Like many of us, the decision to start investing for the future is easy in principle. After all, who doesn’t want to make their money grow more than the bank allows and retire comfortably. However, traditional financial advisors take back a lot of the gains you would get from investing. And who has the time to take control and invest stock by stock! If only there was a solution that would allow me to autoinvest my funds, see real growth and not have to pay large fees!
Autoinvest with Robo Advisors
This bundle of tools below is called a ‘robo advisor’. Robo advisors are rapidly rising in popularity and are focussed on autoinvest’ing to help generate long term returns.
Roboadvisors have many benefits over traditional investment solutions. Firstly, robos are easy to fund. They are also typically enhanced for a great mobile user experience. No bank managers or sales associated involved! They also autoinvest your cash in pools of stocks so to avoid the risk of a single company affecting your savings too much. Finally, with many roboadvisors, you can align the pools of stocks you are investing in with your values. Don’t want to invest in fossil fuels? No problem, you can ‘go green’ with many of the roboadvisors.
How do RoboAdvisors AutoInvest?
Now that we have covered the many benefits, let’s move on and discover how they do this. Regardless of the provider, the central process is the same. Autoinvest in diversified stocks (for the curious, this is called Modern Portfolio Theory). Invest for the long-term and let the roboadvisor deal with the fluctuations that are natural to the stock market.
Want more info or prefer graphics and sound to text? No problem, Wealth-Hack has you covered. Click the video below from our friends at from @Investopedia. It will help you understand how roboadvisors are transforming how millennials autoinvest money.
Now you know what makes the roboadvisors tick, what do you think? Could you put your trust in a robot to autoinvest knowing that it will eat into the profits far less than a human advisor would?