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If you are looking for a hands-off approach to investing, look no further than robo-advising services. These robo-advisors will consider your financial situation and future goals and create a realistic timeline and fully stocked investing portfolio. We have chosen six of the best robo-advisors today in 2023.
What is a robo-advisor?
A robo-advisor is an online service provided by a brokerage firm that manages automated portfolios based on an investor’s preference.
The robo-advisor considers your personal preferences, weighs them against unpredictable forces, such as market trends and conditions, and automatically recommends a fitting investment portfolio.
Robo-advisors were introduced to the investing world about a decade ago to provide financial advice and investment management services at lower costs than human financial advisors.
Robo-advisors have become more mainstream, with more than 100 available services, due to their low costs compared to personal investment advisors and automated asset management systems.
Novice investors use robo-advisors because of their low initial investment deposits and lack of market knowledge.
As they continue to grow in popularity, it would be wise to use a robo-advisor alongside traditional financial advisors to meet your investment needs.
How do robo-advisors work?
Each robo-advisor varies across brokerage firms, but they all have many commonalities.
- You, as an investor, will fill out a brief questionnaire about your risk tolerance and investment needs, which can range from investing in the stock market to saving for a house or retirement account.
- With the provided information, the robo-advisor will automatically compile a diversified portfolio of funds. This is done behind the scenes by the brokerage firm’s investment professionals, tailoring investment options to your personal finances.
- Per usual, experts are expected to monitor market activity and all underlying investment products to ensure that your portfolio performs appropriately and rebalances according to its unique algorithm.
- By using robo-advisors services, you gain access to consultations with a certified financial planner who can help map out your goals and provide a realistic timeline for your investments.
- Once this is all completed, you can log into your account at any time to add contributions, check on your investments, track progress, and make adjustments as you see fit.
What are the best robo-advisors in 2023?
Advisory fee$3 to $5 per month
Vanguard Digital Advisor
The bottom line
If you are new to investing and want a hands-off approach to making your money work for you, using a robo-advisor service is the way to go. With complete portfolio management and rebalancing features, robo-advisors have made a big name in this space.
Want more information on investing your money? Look no further than Entrepreneur.com to give you the guidance you are looking for.
Information provided on Entrepreneur Guide is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, we do not recommend or advise individuals to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results