plan
What is a robo-advisor? An introduction to automated investment tools
One of the joys of writing a money blog like Get Rich Slowly is the continuing self-education. I’m always reading and learning about personal finance. A lot of the times — as in the past month — this education is about esoteric topics. I’m currently diving deep into the history of personal finance, a subject that’s interesting to me but admittedly not of much practical use in the modern world. (Today in the mail, I got a book about advertising and the use of credit during the 1920s. How’s that for esoteric?)
But sometimes, this self-education does have practical uses, and it’s stuff that I can share with you folks so that you too can become better educated.
For instance, I have a huge blind spot when it comes to so-called “robo-advisors”. When I stopped writing here in 2012, robo-advisors existed but they hadn’t yet become a Big Deal. By the time I re-purchased this site in 2017, things had changed. Robo-advisors had become a major force in the investment industry — and I was clueless about what they were.
I’ve remained (mostly) clueless for almost three years now. I have a general idea of what robo-advisors are and how they operate, but only in the broadest sense. During our weekly planning call on Monday, I mentioned this blind spot to my business partner, Tom.
“You should write about robo-advisors,” Tom said. “If you don’t know what they are, I’ll bet there are plenty of readers who don’t know either. Do some research, write it up, and then everybody benefits.”
Tom is a smart man.
Here then is my research into the world of robo-advisors. What are they? How do they work? And who should use them? Let’s find out.
An uncertain future
On February 17th â in the middle of nine days without power due to an ice storm â we had the foundation contractor out to re-inspect our house. We experienced some settling last fall, and I was worried that might indicate deeper problems.
For thirty minutes, the contractor explored the crawlspace while I sat in the living room, fretting. When he finished, he came up to tell me what he’d found.
“Look,” he said, “my assessment is the same as when you had me out here three years ago. Your foundation is fine. It’s not failing. The house isn’t falling down.”
I felt a wave of relief wash over me.
“That said,” he continued, “I do think you’d feel better if you were to reinforce one section of the foundation. It looks to me as if you’re seeing some minor expansion and contraction of the soil, which is what’s causing your settling issues. It’d cost about $9000 to remedy that.”
That evening as Kim and I huddled in our powerless living room, bundled in coats and jackets and using flashlights to read, I made a confession.
“I want to move,” I said. “I know we both love this house and this yard, but it’s taking a toll on my mental health.”
“I know,” Kim said. “I know you’ve been struggling. Ever since we moved in, I’ve seen how you’ve grown increasingly depressed and anxious. I’ll do whatever it takes to make you happy, but I think maybe you should give up on your dream of owning an old house.”
She’s right. I love old houses but my personality isn’t suited for them. They stress me out. (My ex-wife and I owned an old house too â she still lives there â and it caused me endless stress, as well.)
For the next couple of weeks, Kim and I spent many hours discussing our best course of action. Then, one month ago today, we made a decision: We would sell the house as soon as possible (to take advantage of the crazy Portland real-estate market), then rent a place for a while as we made a careful, calculated decision about where to live next.
Sallie Mae Review: An Established Lender on the Student Loan Scene
With competitors in the private student loan space, can Sallie Mae win on rates and features? Or is âsheâ riding on brand awareness alone?With competitors in the private student loan space, can Sallie Mae win on rates and features? Or is âsheâ riding on brand awareness alone?
The post Sallie Mae Review: An Established Lender on the Student Loan Scene appeared first on Money Under 30.
Current HELOC rates in 2023: HELOC rates vs. mortgage rates
Current HELOC rates are rising. But HELOC rates might still be a better deal than cash-out mortgage rates. Here’s why.
Seeking Alpha Review: Is Seeking Alpha Premium Worth It?
The post Seeking Alpha Review: Is Seeking Alpha Premium Worth It? appeared first on Well Kept Wallet.
Best Robinhood Alternatives: 10 Online Brokers Like Robinhood
For years, people have loved Robinhood for their easy-to-use mobile app and commission fee trades, but the meme-stock scandal left investors feeling disenfranchised. The good news is that several competitors have emerged to give investors more choice. Here are ten of the best Robinhood alternatives to consider if you’re shopping for an online broker like Robinhood.
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Another Half Assed Attempt to Fix Federal Student Loans With Bankruptcy
The Department of Education just released a guidance document to the Department of Justice on what they feel should be done to allow people to discharge federal student loans, partially or entirely. While I applaud the efforts by the Department of Education, it seems like we’ve watched this movie before. This guidance is just that, …
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Last chance: Pick your 2022 Delta Choice Benefits by Jan. 31 – The Points Guy
Where should I store my short-term savings?
The best place for short-term savings—money you may need in the next two years or less—is an account that’s safe, liquid and (hopefully) interest-bearing. Here are some options.The best place for short-term savings is an account that’s safe, liquid, and interest-bearing. Here’s a rundown of the top-rated accounts.
The post Where should I store my short-term savings? appeared first on Money Under 30.