Robo-advisors are growing in popularity throughout the investment sector of the financial industry. Find out if a robo-advisor is right for you.
Chances are, you’ve heard of the “robo-advisors” that are taking the investing world by storm. But what exactly are they? And are you and your portfolio ready for a digital facelift? Let’s tackle these questions and more.
Robo-advisors are automated investment portfolios that use algorithms to consider your unique needs against outside factors and then automatically allocate and periodically adjust your portfolio to help keep you on track. This is different from target date funds, which do not have the same capabilities.
Despite being virtually nonexistent just five years ago, robo-advisors are rapidly growing in popularity—and they’re expected to keep growing in the years to come.
Despite its name, a robo-advisor isn’t a self-aware investing machine—there are skilled, knowledgeable professionals behind the curtain who manage your portfolio’s makeup. (That’s why we call them “managed portfolios.”) If you'd like to consider investing in a robo-advisor managed portfolio, TD Ameritrade Investment Management, LLC, offers Essential Portfolios, which are robo-advised model portfolios. Here’s the process for getting started.
Answer a series of questions about your investing style, your risk tolerance, your time horizon, and your goals—whether you’re saving for retirement, a new home, or something else.
TD Ameritrade Investment Management recommends a model portfolio that aligns with your goals. The portfolios are composed of exchange-traded funds (ETFs) that have been recommended by the pros at Morningstar Investment Management, LLC.
Our robo-advisor—backed by investing professionals at TD Ameritrade Investment Management—provides the monitoring and automatic rebalancing to help keep your portfolio on track, so you don't have to.
You can check in on your portfolio as much, or as little, as you want. With the Portfolios App, you can track your progress, deposit/transfer funds, and keep tabs on your money on the go. (But don’t worry, we’ll be monitoring it too.)
From the low fees to the low investment minimums and the professional portfolio management, there are many reasons to consider a robo-advisor model portfolio. The convenience of model portfolios can give you additional time to focus on the things that matter most: your family, your career, and all the things that make you smile.
*according to Accenture
TD Ameritrade Investment Management offers three types of managed portfolios for you to consider:
Robo + Human
Get solutions that fit your goals, even when they change and grow.
See which managed portfolio* might be best for you.
*Managed portfolios are offered by TD Ameritrade Investment Management, LLC.
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