4. Best Robo advisors

How to Choose a Robo-Advisor

The best way to choose a digital investment advisor is to start with your needs and then match up your preferences with the best robo-advisor for you.

For example, you might want a plain-vanilla robo-advisor with low fees that will invest your money in a diversified mix of stock and bond funds, in line with your risk level. In this case, you can’t go wrong with beginner-friendly robo-advisors like Wealthfront or Betterment.

For investors who must have a human financial advisor, a robo-advisor with a human touch is the way to go. This option is like the “have your cake and eat it too” approach to investing. Robo-advisors like Betterment and Schwab Intelligent Portfolio are great choices here.

And for more specialized scenarios like 401(k) investing or SRI investing, you can turn to options like Blooom and Interactive Advisors respectively.

Finally, always consider annual fees and fund fees when choosing a robo-advisor. Remember, robo-advisor fees are only for its services — it doesn’t include the fees on the ETFs it purchases on your behalf. If you’re curious, I’ve researched the popular robo-advisors and broken down each’s true annual costs.

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