“Money is usually attracted, not pursued” – Jim Rohn
The best way to achieve financial freedom is through investing. However, before you invest, you should learn about the diverse forms 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 estimated 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
- A 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 advice when it comes to their finances.
Wrap Up
Robo-Advisors have been around for at least a decade. Because of its 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
