Will Robo Asset Allocation Increasingly Shape Your Retirement?

By Robert McGarvey

Robo financial advising – stock picking via machines – just took a big step into serious legitimacy with the debut of Betterment’s Tax-Coordinated Portfolio tool.

A key tactic of human financial advisors has been to use asset allocation of investments to increase a portfolio’s after-tax returns. It can make a big difference in terms of the money in your pocket. The calculation of robo-advisor Betterment is that asset allocation can lift after-tax returns by 0.48% per year which, said Betterment, can put an extra 15% in your pocket over 30 years. “Reducing taxes adds a ton of value to investors,” said Jon Stein, Betterment CEO.

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This article originally published September 27th, 2016 on TheStreet.