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Investing strategies

Get smart on automated advice

In a world with too many to-do lists and not enough time, automated advice can take one extra task off your plate.
5 minute read
February 11, 2023
Investing strategies
Choosing advice
Prioritizing goals

In a world with too many to-do lists and not enough time, automated advice can take one extra task off your plate.

Also known as a robo-advisor, automated advice is an online platform that manages your investments automatically with an algorithm that takes into account your goals, risk tolerance, and time horizon.

The value of automated advice

A robo-advisor invests your money, rebalances your investments, and helps enhance your chance for investment success. But the benefits go far beyond portfolio management:

Time savings.

Managing your own investments can take time, especially if you're new to investing and don't know where to start. By enrolling in automated advice, you'll gain time to focus on other important things. 

Peace of mind.

If you're looking for a way to improve your financial wellness, automated advice might be the answer. Keeping up with the markets and the volatility that may arise can be stressful and lead to investing mistakes. Automated advice takes the guesswork out of portfolio management; whether you set it and forget or set it and check in, you can rest easy knowing that your investments are being maintained with your goals and risk tolerance in mind.

Who is automated advice right for?

If you're just starting out in your investing journey and don't know where to begin, automated advice can help you formulate your goals and build a portfolio that keeps you on track. If you already started investing but are looking to be less involved in managing your assets, you can enroll and let the robo-advisor do the work for you.

Maybe you're looking to ease the burden of financial management without spending a pretty penny—automated advice is usually less costly than traditional financial advice and can be especially helpful if you're looking to maximize every dollar of your investments with less costly fees. 

The benefit of automated advice during tax season

Consider these ways in which automated advice can make tax season a little less stressful:

  • With a robo-advisor managing your investments, you'll gain more time to file your taxes and get things done.
  • If you get a tax refund, why not deposit it in your managed account and let your robo-advisor decide how to best invest that cash?

Want to learn more about automated advice?

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All investing is subject to risk, including the possible loss of the money you invest.

We recommend that you consult a tax or financial advisor about your individual situation.

Vanguard's advice services are provided by Vanguard Advisers, Inc. ("VAI"), a registered investment advisor, or by Vanguard National Trust Company ("VNTC"), a federally chartered, limited-purpose trust company.

The services provided to clients will vary based upon the service selected, including management, fees, eligibility, and access to an advisor. Find VAI's Form CRS and each program's advisory brochure here for an overview.

VAI and VNTC are subsidiaries of The Vanguard Group, Inc., and affiliates of Vanguard Marketing Corporation. Neither VAI, VNTC, nor its affiliates guarantee profits or protection from losses.