Over the last several years we have heard a lot about Robo Advisors like Wealthfront and Betterment, and more recently M1 Finance. While the initial look at these investment services were promising – automatic investments into low-cost index fund with little, or in some cases, no fees – like most things, it may have been too good to last. What was most likable, the clarity of what they were offering us, may be disappearing. Below is a link to an article from Wired that discusses the move away from passive (read inexpensive) investing to active (read expensive) investments by at least one of these Robo Advisors.
https://www.wired.com/story/beware-roboadvisors-wealthfront-betterment/
While this article is troubling, there is still hope that some of these services may be sticking to their guns. Here is a good review of M1 Finance from Retire Before Dad, or RBD. I use M1 and am happy so far with the experience. Anything that will streamline the investment process and keeps fees low, is good in my book.
Until Next Time, FIRE On! – Oldster
I missed this link! I am so glad you shared it. It has been really interesting to watch robo advisors evolve. We currently use a Target fund through Vanguard, and I also wonder if I’m missing out. Though from what I hear about some of the robos at tax time, I’m pretty happy with our choice for now. Good to know that you use M1. I’m least familiar with them out of all the robos. Appreciate the links!
Glad to be of service. I’m not a fan of active management by other people or robo advisors. I very much prefer to put money into the market and let it sit there. To the extent that decisions are made about my money and where it’s invested, I’ll make them. No one cares about your money as much as you do. I should put that on a shirt. 🙂