Introduction
Investing can be a daunting task, especially for beginners who are just starting. However, with the rise of robo advisors, investing has become more accessible and affordable. Robo advisors are automated investment platforms that use algorithms to manage your investments. In this article, we will be discussing the best robo advisors for beginners in 2023.
What to Look for in a Robo Advisor?
Before we dive into the best robo advisors for beginners, let’s discuss what to look for in a robo advisor. First, you want to look for a robo advisor that has a low management fee. Second, you want to look for a robo advisor that has a diversified portfolio. Third, you want to look for a robo advisor that is easy to use and has a user-friendly interface.
1. Betterment
Betterment is a popular robo advisor that offers a low management fee of 0.25%. Betterment also offers a diversified portfolio that is tailored to your goals and risk tolerance. Betterment’s user interface is easy to use and offers a mobile app for on-the-go investing.
2. Wealthfront
Wealthfront is another popular robo advisor that offers a low management fee of 0.25%. Wealthfront offers a diversified portfolio that includes low-cost index funds. Wealthfront’s user interface is also easy to use and offers a mobile app for on-the-go investing.
3. Acorns
Acorns is a unique robo advisor that rounds up your purchases to the nearest dollar and invests the spare change. Acorns also offers a low management fee of $1 per month for accounts under $1 million. Acorns offers a diversified portfolio of ETFs and has a user-friendly interface.
4. Charles Schwab Intelligent Portfolios
Charles Schwab Intelligent Portfolios is a robo advisor that offers a low management fee of 0%. Yes, that’s right, Charles Schwab Intelligent Portfolios does not charge a management fee. Charles Schwab Intelligent Portfolios offers a diversified portfolio of ETFs and has a user-friendly interface. However, you do need a minimum investment of $5,000 to use Charles Schwab Intelligent Portfolios.
5. TD Ameritrade Essential Portfolios
TD Ameritrade Essential Portfolios is a robo advisor that offers a low management fee of 0.30%. TD Ameritrade Essential Portfolios offers a diversified portfolio of ETFs and has a user-friendly interface. TD Ameritrade Essential Portfolios also offers free access to financial advisors.
Conclusion
Investing can be a daunting task, but with the rise of robo advisors, investing has become more accessible and affordable. When choosing a robo advisor, look for a low management fee, a diversified portfolio, and a user-friendly interface. The five robo advisors we discussed in this article are great options for beginners looking to start investing in 2023.
