Have you been thinking about investing but have no idea where to begin? Do you have little to no knowledge of the stock market? Do you lack the time to spend researching investments? If you answered yes to any or all of these, a robo adviser may be a good option for you. So, what in the world is a robo adviser? Robo advisers provide an automated financial/investment service driven by algorithms. In other words, robo advisers invest your money for you based on information you provide, such as your financial situation and your future goals. Robo advisers are generally low cost, but some can require a steep minimum for entry. I am sharing with you 5 robo advisers that require no minimum to invest.
Acorns Core
Acorns Core is a great option for those who need a bit of a push to save. You can simply link your debit card or credit card to the account and your purchases are rounded up to the next dollar, automatically adding that spare change to your account and investing it into a portfolio of ETFs. There is a fee, though it is minimal at $12 per year for a taxable account or $24 per year for an IRA.
Betterment Digital
Betterment offers two plans, but their Digital plan has no minimum balance (versus Premium which requires a $10,000 balance) and an annual fee of 0.25% of assets. Betterment Digital invests your money in ETFs and automatically rebalances to retain your target allocation when the market shifts. Betterment also offers one-time advice calls for various situations, like college or marriage or retirement, starting at $199.
Fidelity Go
Fidelity Go is by the well-known Fidelity, so you can feel confident having them manage your money. Although there is no minimum balance required, there is an annual fee of 0.35% of assets. The initial survey asks things like year you were born, what you’re saving for, if it’s for you or you plus a partner and what risk tolerance you are comfortable with then builds a portfolio of mutual funds based on your responses.
SoFi Invest
SoFi is most well-known for helping with student loan refinancing; however, they offer several services beyond student loans, such as personal loans, home loans, insurance, cash management and, of course, robo advising. The best part about Sofi is that in addition to no minimum balance, there are also no management fees. SoFi invests your money in ETFs.
Axos Invest
Axos Invest was the world’s first free financial advisor, which means that, yes, along with no minimum balance there are also no management fees. Your money will be invested in diversified ETFs. At Axos they offer other financial services to help you build you financial plan, as well, but these come at a nominal fee and you are able to opt out of paid services if you are not interested.
Have you tried robo advising? If so, what are your thoughts? If not, why not?
