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What is a Robo-Advisor - 5/24/2024

MoneyMarci

Despite the name, a Robo-Advisor, or Robo-Advised portfolio, does not mean that R2-D2 is in charge of all of your financial decisions. Nor does it mean that you are stuck with no live person to talk to. To my knowledge, all Robo-Advisors have individuals or teams you can access for questions and guidance. Any fees for these services will vary with the provider.


When you consider the algorithms, monitoring, and other computer assisted tools that brokers use to monitor and manage your portfolio, there is at least some "robo" portion of any sizeable portfolio.


Similar to choosing human advisors, different Robo-Advisors have different strengths and you should do your research to determine which one is the best fit for you. Things to consider are:

  • Your level of knowledge

  • Fees

  • Size of your portfolio

  • Your preferred level of personal involvement



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