Why are Fees Important?

Let me ilustrate this by giving you a simple example:

10,000$  Human Advisor Robo Advisor
Annual return 5% 5%
Annual fees 1.25% 0.5%
Value in 20 years 20,696$ £24,014$

Even if you chose a robo-advisor with a relatively high fee of 0.5% it will still be significantly less than using the services of a human advisor.…

What does a Robo-Advisor invest in?

The main component of most robo advisor generated porfolios are ETFs or mutual funds.  An ETF is a collection of securities that are traded on an exchange, just like a stock.

By investing in these low-risk funds, robo advisors are able to actually meet the returns of the market.…

How does a Robo-Advisor work?

Typically you will need to answer a series of questions upon signing up.

In the next step your answers are being evaluated by the robo advisor.

The data will then be used to create a portfolio and automatically invest your assets.…

What is a Robo-Advisor?

A robo-advisor is a service that provides automated financial planning.  There is usually very little human supervision which means that the fees are usually a lot lower than the fees a traditional (human) advisor would charge.…