As the world becomes increasingly digital, it’s no surprise that more and more people are turning to robo-advisors for their investment needs. These platforms use algorithms and computer programs to create and manage investment portfolios, often with lower fees than traditional financial advisors. In this article, we’ll take a look at some of the best robo-advisors of 2023.
Betterment
Betterment is one of the most well-known robo-advisors and has been around since 2008. The platform offers a variety of investment portfolios based on your goals and risk tolerance, and their algorithms will automatically rebalance your portfolio as needed. Betterment also offers tax-loss harvesting, which can help you reduce your tax bill by selling investments at a loss to offset gains.
One of the things that sets Betterment apart is their human advisor service, which allows you to speak with a certified financial planner for an additional fee. This can be especially helpful if you have complex financial needs or questions that the algorithm can’t answer.
Wealthfront
Wealthfront is another popular robo-advisor that has been around since 2011. Like Betterment, they offer a variety of investment portfolios based on your goals and risk tolerance. They also offer tax-loss harvesting, as well as a feature called “Path,” which helps you plan for your financial goals like buying a house or retiring.
Wealthfront also offers a unique feature called “Stock-level Tax-Loss Harvesting,” which allows them to harvest losses at the individual stock level, rather than just at the portfolio level. This can help you maximize your tax savings.
Personal Capital
Personal Capital is a robo-advisor that also offers human financial advisors. In fact, they require you to speak with a financial advisor before investing, to ensure that you’re on the right track. Personal Capital also offers a variety of investment portfolios based on your goals and risk tolerance, and their algorithms will automatically rebalance your portfolio as needed.
One of the things that sets Personal Capital apart is their focus on retirement planning. They offer a retirement planner tool that helps you estimate how much you’ll need to save for retirement, as well as a Social Security optimizer tool that helps you maximize your Social Security benefits.
M1 Finance
M1 Finance is a robo-advisor that allows you to create and manage your own investment portfolio. You can choose from a variety of pre-built portfolios or create your own custom portfolio using individual stocks and ETFs. M1 Finance also offers automatic rebalancing and tax-loss harvesting.
One of the things that sets M1 Finance apart is their “Pie” system, which allows you to visualize your portfolio as a pie chart. This can help you see how your investments are allocated and make adjustments as needed.
Ally Invest
Ally Invest is a robo-advisor that is part of Ally Bank. They offer a variety of investment portfolios based on your goals and risk tolerance, and their algorithms will automatically rebalance your portfolio as needed. Ally Invest also offers tax-loss harvesting.
One of the things that sets Ally Invest apart is their low fees. They charge just 0.30% per year for their robo-advisor service, which is lower than many other robo-advisors. They also offer a wide variety of investment options, including stocks, bonds, ETFs, and mutual funds.