In the past few years, it can be said that more people are becoming aware of and understanding how important it is to invest. One of the reasons for this may be because investing has been somewhat demystified and people are able to more easily grasp the fundamentals of it. Thanks to technology, investing may presently be easier than it was years ago and far more people have access to the tools and information needed to invest. Robo-advisors are one of those tools which have made investing easier for your average person, and they have influenced traditional forms of investing. On those premises, this article will explore a few ways that robo-advisors have changed- investing.

Automation

As technology continues to evolve, you may have noticed that life has become a lot more automated. There are so many things technology can do meaning that less human intervention is needed to provide various services. This is especially true in the world of investing as robo-advisors have made the investment process automated. In case you don’t already know, robo-advisors are online wealth management services that provide automated algorithm-based portfolio management-based advice and they don’t need human financial planners to do so. This means that investing has become something people can do using technology as opposed to humans. Although there is an ongoing debate regarding the pros and cons of this automated process, there is no denying that it has made investing both easier and more convenient.

Minimum Investments

Sometimes, people are afraid to invest because they think they need thousands of dollars to start with. Although it is true that the more you invest with, the higher your likeliness of attractive returns, you don’t need to start with a robust amount, especially thanks to robo-advisors. It has even been predicted that robo-advisors will dominate the investment management industry because of how significantly less costly they are in comparison to human advisors. This means that as well as being able to start with as little as one dollar in some instances, the fees you’ll be charged are relatively low in many cases as well.

Lower Taxes

Another way robo-advisors have changed investing is they’ve made it possible to minimize tax losses. Taxes have a way of eating away at your investments if care isn’t taken, especially when it comes to your long-term investments. Robo-advisors, however, have the ability to lower your taxes and increase your returns which is every investor’s dream. Average betterment returns, for instance, are relatively higher, because they automate tax-savings strategies, including asset allocation and tax-loss harvesting.

Robo-advisors are one of many forms of technology making investing easier for your everyday person. They seem to be breaking down barriers and preconceived notions regarding what is required to invest as well as the type of person that can invest, especially in 2018. Hopefully, as they continue to develop and evolve more people will begin reaping the benefits of financial freedom thanks to automated investments. In the past few years, it can be said that more people are becoming aware of and understanding how important it is to invest. One of the reasons for this may be because investing has been somewhat demystified and people are able to more easily grasp the fundamentals of it. Thanks to technology, investing may presently be easier than it was years ago and far more people have access to the tools and information needed to invest. Robo-advisors are one of those tools which have made investing easier for your average person, and they have influenced traditional forms of investing. On those premises, this article will explore a few ways that robo-advisors have changed- investing.

Automation

As technology continues to evolve, you may have noticed that life has become a lot more automated. There are so many things technology can do meaning that less human intervention is needed to provide various services. This is especially true in the world of investing as robo-advisors have made the investment process automated. In case you don’t already know, robo-advisors are online wealth management services that provide automated algorithm-based portfolio management-based advice and they don’t need human financial planners to do so. This means that investing has become something people can do using technology as opposed to humans. Although there is an ongoing debate regarding the pros and cons of this automated process, there is no denying that it has made investing both easier and more convenient.

Minimum Investments

Sometimes, people are afraid to invest because they think they need thousands of dollars to start with. Although it is true that the more you invest with, the higher your likeliness of attractive returns, you don’t need to start with a robust amount, especially thanks to robo-advisors. It has even been predicted that robo-advisors will dominate the investment management industry because of how significantly less costly they are in comparison to human advisors. This means that as well as being able to start with as little as one dollar in some instances, the fees you’ll be charged are relatively low in many cases as well.

Lower Taxes

Another way robo-advisors have changed investing is they’ve made it possible to minimize tax losses. Taxes have a way of eating away at your investments if care isn’t taken, especially when it comes to your long-term investments. Robo-advisors, however, have the ability to lower your taxes and increase your returns which is every investor’s dream. Average betterment returns, for instance, are relatively higher, because they automate tax-savings strategies, including asset allocation and tax-loss harvesting.

Robo-advisors are one of many forms of technology making investing easier for your everyday person. They seem to be breaking down barriers and preconceived notions regarding what is required to invest as well as the type of person that can invest, especially in 2018. Hopefully, as they continue to develop and evolve more people will begin reaping the benefits of financial freedom thanks to automated investments.

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