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Eric

Benefits of Using Robo-Advisors.

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Hello Eric,

Robo-Advisors help in making financial decisions based on data collected from the user. The benefits of the Robo-Advisor usually depend on the developer and the broker. Some brokerage companies offer exclusively automated advisors, while others provide partly automated advisors. However, there are universal benefits that span across all Robo-Advisors regardless of the brokerage firm or algorithm in use.
First, Robo-Advisors offer less fees to a customer. You do not have to spend a lot when it comes to acquiring a Robo-Advisor. In the past, investors spent a lot of money on financial advisors that offered their services at a basic rate of above 1% per Asset under Management (AUM). The fixed percentage meant that you spent more if you had more assets under management. Robo-advisers offer their financial services for less than 1% AUM. Some companies even offer between 0 and 0.25%. The reduced fees make it an ideal tool for investing and make it accessible to low-income and middle-class earners. 
Furthermore, some companies such as Wise Banyan offer low minimum balance making the services accessible to many individuals. During the inception of Robo-Advisors, you had to have a minimum balance of around $1000 or more before you could acquire its services. The platforms' growth has significantly reduced the minimum balance, ensuring that you get access to sound financial advice regardless of the amount you have as a minimum balance.
Second, Robo-Advisors have simplified the investment process by making it possible for an individual to become their own personal advisor. In the past, financial advisors found it difficult to best advise a client because of the cumbersome process of selection of the best alternatives. Additionally, as a customer, you felt overwhelmed by the financial decisions that you had to make, especially if you could not afford a financial advisor. Robo-Advisors have simplified the process for financial advisors who rely on the algorithms to help in decision-making. Financial advisors use the information collected to provide advice to their clients. Similarly, clients depend on the Robo-Advisors to develop useful advice, which they apply.  
Lastly, Robo-Advisors have significantly reduced the time spent on financial decision-making. Today, you only have to spend a few minutes on the platform, and you get your results before the end of the day. Before the invention, you had to schedule several meetings with your financial advisor to get their services. The activity would spend a lot of time in-between meetings and waiting for feedback. Robo-Advisors have eliminated all the hustle, ensuring that you get quality advice if you have access to laptops and the internet.
Overall, Robo-Advisors offer a myriad of opportunities for individuals who employ the services. You do not have to stress yourself by seeking the help of a financial advisor. In comparison, a Robo-Advisor is cheaper and yields better results compared to a financial advisor. Finally, Robo-Advisors simplify the process of investment and seeking advice from qualified professionals.
 

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