1. What is a robo advisor ?

What is a Robo Advisor?

There are many definitions of what exactly robo advisor is. To put it simply, a robo advisor is a method of automating the asset allocation of investments via a computer algorithm.

In a broader sense, a robo advisor may also include human financial advisors but only for services that require human assistance (e.g., taxes, retirement, or estate planning).

Overall, the Investor Junkie team considers the rise of and interest in robo investing services a good thing, pushing down the costs of high-fee Wall Street advisors who offered little real value while dragging down returns. This is positive for consumers in any competitive marketplace.

Robo advisors help individuals who typically have no clue where to begin when choosing investments. As with almost everything, one size does not fit all when it comes to financial advice. However, this space fills the need of most beginner investors and even experienced investors who prefer a more hands-off approach.

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