Any value in Robo Advisers in Australia?

Two of my daughters use Stockspot Topaz which gives the options in the settings dashboard to only rebalance via purchases only. They have selected this recently after I made them read Bogle's "little book".

They chose Stockspot whilst they were still students as they could access with only $5K.

I am currently attempting to talk them into starting over with buying and holding a selection of Vanguard ETF's but to date they prefer the automated inflows from their payroll to Stockspot and set and forget.

 

Brilliant info. That is very interesting. Can you snip and post that as I can’t find anything online about it.

 

Wonder if Sixpark offers similar rebalance option?

 

Not last I heard. But if stockspot do then I think they would need to look at it

 

Geez, their smarter than most of us here. Good on them.

 

Yeah. Stupid to trigger tax events when rebalancing can be done with new inflows.

 

Would address one of the main issues as I see it.

 

Here is the copy of the three re-balancing options from the portfolio settings page of Stockspot:


Always rebalance

This is our suggested setting. We reinvest distributions for you and rebalance your portfolio when it varies substantially from its target asset weights. This can lead to capital gains but means that your portfolio will remain consistent with your target risk.


Buy only
We reinvest distributions for you. To rebalance your portfolio we will only buy and not sell investments. Your portfolio may vary from its target asset weights and become more risky over time. This setting may be preferred if you do not want to realise capital gains.


Pause rebalancing
We won't reinvest any distribution or rebalance your portfolio. Any distributions or deposits will accumulate in your cash account. This setting may be preferred if you are regularly withdrawing your Stockspot income and prefer for it not to be reinvested.

 

I've been banging on about FI to them for the last 7 years and when they turn 18 I give them $5000 to invest on the strict proviso that they agree to invest 20% of every dollar that ever comes their way henceforth. Two of the five daughters are using Stockspot for this purpose. The fees are no more than a Vanguard retail fund ( still too much for me ) its a pretty good start.
Edit - typos

 

That is a great effort by you all!

 

Our family rebalances through a buy only strategy.

When we deviate from a target percentage we do not sell down: rather we just accumulate more of the low performing asset through our re-invested dividends or contributions.

 

Ross, from memory are you still doing the simple three fund index approach.

 

Yes. My parents are slightly different as they are if a different age.

 

VAS, VGS, VAF ?

 

Bonds, private equity, unlisted property trusts.