Who has heard of a Robo Advisor? In simple terms, a computer manages your investments using mathematical rules and alogorithms.
For years, we have all invested in various equities using an Investment advisor and paid a premium on management expense ratios (MER) or have even worked on different techniques to try to predict the market, but have been unsuccessful. Cheers to the future of investing, comes along the Robo Advisor.
Robo Advisor promises lower fees as the software helps you manage more of your portfolio. Financial Advisors typically charge 1% of your portfolio to help you invest and charge that regardless of whether or not you make money. This usually includes mutual funds which means more fees on top of the 1%. Robo Advisor invests in ETF’s which makes you diversified and can charge as little as 0.50 percent which cuts your fees in half.
Slowly say bye bye to the Financial Advisor/Wealth Manager/Investment advisor!