<![CDATA[robo-advisor investing - Savage Villoch Law]]> https://www.savagelaw.us/blog/tags/robo-advisor-investing/ Wed, 06 Nov 2024 17:43:54 GMT en-us <![CDATA[Wells Fargo Offers New Robo-Advising Platform]]> https://www.savagelaw.us/blog/wells-fargo-robo-advising/ https://www.savagelaw.us/blog/wells-fargo-robo-advising/ Fri, 27 Oct 2017 16:35:23 GMT Banking giant, Wells Fargo, recently rolled out a new robo-advising platform aimed at enticing first-time investors to invest through Wells Fargo-packaged investment offerings. The unveiling of the automated advisory platform marks the latest in a concerted effort by large-scale financial institutions to capitalize on tech-savvy consumers and meet the changing demands of a digital marketplace.…

]]> Banking giant, Wells Fargo, recently rolled out a new robo-advising platform aimed at enticing first-time investors to invest through Wells Fargo-packaged investment offerings. The unveiling of the automated advisory platform marks the latest in a concerted effort by large-scale financial institutions to capitalize on tech-savvy consumers and meet the changing demands of a digital marketplace. Robo-advising has grown as an increasingly popular platform for investors who seek more autonomy in their investment decisions as well as expedited trading.

What is Robo-advising?

We’ve talked before about using robo-advisors to facilitate trading and help investors organize portfolios, but here’s a quick recap: robo-advisor services are billed as low-cost, user-friendly systems that encourage first-time and novice investors to take a hands-on approach to growing their investment portfolio. Robo-advising allows investors to make investment decisions and transact deals via automation (meaning little to no interaction with a human advisor).

The Wells Fargo ‘Intuitive Investor’

Wells’ robo-advising plartform, dubbed ‘Intuitive Investor‘, is the 3rd automated platform offered by a major Wall Street brokerage. Bank of America and Raymond James Financial both launched their own services earlier this year. Intuitive Investor allows first-time investors to begin with relatively low capital risk and comparatively low commissions. Opening an account requires a minimum $10,000 investment and offers advisory fees at a half of a percent annually.

Tips if you’re considering opening a robo-advising account:

While robo-advising does offer you more individual oversight and control over your investments, that also comes with an increased responsibility to practice smart, secure investing. Automation can be great, but an increased reliance on computers for file storage and transaction comes with increased risk of cyber attack. It’s even more important for you to closely track your portfolio and transactions if you’re going to use a robo-advisor. Contact your brokerage immediately if you notice anything out of the ordinary in your account. Depending on your investment goals, it may also be in your best interest to maintain the services of a traditional investment advisor for either part or all of your portfolio.

Investor Resources

For more info on managing your portfolio using a robo-advisor, check out the SEC’s full investor bulletin. Read more about Wells Fargo’s robo-advising platform here.

]]> <![CDATA[What to Know About About Robo-Advisor Investing]]> https://www.savagelaw.us/blog/robo-advisor-investing/ https://www.savagelaw.us/blog/robo-advisor-investing/ Fri, 24 Feb 2017 15:00:58 GMT The Securities and Exchange Commission (SEC) has released an investor bulletin for investors to understand the fundamentals of robo-advisor investing, or the practice of using automated investment platforms. Robo-advisor investing has risen in popularity, especially among d-i-y and at-home investors due to the relatively low cost compared to traditional investing and expedited nature of deals.…

]]> The Securities and Exchange Commission (SEC) has released an investor bulletin for investors to understand the fundamentals of robo-advisor investing, or the practice of using automated investment platforms. Robo-advisor investing has risen in popularity, especially among d-i-y and at-home investors due to the relatively low cost compared to traditional investing and expedited nature of deals. With this rise in popularity, however, risks are bound to follow. Automated trading platforms may be vulnerable to hacking and computer fraud. Robo-advisor investing can be a great tool for casual investors or ones that want a direct, hands-on approach to their investments. Like any investment, there are risks, but understanding and mitigating these risks is key to making safe, sound investment decisions. Here are some basics for understanding robo-advisor investing:

What is robo-advisor investing?

Automated investing platforms, also known as robo-advisors, allow investors to make investment decisions and transact deals with little to no interaction with human advisors. By completing online questionnaires outlining investment goals and financial information, these systems compile and manage portfolios for investors.

Why use a robo-advisor investing platform?

  • Directly manage your investment portfolio
  • Lower cost alternative to traditional investing
  • On-demand deal transaction

When not to use a robo-advisor

Robo-advisor investing may be a great alternative for some, but it may not be the best option for every investor. Depending on your particular investment goals and needs, a traditional investment advisor may be a better fit. Robo-advisor investing can only operate based on personal and financial information provided. Therefore, it can only advise and suggest deals in a limited capacity. Traditional advisor can take a more nuanced approach to your portfolio. Also, as an economical alternative, robo-advisors offer low-cost investment advice. It may not offer truly high-value advice like a human investor might be able to.

Investor Resources

  • To view the SEC’s full robo-advisor investor alert, click here
  • Check out our blog archives for even more tips for safe investing practices
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