As technology continues to have a huge impact on every part of our lives, there seems to be no industry that has not been affected or drastically changed by the use of automation. The financial field is no different. Today, those who want to invest, budget, or save for retirement have the option of using what are casually called “robo-advisors.”
Basically, a robo-advisor is a term used to describe an automated service that uses technology and algorithms to generate investment advice and to help you manage your investment portfolio. In many cases, it takes away the need for using a human financial advisor and those of all generations are gravitating toward the option as a way to get instant service and save on costs.
Just as with any technology, robo-advisors are not right for everyone. If you’re curious about whether or not a robo-advisor might be the answer to your financial issues, consider the following seven points:
No Two Robo-advisors Are Alike
Robo-advisors are not one size fits all. Some are a hybrid between automation and a human advisor, while others are fully automated or provide online chat options so you can talk to financial representatives when necessary. Depending on your personal preferences and what stage of earning you are in, you can usually find a robo-advisor that closely fits your needs and preferences.