Damnit, we thought some uber smart robot is going to beat the market and make us FI! Unfortunately, the name is a bit of a misnomer. Like us, you’re probably a bit confused. We recently pulled out the ole wheelbarrow of FI Garage cash and put a load of spondulix into Wealthsimple*. But what were we investing in, and who was managing those investments? Yes, in the FI Garage we put it all on the line to give you first-hand experience…
There’s a list of
What are you getting?
You’re going to get a beautiful online platform that shows you your growth potential over time, naturally in a graph. Who doesn’t like an exponential growth graph? Hah, exponential, wishful thinking… They also make it very easy to link to your existing bank accounts, automate transfers and, well let’s admit it, basically do nothing. That simply is their benefit, if you can manage your compulsion to check your Facebook feed for 10 minutes you can get an account opened up. They’re going to ask you a few typical questions that will profile your risk tolerance and your time horizon for investment. But you can tweak these a bit if you don’t like their portfolio assessment for you. Ultimately you will end up with a simple low fee ETF portfolio that gets rebalanced regularly and tracks the index nicely. That in its essence is the ‘
So, are they for you?
Well, that depends, of course, personal finance is, duh personal. We really like that when we’re in a position to start regular contributions to a stock market investment vehicle (see there’s always a garage reference eventually!) Robo-advisors are a pretty easy and convenient way to do it. Automate your transfer and check your account, almost never. There are loads of ways to DIY your investment strategies, but for those that enjoy a little more cruise control while still being ‘in the market,’ it’s probably worth a little bit of research. Just don’t be disappointed if it’s not C3PO that answers your customer service call.
Are you using a Robo-Advisor? Which one is the best?