Are robo-advisors a good idea?

Robo-advisors can be a good idea for investors who don't have the time to research and select individual companies to invest in.

What are the benefits of robo-advisors?

Robo-advisors are easy to set up, some even provide tax-loss harvesting and you don't have to log in daily to make changes. The computer algorithm behind the robo-advisor does all the work for you.

What is a disadvantage of a robo-advisor?

The lack of human interaction and flexibility are the main disadvantages of robo-advisors. You don't get to consult with human professionals — although some robo-advisor companies offer this feature (possibly for a fee) — and you can't swiftly change your investment options as you would with individual stocks.