She Strengthens

Taking Control of My Financial Legacy

Growing up, I was always aware of my family’s complex relationship with money. My grandmother, who fled Cuba in the 1960s, worked tirelessly to build a better life for herself and her children. Despite her success, she remained humble and frugal, often saving every penny she earned. As a result, I had no idea how wealthy she was until much later in life.

A Family Affair

My grandmother’s story is one of resilience and determination. She earned a doctorate, secured a professorship, and even published a textbook that’s now in its 11th edition. When her book started gaining traction in the 1990s, she hired a financial advisor to manage her growing wealth. I don’t blame her – investing can be intimidating, especially with a language barrier.

Breaking the Silence

Fast-forward to 2014, when I resolved to take control of my own investments. I was 26 and financially responsible, but I had neglected my portfolio for years. I felt nervous about articulating my desire to manage my investments, but my grandmother was thrilled to have one less thing to worry about.

Assessing the Damage

When I finally looked at my portfolio, I was shocked. It was heavily weighted towards domestic stocks, with tiny amounts spread across expensive mutual funds. The net expense ratio was a staggering 1.6%, which may seem small but can add up quickly. I knew I needed help, so I turned to LearnVest to assess and redesign my portfolio.

A Diversified Approach

A good investment portfolio balances risk tolerance with potential reward, including a mix of stocks, bonds, alternatives, and cash. Mine was not diversified, and I knew I needed to make changes. I worked with my advisor to rebalance my portfolio, but it was a slow and frustrating process.

The Rise of Robo-Advisors

That’s when I discovered robo-advisors, investment management services that use algorithms to design and rebalance portfolios. They emerged during the Great Recession and have since gained popularity due to their low costs and efficiency. I was intrigued by the idea of having my portfolio managed automatically, without the need for human intervention.

Doing My Research

I researched various robo-advisors, looking at account minimums, fees, withdrawal penalties, and more. I knew I needed to find one that fit my goals and risk tolerance. Finally, I chose FutureAdvisor and was thrilled with the results. My portfolio was transformed into a streamlined, diversified, and low-cost version of its former self.

The Sweet Spot

For me, a robo-advisor offers the perfect balance between DIY investing and having a professional manager. I’ve never felt more confident and in control of my investments. If you’re looking for a set-it-and-forget-it investment style that’ll keep your portfolio on track, I highly recommend considering a robo-advisor.