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Investing Made Easy: How a Robo-Advisor Works
January 29, 2024

Investing Made Easy: How a Robo-Advisor Works

Investment Education

Balancing research, market monitoring and portfolio management can make investing seem like a full-time commitment. You might ask yourself, there must be an easier way. And there is. It’s commonly referred to as a robo-advisor. A robo-advisor automates the investment process by using intelligent algorithms based on your preferences to make investing straightforward and accessible.


Let’s dive into the mechanics of robo-advising and how it provides accessibility and efficiency in an investor’s journey.

Digital Account Opening

The robo-advisor journey begins with opening a user-friendly digital investment account. Typically, you'll start by answering questions either online or through an app. These questions cover aspects like your personal details, current financial status, goals and your comfort level with market fluctuations. Utilizing this information, a robo-advisor recommends a diversified investment mix aligned with your objectives.

Managed by Professionals

At the heart of robo-advising is a professionally managed portfolio. Algorithms analyze your responses to the questionnaire and construct a diversified portfolio that aligns with your specified goals and risk preferences. The portfolio continually adapts to changing market dynamics, helping to ensure that it remains optimized over time.

Portfolio Diversification

Robo-advisors streamline the investment process by leveraging technology to craft diverse, well-balanced portfolios. They strategically allocate investments across various asset classes to spread risk. This diversification helps alleviate the impact of market fluctuations and enhances the overall stability of the portfolio.

Automated Rebalancing

To maintain the desired asset allocation and risk profile, robo-advisors use automated rebalancing. As market conditions shift, adjustments are made to the portfolio by buying or selling assets. This helps ensure that the investments stay on track with your goals and risk tolerance.

Cost-Effective Investing

Robo-advisors are known for their cost-effectiveness. A percentage of Assets Under Management (AUM), allows you to access professional portfolio management at a lower cost. This affordability makes robo-advisors particularly attractive to many individuals.

User Accessibility

One of the key advantages of robo-advisors is user accessibility. You can typically monitor and manage your portfolio 24/7 in an app directly on your phone or computer. This accessibility allows you to stay informed about your investments and make decisions at your convenience.

Continuous Monitoring and Reporting

Robo-advisors provide continuous monitoring of the market along with the performance of your portfolio. Regular reports and updates can keep you informed about your holdings, returns and overall financial progress. This transparency may help you stay engaged in your financial journey, without the hassle of managing it alone.

Investing Made Easy

Wealth Management by CommunityAmerica approaches robo-advising with a member-first mentality and created Guided Investing, a tool that can help take the time, guesswork, and stress out of managing your own investments. It offers a straightforward and low-cost solution to assist in crafting and implementing your investment strategy.


If you are interested in getting started on a hassle-free investment journey, Guided Investing is here to guide you. Uncertain about what path is right for you? Contact one of our Wealth Management by CommunityAmerica Wealth Advisors, and they can help assist you on your journey to financial peace of mind.

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About the Author
josh edens
Josh Edens

Wealth Management by CommunityAmerica

Wealth Advisor Josh Edens has a drive to make members' financial journey as stress free as possible through all life stages. He enjoys working alongside members to discover opportunities that best fit their unique financial situations.

Guided Investing is an investment advisory service offered by Copper Financial Network, LLC (“Copper Financial”), an SEC registered investment adviser. Brokerage services for Guided Investing are offered by Copper Financial, member FINRA/SIPC. Copper Financial is a wholly-owned subsidiary of CommunityAmerica Credit Union (“CommunityAmerica”). Wealth Management by CommunityAmerica is a marketing name used by Copper Financial. CommunityAmerica and Wealth Management by CommunityAmerica are not broker-dealers or investment advisers.  


See the Guided Investing Wrap Fee Program Fee Brochure for a full discussion of all associated fees and expenses. Account minimums and fees for products available through a Wealth Advisor vary by product. Please speak with a Wealth Advisor for detailed information.

All investing involves risk, including the possible loss of money you invest. Past performance is not a guarantee or indication of future performance. For additional information on Copper Financial and Guided Investing please see our Customer Relationship Summary, Guided Investing Wrap Fee Program Brochure, and our Guided Investing Disclosures.


If you have questions about Guided Investing, please contact us at [email protected] or 833.542.6509.


Investment products offered by Copper Financial:

Are Not Deposits

Are Not NCUA or otherwise Federally Insured

Are Not Obligations of or Guaranteed by the Credit Union

May Lose Value