5 Robo-Advisors to Fit Your Family
WE’RE EXPLORING (MOSTLY) HANDS-OFF, DIVERSIFIED, AND LOW-FEE INVESTING OPTIONS FOR YOUR FAMILY, NO DEGREE REQUIRED
Looking for a simple approach to investing that fits your family’s needs? For many people, the answer is a robo-advisor.
Let’s face it, investing can be overwhelming, especially when you have a family to think about. This financial robot does the heavy lifting for you and chooses where to invest – no financial degree required.
In just a few clicks, a robo-advisor promises to deliver a personalized investment plan tailored to your risk tolerance, financial goals, and time horizon.
Let's break down 5 popular, family-friendly robo-advisors to help you decide whether these financial bots are right for you.
SoFi Invest: The Fun Uncle
SoFi Automated Investing is a great choice for families who want to dive into investing without the hassle of account fees or crazy high minimums – but with all the added perks.
Pros:
Start investing with no minimum deposit (*for active or automated investing.)
Trade stocks and ETFs with no commission fees
Different investment options, like crypto
No charges for automated investing
Enjoy member perks, such as discounts on other SoFi financial products
Connect with career services and talk to financial advisors for guidance
Cons:
Minimums for fractional shares ($5) and crypto trading ($10)
Potential exchange and fund management fees with active investing
Best For: Families seeking user-friendly investing with no minimums, various options, and extra perks.
Ellevest: The Supportive Older Sister
Ellevest is a leader in women's personal finance – for good reason. This robo-advisor creates personalized investment portfolios that consider things that are most important to women, like pay differences, career breaks, and longer life expectancy.
Pros:
Easy to use
An investment system that addresses women's unique financial needs
Access to online workshops, courses, and educational videos
1:1 sessions with financial planners and career coaches, at discounted rates
Exclusive management services for high-net-worth individuals and institutions
Cons:
$1 to $9 per month membership cost
0.05% to 0.19% fund fees.
Best For: Women seeking a robo-advisor that truly “gets” them and empowers them to make informed financial decisions that benefit the entire family.
Wealthfront: The Grand-daddy of Robo-advisors
Formerly KaChang, Wealthfront was one of the founding fathers of the robo-advisor revolution. If your family values experience, you’ll feel right at home with this platform.
Pros:
Serious street-cred
Zero fees to trade or transfer
Tailor investments according to your risk tolerance and retirement timeline
Offers a cash management checking account paired with a debit card
Enjoy tax-loss selling (*a cool trick to help you pay less in taxes)
Cons:
$500 minimum deposit
0.25% management fee
Best For: Families looking for the OG (*original grand-daddy😉) of robo-advisors.
Betterment: The Reliable Family Friend
Like Wealthfront, Betterment was one of the first to hit the scene. It’s another solid choice for families looking for a robo-advisor with a solid reputation.
Pros:
No fees for trades or transfers
Lets you customize portfolios based on your goals, timeline, and risk tolerance
Quick and easy account setup
Syncs external retirement accounts for a consolidated financial view
Premium users get unlimited access to a financial advisor, plus advanced features like automatic rebalancing and tax-saving strategies
Cons:
$4/month (*recurring deposits or account balances over $20,000 switch to an annual fee of 0.25% of your investing account balances
$100,000 minimum balance for the premium plan
Best for: Families looking for easy and fee-free investing with personalized portfolios, goal-specific strategies, and a consolidated financial view.
Acorns: The Favorite Teacher
Like your child’s favorite teacher, Acorns Invest gives families a simple way to save and grow their money while learning about finances together.
Pros:
No account minimum
Simplified investing with spare change, with automated savings for small amounts
Customized portfolios to match family goals
Accessible financial education
Easy-to-use interface
Cons:
$3 to $9 monthly fees
Limited investment options compared to other platforms
Best for: Families with little to no investment knowledge who are looking for a simple and accessible way to start investing.
Final Thoughts…
Robo-advisors offer a convenient and cost-effective way to build family wealth, but they may not be right for every situation. They are a bit like those self-checkout machines at the grocery store. They’re quick and convenient, but sometimes you need a human cashier to help you out, especially if your cart is full and you’re wrangling up rowdy kids (... just us?)
Similarly, when it comes to your family's finances, robo-advisors can be handy for the basics, but for more complex planning needs or larger balances, you might want to consider consulting with a financial advisor or coach.
Remember, robo-advisors can do a lot – but some families will find there’s just no substitute for the personal touch that only a human expert can provide.
Sign up for our newsletter below and get the latest financial news that matters to your family
Want to advertise in front of our readers? Click here
