Robo Advisors

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JIMX7
Posts: 37
Joined: Fri Sep 10, 2021 11:36 am

Robo Advisors

Post by JIMX7 »

Anyone here have any advice on Personal Capital on thier Robo advisor platform ? Think there are numerous ones out there and are better now than years ago. I am sitting to aggressive at my age of 70.
I thought I knew more than I actually did. I need income and tax help on my portfolio.
Thanks
Tooth
Posts: 59
Joined: Sun Mar 28, 2021 3:41 am

Re: Robo Advisors

Post by Tooth »

JIMX7 wrote: Fri May 13, 2022 11:02 am Anyone here have any advice on Personal Capital on thier Robo advisor platform ? Think there are numerous ones out there and are better now than years ago. I am sitting to aggressive at my age of 70.
I thought I knew more than I actually did. I need income and tax help on my portfolio.
Thanks
Awhile back I did one of those free consultations; fees are too high. Why not go with a fee only advisor with your specific questions? Robo advisors could be ok like digital from vanguard or betterment. Could take the work out of managing if have no desire.
Topic Author
JIMX7
Posts: 37
Joined: Fri Sep 10, 2021 11:36 am

Re: Robo Advisors

Post by JIMX7 »

Thanks
The one thing I liked with Capitol is you have live advisors to talk too.
Would you have any recommendations on fee based advisors.
Tooth
Posts: 59
Joined: Sun Mar 28, 2021 3:41 am

Re: Robo Advisors

Post by Tooth »

I don't have a specific fee advisor. I know you can do an Internet search and find a plethora. Some of the big name places like vanguard and betterment have access to a cadre of fee based human advisors and you do not need an account with them. I did a search for betterment advice and they have fee based packages. Other sites may have the same. I think the advisors are independent from betterment and are contracted. I've never used a service like this so I don't know if they try to push a sale. PC was trying to get money under management for a fee, I didn't need that.

You could also post a portfolio review thread here. They're a lot of smart people that may be able to help or point you in a direction to get help.
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Eagle33
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Joined: Wed Aug 30, 2017 3:20 pm

Re: Robo Advisors

Post by Eagle33 »

PlanVision has been recommended before on this forum. I have no experience with them, but is where I would start if I didn't want to continue DIY.
AaronScott
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Joined: Mon May 23, 2016 5:02 pm

Re: Robo Advisors

Post by AaronScott »

I did a consultation with Personal Capital last year. They do equal weighting, rather than market cap weighting, and I wasn't crazy about that. I tried a stint with Vanguard PAS but switched to Betterment for my taxable "I don't know yet what this money is for but I need a productive place to park excess cash" brokerage account.
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JonL
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Joined: Sat May 18, 2013 1:56 am
Location: San Diego, CA

Re: Robo Advisors

Post by JonL »

JIMX7 wrote: Fri May 13, 2022 11:02 am Anyone here have any advice on Personal Capital on thier Robo advisor platform ? Think there are numerous ones out there and are better now than years ago. I am sitting to aggressive at my age of 70.
I thought I knew more than I actually did. I need income and tax help on my portfolio.
Thanks
On Robo-Advisors, etc.:
As with all investing, keeping costs low improves your odds of success.

Personal Capital is not inexpensive. That suggests poor performance.

Rob Berger did a review of the various robo-advisors. Though imperfect, he placed Betterment as the best option. You can read his post below:

https://robberger.com/best-robo-advisors/

If I had to nitpick, I'd note that most robos opt for lower-quality bonds. Betterment is no exception. (That's not to say it's a deal-breaker for using a robo-advisor; it's just frustrating.) Being slightly more conservative with your stock/bond mix may somewhat manage the additional risk of holding low-quality bonds in your portfolio.

On Finding the Right Solution for You:
Also, getting clear on your goals can help you make the best decision for you. Why do you want a robo-advisor?
  • Is it because you’re looking for portfolio management (as you don’t want to manage your portfolio yourself?)
    Or, is it because you’re looking for financial planning from an advisor?
    Or both?
If you’re looking for both, I’d caution you about trying to find both at the same place. That’s because there are conflicts of interest when getting your financial planning advice from an asset manager. Boglehead Allan Roth talks about this in an interview with Harry Sit. You can read that interview using the link below:

https://adviceonlyfinancial.com/advice- ... llan-roth

You can best manage the conflict of interest of getting financial planning advice from an asset manager by either:

1.) Working with a flat-fee advisor. This is where an advisor charges a flat fee ($600/mo., etc.) for both asset management and financial planning. Avoiding models where you’re charged a percent (such as 1%) helps better avoid conflicts of interest when receiving financial advice.

2.) Work with an advice-only financial planner – and get investment management separately from a robo-advisor.

As an advice-only financial planner, I’m biased.

Here’s a list of advice-only financial planners.

https://measuretwicefinancial.com/wp-co ... 02-22.pdf

I hope that helps.

Good luck!
When there are multiple solutions to a problem, choose the simplest one. ~Jack Bogle
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