Today we’re talking about how you two can really review the big picture and make sure you hit YOUR big money goals! Financial Check-ups The first half of this year is about over, so how are you guys doing right now? It’s funny how time seems to speed up and slow down. Looking back […]
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With retirement seeming so far in the distance and budgets being squeezed, some couples have postponed or taken a break from investing.
In this episode, I’ll go over how you two can get started:
- I’ll begin with how you can invest even if you don’t have a ton of money to begin with
- Mike Piper – CPA, personal finance author, and the voice behind Oblivious Investor – offers a low maintenance and effective way of investing
- Finally, I’ll look into whether or not using a robo-advisor is a practical investing solution
I hope you enjoy!
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Our special guest this episode is Mike Piper, personal finance writer over at Oblivious Investor and contributor to sites such as The Wall Street Journal and Money Magazine. He’s written several personal finance book, including Investing Made Simple. He was also a financial advisor with Edward Jones.
- advantages of index funds
- what asset allocation is
- when robo-advisors can be helpful
- what to do when your 401(k) doesn’t offer index funds
Is Using a Robo-Advisor Right for You?
At its core, robo-advisors offer investors portfolio management that reduces the need for more traditional human advisors.
By automating some of the process and eliminating the middle man, they can offer these services at a relatively small cost.
In many cases, they build an asset allocation after having you fill out an interview style assessment, taking into account your age, risk level, and time horizon.
This is not a solution for everyone, but it can be a practical solution for couples who have a basic understanding of asset allocation, low fees, and want an uncomplicated, maintenance option.
Having said that, not all robo-advisors are created equal. When choosing one is best suited to manage your money, you have to consider such factors as:
- Investment Services: asset allocation, automatic rebalancing, tax harvesting
- Fees: While less fees is great, make sure the quality of service doesn’t suffer with it.
- Control: Do you want to keep your assets with the company or do you prefer to keep them where they are?
- Customer Service: Do you want a completely automated service or would you like a human to check in on your portfolio?
We use Betterment for my husband’s IRA and have been happy with them. You, though, may have different needs. Here some of the most popular options right now:
If you’re interested, you can sign up for a new account at Betterment here. If you are fairly comfortable with your finances and you’re looking at optimizing your investments, you should definitely check out Personal Capital.