Michael Ecke is a mortgage professional - NMLS # 1439805, entrepreneur, businessman, and founder of Prosperment. As a current employee of a Fortune 50 company, Michael is dedicated to ensuring the utmost attention to detail and quality control. Michael provides executive oversight and direction to Prosperment and its sister companies. Michael brings to his position the business foresight and acumen required as Prosperment continues its remarkable growth.
Robo Advisors have been growing in popularity since their inception nearly a decade ago. They have become popular for the beginner investor because of their low costs and hands off approach. Robo Advisors don't require in depth market knowledge to help you grow financially. It is estimated by 2020 Robo Advisors will account for over $460 billion in assets managed.
What is a Robo Advisor?
Robo Advisors vary from firm to firm, but are generally mobile & online services that provide automated portfolios based on your unique financial situation and preferences. The little to no human touch allow Robo Advisors to use data algorithms to come up with a financial plan for investors by weighing personal preference against unpredictable forces.
How do Robo Advisors work?
Each Robo Advisor is different but tend to operate the same.
1. Complete a brief questionnaire online or through an APP to access your investments needs. This can be anything from retirement planning to buying a new house or a new car.
2. The Robo Advisor automatically builds you a diversified portfolio of Exchange-Traded Funds (ETFs) selected by their team of investment professionals.
3. Investment experts at the firm regularly monitor market activity and every underlying investment to ensure your portfolio is re-balanced appropriately by a sophisticated algorithm. All so you don't have to.
4. Some Robo Advisors on the market include access to live consultants or Certified Financial Planner™ professionals who can help further hone and personalize your financial plan.
5. Log in to your account online or on your smartphone to track your progress, make adjustments, add contributions, and continue working toward new financial goals
Are Robo Advisors right for you?
Robo Advisors are ideal for single, specific investment goals. With automated portfolio re-balancing, Robo Advisors will help you stay on track for your individual goals. With low advisory fees plus tax-loss harvesting, Robo Advisors would benefit the tech savvy, novice investor. If your finances are complicated or need estate planning, a traditional advisor would be better suited.
If you think that a Robo Advisor is right for you, review Prosperment's review of the top rated Robo Advisors on the market.