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A robo-advisor​ is an automated service that provides algorithm-based portfolio management.

Robo-advisors often charge lower fees and offer low minimum investment requirements, which makes them most appealing to new or younger investors, or investors with simple needs. Those who are more comfortable conducting business online may also prefer robo-advisors.

Investors with more specific needs may turn to a traditional financial advisor because they want someone who can manage portfolios in conjunction with their goals. A traditional financial advisor may work with the same client for decades, helping with everything from saving for a first home to soothing investment fears and planning retirement income.

As with any investment, an investor should carefully weigh the pros and cons before choosing whether or not to use a robo-advisor.

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