The Rise Of The Robo-Advisor:
Robo-advisors have surged in popularity as people seek low-cost, automated investment opportunities. A robo-advisor is an online, automated portfolio management service. Because these companies use computer algorithms to manage client investments, robo-advisors can offer their services for a fraction of the cost of a human financial advisor. That lower-cost management combined with features like automatic portfolio rebalancing and tax-loss harvesting can translate into higher net returns for investors. Within minutes robo-advisors allow you to set up a customized, diverse portfolio and can give you access to wealth management services that were previously only reserved for the ultra-wealthy. Convenience is another reason why Robo-Advisors are so handy. Between email, Skype, and the trusty old cell phone you don’t have to trek to your investment advisor’s office very often. In fact, working with an investment advisor doesn’t require most people to keep him or her on speed dial it’s more that they’re there to check in with at regular intervals. Robo-advisers are a great choice for people who aren’t going to take the time to learn about managing their money and also for young people who have just started work that can “set and forget” a 401(k) allocation with a Robo-advisor.
The best robo-advisors overall
Wealthfront and Betterment offer low management fees, reasonable minimums and innovative tools.
Best robo-advisors for free management
These robo-advisors will manage your portfolio free of charge