Asked by Anonymous

Are robo-advisors worth it in the long run?

I've seen a video on how the fees would stack up if someone were to use robo-advisors on youtube: https://www.youtube.com/watch?v=nJIiCZAa2ig It doesnt seem like the math is wrong.

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    • Luke Ho
      Luke Ho, Money Maverick at Money Maverick
      160 Answers, 265 Upvotes
      Answered 2w ago

      It's not about fees, its about the long run.

      IF you're truly invested in the long run, it's certainly worth the risk. Asset allocation is 90% of the returns and it provides very decent asset allocation. So you have an alarmingly high risk-adjusted return, certainly higher than the STI ETF or even the SNP500 ETF (although the sharpe ratio is roughly the same and the SNP500 returns are higher).

      But I mean if you're invested in the long run anyway, you should go for higher returns. Which you can get, if you're willing to take more risk. I can help you with that.

      https://www.facebook.com/luke.ho.54

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    • Nicholes Wong
      Nicholes Wong, Diploma in Business Management at Nanyang Polytechnic

      Top Contributor (Jan)

      278 Answers, 395 Upvotes
      Answered 2w ago

      You can definitely invest on the ETFs yourself with lower fees. Its just that robo advisors can rebalance for you and help you take care of your investment. DIY will be better as fees will be lower but it will take abit more effort. Some people dont like to think too much so putting money with robo advisor is easier for them.

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