Word of the Week:
Robo Advisor

Definition:  A robo-advisor is an investment management company that uses a computer program instead of a live human to manage assets. A robo-advisor is a company that manages people’s investments using algorithms and automation. Working with a robo-advisor could be a good option if you have relatively low assets to manage or simple goals. While robo-advisors can’t provide the same human touch as traditional financial advisors, they generally charge lower fees and can offer unique services, such as tax-efficient rebalancing.

Key Takeaway:  A robo-advisor is an investment manager that uses automation to manage funds.

Fun Fact:  In 2008, Betterment became the first robo-advisor to launch. Today, there are more than 200 robo-advisors operating in the United States.