Are robo-advisors worth it in the long run? - Seedly

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Asked by Anonymous

Asked on 10 Feb 2019

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
Level 6. Master
Answered on 11 Feb 2019

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.

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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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