Automated Investment Services

Do you want to learn about the automated investment? How can these top automated investment services help you to make investment fun, inexpensive and easy? Find out now!

These top automated investment services promise to make investing fun, easy and inexpensive. They are also called robo advisors, and these companies can take the uncertainty out of investing by creating a portfolio, rebalancing and investing in ETFs. Learn more about these services in this article!

Automated Investing vs. Traditional Investment Advising

You can choose between the two primary methods that you can use to invest your money and they both have their own advantages. The first and the old way is through a traditional investment advisor, also known as financial advisor. This person will make all your investment decisions for you. They will pick the stocks that they think will outperform other stocks, mutual funds and index funds that he or she likes, and if they are on the ball, they will also rebalance your portfolio and they will make sure that that you are not too exposed in one sector or underexposed in another sector.

These traditional advisors make their money by charging all of their clients with a small percentage of their entire investment per year as a fee for their investment-picking expertise. Most of these advisors will charge you 1% with less than a million dollars invested.

The second method you might want to consider is called automated investing. This process might sound totally devoid of input from people, but automated investing involves a great deal of human thought and input on the front end. Unlike a traditional advisor, these automated or robo advisors will often pick a low-cost index ETFs that directly mirrors the ups and downs of the market, rather than managed funds. Robo advisors will charge a fraction of management fees than the financial planners around the world.

What are the Advantages of Automated Investment Services?

One of the many advantages of these automated investment services is that they handle every aspect of investing virtually. Once the money is transferred to a new account and a stock allocation or bond location has been chosen, the service will be the one that takes care of everything from dividend reinvestment to portfolio rebalancing to tax loss harvesting. These type of services do not offer a lot of flexibility. The ETFs and asset allocation are determined by the advisor. But what they lack in flexibility, they make up with the ease of using their services.

Are There Automated Investment Services that Work With Existing Brokerage Accounts?

Yes, there are numbers of automated advisors that do not require the investors to transfer their funds out of existing accounts. But instead, the advisor will manage the asset allocation, rebalancing and dividend reinvestment from your existing account. Automated investment services can also offer asset allocation advice for investors that prefer to invest independently in their own accounts.