I WASN'T BORN RICH, BUT MY KIDS WILL BE: The Investing Section
What is it? Robo-advisors are virtual financial planners that uses smart computer programs. Think of it as having a financial advisor in your pocket that works 24/7, using algorithms to help you grow your money over time. It's a convenient and cost-effective way to start investing without the need for a lot of financial know-how.
How it works: A robo-advisor automatically manages your investments. You provide information about your financial goals, how much risk you're comfortable with, and how long you plan to invest. The robo-advisor then uses this info to create and manage a diversified investment portfolio for you.
The investment choices are based on things such as:
How much risk you’re willing to bear
What level of returns you want
When you need the money
Based on these factors, robo-advisors frequently pick Exchange Traded Funds (ETFs).
Benefits of a Robo-Advisor
Lower Cost: Unlike traditional financial advisors who may charge high fees for their services, robo-advisors often have lower fees. This is because they use algorithms to do a lot of the work, reducing the need for human intervention.
Hands-Off Approach: Setting up an account with a robo-advisor is usually straightforward. Once you've set things up, the robo-advisor takes care of the day-to-day management of your investments. This includes things like buying and selling assets to keep your portfolio in line with your goals.
Accessible: Since robo-advisors operate online, you can check your investments and make decisions from anywhere with an internet connection. It's a more accessible way to get into investing, especially for younger individuals who might be more comfortable with digital platforms.
Regular Maintenance: Your financial situation may change over time. Maybe you get a raise, or your goals shift. Robo-advisors often monitor your portfolio regularly and make adjustments as needed to keep things on track.
Sofi’s robo-advisor takes the stress out of investing by helping you with the hard part: investment planning, rebalancing, diversification, and recurring deposits.
Automated investing with SoFi gets you access to member benefits like career services, rate discounts on other SoFi products, and exclusive events.
No advisory fees as of Dec 26, 2023. You can make recurring or one-time investments, starting as low as $1.
Just answer a few questions, and they’ll build you a personalized portfolio of low-cost index funds from up to 17 global asset classes.
Their software handles trading, rebalances, diversify deposits, and tax-loss harvesting automatically
Also offers Socially Responsible portfolios.
0.25% investment management fee
Betterment is built to help you achieve what you want with your money.
Invest with an automated, expert-built portfolio. Save with a high-interest cash account, earning 4.75% APY* (variable) with up to $2 million† in FDIC insurance
For just $4 a month or 0.25% annually, you get all the benefits of automated investing: expert-built portfolios, ongoing guidance, and tax-efficient strategies at just a fraction of the cost of a traditional advisor.