Your Guide to Robo Advisors in 2018
Robo Advisors are the next big thing in easy financial planning. So big, in fact, that we can imagine traditional financial planners losing sleep over the thought of Robo Advisors taking the center stage. This is because they give you high returns in exchange for a minimal (or no) fee, and they can provide you with more choices in managing your investments. Whether you’re a novice investor with limited amounts of capital, or even if you have more than $100,000 to invest, a Robo Advisor might be perfect for your investment plan.
In the world of financial planning and investments, Robo Advisors are quickly becoming the preferred investment choice for those who are not intimately familiar with financial jargon such as dollar cost averaging, bonds, ETFs, dividend reinvestment or Blue-Chip index.
They are also ideal for investors who don’t want to pay the astronomical fees for a human advisor. There are Robo Advisor services that charge ZERO fees, and some only charge LOW fees upon reaching a particular amount of investment or feature set.
Robo Investors also provide a more flexible approach to financial planning, whether you’re a beginner investor who wants an automated or hands-off approach to financial portfolios, or if you want a more hands-on approach for your portfolio.
Best Robo Advisors for 2018
|Robo Advisor||Features||Expert Rating||Visit Site|
| Free portfolio analysis
Free retirement planner
Monitor your financial accounts
| Low $50 minimum deposit
| Free premium features
Easy to use
With Robo Advisors you don’t need to consult an expensive financial advisor, or spend weeks reading and memorizing hundreds of pages of confusing investor-speak. You don’t even need to know the best investment strategy for your demographic to reap high-returns on both long-term or short-term investment portfolios. The Robo Advisor will do all the dirty work for you.
Consider the fact that a human advisor can charge an annual fee of 1% to 2% of total assets, whereas a Robo Advisor will only cost you around 0.15% to 0.50% (keep in mind that some Robo Advisors offer a FREE service). This low or no-fee service alone will save you thousands of dollars.
Robo Advisors FAQ
WHAT ARE ROBO ADVISORS?
Robo Advisors are simply automated online wealth management tools. Robo Advisors utilize a set of algorithms – many of which the expensive human financial advisors also use themselves – to determine the right investment portfolio to match your preferences. It starts with a set of questions about your financial goals, and the system will automatically generate investment advice based on your answers. You can then choose to allow the Robo Advisor to automatically manage your portfolio for you. Depending on the service that you choose, you can either leave it alone, or you can take a more hands-on approach. The choice is yours! The Robo Advisor will also monitor your investment style and use the data for future investment opportunities. Read more on our page dedicated to answering the question, What Are Robo Advisors?
WHICH ROBO ADVISOR IS RIGHT FOR ME?
Not all Robo Advisors are created equal. There are those that are perfect for someone with a lower initial investment who wants a more hands-off or automated approach like Wealthfront, while other Robo Advisors are specifically designed for investors with a larger amount to invest and need a more personal approach such as Vanguard Personal Advisor Services.
That’s why our goal at BestRoboAdvisors.org is to provide comprehensive reviews on the best Robo Advisors online so you can choose which automated investing platform is an great match for you and your portfolio.
ROBO ADVISORS VS. FINANCIAL ADVISORS
We’re not saying that Robo Advisors are better than a personal financial advisor in all aspects, but the advantages are simply too hard to ignore. For example:
Robo Advisors can open new doors to small investors, and give access to market guidance that was previously attained only through traditional methods, like hiring the services of an expensive human advisor.
- Access to advanced investment techniques like Tax Loss Harvesting with a much smaller initial investment.
- The automated system means lower transaction fees, saving you money from the very beginning.
- Lower management fees means big savings for big investors.
- Low barrier of entry. You can start a Core portfolio for as low as $500.
- Protects all investors from avoidable risks such as greed and conflict of interest.
Let BestRoboAdvisors.org help you to quickly understand why a Robo Advisor (sometimes referred to as a ‘Robo Investor’) is the best choice for your financial future, and why this will help you to decide which of the many automated investing tools is the right choice for you. We will also answer important questions such as:
- Which Robo Advisor has the lowest fees?
- Which is best if you have under $15,000 to invest?
- What Robo Advisor is best if you have more than $100,000 to invest?
- Which are the best advisors if you live in Canada?
Savvy investors who are new to Robo Investors need many things to consider before taking the plunge, but we’ve made the process quick and simple. We also have the most comprehensive Robo Advisor reviews so you can read and decide for yourself which among the many digital advisors are best for you.
When the concept of an automated financial advisor or Robo-Investor was first introduced, we found it hard to believe that computer algorithms could even come close to providing the same level of returns as a human financial advisor.
But when the reports came in, Robo Advisors showed that they are just as good as financial advisors in managing portfolios – sometimes even better than the “pros”. It was then that we knew we had to get involved, and now we’re bringing you our expert advice on the best Robo Advisors on the market.
Our expert advice follows countless of hours of research, not to mention dropping significant amounts of our own money into investments to test out the best Robo Advisor services. That’s when BestRoboAdvisors.org was born. This is the one place where you can go and find information so you can make the best decision for your financial future.
We provide you in-depth reviews of the best Robo Advisor services on the market, and to give you an idea on how they work, here is a quick sample portfolio from one of our top Robo Advisor picks – Wealthfront.
Wealthfront offers an interesting alternative to traditional financial advisors. Investors can get the first $5,000 deposit managed absolutely free if you follow our personalized link.
Wealthfront’s website is easy to use, and they offer daily tax loss harvesting on all taxable accounts. This makes Wealthfront one of the best Robo Advisors around, and it’s no surprise that they consistently get rave reviews.
We deposited $15,000, and initially chose the 9.0 out of 10 risk tolerance level, which can be changed once every 30 days. Here is a breakdown of how our funds were diversified:
Based on the chart above, you will notice that a sizable chunk of our investment was allocated to U.S. Stocks and Foreign Stocks, with a decent amount invested in Emerging Markets. You will also see that a small percentage of our portfolio was allocated to ‘Cash.’ According to Wealthfront, this is used to “provide a buffer against pricing fluctuations as we invest your funds as well as to cover your advisory fees, if any. This prevents us from needing to sell securities and possibly incurring a taxable event.”
What about Other Robo Advisors?
Take a close look at the chart below, and you will see a variety of diversification among the different Robo Advisor services. We’ve broken down the asset classes per investment advisor, based on an investor with a moderate-risk portfolio:
- U.S. Stocks 41%
- International Stocks 31%
- U.S. Bonds 23%
- International Bonds 0%
- Others 5%
- U.S. Stocks 30%
- International Stocks 30%
- U.S. Bonds 12%
- International Bonds 9.5%
- Others 19%
- U.S. Stocks 34%
- International Stocks 36%
- U.S. Bonds 16%
- International Bonds 15%
- Others 0%
- U.S. Stocks 38%
- International Stocks 17%
- U.S. Bonds 34%
- International Bonds 4%
- Others 7%
Robo Advisors use different methods to determine how your portfolio should be handled, similar to personal financial advisors. Additionally, all of the automated investing services charge different fees depending on the level of the investment or the features that you choose. This is the reason why it’s so important to read our guides, comparisons and reviews so you can figure out which Robo Advisor is best for your hard-earned money.
All of the expert information on our site is meticulously compiled to help you make the best move for your financial future.