# Best Robo-Advisors for Advanced Investors
Investing has evolved significantly with the advent of technology, leading to the emergence of robo-advisors. These automated platforms use sophisticated algorithms to manage and allocate investments, providing an efficient and cost-effective alternative to traditional human financial advisors. While initially tailored for novice investors, the landscape of robo-advisors has matured, offering advanced features that cater to the needs of experienced investors seeking more control, customization, and sophisticated investment strategies. Below, we explore some of the best robo-advisors for advanced investors, highlighting their features, costs, and unique offerings.
What Makes a Robo-Advisor Suitable for Advanced Investors?
Before diving into the best robo-advisors for advanced investors, it’s crucial to understand what features and capabilities set these platforms apart. Advanced investors typically look for:
Customization and Control
The ability to tailor portfolios based on specific investment strategies, sectors, or risk levels.
Tax Optimization Strategies
Features like tax-loss harvesting, and asset location to maximize after-tax returns.
Access to Alternative Investments
Options to invest in real estate, commodities, or private equity for diversified portfolios.
Dynamic Rebalancing
More frequent and sophisticated rebalancing strategies to maintain targeted asset allocation.
Advanced Reporting and Analytics
In-depth reporting tools for performance tracking, portfolio analysis, and risk assessment.
Top Robo-Advisors for Advanced Investors
The following robo-advisors offer features that cater to the needs of advanced investors, each with its unique advantages.
Wealthfront
Wealthfront stands out for its suite of tax-optimization strategies, including daily tax-loss harvesting, stock-level tax-loss harvesting, and Smart Beta. It also offers a customizable portfolio option where investors can modify their asset allocations and add individual stocks or ETFs.
– **Features:** Tax-optimization, customizable portfolios, Path tool for financial planning.
– **Cost:** 0.25% management fee on assets under management (AUM).
Betterment
Betterment offers portfolio customization through its “Flexible Portfolios” feature, allowing investors to adjust individual asset class weights. It also provides tax-coordinated portfolios and advanced tax-loss harvesting, making it a strong contender for tax-savvy investors.
– **Features:** Flexible portfolios, tax-coordinated portfolios, charitable giving.
– **Cost:** Digital plan charges 0.25% AUM; Premium plan (with access to human advisors) charges 0.40% AUM.
Personal Capital
Ideal for investors seeking a blend of technology and human expertise, Personal Capital emphasizes tools for wealth management and retirement planning. It offers personalized investment strategies, access to human financial advisors, and advanced tax optimization.
– **Features:** Access to human advisors, personalized portfolios, retirement planner.
– **Cost:** 0.89% AUM for accounts up to $1 million, with tiered rates for larger accounts.
M1 Finance
M1 Finance allows advanced investors to create and manage custom “pies” of stocks and ETFs, offering unparalleled control over portfolio composition. Moreover, it supports fractional shares, enabling full investment of all funds.
– **Features:** High customization, automatic rebalancing, no management fees.
– **Cost:** Free basic account; premium account (M1 Plus) offers additional features for $125/year.
Conclusion
The landscape of robo-advisors for advanced investors is rich and varied, with each platform offering unique features catering to sophisticated investment needs. Whether it’s through advanced tax optimization, customization, or access to alternative investments, these robo-advisors provide the tools and technologies that can help experienced investors maximize their returns and achieve their financial goals efficiently. By understanding the specific offerings and cost structures of these platforms, advanced investors can select the robo-advisor that best aligns with their investment strategy and goals.
