Will Computers Replace Money Managers?

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Online investment firms are using algorithms to create diversified portfolios for clients. These “robo investors” are cheaper than financial planners and can create a tax-friendly strategy. The WSJ's Diana Jou finds out more.

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Topics:  Society
Jacob Chakalaka 

First


Higgins2001 

This is all well and good... but while I see the advantage of these automated systems over a traditional broker, I still don't understand their value prop when compared to simply stashing my money in a few index funds, rebalancing once a year.

0.5% additional fees are relatively low compared to brokers, but definitely not worthwhile to save the 20 minutes of work it takes to rebalance myself.

Not to mention that I find it hard to trust an algo system that will make rebalancing trades automatically... How often is it going to trade!? Sets off all kinds of alarms regarding both unnecessary excess trades to pass their fees, as well as unwanted short term gains that I wouldn't want taxed