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Hey everyone! I'm an undergrad who's looking to invest some of the money I made working last summer. I'm interested in opening a Roth IRA for this purpose but am a bit unsure where to open it/what to invest in. I know next to nothing about personal finance so please forgive any ignorance in my question!

After doing some research, it seems like robo advisors or index funds are a good bet. I've read a few articles on why robo advisors are great for young investors, but I couldn't find any answers as to why they're superior to just putting your money in an S&P 500 index fund other than that they might suffer comparatively lower losses during market downturns and offer tax-loss harvesting (which is irrelevant given the Roth). It seems like index funds generally have lower fee rates and higher long-term average return rates than robo advisors, so why would anyone choose a robo advisor over just investing long-term in an index fund through a broker like Fidelity?

Thanks so much!



Submitted December 30, 2021 at 06:22AM by yaranga https://ift.tt/31emRlc

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