Are you looking for the best Robo-advisors to help you with investing?
Welcome to the phroogal 5, a series of the five best apps. We’ve done the work to narrow down the best choices. Want more options? Check the marketplace.
Robo-advisors are becoming increasingly popular among investors. They offer an alternative to traditional financial planners who charge high fees and can’t provide adequate service.
In this article, you’ll learn how Robo-advisors can help you reach investment goals without the need for a financial advisor or human advisors.
What is a Robo-advisor?
A Robo-advisor is a type of automated financial adviser that uses artificial intelligence (AI) and machine learning (ML) to provide personalized investment advice.
Many of these brokerages use Modern Portfolio Theory as a core investment strategy, such as investing in low-cost ETFs. And investment account fees are often based on assets under management.
Best Robo-advisor Services and Platforms of 2021
For novice or experienced investors:
Betterment: Best Low Cost
Betterment is an online brokerage offering investment portfolios using low-cost indexed-based exchange-traded funds (ETFs) in broad market sectors. It is an SEC-registered broker-dealer and member of FINRA/SIPC.
- Fiduciary advice with your best interest in mind.
- Automated investing and tax-saving strategies include automatic rebalancing, tax-loss harvesting, and asset allocation.
- Management fee: 0.25%
Read the Betterment review.
Stash: Best for New Investors
Stash Invest is an investment platform and offers banking features like a debit card. With Stash, you can select your investments and trade individual stocks and funds.
- Choose between a personal portfolio or a smart portfolio.
- Thematic or impact investing
- Management fee: $1 – $9 per month
Promo: Get a $5 bonus for opening an account.
Read Stash Invest review.
Wealthfront: Best for Hands-off Approach
Wealthfront is an online financial advisory firm offering investing and financial planning services. With their automated investing services, you can have individual and joint taxable accounts, trusts, 529 Plans, and retirement accounts: Roth, traditional, SEP, and rollover IRAs,
- Automated and diversified portfolio tailored to your risk profile.
- Tax-loss harvesting strategy and automatic rebalancing.
- Management fee: 0.25%
Read Wealthfront review.
Personal Capital: Best for Digital Wealth Management
Personal Capital is a hybrid digital advisor. The digital platform looks at your entire economic life, not just your investments, to create a plan.
- Custom portfolios and robust financial planning tool
- Work with a human investment advisor
- Management fee:
Read Personal Capital review.
Blooom: Best for 401(k) Management
Blooom can manage your employer-sponsored plans and IRAs. Financial experts created it to help you link your existing retirement accounts to gain insights into getting better performance.
- View all your retirement accounts in one place.
- Learn how to optimize based on specific plans.
- Start for free or get more guidance with premium plans: $45 – $250
Promo: Get a free account analysis of your retirement plan.
Read the Blooom review.
Robo-advisors are best for?
It’s an attractive option to access an investing platform that creates intelligent portfolios for different investors. Most Robo-advisors offer a wide range of investment services to help you achieve financial goals.
Robo-advisors give you a more hands-off approach to your investment goals. You can take advantage of the algorithms and platforms to create wealth.
Robo-advisors help people invest their money without the need for human advisors or spend hours researching different investment options.
Through Robo-advisors, you get a class of financial advising that provides investment advice and management online using mathematical rules and algorithms. It reduces the need for human intervention relying on software using MPT to allocate, manage and optimize clients’ assets.
It’s a good alternative for those looking for lower expense ratios and lower minimum balance requirements.