Yes, you can get a machine to help when it comes to investing but it’s not the answer for everyone. See if a robo financial advisor is a good fit for you.
You’ve decided it’s time to start investing your money, but you have no idea where to start. You need some guidance if you hope to make money down the line. But what kind of help do you need?
Should you put a robo financial advisor in charge of your investments? Or should you stick with a human financial advisor?
Both options have their own benefits, so it really depends on what your needs are. Let’s take a close look at each option.
Why You Should Have a Traditional Financial Advisor
Before you start considering a robo investor, you need to understand what you’d be missing. Here’s why a traditional (human) investor may be right for you.
You Need to Work with People
Some people need to work with people. They thrive off of communicating with others, and they need people to tell them directly about investment opportunities. If this sounds like you, you may be better off with a traditional advisor.
You Want More Control Over Your Investments
When you work with a human financial advisor you’ll be able to work with them on what investments you’re interested in. If your advisor has an idea that you don’t like, you can work together to find something more to your liking.
You’re Not Comfortable Conducting Business Online
While the majority of millennials are comfortable using online resources, some older folks may be more hesitant. By investing with a human advisor, you can avoid a lot of the online work you’d have to do otherwise.
Why You Should Have a Robo Financial Advisor
If you read the above and didn’t feel like it resonated with you, then a robo advisor might be the best fit for you. Here are some key benefits of using a financial program.
You Don’t Want to Work with People
Some people just don’t want to work with others. They don’t want the unnecessary human interaction when they’re investing. If this sounds like you, then robo advising might be the way to go.
You Want a Program to Do All the Investing
If you are completely new to investing and have little to no knowledge, you might want an investing program to do all the work for you. Just remember: you won’t have as much control over your investments as you would with a traditional investor.
So while letting a program do all the work might work for you now, you may prefer more control over your investments once you learn more and feel comfortable investing.
You’ll have to choose between some great robo advisor programs, such as personal capital vs betterment returns. But once you find a program that works for you, you’ll be all set.
You Don’t Meet the Minimum Requirement for a Regular Advisor
One of the biggest hurdles to having a regular financial advisor is that you need to have a minimum amount of money in your portfolio. If you don’t meet that minimum, then the only option you’ll have is to go with a robo financial program.
Once you’ve saved up enough money in your portfolio, then you can look to a human advisor.
Start Investing Today!
Once you decide between a traditional advisor or a robo financial advisor, it’s time to start investing in and building your portfolio!
Looking to be more frugal with your money? Check out our finances blog to learn more today!
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