What’s the real value of a robo-advisor?

A couple who switched to a robo-advisor to save on fees start to wonder, amid market turmoil, whether they are missing something by leaving their investments on autopilot. This piece examines what a robo-advisor actually does and what it leaves out. Allan explains that these services do not trade nimbly to seize opportunities; they set an allocation from a risk questionnaire and largely hold to it, which raises a fair question about what the fee buys. He describes robo-advisors as occupying an awkward middle ground, costing more than do-it-yourself index investing yet offering less than a human planner. The deeper point is that endlessly trimming fees can quietly cost you the real benefit of advice, the reassurance of knowing you will be okay. It is useful reading for hands-off investors weighing the trade-off between low cost and having a thinking partner during uncertain times.