Would you like to invest in the stock market, but are too busy to learn the ropes? Are you intimidated about the learning curve yet you don’t want to pay for a human financial advisor? Then using a Robo-advisor might be just the thing for you.
Ask Peter Comisar and he’ll tell you that there are downsides to using Robo-advisors for investing your funds. It’s not always the low-cost way of investing and there are a lot of such advisors on the market, making it difficult to choose the best one for you. Also, working with a Robo-advisor is an impersonal way of investing. If you prefer a flesh-and-blood financial advisor you should probably steer clear of this type of investment.
But for convenience and the ability to invest and monitor your stocks at any time, you can’t beat this type of advisor. Here are some benefits to using them for investments.
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Robo-Advisors Offer Low Fees
A traditional financial manager provides the personal touch but also charges a larger fee. For those who lack the skills and patience of managing their own investments and yet don’t want the high fees of a financial manager, Robo-advisors are a good way to go.
Robo-Advisors Are Easy To Use
They’ll ask you questions and then use that information to select stocks for you. Investing in stocks using one of these advisors is about as easy as filing taxes using an online tax service. You answer questions and the Robo-advisor does the rest.
Robo-Advisors Design a Unique Plan for You
These advisors you a series of questions about how much you’re willing to spend and the risk you’re willing to take. They’ll also ask about what your goals are for investing this money. Based on your answers, they’ll design a plan tailor-made for you.
Robo-Advisors Provide Tax-Friendly Optimization
Robo-advisors have the best information at their metallic fingertips and can provide you with the best investment that will help you pay the lowest taxes. They look at your other sources of income and work with them so when tax day comes, you don’t suffer as much tax pain.
Before working with a Robo-advisor it’s important to know what your goals are. Do you want to retire early? Do you want to send a child through college? By knowing what you want beforehand, the advisor will come up with the best plan for you. It’s an easy way to prepare for the future.