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How Do Robo-Advisors Work?

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Robo-advisors are automated platforms for delivering some of the best practices that human financial and investment advisors have developed over the years.

But how do robo-advisors actually work?

Each platform is different, but investing through a robo-advisor generally starts with a questionnaire about your goals, timeline and sensitivity to risk. Then the robo-advisor will pair you up with a curated portfolio that matches your needs and preferences.

But it doesn’t end there. Once you’ve funded the account, the robo-advisor continuously monitors your portfolio.

As the individual assets in your portfolio rise and fall along with the market, robo-advisors will look for opportunities to buy or sell investments, to keep everything in the proportions that will help keep you on track to achieve your goals.

Important Disclosures

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

Investing involves risk including loss of principal.


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