In our hyper connected world, filled to the brim with automation, it should come as no surprise to anyone that the financial services world is starting to capitalize on robotic technology and algorithms designed to help make investment decisions for people that do not want to actively manage their investment portfolios.

Called “robo-advisors”, the coolest thing about this cutting-edge technology is that it is being improved every single day and learning from all of the information that it gathers about every market and every opportunity on a second by second basis.
It might take a seasoned investment professional five years to get their bearings in a particular field and another five to really master that area of expertise – but robo-advisors are able to hit the ground running and make informed investment decisions (or recommendations) the moment that they go online that can blow those 10 year veterans of investing out of the water!
At the same time, not all is sunshine and roses when it comes to robo-advisors. Below we highlight a couple of things you want to consider before you jump right in.
How Do Robo-Advisors Actually Work?
Robo-advisors (sometimes described as “automated investment services”) take advantage of advanced software and algorithmic approaches to condense down a lot of raw market and investment information to help you make the smartest investment moves possible that anyone particular point in time.
Some solutions are designed to help investors spot red-hot opportunities with investment signals that might have gone overlooked to the naked eye, whereas others are designed to mitigate and manage risk as much as possible while still providing plenty of opportunity for return.
The best thing about these kinds of advisors is that they work 24/7, 365 days a year with absolutely no breaks whatsoever and do not miss a beat. They process data much faster than humans can without fatigue and without human error, with a programming dataset and rules that only get better and better over time.
Are Robo-Advisors Right for Me?
Trying to figure out whether or not a robo-advisor is right for you really comes down to a couple of key considerations:
- The type of investment you’re looking to have managed, with Robo-advisors really excelling at individual retirement accounts and taxable investment accounts more than anything else
- Whether or not you have the minimum amount of investment capital necessary to leverage Robo-advisor solutions (anywhere between $500 invested to $10,000 invested)
- How hands-on (or hands-off) you want to be with the decisions your Robo-advisor recommends
… And that’s just the tip of the iceberg
At the end of the day, if you want to make the most of the unique investment opportunities we all have available today without having to dedicate a serious chunk of your time, energy, and effort to learning the ins and outs and intricacies of the investment world (while still feeling behind the eight ball compared to pros and seasoned veterans) the odds are pretty good that robo-advisors can help you out in a big way!