admin 38 Comments

The question of the day is all about using online investment services. In other words; Should You or Shouldn’t You? Naturally, as you might well expect with this sort of question, there is no one size fits all answer here.

Working Definition

Let’s begin with a good clear definition of what we are talking about here so that everyone is on the same page. For the purposes of this article, we will define an online investment service as any sort of investment service where you don’t have the dedicated attention of a specific financial adviser. In most cases, this is done as a sort of lowering the bar if you will so that those with fewer dollars to invest can still benefit from professional advice.

Robo-Advisers?

Although you may have encountered the term robo-advisers in and around your Google Searches for investment advice, this phrase is something of a disservice to the industry.

Uh, hmm; not so much. Actually this is considered to be somewhat of a derogatory term by those in the business. Although you may have encountered the term robo-advisers in and around your Google Searches for investment advice, this phrase is something of a disservice to the industry. For example, the term “robo” implies more of a commoditized, mass produced product. Yet as you already know, each financial situation is unique. Consequently it would not make sense to try and use one size fits all approach.

What’s Available?

It turns out that there is a wide range of online investment services out there. Depending on which firm you are looking at, you can receive access to services such portfolio management, asset management, investment advising, financial planning, portfolio analysis, online brokerage services, asset allocation advice and more. The point is that depending on your own personal financial situation, chances are you can locate an online investment advisory service that fits your needs.

How Do They Do It?

Understand that even the best online investment service can only work with what you give them. Most of these firms start the process with an online questionnaire for you to fill out. For example, should you happen to interested in how best to allocate your assets among the various investment choices available to you, the online questionnaire will have specific questions about your time horizon. Using this information, the adviser will then suggest a model portfolio for you to model based on that timeline.

Using an online investment adviser means you have to take the time out to carefully think through the initial part of the setup.

At the same time, there are some online investment advisory services that offer to select which portfolios that best fit your time horizon, your risk tolerance, that sort of thing. The point to get here is that using an online investment adviser means you have to take the time out to carefully think through the initial part of the setup. Otherwise, the advice you receive, the portfolio models and such will have little to no real meaning.

Real World Examples

Here is what this looks like in the real world. Take a look at how it works at the online investment company named Betterment. Betterment begins their process with an online interview process that is specifically focused on your time horizon for specific goals. During this process, you have a wide range of different investment goals to choose from such as wealth building, retirement savings amount, retirement income targets, safety net funding amounts, IRA and more.

Going a step further is another online investment adviser firm named Hedgeable. Hedgeable takes this process one step further. Instead of merely offering you up model portfolios and the like, Hedgeable will actually manage your money for you to meet the goals you have identified. This means Hedgeable will buy and sell securities for you account.

One more step up the online investment service can be found at Personal Capital. Like Hedgeable, Personal Capital will also manage your money for you. Yet Personal Capital takes it one step furhter. Personal Capital provides wealth management services.


Now What?

The above list is but a small sampling of what is available out there in terms of online investment services. Bottom line is this: if you are the type who doesn’t mind taking care of your personal finances online, then online investment advisers are the next logical step for you. On the other hand, should you be more comfortable dealing with your financial adviser face to face, well that option is still available also.

Post from Your Finances Simplified

— 38 Comments —

  1. Can I just say what a comfort to discover someone who genuinely knows what they are talking about on the internet. You certainly know how to bring an issue to light and make it important. More and more people must check this out and understand this side of your story. I was surprised that you aren’t more popular given that you surely have the gift.

  2. I’m extremely pleased to discover this website. I wanted to thank you for ones time just for this fantastic read!! I absolutely enjoyed every part of it and i also have you bookmarked to see new stuff in your site.

  3. Thanks for the diverse tips contributed on this blog. I have noticed that many insurance providers offer shoppers generous reductions if they favor to insure a few cars with them. A significant variety of households own several autos these days, in particular those with more aged teenage kids still located at home, as well as the savings with policies may soon increase. So it will pay to look for a great deal.

  4. A lot of thanks for each of your hard work on this web page. Kim really likes going through investigation and it’s really easy to understand why. Many of us know all of the dynamic method you make powerful strategies on this web blog and as well as improve participation from some others on the situation then our favorite princess is really starting to learn a whole lot. Take advantage of the rest of the year. You have been doing a stunning job.

  5. Thank you for each of your hard work on this web page. My aunt really likes going through investigations and it’s really obvious why. Most of us learn all of the lively method you offer practical strategies through this web site and even increase participation from some other people on the issue so our favorite girl is in fact learning a lot of things. Take advantage of the rest of the year. You are always doing a really good job.

  6. I intended to create you a bit of note just to give thanks again for all the exceptional guidelines you’ve discussed at this time. It’s incredibly generous of people like you in giving extensively all that a lot of folks could have distributed as an e-book in order to make some bucks for their own end, chiefly considering that you could have done it if you considered necessary. The creative ideas additionally acted as the easy way to be certain that most people have a similar dream just like mine to find out a little more in regard to this condition. I’m certain there are lots of more enjoyable moments ahead for folks who discover your blog.

  7. I happen to be writing to make you understand what a terrific experience our princess went through visiting yuor web blog. She realized such a lot of things, with the inclusion of what it is like to possess an incredible teaching style to make the others without hassle thoroughly grasp various tricky topics. You undoubtedly surpassed visitors’ expected results. Thanks for showing those warm and friendly, trustworthy, revealing not to mention unique tips on your topic to Sandra.

  8. A lot of thanks for each of your hard work on this web page. Kim really likes getting into investigation and it’s really easy to understand why. Many of us know all of the dynamic method you make invaluable steps on this web blog and as well as improve participation from people on that idea so our girl is certainly learning a lot of things. Have fun with the remaining portion of the new year. You are conducting a pretty cool job.

  9. I’m also commenting to let you be aware of of the excellent discovery my cousin’s child found reading your site. She figured out many issues, not to mention what it’s like to have a wonderful giving mindset to have men and women quite simply have an understanding of selected hard to do subject areas. You really exceeded our expectations. Many thanks for giving the insightful, safe, explanatory and as well as easy thoughts on the topic to Jane.

  10. I am commenting to let you know of the fantastic encounter my cousin’s daughter experienced reading your site. She even learned many issues, not to mention what it’s like to have a wonderful giving mindset to have many people quite simply grasp chosen grueling subject areas. You really exceeded our expectations. Many thanks for giving the informative, healthy, educational and as well as easy thoughts on the topic to Jane.

  11. I’m also commenting to let you be aware of of the cool discovery my child encountered checking your blog. She came to understand a wide variety of details, most notably how it is like to have a marvelous coaching heart to get folks easily fully grasp a variety of complicated matters. You actually did more than my desires. I appreciate you for delivering such good, dependable, edifying and also cool guidance on that topic to Evelyn.

  12. I am just writing to make you understand what a really good experience my wife’s princess obtained using your webblog. She mastered several pieces, which include what it’s like to possess an awesome helping nature to let other individuals very easily know precisely some multifaceted subject matter. You truly exceeded people’s expectations. Thank you for presenting these powerful, trusted, informative and in addition fun tips about this topic to Kate.

  13. I’m commenting to let you be aware of of the amazing discovery my child developed browsing the blog. She came to find a good number of details, including how it is like to have a great coaching character to get a number of people clearly completely grasp a number of advanced issues. You actually did more than her desires. I appreciate you for churning out such beneficial, dependable, edifying and cool guidance on that topic to Emily.

  14. I’m commenting to let you be aware of of the amazing discovery my child developed browsing the blog. She came to find a good number of details, including how it is like to have a great coaching character to get a number of people clearly completely grasp a number of advanced issues. You actually did more than her desires. I appreciate you for churning out such beneficial, dependable, edifying and cool guidance on that topic to Emily.

  15. I precisely had to say thanks all over again. I’m not certain the things I could possibly have created in the absence of the actual hints discussed by you concerning such concern. It actually was a real difficult condition for me personally, but discovering a new professional fashion you handled it forced me to cry for delight. I’m grateful for the assistance and as well , have high hopes you comprehend what a powerful job you’re carrying out educating men and women by way of your blog. I am certain you’ve never come across all of us.

  16. I happen to be writing to make you understand what a wonderful experience our princess went through visiting yuor web blog. She realized too many things, with the inclusion of what it is like to possess an incredible teaching style to make the rest without problems understand various very confusing topics. You undoubtedly surpassed visitors’ expected results. Thanks for supplying those warm and helpful, trustworthy, revealing not to mention unique tips on your topic to Tanya.

  17. Thank you for every one of your labor on this web site. My daughter really loves making time for investigations and it’s really obvious why. Most people learn all regarding the lively mode you present reliable tactics through this web site and even inspire participation from some others on the point then our favorite princess is really starting to learn a whole lot. Take advantage of the rest of the year. You are always doing a splendid job.

  18. I am commenting to let you know of the fantastic encounter my cousin’s daughter experienced reading your site. She even learned many issues, not to mention what it’s like to have a wonderful giving mindset to have many people just grasp chosen grueling subject areas. You really exceeded our expectations. Many thanks for distributing the informative, healthy, educational and as well as easy thoughts on the topic to Jane.

  19. I am commenting to let you know of the fine encounter my friend’s daughter found reading your site. She figured out numerous issues, not to mention what it’s like to have a wonderful giving mindset to have men and women quite simply have an understanding of selected hard to do subject areas. You really exceeded our expectations. Many thanks for giving the insightful, safe, explanatory and as well as easy thoughts on the topic to Janet.

  20. I am only writing to make you understand what a remarkable experience our princess undergone viewing your webblog. She picked up such a lot of things, with the inclusion of what it is like to possess an ideal teaching spirit to make the mediocre ones without difficulty master specified tortuous topics. You undoubtedly surpassed readers’ expected results. Thanks for rendering those useful, trustworthy, revealing as well as unique tips on your topic to Sandra.

  21. I happen to be writing to make you understand what a wonderful experience our princess went through visiting yuor web blog. She realized too many things, with the inclusion of what it is like to possess an incredible teaching style to make the rest without problems understand various very confusing topics. You undoubtedly surpassed visitors’ expected results. Thanks for supplying those warm and helpful, trustworthy, revealing not to mention unique tips on your topic to Tanya.

  22. I’m also commenting to let you be aware of of the brilliant discovery my child encountered checking the blog. She came to understand a lot of details, including how it is like to have a marvelous coaching character to get folks completely fully grasp a variety of complex issues. You actually did more than her desires. I appreciate you for coming up with such essential, dependable, edifying and cool guidance on that topic to Ethel.

  23. Thank you for every one of your hard work on this web page. My aunt really likes making time for investigations and it’s really obvious why. Most of us learn all of the lively mode you offer precious suggestions through this web site and even increase participation from some other people on the matter so our favorite girl is now learning a lot of things. Take advantage of the rest of the year. You are always doing a really great job.

  24. I am glad for writing to make you know what a incredible encounter my friend’s girl gained studying your web page. She learned plenty of pieces, which include what it’s like to possess an awesome helping mood to let other folks smoothly know just exactly several multifaceted subject matter. You truly exceeded our own expectations. Thank you for offering these necessary, safe, explanatory and even fun tips about this topic to Julie.

  25. I’m also commenting to let you be aware of of the brilliant discovery my child encountered checking your blog. She came to understand a lot of details, including how it is like to have a marvelous coaching heart to get folks easily fully grasp a variety of complex issues. You actually did more than my desires. I appreciate you for delivering such good, dependable, edifying and also cool guidance on that topic to Ethel.

  26. My spouse and i felt now fortunate that Emmanuel could conclude his investigation out of the ideas he gained in your web page. It’s not at all simplistic to just choose to be giving freely information and facts that many other folks have been selling. And we all figure out we have the website owner to be grateful to for that. The explanations you have made, the simple site menu, the friendships you can give support to engender – it’s got everything fabulous, and it’s really facilitating our son and the family feel that the idea is enjoyable, and that is incredibly important. Thank you for all the pieces!

Comments are closed.