Robo-advisors take many tedious tasks off the hands of investors.
In the past, if you wanted to build a diversified portfolio of investments geared toward your timeframe and sensitivity to risk--but didn’t want to work with a professional advisor--you had to handle the research, pick the investments and do all the buying and selling yourself.
Maintaining your portfolio also meant monitoring it regularly to keep everything on track as the markets changed.
You also had to decide whether or when to harvest losses to offset taxable gains elsewhere in your portfolio. This took time—not only time to manage the portfolio, but time to develop investment strategies and expertise.
Now, robo-advisors can do most of this for you, breaking down old barriers of time, knowledge, affordability, and access to put sophisticated investing advice, research and monitoring into the hands of many.