Happy Wednesday, Friends!
I (Misti) have been deep in the trenches of my debt payoff journey for like, ever.
But once that’s done one of the things I’m most excited about focusing on is investing.
Since I don’t have a lot of money to invest I’m not considering a financial advisor but I’m also hesitant to DIY the whole thing. That’s why I’m really excited to talk about today’s topic
Robo Advisors!
Robo Advisors, also referred to as automated investing, are online platforms that use algorithms to tailor your portfolio based on your goals and desires.
We love using Robo Advisors to assist with investing for a few key reasons:
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You can “set it and forget it.” The algorithm re-allocates your portfolio just like an advisor would (but without the $500 hourly price tag.)
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The algorithm, designed by advisors, is based on historical financial data so it offers peace of mind for investors like me who don’t want to do it totally on our own.
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Much less expensive than hiring a human advisor.
With anything in life, there are also a few things we don’t love:
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If you like managing your own funds you’ll save a lot of money by skipping the robo and doing it yourself.
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If you have unique financial situations like owning a business, real estate, inheritance, or you’re less than 5 years from retirement you’ll need to spring for a human advisor. the algorithm may not consider specific financial concerns.
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They aren’t as flexible. For example, you may not be able to buy individual stocks or real estate in your portfolio.
Tips for choosing a robo advisor:
Not all robo advisors are created equal. If you have less than $100K in your investment accounts skip the monthly fee and look for a robo with a fee of around .25%. If you have more than $100K do the math on any monthly fee option.
One of the most reputable in the game is Betterment.
Betterment is an SEC-registered investment advisor, which means no commissions or upsells, they’re legally bound to put your interests first. They also offer
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$0 minimum balance
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Multiple portfolio options
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Advanced tax-saving tools
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Automated rebalancing
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And Traditional and Roth IRAs
If you’re interested in a robo advisor you should definitely check them out!
Make your money rise and grind while you sit and chill, with the automated investing and savings app that makes it easy to be invested.
🎯 All in all, we love advisors, DIYers, and Robos. It’s all about finding what works best for you!
Happy investing!
Til next time,
Misti
⭐️⭐️ P.S. Want to share all this goodness with your friends AND earn cool Frugal Friends merch?
**Means this is a sponsored or affiliate section. We may earn a small fee or commission when you choose to try one of our sponsor or affiliate partners. But opinions are still 1000% our own.
