Robo-Advisors 🤖

Table of Contents

Robo-Advisors

Financial advisors have been around for decades, helping people navigate their financial futures. As of now, there are around 218,100 personal financial advisors in the U.S, according to the Bureau of Labor Statistics. This means that there are 9.70 financial advisors for every 10,000 adults ages 25 and older. Soon, this number of financial advisors could drop significantly as “robo-advisors” become a reality. Robo-advisors may sound fancy, even something out of Star Wars, but in reality, they’re just algorithms created by companies to automatically invest for clients. These algorithms function by taking in data points like age, savings goals, risk comfort, and more and forming an investment portfolio. It is predicted that these so-called “robo-advisors,” may soon manage more than $1 trillion of Americans’ wealth.

Robo-advisors aren’t a new invention, in fact, they’ve been around since 2008. Since then, the frequency of their use and overall popularity has grown, with these algorithms currently managing about $785 billion, according to Backend Benchmarking. To capitalize on this trend more and more firms have worked to build their own models and grow their popularity. Not all sentiment is fully supportive, with financial advisors like Ivory Johnson, founder of Delancey Wealth Management in Washington, D.C., saying robo-advisors are like “If you play golf, it’s just a different golf club. “It’s suitable for some people and not for others”. Statistically it appears that robo-advisors attract a younger demographic, including millennials and Generation Z, most of whom grew up as digital natives. What do you think about robo-advisors? And would you use one?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
From One Rock to Another 🚀
25 September, 2023

NASA’s OSIRIS-REx mission, after a seven-year journey, successfully captured and delivered asteroid samples.
Too Much Debt  💳
25 September, 2023

Rising credit card debt and delinquencies have created losses for credit card companies.

Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.