robo advisor

[stevesue32]

Thinking about Utilizing Personal Capital services. They charge 0.89 annually. Does anyone currently use their investment services and do you feel you're getting your moneys worth. I believe 0.89 is kind of steep but they do offer a personal advisor you can speak to anytime which is different than most robo-advisors. Thoughts?

[neo von retorch]

 * No - we do not use a robo-advisor.
 * No - I cannot imagine handing over just shy of 1% of your entire investment portfolio each year is worth being able to talk to an advisor.

What aspect of investing scares you or puzzles you, such that you feel you need ongoing advice?

[Travis]

You're paying .89% for a computer-run equation to manage your funds.  It won't do anything you can't learn to do yourself which makes it a steep price to pay for occasional flesh and blood advice.

[Indexer]

No, for 2 reasons.

1. You can do it yourself. This is very low cost. You can build a diversified portfolio for less than 0.1%.

2. If you really want an advisor you can get a personal advisor from Vanguard at 0.3%.

I really don't understand the point of Personal Capital's existence. The interactions with the advisors are all over the phone or video meetings, like Vanguard, but they charge fees comparable to the guys with the expensive offices. What's the point?

[NoStacheOhio]

Just use a target date fund

[Mighty-Dollar]

but they do offer a personal advisor you can speak to anytime which is different than most robo-advisors. Thoughts?

Why would you need to speak to an advisor anyway? Advisors are not supposed to time the market. Once you decide on a bond/stock allocation ratio you just percentage rebalance as needed. There is nothing to speak to anyone about.
RoboAdvisors are free by the way.
https://www.blackrock.com/wte/core-builder/us?refType=fi
https://personal.vanguard.com/us/funds/tools/recommendation?reset=true
https://gps.ricedelman.com/
http://www.vanguard.com/nesteggcalculator
Also a 0.89% annual fee will cost you 8.5% after 10 years. 16.3% after 20 years.

[chasesfish]

I wouldn't ever pay someone that much...

Buy a few index funds from Vanguard and you're good.  If you really want a robo adviser, Bettermint runs 0.25%.  Most of the people on here can just do it themselves, but I helped a coworker setup Bettermint and its don't a great job of tracking the market less their management fee drag.