There are only a couple of situations where I think that robo-investors (I really call them robo-investors, as they’re not robo-advisors, such as myfinancialanswers.com) are appropriate for a millennial:
You are absolutely, positively, never going to rebalance your portfolio, and you want to put money into something and completely forget about it. I still would rather see someone invest in a low-cost target date fund, such as Vanguard’s target date funds, than see someone pay over the top for a robo-investor.
Why is it important to check in with your finances quarterly or biannually?
I’m a fan of bucketing your check ins with your finances:
Monthly: Check your checking and credit card accounts. What you’re looking for are a couple of things. First, you want to make sure that you’re not spending beyond your budget, which I recommend making on a monthly basis. Second, you want to check to make sure that there are no unrecognized charges or transactions in these accounts. While you have limited liability on them, particularly with credit
Generally speaking, people are afraid to face their own mortality. We have a psychological trait called optimism bias that is often very beneficial – it’s what helps us to believe in a brighter future and to wake up in the morning and go to work. If we didn’t have optimism bias, we’d sink into depression and live like Eeyores.
However, optimism bias also causes us to not believe that we could ever get hurt or to die. How many teenagers and young adults do you know who think that they are indestructible?