Wed. Feb 1st, 2023

TOP 10 ROBO-ADVISORS OF 2022

Robo-advisors are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. It is designed to automate the duties of an asset manager.

A typical robo-advisor collects information from clients about their financial situation and future goals through an online survey, and then uses the data to offer advice and/or automatically invest client assets.

It assembles a portfolio of assets that adapt to your needs, through the information it collects about you, specifically questions related to your financial goals and risk tolerance, and then it guides your investments towards growth over a long term.

1. SoFi Automated Investing

SoFi, best known for online banking and a range of several other financial services, now offers robo-advisory services. It provides incredibly investor-friendly service. with an automatic rebalancing and goal-based planning to help you reach your life objectives. Plus, you’ll get career services, access to financial advisors and discounts on other SoFi products for no extra cost.

If you already have a relationship with SoFi, then it could make even more sense to take it to the next level with their robo-advisor. It charges $0 annual advisory fee, offers access to financial advisors at no additional cost and charges only $1 as starting fee.

Start investing via https://partners.sofi.com/nw-invest-robo/

2. Wealthfront

Wealthfront is one of the best robo-advisors with a competitive 0.25% management fee, free management of balances under $5,000 promotion and one of the strongest tax-optimization services available amongst online advisors. It provides an automated investment management system that’s a great fit for new and experienced investors alike: helpful planning tools, diversified — and hands-off — portfolios and advanced tax optimization strategies.

It also offers investors a list of questions to assess their risk averseness, assets on hold, and then curate the best exchange-traded funds fit in up to 12 asset classes. Additionally, it charges $0 annual fee, but requires a minimum of $500 of investment deposit as account minimum.

Get started via https://www.wealthfront.com/investing

3. Betterment

This company offers a powerful combination of goal-based tools, affordable management fees of 0.25% annually and no account minimum. It has two service options: Betterment Digital, which provides automated portfolio management and charges 0.25% annually and Betterment Premium, which provides unlimited phone access to certified financial planners for a 0.40% fee and $100,000 account minimum.

It’s worthwhile to note that this robo-advisor does not offer access to physical financial advisors, at a fee of $299, you can buy an advice package that includes a consultation with an advisor, regardless of if you have a Betterment account or not.

Get started via betterment.com

4. ETRADE Core Portfolios

ETRADE is a well-known industry leader in the discount brokerage space, launching their Core Portfolios robo-advisor offering in 2017.

The Core Portfolios mobile experience leverages the expertise of an established brokerage industry expert to provide an easy-to-use automated investment platform. As a result, investors are empowered with the tools needed to manage their portfolios directly from their mobile devices in a way that stands out from the rest of the robo-advisor field.

It requires an account minimum of $500, account management fee of 0.30%, a $75 full transfer out fee and $25 for partial transfers.

If customers choose to do a partial transfer and they have a balance over $5,000, they aren’t required to pay the partial transfer fee. There is no cost for $0 incoming wire transfers and $25 for outgoing ones.

Open an account via https://us.etrade.com/home

5. Ally Invest Robo Portfolios

Ally Invest Robo Portfolios is best suited to retirement accounts or loyal Ally customers who want to house a managed account, a trading account and their bank accounts under one roof. The lack of tax-loss harvesting will be an issue for investors with taxable brokerage accounts. It has solid investment selection capabilities and offers integration for Ally bank and brokerage clients.

Additionally, it features an account minimum of $100 and a 0.00% account fee with Cash-Enhanced Managed Portfolio; or 0.3% otherwise.

Sign in to get started via https://www.ally.com/invest/robo-automated-investing

6. Acorns

If you want to make the most of your spare change and get the occasional retailer kickback, there’s really no better place to do that. The automatic roundups at Acorns make saving and investing easy, and most investors will be surprised by how quickly those pennies accumulate. The downside? At small balances, Acorns fees can cut into or completely wipe away investment returns.

Additional features include; automatically invests spare change, cash back at select retailers, educational content available, etc. It has an associated fee of $3 – $5 per month, account minimum requirement of $0 and grants $10 as Sign Up promotional Bonus.

Start investing via https://www.acorns.com/

7. Axos Managed Portfolios (BF beginner and goal based investing)

This robo-advisory firm charges a 0.24% management fee, which is relatively low, and offers more portfolio customization than most robo-advisors offer. As with all the robos, this asks you a few questions related to your financial goals, risk tolerance level, and so on, then creates a portfolio of exchange-traded funds, weighted to reflect the amount of risk you are willing to accept. Tax-loss harvesting, which is an investment strategy that can help reduce taxes on your investment gains, is available to all Axos Managed Portfolios customers.

Additionally, it has a $0 account minimum but trading can’t start until balance reaches $500. and any account under $500 is charged $1/month.

Start via https://www.axos.com/invest/managed-portfolios

8. Blooom (B.F employer-sponsored retirement plans)

Blooom stands out in a crowded field of robo-advisors by narrowing its focus to one segment: retirement plans such as 401(k)s and IRAs. By tending to Americans’ retirement assets, Blooom offers management services that often are overlooked by other advisors. There’s no account minimum, and management costs a flat annual fee ranging from $45 to $250 each year, depending on the level of service desired and number of accounts managed.

It’s easy to register for an account and have Blooom analyze your 401(k) for free. Access to financial advisors and personalized guidance in Standard and Unlimited tiers.

Start investing via https://www.blooom.com/

9. Ellevest Ellevest

Ellevest Ellevest  asks a few questions about your money, life and career, then its algorithm creates and manages a personalized investment portfolio specially for you.

There’s no minimum deposit to start investing, however, there are portfolio-specific minimums that range from $1 to about $240. It offers – specifically women – a fair picture of their financial well being and provides different forms of educational contents including online workshops, email courses and video resources from its team of financial planners and career coaches.

You can sign up for any of their membership tiers to get started. The plans consist of; Ellevest Essential membership: $1 per month, or $12 per year; Ellevest Plus membership: $5 per month, or $54 per year (10% discount) and Ellevest Executive membership: $9 per month, or $97 per year (10% discount).

Choose your plan via ellevest.com

10. Schwab Intelligent Portfolios®

With over 300 physical branches across the US, Charles Schwab offers a robo-advisory service that’s one of a kind. Its minimum deposit, balance requirements and account fees may vary depending on the investment vehicle selected.

No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit. Investors can upgrade to Schwab Intelligent Portfolios Premium for a one-time planning fee of $300, then a $30 per month advisory fee. For that price, accountholders get unlimited 1:1 guidance from a CFP, interactive planning tools, plus a personalized roadmap for reaching their goals.

Start now via https://intelligent.schwab.com/

In Conclusion

Every investor has his/her unique goals. It might be investing for a secure retirement, emergencies, buying a house, paying for college or vacation. Whatever your goals are, it needs to be clear and concise. Only then will you be able to reap the huge benefits of Robo-advisory platforms. Getting to choose the best service follows after you’ve clearly defined your goals.

Now, people are made up differently, and we have our special maximum points of accepting risks. Robo-advisors will try to understand you via questions regarding your age, income, risk tolerance, and so on to feed the algorithm with data to further select the right kind of asset mix to suit your risk profile

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