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With technology comes many advantages. For most people, getting something done in an automated fashion sounds good because it minimizes the amount of time you have to commit to the task. Robo advisors are one of the tools available to you that may be able to help. While these are tools, they do not replace the need for skilled and experienced advisors who can provide more insightful and effective solutions for you.

What Are the Benefits of Robo Advisors?

Robo advisors are a type of digital investment tool. They let you input some basic information. Then, they watch trends in the market and adjust your strategies to match. There are various forms, and some offer more features than others. Their ultimate benefit is that they automate the process for you.

If you are an entry-level investor and want to do your own investing, robo advisors can be one way for you to do this. They are very easy to use, and they do have lower fees. You do not have to have a significant amount of money to invest to use them either. They are a starting point for most people, though. They offer some benefits, including:

  • Low-cost portfolio access
  • Tax-efficient
  • Easy to use

What Are the Drawbacks of Robo Advisors?

While they are an easy first step, robo advisors cannot do it all for you. First, they are not financial planners. Most of these systems are basic in terms of what they can do for you. You are not working with a professional who can answer questions and give you advice. At the same time, they tend to have limitations for those who want to invest a larger amount – especially when you want higher results. They do not guarantee results.

Should you use them? It’s a good idea to turn to a financial advisor for more guidance. Use robo advisors for the investments you want to control on your own, perhaps if you like dabbling in the market yourself.

Are You Looking for More Support in Investment Decision-Making?

It’s not uncommon for robo advisors to be an attractive option for those who just don’t have time to manage their investments. Our team at Sterling Financial can help you. Turn to us to learn more about what you can expect and the solutions available to you.