Updated on March 14, 2020
An “automated” or “digitally managed” IRA uses technology to select the right investments for you and digitally rebalances them over time. A key advantage of these automated IRAs is that they make investing decisions for you. This makes them a good fit for people who want to outsource their investing decisions or don’t feel qualified to make their own trades. By using technology to pick investments, not humans, these automated IRAs are available at low-fees and now collectively manage billions of dollars assets. They’re offered both by younger, ‘fintech’ companies and more established financial institutions.
Most automated IRAs involve a similar process: