If you’re not familiar with robo advisors, then you’ve come to the right place. Click here to learn how they can help you save for retirement and more.
What if there were a hands-off method of investing without paying a financial advisor? Or maybe you want to hire an advisor but don’t meet the minimum requirements.
You want to join the 54% of Americans that invest in the stock market. Is there an option for you?
Technology seems to have the answer to everything these days, and it has an answer for you. Ever heard of robo advisors?
Let’s find out what they are and if they can help you save on investing fees.
What is a Robo Advisor?
A robo advisor is a company that uses software/computer algorithm to make your investment plan.
Plus the software will constantly monitor your account and make quick, calculated investing decisions.
Robo advisor companies usually handle your investment package with a hybrid approach. The software handles most things, especially the day to day drudge.
They have a team of experts that handle the few things that require a human touch. The obvious advantage to this is that with less human involvement, the fees aren’t as high.
To learn more about robo advisors with a human element check out this Personal Capital review.
How Can it Help You Save?
Investors are notorious for being their own worst enemies when it comes to the stock market. People tend to make emotional decisions based on market changes. These are not always the best decisions.
The computer’s judgment, however, is not clouded by emotions. The software will make more calculated decisions.
It also doesn’t have its own agenda. Sometimes financial advisors are more interested in trades that will line their pockets and not yours. A computer isn’t worried about that kind of thing.
A robo advisor is also a very hands-off approach to investing. This is a lot less stressful than handling your own investments. You can set it and forget it.
Check back in every once in a while if you want to see how your savings are growing.
Does it Cost Anything?
Of course, there are fees involved. But they are quite a bit less than you would pay a financial advisor.
Fees vary depending on the company that you select and how much you’re investing.
Sometimes you can choose to pay a flat fee per month or pay a percentage of your assets. You’ll also be responsible for any investment expenses.
Is Robo Investing Right For You?
Traditionally, it has been difficult to get financial advice if you’re investing a low amount. Financial advisors won’t “waste” their time on small accounts. Your only option was to do it yourself.
But you might not be too interested in learning the ins and outs of stocks, bonds, and binary options trading.
Robo advisors open up the world of investing to everyone, even those with small accounts. If you’re someone looking for an inexpensive, hands-off approach to investing a small amount, a robo advisor may be the perfect solution.
Find Your Investing Solution
There are lots of options out there to help you save and reach your financial goals.
So many, in fact, that it can feel a little overwhelming trying to navigate the waters on your own.
Take a little stress off and leave your investment strategy in a robo advisor’s capable hands.
If you don’t like it, you can always go back to doing it on your own–but you probably won’t.
Looking for more investment advice? Check out our top tips for new investors.