Watch Out for Robo-Advisors #investing #money #success

If you want to do a robo advisor route and you invest directly with them, make sure that you don't have any offsetting trades in your other accounts that are not with the Robo advisor and never ever transfer any existing accounts with built in capital gains to the Robo advisor. What some people might do is they take an existing portfolio of ETFs and mutual funds and then move it over to the Robo advisor. Well, what does the Robo Advisor do? They liquidate all the assets they that don't fit into their mold, that are not on their list of ETFs, that they are trading in their program, and that they rebalance the whole portfolio and potentially realize such a large chunk of capital gains that even with all the robo advising and tax loss harvesting that they might be doing over the rest of your lifetime, you will never recover that initial loss.