(NAPSA)—Just as innovation is J changing how people order food, shop and make travel arrangements,financial services companies have found a way technology can make investing more convenient and affordable. ‘This latest trend is often referred to as automated investing. Before jumping in with your own finances, however,it’s important that you learn the details to determine if an automated investment advisoris for you. What’s automated investing? An automated investment advisor (some- times referred to as “robo investing”) uses sophisticated computer algorithms to offer low-cost managed investments. Users answer a series ofintuitive ques- tions about their financial goals, risk tolerance, and investment time horizon, and the automated advisor recommends a personalized investment portfolio suited to those needs. These portfolios are comprised of a diverse set of Exchange Traded Funds (ETFs) designed with low-cost diversification in mind. ‘The financial services company executes the investment and automatically manages it for a fraction ofthe cost of a traditional advisor. How doesit make investing easier and more accessible? Not everyone has the time or know-how to managean in- vestment portfolio, or the inclination or ability to pay potentially hefty fees for a portfolio manager to doit on their behalf. Access to an accountprofessionally managed by human advisors, however, washistorically a problem for those who did not meet their high minimums, oftentimes $500,000 or more. Enter the automated advisor, which automatically monitors your invest- mentportfolio and, as the stock market fluctuates, rebalances holdings based on your risk tolerance, projected in- vestment timeline and wealth outlook, to help keep you on track with your goals. “Some people are very good at managing their own investments,” said Rich Hagen, president of Ally Invest, the on- line brokerage and wealth management arm of Ally Financial. “Others just don't have the time or expertise. Younger in- vestors, in particular, often don't have the assets needed to get the attention of . Don't have the time or expertise to manage market fluctuations? Consider new technologies that can help you grow your savingsefficiently. a top portfolio manager. An automated advisor can solve the disconnect by making professionally managed portfolios accessible to more people.” Automated advisors sift through thousands of ETFs to invest your money into a range of diversified low-cost index ETFs. Like mutual funds, ETFs pool the money of numerous investors to purchase a group of stocks. Like index mutual funds, most are passively man- aged, which means they work to mimic the performanceof a specific index such as the S&P 500 or the Dow JonesIndus- trial Average. What do they cost? With an automated advisor, you don't have to pay exorbitant fees, earn a six-figure income or have thousands of dollars in savings to reap the benefits of a professionally managed investment portfolio. Industry average fees for a humanfinancial advisor hover around 1.02 percent, meaning costs start to add portfolio grows. advisors provide more affordably. up as your investment Generally, automated customized portfolios For example, at Ally Invest Managed Portfolios, the annual advisory fee is 0.30 percent of account assets. That means for an account with a $10,000 balance, the monthlyfee is $2.50. Plus, there are no trading fees and you can start investing with just $2,500. Can I talk to a person? A purely automated service isn’t always enough, even when 24/7 phone supportis avail- able. Some firms, such as Ally Invest, provide customer service from knowledgeableprofessionals. Howcan I learn more about automatedinvesting? Visit www. Ally.com and click on “managedportfolios.” Editor’s Note: This post is sponsored content from Ally Financial. This disclosure is made in accordance with the Federal Trade Commission's 16 CFR, Part 255: “Guides Concerning the Use ofEndorsements and Testimonials in Advertising”
