Ally Invest Robo Portfolios take the work out of investing — so you can focus on your goals
Investing can be a powerful way to take steps toward your future. And while it might feel daunting to choose a portfolio that aligns with your skills and needs, the good news is that you don’t need to be a stock market master or top-tier trader to benefit from investing — Ally Invest Robo Portfolios might suit you well.
Read more: How Ally Invest Robo Portfolios can help you build and manage your investment portfolio
Understanding automated investing (or robo advisors)
An automated investment portfolio (aka a robo portfolio) is a type of brokerage account that uses computer software and algorithms to build a diversified portfolio based on your inputted goals. Ally Invest Robo Portfolios combine the care of human advisors with sophisticated technology to create, manage and monitor a portfolio based on your simplified personal financial profile. You answer a few easy questions, which can be tied to a particular investment goal or time frame, and you’ll receive a recommended portfolio.
Benefits of automated portfolios
An automated investment portfolio can be a helpful tool for investors with all types of goals, timelines, skill levels and time availability.
Efficiency and convenience
A robo portfolio takes only a few minutes to set up and requires little oversight, making it a more time-efficient, hands-off alternative compared to self-directed investment accounts. If you’re someone who’s not interested in keeping an eye on day-to-day market moves and would rather check in and make updates less frequently, automated investing might be the choice for you.
Cost-effective
Robo portfolios can be a more cost-effective choice if you want help managing your investments but don’t need or aren’t interested in paying for the services of a human financial advisor. Financial advisors typically charge around 1% of assets managed and tend to have a higher minimum asset requirement than automated portfolios.
Diversification and risk management
While all investments incur some level of risk, an automated portfolio will recommend a diversified set of holdings and automatically rebalance to keep your asset allocation in check.
Key features of automated investing platforms
With Ally Invest Robo Portfolios, you can choose between two types of portfolios: cash-enhanced or market-focused.
Features | Cash-enhanced portfolio | Market-focused portfolio |
|---|---|---|
Advisory fees | None | 0.30% annual advisory fee, charged monthly |
Cash buffer | 30% of portfolio set aside in cash to act as a buffer against volatility | Nearly all money is invested with only about 2% held as cash |
Annual interest | Earns interest on the cash buffer, credited monthly | Earns interest on the cash buffer, credited monthly |
Considerations when choosing an automated investment platform
Before you open an investment account, take a moment and consider the following.
Fees and costs
Pay attention to details like monthly or annual charges, minimum investment requirements and portfolio features. Some automated portfolios may charge a percentage of your assets as a monthly fee, charge for rebalancing or take a percentage of earnings or dividends. With Ally Invest, you can get started with a $100 minimum. Our cash-enhanced Robo Portfolio doesn’t charge any advisory, trading or rebalancing fees, while the market-focused portfolio charges a 0.30% fee.
Investment vehicles
Whether you’re interested in exchange-traded funds (ETFs), mutual funds or cryptocurrency, make sure the platform you choose has your desired investment type. Ally Invest Robo Portfolios are built primarily on a diversified mix of ETFs.
Human interaction
Despite their sophistication, many automated investing platforms lack one-on-one human communication that comes from working with a financial advisor. So, if you value personalized advice and human interaction, a robo advisor might not be as suitable for you.
Set your course
The power of a robo portfolio is that it will optimize for your inputs, whether it's for tax efficiency, retirement or otherwise. That means, if your goals ever change, it’s up to you to go in and update your inputs, so your robo portfolio can adapt alongside you.
Take quiz: Which investment account is right for you?
Which Ally Invest Robo Portfolio is right for you?
Each of the following portfolios is available as a cash-enhanced or market-focused portfolio.
Core
If you’re a more hands-off investor looking for a highly diversified mix of domestic, international and fixed-income assets, this portfolio could be a good match.
Income
As its name suggests, this portfolio is designed for investors focused on dividend yield and income with a lesser risk profile.
Tax optimized
If you make after-tax contributions to an investment account, this portfolio may help maximize your investments and lower tax liability.
Socially responsible
If investing in socially impactful companies matters to you, this portfolio helps you allocate more of your funds toward them.
Automate your investments your way
Automated investing is a hands-off way to participate in the market. With a robo advisor, you can feel confident that your portfolio will stay aligned with your goals, especially because you can update and check in whenever you want. And with Ally Invest’s four Robo Portfolio choices, you get the power of automated investing and rebalancing combined with human support and access to portfolio specialists — plus the opportunity to invest based on what matters most to you.
