For investors looking to streamline their investment management process at a lower cost than traditional financial advisors, robo-advisors are an excellent option. However, there are times when speaking to a human advisor is necessary. Luckily, some robo-advisors offer this option, including access to certified financial planners (CFPs).
Here’s what you need to know about robo-advisors and those that provide a human advisor option.
Understanding Robo-Advisors
Robo-advisors utilize algorithms to construct an investment portfolio based on your risk tolerance and investment objectives. Many robo-advisors also offer features like tax-loss harvesting and automatic rebalancing to enhance your returns and simplify the investment process.
The top robo-advisors have significantly lower fees compared to traditional financial advisors, making it accessible even for those with limited savings.
Traditional Financial Advisors
A traditional human financial advisor can assist in building an investment portfolio and provide guidance on various financial aspects such as financial planning, retirement savings, and estate planning. However, these services come at a higher cost compared to robo-advisors, typically requiring a substantial initial investment.
Explore Bankrate’s list of top financial advisors or utilize the financial advisor matching tool to find an advisor in your area.
5 Robo-Advisors Offering Human Advisors
1. Schwab Intelligent Portfolios
Schwab Intelligent Portfolios, offered by Charles Schwab, is a top-tier robo-advisor that includes a free basic tier providing portfolio management, automatic rebalancing, and tax-loss harvesting. For unlimited access to financial advisors with the CFP designation, you can opt for the premium tier, requiring a minimum investment of $25,000. The advisors, acting as fiduciaries, prioritize your interests. The annual fee for this tier starts at 0.36 percent.
2. Betterment
Betterment, a leading robo-advisor, offers a basic digital plan with services like portfolio management and tax-loss harvesting at an annual fee of 0.25 percent. The premium plan, priced at 0.65 percent annually, includes unlimited access to CFP-designated financial advisors for clients with a minimum investment of $100,000. Additionally, clients below this threshold can purchase flat-fee advice packages.
3. Fidelity Go
Fidelity Go is a cost-effective robo-advisor suitable for investors with lower initial investments. Accounts with balances above $25,000 pay an annual advisory fee of 0.35 percent. This platform provides unlimited 30-minute calls with an advisor for fee-paying accounts, starting at $25,000.
4. SoFi Automated Investing
SoFi Automated Investing stands out as one of the most affordable robo-advisor options in the industry, offering free management and access to CFP-designated advisors. While lacking tax-loss harvesting, SoFi provides a low-cost investing solution with advisor support.
5. Wells Fargo Intuitive Investor
Wells Fargo Intuitive Investor offers portfolio management, automatic rebalancing, and tax-loss harvesting at an annual fee of 0.35 percent. Clients can access financial advisors 5 days a week, providing guidance on investing and program details. The annual fee can be reduced for clients with specific Wells Fargo checking accounts.