Investing in the stock market can be a time-consuming affair, especially for people who don’t have investing knowledge. The thought of picking stocks, monitoring the market, or tracking bond rates can deter individuals from getting started with investing. For beginner investors, the time commitment required can hinder consistency. This is where robo-advisors can be beneficial since they do much of the heavy lifting for investors. What is a Robo Advisor? A robo-advisor uses technology to create automated portfolios for individuals who want to invest in the market. Robo-advisors can choose and execute an investment strategy based on individual needs and goals. While robo-advisors vary between providers, they generally function in similar ways. How Do Robo Advisors Work? Getting started with a robo-advisor is pretty straightforward. Prospective investors usually fill out a questionnaire about their current financial situation, investment goals, risk tolerance, and time horizon. The robo-advisor then formulates a diverse investment portfolio that aligns with the information provided. A team of investment professionals usually pulls together the portfolio selected. After that, the investor’s part is done. The robo-advisor does the work of rebalancing the portfolio.