Is your robo-advisor doing what it’s supposed to be doing?

Robo-advisors have revolutionized investing, making professional-grade investment management accessible to everyone. But here’s the big question—is your robo-advisor actually working for you? Is it growing your wealth, managing risk properly, and keeping fees in check? Or is it just another financial product that sounds good on paper but fails to deliver?

How would you know? Let’s dive into the key factors that determine whether your robo-advisor is doing its job.

The promise of robo-advisors

Robo-advisors were designed to simplify investing, making professional-grade financial management accessible to everyone. They promise lower fees, smart automation, and data-driven strategies to maximize your returns. Instead of relying on costly human advisors, these digital platforms use algorithms to allocate assets, rebalance portfolios, and even optimize for tax efficiency. The idea is that you can sit back and let technology do the heavy lifting while still achieving solid investment growth.

But is that actually happening for you? Are you getting the promised benefits, or is your robo-advisor falling short?

How would you know? How to evaluate your robo-advisor

Not all robo-advisors are created equal. To determine if yours is meeting expectations, here are five crucial factors to analyze:

1. Performance tracking: is your money actually growing?

Your investments should be keeping pace with—or outperforming—market benchmarks. Here’s how to check:

• Compare your portfolio’s returns against relevant indices.

• Look at consistency—does your robo-advisor perform well in different market conditions?

• Identify underperforming assets that might require rebalancing.

2. Fee analysis: are you paying too much?

One of the biggest advantages of robo-advisors is lower fees—but they’re not always as low as they seem. Here’s what to evaluate:

• Are there hidden costs like trading fees or account maintenance fees?

• How does your robo-advisor’s fee structure compare to competitors?

• Is the cost eating into your net investment returns?

3. Risk assessment: does your portfolio match your comfort level?

Robo-advisors are designed to align with your risk tolerance, but are they doing it correctly? Ask yourself:

• Does my asset allocation reflect my risk profile?

• Am I diversified enough to minimize unnecessary exposure?

• Has my robo-advisor adjusted my risk levels appropriately over time?

4. Investment strategy and customization: does it fit your goals?

Your robo-advisor should be working toward your specific financial goals. Evaluate:

• Does my portfolio align with my long-term plans (retirement, home purchase, etc.)?

• Does my robo-advisor offer tax-loss harvesting and rebalancing?

• Is my investment strategy personalized or just a one-size-fits-all approach?

5. Customer support and technology: do you have the tools you need?

Even with automation, having access to solid customer support and technology is essential. Look for:

• A responsive support team that helps when needed.

• A user-friendly platform that makes it easy to track performance.

• Educational resources to help you understand your investments better.

Which robo-advisors are actually delivering?

Some robo-advisors consistently stand out for performance, cost-efficiency, and reliability. Here’s a look at some of the top players:

• Vanguard Robo-Advisors (estimated $312B AUM): Low-cost, diversified portfolios with human advisor access.

• Schwab Intelligent Portfolios (estimated $66B AUM): No commissions, tax-loss harvesting, and fully automated investing.

• Betterment (estimated $27B AUM): Goal-based investing with smart tax strategies.

• Wealthfront (estimated $21B AUM): A leader in financial planning tools and tax-efficient investing.

• Acorns (estimated $4.7B AUM): Micro-investing by rounding up everyday purchases.

• M1 Finance (estimated $3.9B AUM): Combines robo-advisory with self-directed investing.

• FutureAdvisor by BlackRock (estimated $1.8B AUM): Emphasizes diversification and tax-loss harvesting.

• SigFig (estimated $1.42B AUM): Offers portfolio tracking, management, and rebalancing.

Truthifi®: the ultimate tool to check your robo-advisor’s performance

If you really want to know whether your robo-advisor is working as it should, you need a way to track, measure, and analyze its performance. That’s where Truthifi® comes in.

Truthifi® (http://www.truthifi.com ) is the world’s first investment monitoring app designed to give investors real transparency. It lets you:

• Track fees and uncover hidden costs.

• Monitor performance across multiple accounts.

• Evaluate risk exposure to ensure your portfolio aligns with your goals.

Truthifi® supports over 18,000 institutions and monitors more than 40,000 advisors—so you get the big picture of your financial health.

How Truthifi® helps you take control

1. The Map: Get a visual of your entire wealth portfolio, organized by owner, advisor, and goal.

2. The Global Statement: A customizable financial statement for tracking all your investments.

3. Dashboard: A quick snapshot of your portfolio’s performance in real-time.

4. Pro Tools: Advanced investment analytics to help you make informed decisions.

5. Score: A simple but powerful metric that evaluates your portfolio’s overall health.

Final thoughts: is your robo-advisor actually helping you build wealth?

Robo-advisors can be a great way to automate your investments, but they need to be working in your best interest. By tracking performance, fees, risk levels, and customization, you can determine if your robo-advisor is doing what it’s supposed to be doing—or if it’s time to make a change.

With Truthifi®, you have the tools to make sure you’re making the most of your money. Don’t leave your investments to chance—start monitoring your robo-advisor today!