OK, we at FintekNews believe in being fair and and equal to ALL the investment/ trading/ money management firms that have "the next best robo-advisor" out there. So here's a story that first appeared in HuffPo talking about TD Ameritrade 'discovering' that these newfangled robos might catch on and have a big influence on the finance sector. Boy, good to see they are up-to-date and sure hope their top pick isn't the "Steam Railroad Company". Seriously though, they recently launched their robo Essential Portfolios, and are now in the robo fight for millennial (and other) investor money with all the other major financial players out there, including Schwab's Intelligent Portfolios, Betterment and more.
(Bill Taylor/FintekNews)
"Today’s youth are often referred to as “digital natives.” This generation has never been without smartphones or “touch-based” screen experiences. They have been raised communicating via text messaging and completing transactions through apps. As a result, they have a comfort level with technology not experienced by previous generations. In addition, as boomers begin to enter retirement they are using their spare time boning up their working knowledge of technical devices. So what does this mean for personal financial services?
As is the case with many other industries, the financial sector must continue to evolve in order to engage not only millennials, but also any consumer who would rather interact with a mobile device rather than go and speak to a person regarding their finances. Enter the robo advisor, one in many technically powered innovations to come.
According to Investopedia, a robo advisor “is an online wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners.” Such services have been growing in popularity throughout the investment sector of the financial industry.
TD Ameritrade Investment Management, for example, recently introduced Essential Portfolios, which, through a series of questions to understand personal investing goals and risk tolerance, enables users to receive a recommendation for a specific managed portfolio that can fit their financial needs for a low cost, all within about 15 minutes. The portfolio is monitored and automatically re-balanced by TD Ameritrade Investment Management, and the investor has on-the- go access through any device to monitor their portfolio and adjust their financial goals in the app as life presents them with changes.
While the idea of using an automated program to manage their investment portfolio may seem esoteric for certain investors, for countless others it can be an ideal option for a number of reasons. Typically, robo advisors require a smaller initial investment and have lower fees than a professional financial advisor. It’s important that investors keep in mind, however, that not everything is manageable through such programs, so for those with more complex wealth management needs, having a trusted financial advisor or tax professional is still a path worth considering..."
Read Full Article at TDAmeritrade Website