A Robo Advisor investing account offers the benefits of stock investing but doesn’t require its owner to do the legwork required to pick individual investments.
Robo Advisor services provide complete investment management:
These companies will ask you about your investing goals during the onboarding process and then build you a portfolio designed to achieve those aims.
This may sound expensive, but the management fees here are generally a fraction of the cost of what a human investment manager would charge.
Most Robo Advisors charge about 0.25% of your account balance.
One thing to note is that although Robo Advisors are relatively inexpensive, read the fine print and choose your provider carefully.
Some providers require a certain percentage of an account to be held in cash. The providers pay very low interest on the cash position, which can be a major drag on performance and may create an allocation that is not ideal for the investor.