Robo-advisers have been around long enough that the question is no longer whether you should turn your investment decisions over to a computer. Now the question is: Why wouldn’t you?
The success of Wealthfront and Betterment, two startups that helped launch the trend, led mainstream investment companies including Vanguard, Schwab and Fidelity to add robo-advice services in recent years. Depending on the robo-adviser, you may also have access to human financial advisers, socially responsible investments and tax-loss harvesting to help reduce tax bills.
This is not, and never really was, a niche product only for tech-happy millennials. From the beginning, investors of all ages spotted the significant advantages of letting computers run their portfolios. Among them:
ROBO-ADVISERS ARE CHEAP
Robo-advisers — also known as automated financial advisers — use computer algorithms to invest your money and rebalance the portfolios as needed to meet your goals. Robos typically use ultralow-cost exchange-traded funds and charge annual management fees of about 0.25%, for an all-in cost that can land under 0.5%.
Contrast that with traditional investment costs, which can be 1% or even more on top of the annual management fees. It’s not unusual for investors to pay 2% or more annually, once all costs are considered.
This is a huge deal, since costs have an enormous impact on your ultimate returns and are among the few factors you can actually control.
Denne historien er fra April 5, 2019-utgaven av AppleMagazine.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra April 5, 2019-utgaven av AppleMagazine.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
CALIFORNIA SUES EXXONMOBIL AND SAYS IT LIED ABOUT PLASTICS RECYCLING
California sued ExxonMobil this week, alleging the oil giant deceived the public for half a century by promising that the plastics it produced would be recycled.
BIDEN ADMINISTRATION SEEKS TO BAN CHINESE, RUSSIAN TECH IN US AUTONOMOUS VEHICLES
The Commerce Department said this week it’s seeking a ban on the sale of connected and autonomous vehicles in the U.S. that are equipped with Chinese and Russian software and hardware with the stated goal of protecting national security and U.S. drivers. `
GOOGLE BEGINS ITS DEFENSE IN ANTITRUST CASE ALLEGING MONOPOLY OVER ADVERTISING TECHNOLOGY
Google opened its defense against allegations that it holds an illegal monopoly on online advertising technology with witness testimony saying the industry is vastly more complex and competitive than portrayed by the federal government.
PHONE DEAL FOR VISITING FANS AT 2026 WORLD CUP PART OF VERIZON SPONSOR PACT WITH FIFA
Soccer fans arriving in North America for the 2026 World Cup have been promised help with their cell phone coverage from Verizon as part of a sponsor deal with FIFA announced this week.
FRANCIS FORD COPPOLA'S 'MEGALOPOLIS' IS ONE FROM THE HEART
Francis Ford Coppola believes he can stop time. It’s not just a quality of the protagonist of Coppola’s new film “Megalopolis,” a visionary architect named Cesar Catilina ( Adam Driver ) who, by barking “Time, stop!” can temporarily freeze the world for a moment before restoring it with a snap of his fingers.
BEFORE YOU SIGN UP FOR A STORE CREDIT CARD, KNOW WHAT YOU'RE GETTING INTO
When Mykail James was 19 and working a holiday job at Victoria’s Secret, she took out a store credit card with a $2,000 credit line.
DEPARTMENT OF JUSTICE SUES VISA, ALLEGES THE CARD ISSUER MONOPOLIZES DEBIT CARD MARKETS
The U.S. Justice Department has filed an antitrust lawsuit against Visa, alleging that the financial services behemoth uses its size and dominance to stifle competition in the debit card market, costing consumers and businesses billions of dollars.
STRIKE BY MORE THAN 1,000 SAMSUNG WORKERS ENTERS A THIRD WEEK IN INDIA
A strike by more than 1,000 workers at a Samsung India Electronics plant has entered its third week, and management is at an impasse over their demands for recognition of the employees’ union and higher pay, a workers union spokesman said,
APPLE BEGINS TESTING AI SOFTWARE DESIGNED TO BRING A SMARTER SIRI TO THE IPHONE 16
Apple is giving more people the chance to test a software update that will implant artificial intelligence into its virtual assistant Siri and automate a variety of tedious tasks on the latest iPhone coming out.
CALIFORNIA BECOMES LATEST STATE TO RESTRICT STUDENT SMARTPHONE USE AT SCHOOL
School districts in California will have to create rules restricting student smartphone use under a new law Democratic Gov. Gavin Newsom signed this week.
