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> Or, in other words, you will have about 10% more savings if you had taken a couple of hours to sit down and decide which funds to invest in. If and only if y
by chc 10y ago
> Or, in other words, you will have about 10% more savings if you had taken a couple of hours to sit down and decide which funds to invest in.
If and only if you would have done about as well as the robo-advisor in those couple of hours. (I'm not saying this would or wouldn't happen, but it's pretty big for an unstated assumption.)
- hristov 10y agoWell the thing is that the roboadviser is not even intended to make particular security picks. It is only supposed to decide which broad areas to invest in and what percentage for each area. Thus, the roboadviser can say that for your particular risk profile you should have 60% stocks 40% bonds and within the stocks you should have 60% sp500, 20% foreign large cap ... etc. My point is this portfolio distribution stuff is not an exact science and there really isn't a right answer. There are some broad accepted guidelines, but they are rather broad and simple and you definitely do not need computers to follow them.
- frinxor 10y agomaybe you'll do better, maybe you'll do worse. the prevailing theory is that the expected value is the same (minus the fees). adding up years of fees, and suddenly you're short a nontrivial amount of money