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Best Robo Advisors for Retirees of 2022

Bobby Hall

If you’re in retirement or near retirement, robo advisors can help you with your financial goals by building out portfolios that are suitable for you. We’ve considered the best robo advisors based on commissions, account services, portfolio management, and overall quality.

Provides hedge fund style investing strategies

0% - 1.00%

Annual Fee

$0

Account Minimum

Overview

Titan is an active investment manager, giving you the benefits of a hedge fund-like platform for a fraction of the cost.

What we like

  • Investments managed by experts
  • Provides investment education
  • Tools to track goals
  • Modern investing experience
  • Zero performance fees
  • Several investment strategies

What we don't

  • Limited customer service

Invests with a framework of your values in mind

0.25% - 0.45%

Annual Fee

$0

Account Minimum

Overview

Betterment uses an all-in-one dashboard, so you can connect your accounts and manage your finances from one place.

What we like

  • Socially responsible investing
  • Provides a diversified portfolio
  • Tools to track goals
  • Auto adjusts your portfolio
  • Tax-loss harvesting

What we don't

  • Higher fees for financial advice
  • Limited customer service

Automated portfolios built around your goals

0.24%

Annual Fee

$500

Account Minimum

Overview

Axos Managed Portfolios offers automated investment with a low fee and customizable portfolio. Investors can easily track their goals and adapt milestones at any time. Plus, Axos rebalances your portfolio to keep your asset allocation on track with your goals at no extra cost.

What we like

  • Low management fees
  • Portfolio tailored to your specifications
  • Unlimited and automatic rebalancing
  • Automated platform
  • Adaptable portfolios
  • Set personalized goals

What we don't

  • Limited account types
  • Minimum deposit of $500
  • Lack of education tools

Portfolios designed to suit various investment profiles

0%

Annual Fee

$100

Account Minimum

Overview

M1 Finance allows you to invest all your money in any portfolio, or customize it to suit your needs. It then manages your account by maintaining your allocations within the selected Pie through automatic rebalancing. Although it doesn’t offer tax-loss harvesting, it has a feature called ‘tax minimization’ that enables you to sell asset positions in a tax-favorable way.

What we like

  • Automated investing with a high level of customization
  • No trading or management fees or commissions
  • No initial minimum deposit
  • You can trade fractional shares
  • Socially responsible investing portfolio option

What we don't

  • No tax-loss harvesting
  • No access to mutual funds, futures, forex, or options investing
  • No financial advisors available

Free access to certified financial advisors

0%

Annual Fee

$0

Account Minimum

Overview

Based on your selection, SoFi’s robo advisor uses algorithm-generated investment data to assist you with your investment goals.

What we like

  • No account management fees from SoFi
  • Access to financial advisors
  • Excellent customer support
  • Automatic rebalancing of portfolio
  • Wide range of investment portfolios

What we don't

  • No tax-loss harvesting

Free analysis to optimize current investments

$0 - $295

Annual Fee

$0

Account Minimum

Overview

Blooom provides personalized fund recommendations based on your risk tolerance, and you'll receive free insights that could help you make better-informed investment decisions.

What we like

  • Free analysis on your portfolio
  • No hidden fees
  • No account minimum
  • Personalized fund recommendations
  • Range of accounts available
  • Account rebalancing

What we don't

  • Membership fees
  • Limited customer service

What are robo advisors?

Robo advisors are automated investment platforms that provide financial advice and manage your money. It makes investing easy by creating an investment portfolio based on your needs and risk tolerance to help for retirement savings or other financial goals.

How do robo advisors work?

Robo advisors are easy to use, so you can start saving without worrying about picking stocks or bonds. You answer a few questions online about your goals, income level, and risk tolerance, then enter basic information about yourself. The advisor uses this information to create an investment portfolio for you.

What can robo advisors help you with?

Robo advisors can help with both aspects of retirement planning: saving and investing. Here are some of the ways it can help retirees:

  • Asset allocation: Asset allocation is one of the essential parts of your investment plan. It’s deciding how to invest your money across asset classes like stocks and bonds, real estate, cash, and more. Retirees looking to make their money last for the rest of their lives need to consider how their assets will perform over time.
  • Retirement planning: Robo advisors can also advise when it makes sense for retirees to begin drawing money from their savings — something that’s often difficult for people who have never managed money before. This can be particularly important for retirees who rely on guaranteed income sources like Social Security or pension payments that don’t fluctuate with time. 
  • Rebalancing: If you’ve invested your retirement savings in stocks, bonds, and other assets and want to keep them balanced, a robo advisor can rebalance your account automatically. It will sell and buy certain assets to keep to your target allocation.

Who are robo advisors best for?

Robo advisors are ideal for people who want to ensure their retirement is on track but don’t have enough experience or time to invest. They can also be suitable for people who don’t want to pay high fees or commissions when they invest in stocks or bonds.

What are the benefits of robo advisors for retirees?

Some of the most important reasons why you should consider using a robo advisor include:

  • Automation: Robo advisors are a good option for retirees who don’t have time or the inclination to research, select and monitor their investments. These advisors use algorithms and computer programs to build portfolios that meet your goals. You answer questions about your financial situation, risk tolerance, and investment time horizon, and the robo advisor does the rest.
  • Diversification: If you have a lump sum of money that you want to invest, an advisor will help you spread those dollars across different asset classes based on your risk tolerance. This makes it easier for most investors to start investing without worrying about picking individual stocks or bonds.
  • Low cost: Robo advisors offer the lowest costs available. Most have no minimum account size requirement, and they usually charge an annual fee between 0.15% to 1.00%. That’s much cheaper than traditional financial advisors, who often charge 1% or more annually for managing your money.
  • Customized to your goals: Robo advisors analyze your risk tolerance and overall financial situation before recommending investments. You’ll just have to answer questions about your financial situation, risk tolerance, and investment time horizon.
  • Unbiased advice: Robo advisors are better at providing unbiased advice than human advisors, who may be biased toward certain funds or companies. Automated advisors will base their recommendations on complex algorithms.
  • Portfolio rebalancing: With a robo advisor managing your portfolio, your investments are diversified or rebalanced according to market conditions. All of this is automatically done for you.

How to choose the best robo advisors for retirees

Retirees have different goals than younger people, so consider your unique situation when choosing a robo advisor. Here are some tips:

  • Know your goals: The first step in choosing a robo advisor is to know what you want to accomplish with your portfolio. Do you want to generate income? Save for retirement and balance both? Are you interested in paying off debt or saving for college? You’ll also need to consider how much time you have until retirement — if it’s far away, it may be worth taking on more risk so your investments can grow faster. On the other hand, if you’re in retirement, you may be better off taking a more conservative approach and balancing out your riskier investments with less volatile ones.
  • Understand the fees and minimums investments: Lower fees mean more money in your pocket, especially regarding retirement savings. Robo advisors typically charge less than traditional investment advisors because they don’t charge hourly or percentage-based fees (which can add up quickly). Instead, they charge an annual fee based on their invested amount.
  • Check the ease of access: Some robo advisors have a narrow focus, while others offer broader services. Also, there are some that are easy to use, while others require more legwork.