minimums,<\/a> dividend reinvesting, rebalancing, and tax optimization guiding your money in the background 24\/7.<\/p>\nYou start by answering questions about your financial situation, goals, and risk tolerance. The robo-advisor then builds and manages a diversified portfolio of low-cost ETFs and funds specifically for you. It’s about bringing smart money management to everyone, not just the ultra-wealthy.<\/p>\n
<\/span>Benefits of Using a Robo-Advisor<\/strong><\/span><\/h2>\n<\/p>\n
Compared to traditional human investment advisors, what unique upsides do robo-advisors offer individual investors?<\/p>\n
\n- Low Account Minimums<\/strong>\u00a0– Open and start investing with typically $500 or less.<\/li>\n
- Lower Management Fees<\/strong>\u00a0– Algorithms are much cheaper than Wall Street pros!<\/li>\n
- Passive Investing Approach<\/strong>\u00a0– Computer formulas enable hands-off rebalancing and picking.<\/li>\n
- Automated Portfolio Management<\/strong>\u00a0– Ensure discipline without emotional decision pitfalls.<\/li>\n
- Easy Account Access<\/strong>\u00a0– Monitor performance on web\/mobile rather than rely on manually generated reports.<\/li>\n
- Multiple Account Types<\/strong>\u00a0– From IRAs to trusts to joint taxable accounts.<\/li>\n
- Tax-Loss Harvesting<\/strong>\u00a0– Selling losers to offset gains and lower your tax bill.<\/li>\n<\/ul>\n
The combo of affordability, automation, diversification, and tax savviness packs a powerful punch.<\/p>\n
<\/span>Top 6 Robo-Advisors to Consider<\/strong><\/span><\/h2>\nMany strong robo-advisor platforms now exist with varying strengths. Which top firms lead the pack delivering premium algorithmic investing technology and service?<\/p>