Are Robo Advisors Worth It? What Are The Alternatives?

Are Robo Advisors Worth Your Effort & Attention? Are They Worth Investing In? Do You Want Outstanding Performance Or A Risk Balanced Portfolio?

Are Robo Advisors Worth It?Hybrid Robo Advisor Is A Mix Of Human & Machine Advice

Yes,  Robo Advisors are worth using if you would like the following services.  Many Robo Advisors are tuned for optimal tax loss harvesting which saves you money.  They are also tuned for automatic portfolio rotation & adjustment based on your risk and preferences which saves you a lot of time.  They also provide low-cost access to ETF’s & Mutual Funds thus reducing trading costs.  Some Robo Advisors provide model portfolios for socially responsible investing or gender-specific demands saving you time researching the companies you want to invest in.

In addition, a Robo Advisor has no emotional attachment to a particular investment. Thus, it could sell a money-losing favorite faster. Hence, the lack of a human touch can be a good thing for investments.

In contrast, many people value a relationship with an advisor and the insight he or she can bring. Therefore, your investment style can determine if a Robo Advisor will work for you.

Thus, there are many advantages to Robo Advisors. In particular, Robo Advisors can offer small investors a higher level of service at a lower price. On the other hand, robo investment is a new field with many risks. Thus, research Robo Advisors carefully before you entrust one with your money.

[Related Article: Top 10 Robo Advisors Review]

Are Human Financial Advisors a Worth It?

On the other hand, a person with a poor understanding of the markets and little time to devote to investments could benefit from the human touch. Beginning investors will usually learn a lot from a human advisor, particularly one willing to explain the process.

Conversely, the human touch is hard to quantify and value. For instance, a human advisor can make you feel better. However, a dishonest human advisor has a strong incentive to lie or exaggerate to make money from commissions or fees.

Notably, one of Robo Advisors’ greatest strengths is their honesty and impartiality. For instance, a Robo Advisor makes no commission on sales. Thus, a Robo Advisor has no incentive to recommend a particular investment or withhold negative information.

Robo Advisors Are Not Worth It If You Want To Beat The Market

If you want profits significantly higher than the S&P500, then there is only one option, Emperor Investments who claim a solid 7% over the return of the S&P500. Read the deep dive Emperor review.

The fact is that most Robo Advisors are focused on efficient tax loss harvesting, portfolio balancing and structuring based on your risk tolerance and preferences which is essentially OK, if you want lower risk and do not want to actively manage your investments

What Alternatives Are There To Robo Advisors?

The simple alternative to a Robo Advisor is you are seeking to beat the return of the S&P 500 is to invest in a Nasdaq 100 Index Tracking Fund.  The Nasdaq 100 is the best performing major index in the developed world and has constantly beaten the S&P500.

[Related Article: 39 Stock Market Statistic To Blow Your Mind]

Another alternative is to learn to find and invest in stocks yourself.  There are many reputable training courses available on the market today.  But to find and time the purchase of stocks in great companies to try to beat the market you will need a complete education in Fundamental Analysis and Technical Analysis including portfolio and risk management.  We happen to have that very course available.  Find out more about the Liberated Stock Trader PRO – A Complete Stock Market Education

Finally, you can try to go it alone by using our Free Stock Market Training series which includes Finance Books, MoviesAudiobooks and even our own Podcast, so you can educate yourself.

Should I Use A Robo Advisor?

Only you can answer that question, but the benefits are less effort to manage your portfolio and usually lower trading fees.  If you select an Advisor with excellent transparency of reporting, holdings and a good reputation you should do well.  If you prefer to manage every aspect of your investing then Robo Advisors are not for you.

You may want to read our review of the Best Brokers in the USA, or our review of the Best UK CFD Brokers, alternatively, if you are an Aussie, our Australian CFD brokers reviews.

-

Learn More About Robo Advisors With Our 12 Part Q&A Series

1★ What is a Robo Advisor & How Do They Work?7★ Are Robo Advisors A Good Idea? 8 Advantages Uncovered
2★ Hybrid vs AI vs Robo Advisors8★ Are Robo Advisors Worth It? What Are The Alternatives? ✔ You Are Here
3★ How Do Robo Advisors Really Work? In 7 Steps9★ Do Robo Advisors Beat The Market? Fund Performance Uncovered – Next Article
4★ A Hybrid Robo Advisor- What Is It & How Do They Work?10★ Are Robo Advisors Safe? Security of Assets Examined
5★ Robo Advisors vs Human Advisors11★ Top 10 Best Robo Advisors [160 Point Review & Comparison]
6★ Top 20 Best Robo Advisor Returns & Fees Comparison12★ Review Winner Emperor Investments – Robo Advisor Review [In Depth]
-

 

Top 10 Best Robo Advisor ServicesLet us know your thoughts in the comments section below.

LEAVE A REPLY

Please enter your comment!
Please enter your name here