Robo-advisors are financial tools providing assistance or investment management online with moderate or no human intervention. There are around 100 robo-advisors on the market nowadays, and most of them are called a new word in the financial advising industry, as they are considered for the broader audience, cost less and provide better results in some cases.
To choose the best robo-advisor, one should decide what their goals are. For example, if you want to save for your mortgage payment or if you decide to save more for retirement. Then you need to make up your mind on whether you need an autopilot kind of robo-advisor (without human intervention) or you’d like to talk to a real person and be provided access to human advisors (although these robo-advisors could require a certain amount of money to be invested). And if your financial situation is a complex one, then you may need to work with a traditional financial advisor, and some tools do provide services that search for the best financial advisors that correspond your needs.
The robo-advisory industry is comparatively new, and it definitely provides some benefits for clients, such as lowering fees, and little or no human interference with your business. On the other hand, they won’t be much of a help if you have a complex financial situation, in this case you would want to use services of a traditional fiduciary advisor.