March 20, 2015 Fact of the Day: Who is Using Robo/Virtual Advisors?
DID YOU KNOW THAT …..42 Percent of investors under the age of 35 are familiar with the concept of a “robo-advisor”. Overall, more than 20 percent of investors are likely to use one.
What is a robo-advisor? A robo-advisor is a service offered on-line in which an investor fills out a detailed questionnaire regarding his or her financial and investment situation as well as their risk tolerance. Based upon the outcome of that questionnaire, an algorithm is developed and applied to that investors’ assets.
The concept of a robo-advisor is fairly new and is popular with many individuals who aren’t sure whether or not they can afford or can ‘trust” a traditional advisor. In some cases, however, traditional advisors are using a similar software to create similar plans for their own customers.
Before you decide if a robo-advisor is right for you….check out our Best Advisors.