James DiLellio Shares Investing and Saving for Retirement Advice with CreditDonkey
CreditDonkey assembled a panel of industry experts to share readers’ most pressing questions on investing and advice for first-time investors who are exploring retirement funds. James DiLellio, associate professor of decision sciences and founder of ETF Math Guys, shares his expertise on whether a robo advisor is a reliable way to save for retirement. “I would suggest considering a contrast between robo advisors and a human advisor. Robos are nice because they remove emotion from the investing decision, and often seek out low expense Exchange Traded Funds (ETFs) in their investment policy. The cost of robo advice is also often lower than what someone can get from a human advisor.”
For younger to mid-career professionals, robs are an excellent alternative to managing a portfolio for those not interested in doing it themselves. However, as one approaches retirement, most investors need to give a significant amount of thought to investment and tax planning in retirement. With the current generation of robos, you may not be able to receive that quality of feedback, which is where a human advisor provides a slight advantage. As technology continues to develop and shortfalls in robos are addressed, we may one day be in a world where robos have the advantage. Read more.