Can a robo-advisor help make you money

Posted at 5:55 PM, Feb 16, 2016
and last updated 2016-02-16 17:55:46-05

When it comes to investing, studies show for many, it's puzzling. If you're not a Wall Street whiz, we found you may have another choice than navigating the markets alone, or paying a personal financial planner: We're talking about the advent of the robo-advisor.

There are now digital advisement firms and insiders say it's a booming online industry.

Check out the video player above for more on what a robo-advisor is, and if it might be right for you.

And if you're considering using one... Ed Gjertsen from the Financial Planning Association recommends you ask these questions:

What type of investment advice do I need? 

What fees are involved?  (management fees, transaction costs, custodial fees for retirement accounts, account closure fees)

Am I limited to buying certain investments? 

What am I getting for the fees? (investment advice or financial advice:  investment advice focuses only on the portfolio where financial advice tends to be more comprehensive)

What safeguards are in place?  (data security, privacy of personal information)

Where will my money be held? (who has custody of your funds?)

What is the minimum dollar amount needed to open account? 

What is the minimum dollar amount that can be added?

Can I get advice from a human?  If so, what are their credentials?  Is there a cost to connect with a human?