Would You Let A Computer Pick Your Stocks? Via Acumor
Are you ready to let technology handle your stock trades for you? Are you comfortable enough with the high-tech world to let software programs build your investment portfolio? USA Today recently ran a feature story looking at websites that promise to build your portfolio for you. The question is, can these sites be trusted?
The USA Today story points to sites such as SigFig, Betterment and Wealthfront. These sites promise individual investors that they can automatically create ideal portfolios for them. The goal of the sites? To leave their clients with balanced portfolios that minimize financial risk.
Of course, the sites aren’t free. As USA Today reports, investors must pay fees to use them. Once consumers pay, though, the websites act as both financial advisors and brokers, using computer technology to arrange the portfolios of investors. The sites will also buy and sell stocks and reinvest dividends, according to the USA Today story.
Of course, not everyone is sold on this type of investing. Many clients will still want the advice of human advisors who have they have grown to trust. Others wonder if a pre-programmed system, no matter how high-tech, can be trusted to make the right investing options. But, as the USA Today story says, the conditions are right for automated investing programs. How big these programs will come to be? That’s to be determined.
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Read additional Acumor articles in their March Newsletter .
(Image Credit – Acumor)
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