When it comes to your financial well-being, there are many avenues you can take to ensure your money doesn’t go to waste. If you’re thinking of investing some of your extra funds but aren’t sure how to go about it, consider using the services of a robo-investor.
What are robo-investors?
Despite what their name sounds like, robo-investors are not terminators sent from the future to destroy your money. They are online-based advisors that help you manage your money. They are actual human beings that are available online to offer financial advice and guide you through the investment process.
Robo-investors help you invest your money the same way an in-person investor would: You present your financial portfolio (or if you don’t have one, they instruct you on how to create one), then they offer guidance and instructions on how and where to invest your money. It’s a pretty simple process that can yield decent results.
What are the benefits of working with an online investor?
Many people work full-time and can’t leave the office during the day to meet with an investor. The great thing about robo-investors is that you can deal with them on your time. Because of their online nature, robo-investors are available whenever you need them. You can set up meetings around your schedule and you don’t have to leave your house.
These investors are available via online chat and even over the phone. Moreover, working with a robo-investor is a low-cost option since you’re doing it on your own time, from your own computer, tablet or smartphone, and from the comfort of your own home (or on your lunch break). Finally, robo-investors generally provide their services at a lower fee than traditional investors.
Are robo-investors safe?
If you’re used to working with your bank or another form of in-person advisor when it comes to your money, you probably have questions about the safety of robo-investors. The Canadian financial and investment industry is regulated which means that investors, no matter if you visit them at their office, at your bank or online, must comply to government standards. You can also purchase financial insurance through your robo-investor or your bank to protect you should anything go awry.
Robo-investors are not for everyone. They tend to attract a younger clientele who are more comfortable with Internet banking. These online advisors can help you invest but if you’re looking for the human element, that is you prefer to shake the hand of your investor instead of just speaking with them over the Internet, robo-investors may not offer the best option for you.