Introduction
If you’re looking for an easy and convenient way to invest your money, you might consider using a robo-advisor. One of the most popular options out there is Ally Invest. In this article, we’ll review Ally Robo Advisor and help you decide if it’s worth your investment.
What Is Ally Robo Advisor?
Ally Robo Advisor is an automated investment platform that uses algorithms to build and manage a diversified portfolio of ETFs. It’s designed to provide investors with a low-cost, easy-to-use investment solution. Ally Invest is a subsidiary of Ally Financial Inc., a leading digital financial services company.
How Does Ally Robo Advisor Work?
To get started with Ally Robo Advisor, you’ll need to answer a few questions about your financial goals and risk tolerance. Based on your answers, Ally will recommend a portfolio of ETFs that are designed to meet your needs. Once you’ve selected your portfolio, Ally will automatically invest your money and monitor your investments to ensure they remain aligned with your goals.
What Are the Fees?
One of the benefits of using a robo-advisor like Ally is that the fees are typically lower than traditional investment advisors. Ally charges a flat fee of 0.30% per year for its robo-advisor service. This means that if you invest $10,000, you’ll pay $30 per year in fees.
What Are the Pros of Ally Robo Advisor?
There are several advantages to using Ally Robo Advisor:
1. Low Fees
As we mentioned earlier, Ally charges a low fee of 0.30% per year, which is significantly lower than what you’d pay with a traditional investment advisor.
2. Diversification
Ally Robo Advisor invests your money in a diversified portfolio of ETFs, which helps reduce your risk.
3. Easy to Use
Ally’s platform is user-friendly and easy to navigate, making it a great option for beginners.
4. Tax Loss Harvesting
Ally offers tax loss harvesting, which can help you reduce your tax bill by offsetting gains with losses.
What Are the Cons of Ally Robo Advisor?
While Ally Robo Advisor has many benefits, there are a few potential drawbacks to consider:
1. Limited Customization
Ally’s portfolios are pre-built, which means you don’t have much control over the individual investments in your portfolio.
2. No Human Interaction
If you prefer to have a personal relationship with your investment advisor, Ally Robo Advisor may not be the best option for you.
3. Limited Investment Options
Ally only offers ETFs, which may not be the best option for all investors.
Is Ally Robo Advisor Right for You?
Ally Robo Advisor is a great option for investors who are looking for a low-cost, easy-to-use investment solution. If you’re comfortable with a limited amount of customization and don’t require human interaction, Ally Robo Advisor may be a good fit for you.
Conclusion
Overall, Ally Robo Advisor is a solid option for investors who are looking for a low-cost, automated investment solution. While it may not be the best fit for everyone, it’s definitely worth considering if you’re looking for an easy way to start investing.
