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Is a Robo-Advisor Right for You?


We trust technology to find the best route to the airport and remind us about important events, so it’s no surprise that more and more investors are turning to robo-advisors for a hands-off, low-cost, and efficient way to manage their portfolios.

Using an online questionnaire to access your goals, a robo-advisor employs advanced algorithms to recommend a diversified portfolio, typically consisting of a combination of low-cost exchange-traded funds based on your time horizon and risk profile.

Once your portfolio is created, a robo advisor can monitor your investments and rebalance as needed to keep your allocation consistent with your goals as markets fluctuate. With a minimum investment amount, some robo-advisors even offer automated portfolio-management features like tax-loss harvesting, which can help to potentially reduce current tax liabilities and leave you more money to reinvest and potentially grow over time.

Regardless of your investing savvy or net worth, a robo-advisor could be a good fit if:
  • You want a low-cost investment solution: With low or no fees and commissions, a robo-advisor can help keep costs to a minimum—because every dollar you save in fees is one you can invest for future potential growth.
  • You’re saving for one or multiple goals: Whether it’s college, retirement, or a new or second home, each goal requires its own strategy. Robo-advisors can create multiple tailored portfolios aimed at helping you achieve each of your objectives.
  • You don’t have the time or inclination to be hands-on: Robo-advisors can automatically create, monitor, and rebalance your investments to keep you diversified and on track.
  • You want a healthy mix of assets: Robo-advisors automatically construct a diverse portfolio in line with your goals, risk tolerance, and time horizon.

Bottom line:
If you’re looking for a low-cost and hands-off investing strategy that helps you establish an investment portfolio for one or multiple goals, a robo-advisor could be the right fit for you.

What You Can Do Next

Learn more about Schwab’s robo-advisor offering: Schwab Intelligent Portfolios®


Please read the Schwab Intelligent Portfolios Solutions™ disclosure brochures for important information, pricing, and disclosures related to the Schwab Intelligent Portfolios and Schwab Intelligent Portfolios Premium programs. 

Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ are made available through Charles Schwab & Co. Inc. (“Schwab”), a dually registered investment advisor and broker dealer. Portfolio management services are provided by Charles Schwab Investment Advisory, Inc. ("CSIA"). Schwab and CSIA are subsidiaries of The Charles Schwab Corporation.

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.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Diversification, automatic investing and rebalancing strategies do not ensure a profit and do not protect against losses.

Investing involves risk, including loss of principal.

©2020 Charles Schwab & Co., Inc. All rights reserved. Member SIPC.


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