A look at the way you Plan for Future Investments: Robo-Advisors

ROBO TAKE OVER: Investing Wisely 



Things change throughout a lifetime, to start with we have gone to shoehorns on a horse to self driving 4 wheel vehicles that use electricity. We now no longer need to chop up fire wood, we can break down coal and that pushes forced air through our ventilation to heat our feet. Far and beyond from morse code to the cell phone the last century has certainly been a push on technology and things that make life easier on the human race. 

With so much of these changes to the way we work and play, why not a change to the way we save and invest. The time has come for another one of the higher paying sales careers "Financial advising " to move to the computer who if programmed correctly can make educated decision and lose the rational of emotion based upon it's background of 70+ years of investing strategies. The term that is used now is called Robo Advisor: 

Robo Advising What is it:
An online wealth management service that provides automated, algorithm-based portforlio management advice without the use of human financial planners. 

Why would you need online management just call up an advisor and go one on one. The same reason you don't go to your local Best Buy to get statistics or do price hunting for a product when you have Amazon, it's called convenience This convenience is starting to reach its Apex, think about the changes as moves that are not taking away jobs but more so moving the work load into areas that humanity needs support with. 



How does it work: 
Well technically all that is being done is the face to face consultation is lost, the full pallet of investment options are provided online at a lower costs on the monthly service and the minimum account needed to invest in a portfolio. The move is reminisicent in the lost of bank tellers at your local branch. The semantics behind the scenes remain the same there is an algorithm punched into a programming language that mirror multiple investmnet scenario's and allow you to choose a module that meets the needs of your strategy. 



The pack of robo-advisor's has grown some of the top players that you should look for with there assets under management (AUM): 

Betterment: $3 billion (AUM) 

Wealthfront: $3.52 Billion (AUM) 

WiseBanyan (Free): $50 Million (AUM) 

Charles Schwab: 5.3 Billion (AUM) 

Players for a 401K robo advising there outfits can manage what you currently have in your companies 401k portfolio. 

Companies: Hedgeable, Future Advisor and Blooom. 

So let's get down to what really matters which is your pockets. Betterment uses a historical calculator to show the performance better an individual client investor and one of there Robo "Cops" and I can say from the numbers there is no doubt robo advising is the way to go. 





If we look at the talley from this one robo advising instituition we can see that Betterment performs 53% better than the traditional financial instituitons. If this is the wave of the future we can be assured a path of larger returns. This investment is regulated to a certain investor as some as mentioned it's comparing turbo tax to a CPA. Expect this industry to reach 3 to 4 trillion by 2020 so jump on board while the ship is still roling.  Happy Investing as you start your businesses up on Macheene and disperse information through multiple product groups take a look at a new way to park your money.