Remember when you were a freshman, just embarking on your college education, looking forward to a bright, profitable future? You told yourself entering school that your degree was going to help you earn the big bucks. But now you are out of school, and reality is not quite living up to your expectations. Your debts are high and your wages are low. In fact, pay is not just falling for high school graduates; it is falling for those with bachelor’s and even advanced degrees.
You find yourself in a sticky situation. You are stuck paying not only all of your regular bills, but your student loan bills as well. All the while, interest on those bills is stacking up. In the meantime, you probably are not earning nearly as much money as you expected to with your degree. And somewhere amid all of these struggles and worries, you need to find a way to save for retirement.
You may feel like you are the only one in the world with these struggles, but consider the data in the links above. You are not the only one with high debts and low wages, and there are products out there designed to help you to save, invest and succeed. One such product is a robo-advisor.
Robo-advisors are designed to replace human investment advisors. Instead of booking an expensive consultation with a portfolio manager to talk about investments, you simply sign up for an affordable online service. You input information about your finances and receive personalized investment advice. You can then invest the amount of money you feel comfortable with, again directly through the robo-advisor.
Comparing top robo-advisors, you will see that the entry barriers really are very low. With a lot of these services, you can get started with just a few hundred dollars. So even if you are not putting away a lot of money each month, you can begin investing in your future.
If you invest with a robo-advisor, you will have the following benefits:
• You will be able to start investing your money now instead of waiting years. If you were to go through a traditional investment service, you likely would need tens of thousands of dollars before you could even think about investing—and then plenty of savings on top of that so that you could stay secure.
• Your advice is totally personalized based on your financial needs and goals.
• You save time as well as money. You do not need to go meet with an advisor in person, so that saves you from scheduling appointments. It is fast and easy to manage your investments online. Getting started investing has never been this simple, and if you need to rebalance your portfolio or make other changes, you can do it in a few clicks.
• You always know what is going on with your money. You can check on your investments personally at any time, and you do not need to go through a human advisor to do it. But if you do need to talk to a human being, many of these services will put you in touch with a live expert over the phone any time you need it.
• Robo-advisors provide you with a range of financial calculators and tools which you can use to plan your financial future.
• Fees are a lot lower with robo-advisors than they are with most investment services. You pay a pretty penny to get a human being to manage your portfolio for you, but the results you get from a top robo-advisor will easily compete with any managed portfolio (or even exceed them).
So if you are struggling to save money but still want to start investing in your retirement, a robo-advisor is the way to do it. True, it is a lot different from anything your parents probably did to save for their retirement, but times have changed quite a bit. Your parents had pension plans—but you likely do not. It is up to you to find a way to save even in a tough economy. Thankfully you now also have access to tools your parents didn’t. So check out reviews and compare the top-robo advisors. You could be just a few clicks away from starting your own retirement account!