If the term robo-advisor makes you think of a futuristic robot running around with your money you can relax, we are not robot investment advisors but we absolutely use the best of technology to bring you our service. Many people are asking, why are so many people switching to a robo-advisor and what exactly is one? Well, simply put, we leverage technology to bring to you a modern online investment experience for the benefit of our users.
A “Robo-advisor” is a board term used to describe a variety of technology-driven online investment providers. These companies offer lower-cost professional investment management solutions that can be accessed from anywhere through your smartphone. A few companies like COCOA have gone a step further and have also decided to specialize by offering ethical and halal managed investment solutions.
Quite like online banking, “robo-advisors” are the next logical step in financial planning and opens up the world of investing to a greater audience. In case you are unfamiliar with the service or have questions if it is the right choice for you we give you five key benefits to help you decide:
Lower Fees
Traditional financial advisors are expensive! Typically they charge for advice and through commission embedded in the management fees. This can range from 1-2% of your asset per year for the advice plus the product fees, which for a balanced fund are around 2.5%. In most cases, these high fees are just not justified.
Technology allows online advisors like COCOA Invest to automate many of the mundane back-office processes and pass these cost savings onto you. When it comes to investing the less you pay in fees the better, and this can have a huge impact. Robo-advisors charge less than 1% of your assets per year and can go as low as 0.29% for larger accounts.
Most of us love saving money; especially millennials, using a robo-advisor means that for less money you can receive professionally managed investment portfolios with the ability to track them in nearly real time from your smartphone.
Convenience
Given a choice most of us would prefer to spend more time on the things we enjoy, whether this is spending time with friends and family, relaxing at home or keeping fit and active. There aren’t many of us that would look forward to spending hours with a financial advisor and filling in endless forms.
The good news is your online robo-advisor doesn’t mind if you are only logging in to your account every so often while sitting on the sofa. Technology is shaping every aspect of our lives and making many tasks easier and more convenient, from ordering a taxi to checking in at the airport. Part of the draw of robo-advisors is that people don’t have to arrange to meet with a financial advisor in person and can explore all the information they need online. There’s no need to schedule calls and attend meetings, no small talk, and no need to disclose any confidential information.
A comment many users of robo-advisors make is that they actually receive better service as the information they need is presented clearly and there is no pressure to make quick decisions. The use of risk questionnaires and suitability profiling enables robo-advisors such as COCOA to recommend an optimal and diversified portfolio that meets the clients ethical and risk needs. The whole process is broken down into clear stages designed to be very efficient. Importantly, clients are able to review how well their investment plans are doing, anytime and anywhere through their phones.
Low Minimums
Make inquiries with a traditional investment advisor and you will quickly find most want you to have a substantial sum before they will even agree to a meeting. As robo-advisors services are delivered online the investment advice is available to everyone, regardless of your income or net worth. Whether you are just starting out or have a larger amount to invest as part of a wider investment portfolio, online advisors like COCOA can provide you with the advice and investment products to match your financial goals and beliefs, no matter what stage of life you are at.
Better service
Doing your saving and investing online suits the modern person. We all know the instant benefits that technology can bring from email instead of writing a letter, uber instead of waiting for a cab your smartphone can access many tools to make your life easier. Not having to arrange a formal booking and making time for a quarterly meeting with an advisor will also come as a welcome benefit to many people. Online robo-advisors provide other benefits too, such as presenting information in a clear and precise format that can be reviewed anytime via your smartphone so you know exactly what you have, and how far you are to reaching your financial goals. Keeping on top of your finances has never been so easy.
Your money is as safe as in the bank (in fact it is in the bank)
As with anything new there is always going to be concerns and this is especially true when we are talking about your money. Any investor new or experienced should be asking questions and that is why we have a comprehensive information area on our website. One of the most common concerns investors ask is “how safe is my money”? Well we are as focused as you are in making sure your money remains invested in only the right places and held safely so it is available you when you need it. COCOA doesn’t hold your cash or assets, instead we have partnered with an international bank in your region to do that for us. Both our partner bank and COCOA are licenced so you know we live up to only the highest standards.
Of course, online robo-advisors aren’t for everyone. Some client’s will have more complex needs and want to sit down with an experienced wealth manager and don’t mind paying quite a bit more for this service. But for many people ethical and halal investment solutions provided by companies such as COCOA are very attractive, especially as many new investors might not have large amounts to start investing with, have had poor or low-quality advice in the past or are tired of paying high fees.
Robo-advisors offer a modern day investment advice solution and making it more affordable and accessible and convenient for everyone. If you think an ethical and halal robo-advice solution might be right for you give COCOA a try, its free to sign up and you can be up and running in minutes.