Investing can seem like a daunting task if you don’t know where to begin.
But you don’t need loads of money or a background infinanceto get started.
Two major robo-advisors –WealthfrontandBetterment– are leading the pack in the crowded field of online investing.
Here’s how they compare and how to decide which one is right for you.
What is a robo-advisor?
Robo-advisorstend to have lower feesthan online brokerages or accounts where you micro-manage your money.
Instead, robo-advisors handle your investments for you with little human intervention.
It’s hands-off investing.
But normally, the older you get, the less risky you you should be with your money.
Read more:What is a robo-advisor?
What does Betterment offer?
Betterment is one of the first robo-advisors and also one of the leaders in the space.
Aside from not needing a minimum balance to get started, Betterment has experts on-hand for tailored advice.
Read more:Diversity isn’t a priority for investors, report finds
What does Wealthfront offer?
Wealthfront has an account minimum of $500.
This might sway you another way, but it depends on what you want to invest in.
Wealthfront has a 529 college savings plan, while Betterment doesn’t.
If you’re looking to save for college, a Wealthfront account might be where you put your money.
Wealthfront offers stock-leveltax-loss harvesting.
For investors who want to take their portfolios up a notch, this might be enticing.
Wealthfront vs. Betterment: Which one is right for you?
Wealthfront offers a college savings plan.
Betterment doesn’t have an account minimum.
But more money could bring you more options with Wealthfront.
Like you, your investments can grow and change.
confirm to find an account that grows and changes with you.
