If you are a recent college graduate or enrolled in college now, odds are good that right now you are swamped in debt. Hillary Clinton has promised to try and make a push for debt-free college, but we are still quite a ways off from something like that becoming a reality. Between that and low wages and the coming retirement crisis, you may be wondering if you will ever have a nest egg to sit on.
This is a very uncertain time, and you definitely will have to work hard and live very frugally if you want to retire. But thankfully there are a few tools which can help you to save more money and invest profitably while you are still young. One of those is known as a “robo-advisor.”
Robo-Advisors: Your Gateway to Investing In Your Future
If you have never heard of a robo-advisor, you are missing out on a prime opportunity to invest—even if you do not yet have a lot of money. A robo-advisor is a computer program which replaces a traditional human investment advisor. Based on your financial profile and the amount you can afford to set aside for retirement, it will come up with a plan for you to invest. You can then invest your money directly through the service.
What Are the Benefits?
- You can start investing right away instead of waiting until you have more money. Traditional investment firms require you to put down tens of thousands of dollars. With a robo-advisor you only need a few hundred.
- You do not have to pay the high fees which are required with traditionally managed accounts. There are fees for robo-advisors, but they are comparatively far more affordable.
- All of the investment advice you receive through the robo-advisor is fully personalized.
- If you need to talk to a human being, many services do allow you to connect with an expert over the phone.
- It is a time-saver to work with a robo-advisor. You do not need to get in your car and drive to an appointment. You can manage everything on your computer or mobile device.
- You can check on your retirement accounts at any time of the day or night.
- When you need to rebalance your portfolio, the robo-advisor will help you to do it quickly and efficiently.
- Investing is as hands-on or hands-off as you need it to be. If you want to be closely involved with your investments, you can. But if you want to focus on your career and other aspects of your life, the robo-advisor can do all the hard work for you.
Choosing the Best Robo-Advisor
There are a number of different robo-advisors out there right now. When it comes to finding the best one, it helps to look at a robo-advisor comparison chart. This gives you a quick overview of features so that you can choose the service which is the best fit for you.
Saving for retirement these days is difficult without traditional pension plans in place—but it is not necessarily impossible. Do what you can to reduce your monthly expenses, and look into signing up for a robo-advisor account. Even if all you have is a few hundred dollars to get started with, you can begin building your nest egg!