Robo advisors

[scaredyclassic]

Been using one a couple years. I like it. Went with wealthfront. Seems all very simple. And cheap.

And easy to forget about and just let it auto debit and do its thing.

It seems like theyre everywhere now. Wells fargo, etc.

So ez to invest in the market. Not sure if thats a good thing or a bad thing.

Longterm prolly good.

I would trust a robot advisor over human any day.

[sdrealtor]

Yes HAL

[ucodegen]

I worry about the robo-‘advice’ being tainted with advice that more favorably benefits the advisor (ie: Wealthfront or Wells Fargo) than the one being advised… see ‘Frontrunning’. The one that controls the info, decisions, also controls the market.

There may also be the problem of more ‘black swans’, and periods of extreme volatility. The current more diverse set of people making investment decisions tends to dampen volatility better than a whole group doing the same thing on the advice of a very few people.

[scaredyclassic]

Im pretty sure theres no individual stock picking, just a range of inexpensive etfs for various risk profiles.

Plus wealthront does tax harvesting sales to maximize yield.

Not sure frontrunning is an issue. Perhaps the risks to the market of everyone mindlessly buying indexes regularly. But do you really make any investment based on potential future harm to the financial markets. Thats the equivalent of refraining from pissing in the ocean. Its a cheap way to dollar cost avg and get cheap financial tax mgt.unless im missing something…

[gzz]

“Tax harvesting” is very easy on fidelity. It shows all your positions by gain or loss, and the tax lots within them. Just sell the losses and small gains and hold the large gains.

As for ETFs, all of Vanguard’s are low cost and best in class.

[scaredyclassic]

What about the automation. Can uou really make regular equal purchases at all times?
Thats worth something.

[Author]

Posts