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Using Robo-Advisors to Invest in the Stock Market


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    I've seen ads for these type of services all of the time. I'm not an investor myself, and know very little about the process. Technology has made it pretty easy though. I remember seeing my dad going through sheets of paper to try and figure out the status of his portfolio. I've been somewhat interested since, but wasn't really sure how to go about doing it. I always assumed you needed to have a decent amount of cash on hand to do it and see real results of your investment. I'm sure I'm wrong. That's why I thought using robo-advisors would be an easier way.

    Robo-advisors are there to make investing easier for a layman like myself. You don't need any experience in investing, and it seems pretty straight forward to get things going. Some robo-advisors are free to use. They will still make money off of your investment choices in a kick-back sort of way. Once you open your account you give the software your investment goals. It then builds a portfolio of diversified investments that fit your target allocation percentages for those investments. The software then automatically rebalances your portfolio over time, making changes to investments that are needed to maintain your target allocation.

    If you want something even simpler than this. Spare change apps could be a way to go like Acorns. It gives you five types of portfolios to choose from. You can choose to round up purchases on your card and the app invests the amount left over into stocks. My brother has made $750 in a little over a year using one of these apps. It's not much, but it's something at least.

    Either way, I thought this would be an interesting subject to bring up. Has anyone ever tried any of these? Perhaps if you don't invest enough, it may feel like meager returns when you do make a profit. Then again, perhaps not if you're just starting out.

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    It's not a bad idea, especially if you vet the software/app you are using. I would spend a lot of time though researching and reading reviews of any service like that before you link your bank acct and start trusting them with your money. Imagine they are using the same/similar logic that a financial investor would, investing in 'safe' stocks and moving things around periodically as it makes sense. So it could be just as good, if not better in some cases, than a person doing it.
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    Yeah, I think it's worth looking into and trying out for sure. With some of the apps, you can choose how aggressive you want your investing to be as well.