Do you want to start investing but are uncertain what to do to get started? The chances are you are not alone. Even though other people don’t always talk about it or admit it, they are having the same doubts and fears as you are. But there is something you can do about it. You can choose to use a robo-advisor to help you get started. Here are 5 reasons to use a robo-advisor as a new investor.
People are busy. They hustle from their job to the gym to the store and then finally to their homes or apartments. Eat a meal, take a shower, help the kids with homework and catch a few z’s and then start all over again tomorrow. When do you have time to read and research about investing? Robo-advisors can help you with your investing needs and save you time in the process. Many are fully automated allowing you to go about your busy day without having to worry about how your investments are doing when you aren’t looking at them.
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2. Removes the Human Element
While some would argue this as a reason not to use a robo-advisor, I believe it to also be a reason why you should use a robo-advisor as a new investor. If you try investing on your own, your inexperience may just get in your way. As a new investor you may tend to be a bit anxious which could cause you to freak out a bit when your investments dip a little. You may decide to move your money to soon rather than waiting for your investment to rebound and go back up which can cause you to lose money on your investments.
Another reason to remove the human element is greed. Although not all financial advisors are out to steal your money, if you use one, you should be wary because at least some of them are. They may be steering you to invest in areas that offer them financial benefits rather than in what will make you the most money in your portfolio.
Robo-advisors are available to assist you even at odd hours. For example, after you have finally had a chance to catch your breath at the end of the day you can pull out your phone and use an app to check on your portfolio. Traditionally you would have to call your financial advisor to find out how your investments are doing or have them send you a report. With robo-advisors, you can find out for yourself the status of your investments when it’s convenient for you without waiting on someone else’s schedule.
4. Low Minimums
As a new investor you may not have the thousands some investment firms want you to deposit with them in order to start your investment account. In the past that would mean you were simply out of luck until you could save enough to meet their requirements. But robo-advisors have all but eliminated that problem with their low deposit minimums. In fact, some robo-advisors don’t even have a minimum deposit amount allowing you to start investing and building wealth for your future goals much sooner.
There are plenty of options to choose from when you want to start investing with a robo-advisor. This means one may have features that fit your needs better than another. If you aren’t sure which to choose, check a few out on the internet to help you make a decision. There is a decent Canadian selection to choose from as well.
As you can see, when you want to invest but have doubts about getting started, there are 5 good reasons to use a robo-advisor as a new investor and build wealth toward your investment goals.