Want to start investing with the help of advisors but don’t have the funds to afford one? Welcome robo-advisors that bring the power of algorithms and human knowledge to help you invest. Robo-advisors make it easier for you to access the knowledge to create wealth at a lower cost.
Robo-advisors are a class of financial adviser that provide financial advice or investment management online with minimal human intervention. Financial advice is based on mathematical rules or algorithms. These algorithms are executed by software and thus financial advice do not require a human advisor. The software utilizes its algorithms to automatically allocate, manage and optimize clients’ assets.
Here is my list of some of the best robo-advisors available to you.
Best for Beginners: WEALTHSIMPLE
Wealthsimple is an automated investing service founded in Canada and offered in the United States. Wealthsiple currently serves 65,000 clients and has over $1.5 billion in assets under management. They offer investors socially responsible investment offerings. With Wealthsimple, you get long-term investment management accounts with no minimums. Your money is invested in a diversified portfolio of low-cost index funds. There is a $0 account minimum. The first $5,000 is managed free then 0.5% annual management fee of asset size. The cost is higher than other robo-advisors. Read the complete Wealthsimple Review.Try Wealthsimple (Get Up to $5,000 Managed Free)
Best Low Cost: BETTERMENT
Betterment is an online investment company creating investment portfolios using low-cost indexed-based exchange-traded funds (ETFs) in broad market sectors. Betterment is an SEC-registered broker-dealer and member of FINRA/SIPC. Betterment is a good option for beginner investors and others who have low balances. There are additional benefits for using Betterment a hands-off approach, those in retirement, and others seeking automatic rebalancing and users seeking goal-based tools. There is $0 minimum account balance requirement. Read the complete Betterment Review.Try Betterment
Best for Hands-off Approach: WEALTHFRONT
Wealthfront is an online financial advisory firm offering investing and financial planning services. With their automated investing services, you can have individual and joint non-retirement accounts, Roth, traditional, SEP, and rollover IRAs, trusts, and 529 Plans. Wealthfront is a good option for beginner investors with account minimum of $500 with the first $10,000 managed free (and 0.25% annual fee above that amount). Read the complete Wealthfront review.Try Wealthfront
Best for Fidelity and TD Ameritrade Account Holders: FUTUREADVISOR
FutureAdvisor is an all-inclusive investment management service offering a free service with a comprehensive retirement analysis. FutureAdvisor offers free portfolio analysis and an upgraded service to manage your portfolio. Accounts supported include accounts with Fidelity and TD Ameritrade, and direct management of individual and joint non-retirement accounts, traditional and Roth, rollover, and SEP IRAs. Account minimum is $10,000. Read the complete FutureAdvisor review.Try FutureAdvisor
Best for Digital Wealth Management: PERSONAL CAPITAL
Personal Capital offers a premium version of their popular free finance tracking app that includes direct management of your investments. With Personal Capital Wealth Management, investors get a long-term investment plan that is tailored to meet your financial goals and managed by a fiduciary. They aren’t really a robo-advisor because their offering is a hybrid online advice and human guidance. The account minimum is $25,000. Read the complete review of Personal Capital Wealth Management.Try Personal Capital for Free
My Smile Summary: Are Robo-Advisors Worth it?
Robo-advisors are helpful in giving you a more hands-off approach to your investing. You can take advantage of the algorithms and platforms to create wealth. If you’re not ready to invest on your own with an online discount brokerage and want some guidance without the cost of a human financial advisor, then consider trying one of these firms.
As you can see, there are many options for investing with robo-advisors. Choose which option best fits your needs. Most of these robo-advisor platforms offer no minimum requirements or fees unless there are funds in the account. Some offer no-fee management up to a certain amount.