A Review of Our Favorite Robo Advisors with Investor Junkie

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Table of Contents  
  1. Show Notes

What is a robo advisor and should you use one? Larry Ludwig from Investor Junkie joins us to tell us what we need to know.

A robo advisor is an on-line money management service that uses automated algorithms to give investment advice. It takes humans out of the equation.

These are companies like Betterment, which was the first robo advisor, Wealthfront, and Personal Capital. They are geared towards younger people who are comfortable with transacting business on-line and are less expensive than traditional investment advisors.

Robo advisors use a lot of complicated math but basically they look at past returns to determine future returns.

A problem with some robo advisors is that while they’re tax efficient within their portfolio, they don’t all have an over all picture of your investments so are not tax efficient overall.

A robo advisor should be easy to use and inexpensive. Larry recommends Betterment above the others.

Robo advisors aren’t perfect but it’s better than just throwing your money into an account and hoping for the best. And if you are the set it and forget it type, they’re the easiest way to do that.

A Review of Our Favorite Robo Advisors with Investor Junkie

A Review of Our Favorite Robo Advisors with Investor Junkie

Show Notes

Son of a Peach: An American wheat ale.

Investor Junkie: Larry’s site about all things investing.

Betterment: The easy way to invest.

Personal Capital: Invest with confidence.

WiseBanyan: Free financial advisors.

 

Candice Elliott - Editor-in-Chief Candice Elliott is a substantial contributor to Listen Money Matters. She has been a personal finance writer since 2013 and has written extensively on student loan debt, investing, and credit. She has successfully navigated these areas in her own life and knows how to help others do the same. Candice has answered thousands of questions from the LMM community and spent countless hours doing research for hundreds of personal finance articles. She happily calls New Orleans, Louisiana home-the most fun city in the world.
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