The Truth About Robo Advisors...

The Truth About Robo Advisors...

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[vinylEarthlink]

Rob Berger has a review of the Vanguard Digital Adviser on his YouTube channel. He actually put money in and tried to use it, only to discover that it is a giant mess. His video is really a hoot!

[TheNORegretShow]

Well, I had Wealthfront and it went against everything Benjamin Graham talks about in his book. An S&P 500 or Total Stock Market Index fund will outperform a robo adviser. My Fidelity S&P 500 was up 2.1% over the Wealthfront account. Without all the buying and selling those robo advisers do. He is right there were so many transactions in those robo adviser accounts.

[vinodgk]

I couldn't agree more. Had a really bad experience with Axos invest. 10 days and counting to take money out. Its supposed to happen in 5 business days. Although wealthfront did work as expected.

[ericaluke]

*YOU DON'T HAVE TO BE GREAT TO START BUT YOU HAVE TO START TO BE GREAT—BLOSSOM JEFFERSON* 💖

[iTzDritte]

I heard lots of reasons to not do frequent tax-loss harvesting by hand for small dollar accounts, but nothing to refute the value of automating it with a robo advisor.

[PHILosophy]

I like to weigh the value between capturing the loss and the value of time with the long-term/short-term capital tax status. For example, if my recent investments lose money, tax loss harvesting makes a lot of sense because of a favorable tax treatment (long-term) is a long way off. But if I have an investment that has only a couple of months before it qualifies for a long-term capital tax status and the loss is minimal, I probably would not harvest the loss. Time also has value and to take a loss to reset the clock and wait another 12 months for a favorable tax treatment, should be weighed carefully. Just because an investment has a loss, does not automatically mean one should capture the loss. I doubt the Robo advisor would consider that factor.

[ricorodriguez]

You guys hit the nail on the head. Are used to use Wealthfront and for a couple of years my 1099‘s were a nightmare and you cannot upload them to the H&R Block software either. When I moved to Fidelity I had to jump through a bunch of hoops sending written forms to transfer all my assets. I would stay with a big broker and like Jack Boggle said, you don’t need a Robo advisor to tell you you need 17.63% of a stock versus 17.65%. Save your money.

[vapeking]

You can hire some fiduciary's by the hr to simply create a portfolio for you. If your worried about choosing the right investment.

[Kingtut]

What do you think of American Target Funds AAETX