Skip to content
Home » Blog » Things To Ask Your Potential Robo-Adviser – William Schantz

Things To Ask Your Potential Robo-Adviser – William Schantz

Things To Ask Your Potential Robo-Adviser - William Schantz

When it comes to making investments, you want to make sure your money is in the best hands possible. And with the latest advancement in technology, there has been an increase in the number of digital robo-advisers available – coming with a whole range of features and services for investors to choose from. But before signing up for any investment service with a robo-adviser, there are a few key questions you should ask yourself, says William Schantz. And each potential provider – before making your final decision. Read on to find out what these crucial questions are!

William Schantz Lists Things To Ask Your Potential Robo-Adviser

1. What fees do they charge? It is important, as per William Schantz, to understand all potential costs related to utilizing a roboadviser; this could include account maintenance fees, transfer fees, or portfolio advisory fees. These vary widely depending on the provider, so make sure you compare different firms in order to find one that best fits your budget. Additionally, inquire about any additional services associated with an account, such as tax preparation or legal advice, which may incur additional charges. For example, Wealthfront has no minimum balance requirement and charges just 0.25% annually for its portfolio management services.

2. How transparent are they? Ask about the firm’s level of transparency when it comes to disclosing their fees, portfolio performance, and other information related to managing your assets. The best roboadvisers will provide detailed reports on all aspects of your financial situation, including investment performance, account balances, and tax planning strategies. Additionally, find out if the provider is open to questions you have about their operations or if they prefer that inquiries go through a third-party service. For example, Betterment is known for its transparency policy which includes regular communication with customers via email and provides access to independent advisors if desired.

  • Are there any restrictions on withdrawals? In addition to understanding the fees associated with a roboadviser, make sure you understand the terms relating to withdrawals from an account. Some providers may have restrictions on how often and what amounts can be withdrawn from an account, so it is important to ask about these in advance. Additionally, find out if there are any penalties or taxes associated with withdrawals, as this could impact the overall return on your investment. For example, Wealthsimple has no minimum withdrawal amount and allows customers to withdraw funds without penalty at any time.
  • How secure is their platform? Investing through a roboadviser means trusting them with your financial data; therefore, it is important, as per William Schantz, that they provide a secure platform for managing your assets. Make sure you inquire about the measures taken by the provider in order to ensure the security of your information. This should include data encryption and two-factor authentication, as well as regularly scheduled maintenance by their technical staff. Additionally, it is important to know what type of insurance they carry in order to protect against any losses due to fraud or other cyber crimes. For example, Wealthfront has $500 million of coverage from Lloyd’s of London for its clients, which includes a policy for cyber liability protection.

William Schantz’s Concluding Thoughts

Overall, finding the right Robo-Advisor for your needs is a process that should be taken seriously and done with thorough research, says William Schantz. When interviewing an advisor, don’t be afraid to ask them tough questions and really try to understand their processes and how they can benefit your specific financial needs. While one may offer better returns than another, you should also take into consideration things such as customer service quality and how transparent they are. Ultimately, you want an advisor that is suited to you, so make sure you take the steps necessary to ensure you are getting the best investment advice since it ultimately affects both your well-being and success in the long run. Even after trusting an advisor, don’t rest on your laurels. Be sure to review the performance of your investments periodically; with technology advancing rapidly, Robo Advisors are able to analyze more data quickly and make decisions that could impact your goals favorably or unfavorably over time. Stay active and involved in making wise financial decisions—a great Robo Advisor will help keep your best financial interests top of mind!