Introduction to Robo-Advisors for Advanced Investors
Robo-advisors have rapidly gained popularity as a hassle-free and cost-effective means to invest. While initially catering to beginners and those with limited investment knowledge, the evolution of robo-advisory services has led to more sophisticated platforms. These advanced robo-advisors offer a plethora of features including tax optimization, access to a broader range of asset classes, and customized portfolio strategies, making them a great tool for experienced investors.
Choosing the Best Robo-Advisors for Advanced Investors
For advanced investors looking for automation yet require detailed customization and a broad investment scope, certain robo-advisors stand out. The selection process involves evaluating criteria such as investment options, fee structures, potential for customization, and additional premium features.
Investment Options and Asset Classes
The best robo-advisors for advanced investors offer access to a vast array of asset classes beyond standard stocks and bonds, including commodities, real estate, and even cryptocurrencies. Diversification is key for advanced investing strategies.
Fee Structures
Fees can eat into your investment returns over time. Selecting a robo-advisor with a transparent, low-fee structure is crucial. Some may offer tiered pricing based on the size of the investment, providing value for large-scale investors.
Customization and Control
Advanced investors often require more control over their investment choices. The preferred robo-advisors in this category allow for adjustments to risk tolerance, investment time horizon, and specific investment preferences, such as socially responsible investing filters.
Advanced Tax Optimization Strategies
To maximize returns, sophisticated tax-loss harvesting and other tax-efficient investing strategies are a must. The top-tier robo-advisors for advanced investors often include these services at no extra cost.
Top Robo-Advisors for Advanced Investors
While the best robo-advisor for you depends on your specific needs and investment goals, here are a few that are particularly well-suited for advanced investors:
Wealthfront
Wealthfront stands out for its advanced tax-loss harvesting strategies available to all clients. It also offers a Stock-level Tax-Loss Harvesting service for accounts investing over $100,000 and Smart Beta for accounts over $500,000, which further optimize your portfolio for tax efficiency and returns.
Betterment Premium
Betterment Premium offers all the features of its digital service, including advanced tax-loss harvesting, with the addition of unlimited access to certified financial planners. This level of service is tailored for those with an investment portfolio of $100,000 or more, providing direct advice tailored to complex financial situations.
Personal Capital
Personal Capital is the hybrid solution for investors who seek the benefits of a robo-advisor with the personalized service commonly associated with traditional financial advisors. Offering tools for retirement planning, wealth management, and access to human advisors, it caters well to the high-net-worth individual.
Conclusion
Advanced investors seeking the convenience of a robo-advisor without sacrificing the deep customization and complex investment strategies of traditional management now have several excellent options. By carefully considering what each platform offers in terms of costs, available asset classes, customization capabilities, and additional premium features, advanced investors can select a robo-advisor that aligns with their investment strategy and goals.
