set portfolio they manage for you. Companies such as Betterment are very popular and are even used by many advisors as their choice of portfolio management. Betterment rebalances your portfolio and gives you access to a diversified passive portfolio.
Robo-Advisors can be a great choice for someone who is just getting started in the investment world. As you continue to grow your capital savings, I believe it is always best to work with an advisor. Stress can be alleviated by working with an advisor giving you the ability to focus on more important activities.
This week I was featured in a Forbes article discussing Robo-Advisors in more detail. You will see quotes from myself and other advisors on the Robo-Advisor landscape and some of the potential drawbacks to consider before using one.