Robo-advisors have revolutionized the investment management process by providing a cost-effective and automated solution for investors. However, there are times when talking 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 that offer a human advisor option.
Understanding Robo-Advisors
Robo-advisors utilize algorithms to create an investment portfolio based on your risk tolerance and investment goals. They also offer features like tax-loss harvesting and automatic rebalancing to optimize your returns and simplify the investing process.
Compared to traditional financial advisors, robo-advisors typically have lower fees and require less initial investment.
Traditional Financial Advisors
Traditional financial advisors provide a wide range of financial services, including investment portfolio management, retirement planning, and estate planning. However, their services come at a higher cost and may require a substantial initial investment.
For personalized financial advice, consider consulting Bankrate’s list of top financial advisors or use their 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, provides a free basic tier with portfolio management services. The premium tier offers unlimited access to CFP advisors who act as fiduciaries. Clients need $25,000 in assets for this tier and pay a one-time planning fee, followed by a monthly fee.
2. Betterment
Betterment offers two plans – a basic digital plan and a premium plan with access to CFP advisors. The premium plan requires a minimum of $100,000, but clients with lower balances can purchase flat-fee advice packages.
3. Fidelity Go
Fidelity Go is a cost-effective robo-advisor that uses zero-cost Fidelity mutual funds in its portfolios. Clients with balances over $25,000 can schedule calls with advisors to receive financial guidance.
4. SoFi Automated Investing
SoFi Automated Investing is a low-cost robo-advisor that allows clients to speak with CFP advisors without a management fee. However, tax-loss harvesting is not included in their services.
5. Wells Fargo Intuitive Investor
Wells Fargo Intuitive Investor offers portfolio management with low-cost funds, along with access to financial advisors. The annual fee can be reduced based on the client’s Wells Fargo checking account type.