The Money with Katie Show Rich Girl Roundup: Are Roboadvisor Fees Worth It?
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Dec 18, 2023 In this episode, Katie and Henah discuss whether roboadvisor fees are worth it and the benefits of using them. They explore the value of roboadvisor fees for tax optimization and compare them to human financial planners. They also highlight the benefits of roboadvisors for beginner investors and discuss popular options like M1 Finance and Betterment. Finally, they provide best practices for investing and mention M1 Finance as a customizable roboadvisor option.
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Roboadvisor Benefits and Fees
- Roboadvisors use modern portfolio theory to build diversified portfolios with minimal knowledge needed.
- They offer benefits like automated portfolio maintenance and tax optimization for a typical fee of 0.25% annually.
Consider Value of Robo Fees
- Evaluate if the 0.25% annual roboadvisor fee is worth the convenience and tax benefits.
- Consider your investment size and whether you want a hands-off approach to managing your portfolio.
Avoid Overpaying for Advice
- Don’t overpay for financial advice beyond your needs or complexity.
- For straightforward portfolios, robo advisors offer a cost-effective, hands-off investing solution.