Robo Advisors are low cost, hands off portfolio management. Generally you fill out a simple questionnaire that helps determine your risk tolerance and time horizon. Management fees are generally 0.50% or less, plus the expense ratios of the ETFs that are used to build the portfolio. Robo Advisors can be a great tool for both retirement and non-retirement accounts. They cost far less than traditional advisors and invest your money in investments that are very similar to the ones used by human advisors. Some Robo Advisors are now even incorporating a human element into their service. However, they aren’t for true DIY financial managers because of the fees and limited control. Robo Advisors are mainly for the investors that know human advisors can be a rip off, but they aren’t quite ready to educate themselves enough to DIY.
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