Money For the Rest of Us

What Robo-advisors Recommend

Jan 19, 2016
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ANECDOTE

David Stein's Robo-Advisor Experiment

  • David Stein explored robo-advisors and built a Mechanical Turk-like service.
  • He quickly abandoned it, realizing he didn't want the responsibility of managing others' retirement portfolios.
INSIGHT

Robo-Advisors: A Disruptive Innovation

  • Robo-advisors target underserved young investors, a market traditional advisors ignore.
  • This disruptive model, offering "good enough" solutions, improves and adds features over time.
INSIGHT

Robo-Advisor Recommendations Vary Widely

  • David Stein tested four robo-advisors with his own data and found widely varying recommendations.
  • The allocations differed significantly in stock/bond ratios and specific asset classes.
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