Maybe you heard about robo-advisors from one of your financially savvy friends over tacos one night, or maybe you heard about the rise of robo-advisors in the news. No matter how you found out about them – you're intrigued.
If you're intimidated by investing, a robo-advisor might be the solution to your investing needs. Who doesn't want investing to be easy and pain-free?
Before you try investing with a robo-advisor, here are four things to know:
Have you ever tried to invest with a financial firm, only to be told you have to give them a large minimum to get started? Unlike other investment solutions, which can require big amounts of cash, you don't have to be rich in order to start investing. Many robo-advisors don't require a minimum amount to get started, and those that do typically have low minimums, making them a good fit for those just starting out.
Don't know the difference between an ETF and a mutual fund? No problem. You don't need to be an investing expert to get started with a robo-advisor. If you've ever filled out an online quiz, you can complete a robo-advisor application.
All you have to do is answer a few questions about yourself and your financial goals, and a robo-advisor will give you a personalized portfolio recommendation.
The first thing you likely learned about robo-advisors is that they use smart technology to help recommend a portfolio according to your financial goals and risk preferences. But don't let the term fool you — robo-advisors work hand-in-hand with human investment professionals. Parts of managing your portfolio — like rebalancing your investments to protect you from being over-exposed to certain markets — involve humans.
Additionally, many robo-advisor services allow you to speak to a financial professional if you need or want to. They can help you better understand how to meet your financial goals or determine things like your risk preferences. Want to learn more about how robo-advisors work? Check out this article.
Robo-advisors are great because they usually have low, transparent, and easy to understand pricing structures. For example, with RBC InvestEase, you always pay the same low management fee of 0.5%, plus the MERs associated with the ETFs used to construct your portfolio. Click here to learn more about RBC InvestEase’s simple fees.
Saving on management fees can have a big impact on your retirement savings over time.
Ready to invest with a robo-advisor? It's very easy to get started because it's designed to be user-friendly. All you need to do is decide how much you want to invest, fill out a quick online form, fund your account, and you're ready to go. Then you can get back to your busy life. No need to follow the market's daily ups and downs. Your robo-advisor will take care of everything for you. Get started with RBC InvestEase today!