Frequently Asked Questions

• How do you evaluate a robo-advisor?

  To evaluate a robo-advisor, first take a look at the services provided. Many robo-advisors have standard tax-loss harvesting and automatic rebalancing at no additional cost. Next, compare the expenses you'll incur at each robo-advisor. Finally, evaluate the costs and fees charged by the robo-advisors you are interested in and weigh those against traditional advisors.

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• What’s t𝓰he difference between a robo-advisor and a financial🉐 advisor?

  Robo-advisors ca𒁃n automate investing strategies that optimize the ideal asset class weights in a portfolio for a given risk preference. Financial advisors are often more than investment managers—they are communicators, educators, planners, and coaches to their clients. Some traditional advisors now offer robo-advisors-as-a-service as part of the portfolio construction and investment monitoring side of a more holistic financial planning practice.

  Learn More: Robo-Advi🐟sor vs. Financial Advisor: Which is B⛄etter?
• Do robo-advisors beat the S&P 500?

  This will vary significantly depen𝐆ding on the risk profile of the portfolio, broader market conditions, and the specific robo-advisor used. Some robo-advisor port🥂folios may outperform the S&P 500 in certain years or under specific conditions, while in others, they may underperform.

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• How do you open a robo-advisor account?

  Opening a robo-advisor investment account is as easy as opening an online financial or banking account. Most robo-advisory 𒆙accounts will be opened online, although if you select Fidelity, Schwab, or another platform with a physical office, you can also open the account in person. You will need some personal info like address, Social Security number, and🧜 income, as well as banking info like account number and routing number, in order to open a robo-advisor account.

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