What You Need to Know About Robo-Advisors

Based on our research of experts and various public sources in the Robo-Advisor field, we have highlighted the major shortcomings for your consideration:

  1. An investor cannot define investment parameters.
  2. Contact methods with live individuals are limited.
  3. Frequent rebalancing may increase fees and taxes.
  4. Short-term performance history.
  5. Lack of down-market performance data.
  6. Limited planning and goal setting.
  7. No face-to-face meetings.
  8. Large allocation of assets to emerging markets.
  9. Higher credit risk in bond portion through exposure to junk bonds.
  10. Lack of standardization for asset recommendations across similar risk categories.
  11. Will not dissuade you from imprudent moves with your portfolio.
  12. Does not offer recommendations on what steps to take for wealth building.
  13. No personal touch.
  14. Fees may be higher than what you think.
  15. Other cost effective options may be available.
  16. No guarantees, regardless of what they claim.