Gain Financial Freedom and Make Money with Robo-Advisors
Believe it or not, Robo-advisors are more accurate than human investors. Benefitting from a lack of bias and an ability to compute thousands of simultaneous market factors are the core differences and advantages of Robo-advisor investing. To learn how you can automate your investing and make money to gain financial freedom, keep reading our guide.
What are Robo-advisors?
Robo-advisors are low-cost automated trading platforms that hold the same legal status as human advisors while managing user funds via algorithmic trade execution. They automatically manage and invest an investor’s fund in lenient terms, generally through an index fund investment strategy.
How much do you need to invest?
For some reason, many novice investors are under the impression that they need to possess considerable equity ($100,000+) to gain access to these automated and accurate investment tools, but that is not the case.
Most Robo-advisors require no less than $500, although Betterment (an industry-leading Robo-advisor) only requires an account minimum of $10 to get started. Whereas, on the other end the scope, portfolio management Robo-advisors like Personal Capital need $100,000 to get started (which, face it, many of us don’t have that volume of equity – yet).
What the 5 Best Robo-advisors of 2021?
- Betterment – Betterment is a low-cost Robo-advisory platform for investors of all experience levels. Open an investment account with only $10 while service fees equate to a 0.25% management fee.
- Stash – There are three different account plans available with Stash, with the account minimum being $0. Here are their account fees: Beginner taxable account ($1/month), Growth account ($3/month), and Stash+ account ($9/month).
- Weathfront – For investors who keep the big picture in mind, this Robo-advisor reigns supreme and only requires a $500 deposit to get started. Management fees for most accounts are 0.25% or between 0.42% – 0.46% for 529 plans.
- Personal Capital – Personal Capital’s Robo-advisors’ advanced technology effectively computes investment risk, taxes, and market conditions simultaneously. Clients are matched with a financial manager, while account minimums begin at $100,000—fees between 0.89% to 1.49% for over $1 million.
- Interactive Advisors – If hedging and variety are essential for your investment portfolio, Interactive Advisors offers 89 portfolios to choose from (62 of which only require a $100 deposit minimum and 27, which vary between $5,000 to $20,000). Fees range between 0.08% to 1.5% annually.