“Money is usually attracted, not pursued” – Jim Rohn
One of the biggest components of reaching financial freedom is to invest. However, before you invest, you should aim to learn about the many diverse ways of investing so that you can make informed decisions. For example, technology has become a valuable resource in banking and financing. It can even be used to automate the investing process. These new technologies can be used to your advantage to make investing less of a chore.
Robo Advisors
In today’s world we are becoming more accepting of robo-advisors handling our investments for us. Robo advisors also known as robot advisors are used to promote passive investing. The purpose of the robo advisor is to take the confusion out of investing. Niall McCarthy, from Statista.com, explains robo advisors as “types of financial advisors providing online and automated portfolio management services. This is done through the use of computer algorithms, meaning human involvement and costs can be kept to a minimum.”
The simple approach of investing with robo advisors has attracted millennials to the newer technology. In September, 2019 Statistica estimates the global robo-advisor assets under management at $1.4442 trillion
Pros and Cons of Robo Advisors
Pros
- Simple hands-off investing
- Cost. 40%-60% Less in management fees
- Time Management. Robo investing requires less time spent on investment research.
- Start off small. With many online robo investment accounts you can start investing with just $5.
Cons
- Generic investment plan. Most plans cannot be custom made for each client. The investing options can be “one size fits all”
- May not have access to a financial advisor. People may prefer human advice vs. robot advise when it comes to their finances.
Wrap Up
Robo-Advisors have been around for at least a decade. Because of the growing popularity, there are more than 100 options now available. This is another investment tool for you to consider to help you reach financial freedom. Choose wisely.
Action
Tune in every Wednesday to The WEInvested Podcast. You can purchase WEInvested Apparel at https://weinvested-apparel.myshopify.com/
Follow our social Media:
Instagram: @weinvested
Facebook: WEInvested
Twitter: @weinvested
Youtube: WEInvestedTV
4 Comments
Phillip Jones · July 4, 2018 at 3:29 am
This was a very useful post because I hate hassling between my different investments. Using a Robo advisor may be more efficient for my stock portfolio, I’ll have to consider one in the future. Great post!
Gail Scott Taylor · July 4, 2018 at 4:05 am
This article caught my attention because of the robo-advisor discussion. I would be very interested in chatting with folks who have and a are currently letting robo-advisors handle their investments before jumping in! Great food for thought.
Lupe Maka · July 23, 2018 at 9:29 pm
Super-Duper site! I am loving it!! Will be back later to read some more. I am bookmarking your feeds also.
WeInvested Editor · July 24, 2018 at 6:21 am
Thanks for the positive feedback, Lupe! Be sure to check back for more.
Comments are closed.