When I looked at it the fees were way to high to justify to bogelheads.
What is strange to me about robo advisors is that they are still charging a management fee instead of a flat fee. The algorithms are really basic and don’t have any real time changes so it seems weird to charge 25-50 basis points for what’s basically just an interview and time based rebalancing with some formulas that aren’t really better than existing ETFs.
I’ve been expecting this to just be a feature for vanguard and fidelity since the “advise” could just be client side automation rules that nobody wants to build.
I'm not sure about that. Targets funds fees are generally a percent not flat, you have less control over your money (which if you're doing a robo-advisor you probably have somewhat bespoke investing requirements) and they only make sense for tax-advantaged accounts (see [1]).
Plus, people invest for reasons other than dated retirement targets.
What is strange to me about robo advisors is that they are still charging a management fee instead of a flat fee. The algorithms are really basic and don’t have any real time changes so it seems weird to charge 25-50 basis points for what’s basically just an interview and time based rebalancing with some formulas that aren’t really better than existing ETFs.
I’ve been expecting this to just be a feature for vanguard and fidelity since the “advise” could just be client side automation rules that nobody wants to build.