Stock Investing 101: What Are Robo-Advisers?

Robo-Advisers have become increasingly popular and many investors enjoy the features that come along with the investing program. Let’s get a quick view of what they are, how they work, and how they may work for you.

According to Investopedia, robo-advisers are “digital platforms that provide automated algorithm-driven financial planning services with little to no human supervision“. Simply put, it’s a digital financial planning service that manages your account for you- who needs people anyway? Read one of my most recent posts about tech stocks here.

Pros of Robo-Advisers

Robo-Advisers are known for their award-winning software for their algorithm techniques, simplicity, low costs and fees. They offer more affordable fees than human financial advisors and most companies provide 24/7 customer service hours. Annual fees may be as low as 0.2%, whereas fees for “human” managed portfolios have a flat annual fee for 2%. That may not sound like a lot, but a little goes a long way over a period of time.

Cons of Robo-Advisers

There are many advantages advertised for robo-advisors, however, they require online access to operate. If you enjoy day trading, swing trading or options, you more than likely won’t get all of the technical features that come with active trading. Robo-Adviser programs are aimed towards buy-and-hold investors and have their own set of hourly rates/fees involved with the program.

There are many robo-adviser programs that leave investors very satisfied. Two of the most popular companies you may be familiar with are Betterment and Acorns. Robo-Advisers are great and if your interested in opening an account, contrast and compare from other companies and do your own research on what you’re looking for in your investment portfolio.

Please see About Me & Disclaimer for additional information about Black Tea.

Advertisements

5 Tech Stocks You’re Not Thinking About

With AAPL (Apple, $193.46) Sitting in the center of attention of its market capital on the race for $1 trillion, there are a 5 major partnerships AAPL is paired with and if you don’t have investments with these, you might regret it later.

GE (General Electric, $13.76) has been on a depressing down-trend since February 2017, but that’s not stopped them from making great business partnerships. GE is a multinational conglomerate, paired with AAPL to increase their efficiency with energy, transportation, development, and healthcare.

Unlike GE, ACN (Accenture, $160.61) is a professional management and consulting firm based in Dublin, Ireland. ACN is partnered with AAPL to improve AAPL’s customer relations and iOS technology. ACN has also been growing and mostly is known for their digital and technology operation services.

An investor favorite, CSCO (Cisco, $43.65) is a world renown technology software corporation, hosted in the Silicon Valley in San Jose, California. CSCO is joined with AAPL for their iOS features, macOS, mobile apps features, and much more. CSCO helps AAPL with their digital product “essentials”.

International Business Machines, also known as IBM (IBM, $145.36) is not very popular, but they still stand as the largest computer company in the world. IBM is partnered with AAPL for their main cloud developer console and assisting with the production of AAPL’s mobile apps.

System Application and Products, also known as SAP SE, (SAP, $116.93) is a German software company that creates software to manage business operations and customer relations. With consistent growth, SAP is partnered with AAPL for fluid mobile transfers from AAPL’s products, location services, and production of AAPL’s Touch ID features. SAP has made great business decisions and is on the market growth for the past 5 years.

These 5 companies are a few of many proud partnerships AAPL loves and investors bet they will be advertised as the “best stocks” when AAPL makes their $1 trillion market capitalization. Though not all of these companies have a great history of financial performance, their partnership with AAPL may have been the best business decision they have ever made.