7 Questions Investors Should Ask Before Signing Up with a Robo-Advisor
HARRISBURG, Pa., July 6, 2017 /PRNewswire-USNewswire/ -- Amid the growing popularity of robo-advisors, the Department of Banking and Securities advises investors to ask questions before switching to a lower-cost investment alternative that offers little or no human interaction.
A robo-advisor is a web-based computer program that allows investors to create their own financial plan. Driven by algorithms and using an online client survey, a robo-advisor collects information from individual investors about their finances and goals to create and manage an investment portfolio. These programs are sometimes also referred to as an "automated investment advisor" or "online investment advisor."
"While these online services may provide short-term convenience, investors should evaluate robo-advisors in accordance with their long-term investment goals," said Secretary of Banking and Securities Robin L. Wiessmann. "They promise access to services usually thought of as reserved for only the wealthiest investors. For nearly a decade, reputable companies have offered robo-advice, but investors still need to remain engaged with the way their money is managed by asking important questions."
Wiessmann pointed to seven questions all investors considering a robo-advisor should ask:
What are your investing goals and how do you want to reach them? Learn more about investing principles: http://bit.ly/2smBZIW [PDF]
What are the costs of using a robo-advisor compared to using a human advisor? Learn more about how to compare these costs: http://bit.ly/1Chw1tB
Is your personal information safe with a robo-advisor? Learn more about keeping your online accounts safe: http://bit.ly/2qYtAYm
Are you willing to stop or decrease the amount of investing advice you receive through human interaction? Learn if robo-advising is right for you: http://bit.ly/2tJMq7i
What are the different approaches to investing used by different robo-advisors? Learn more about differences between robo-advisors: http://bit.ly/2sPFzg4
Is your money being directly invested or sent to other funds ("feeder funds") that might charge additional fees? Learn more about feeder funds: http://bit.ly/1B7fjLx
Is the robo-advisor properly licensed? Search the U.S. Securities and Exchange Commission database: https://investor.gov/
"The bottom line for investors is clearly understanding what is being done with your money," said Wiessmann. "The relationships between robo-advisors, investment products, fees, and other companies and funds are not always clear. Investors should always investigate before investing."
Investors with questions or complaints about financial services, companies or products can call the Department of Banking and Securities at 1-800-PA-BANKS (or 1-800-600-0007). To learn more about investing, retirement planning, and other financial subjects, visit PA Investor Education on Facebook and @PAFinancialReg on Twitter.
MEDIA CONTACT:Ed Novak, 717-783-4721
SOURCE Pennsylvania Department of Banking and Securities
On Sunday, Callaway Staff Professional Xander Schauffele earned his first major win at the 2024 PGA Championship. Schauffele also set the record for the lowest score in major championship history at 21-under with rounds of 62-68-68-65 at Valhalla...
CBC Bancorp, the holding company for Commercial Bank of California (CBC), announces it has entered into a definitive acquisition agreement with Bay Community Bancorp , the holding company for Community Bank of the Bay (CBB). Under the terms of the...
James Hardie Industries plc , today announced results for its fourth quarter ending 31 March 2024.
Full Year Fiscal Year 2024 Highlights, Compared to Fiscal Year 2023, as applicable:
Record Net Sales of US$3,936.3 Million, up 4%
Record...
Trip.com Group Limited ("Trip.com Group" or the "Company"), a leading one-stop travel service provider of accommodation reservation, transportation ticketing, packaged tours, and corporate travel management, today announced its unaudited financial...
XTI Aerospace, Inc. ("XTI" or the "Company") today announces filing its quarterly report on Form 10-Q for the quarter ended March 31, 2024 as well as provides a business update....
The Coalition for Fair Trade in Shopping Bags (the "Coalition") applauds the final determinations announced today by the United States Department of Commerce ("Commerce") that imports of paper shopping bags into the United States from Cambodia,...