Latest news with #roboadvisor
Yahoo
2 days ago
- Business
- Yahoo
A big payday is on the horizon for Gen X
If you're a Gen Xer, your retirement prospects may get a boost from a major transfer of wealth that's on the horizon. Members of the so-called forgotten generation — now aged 45 to 60 — stand to receive $1.4 trillion annually over the next decade, according to a new report from Cerulli Associates, as their baby boomer parents get older and die. The report notes that while millennials will still inherit the most money over the next 25 years, totaling $45.6 trillion, Gen X members will receive more money than any other generation in the near term. 'The boomers really have created more wealth than any other generation in US history,' Bradley Schurman, author of "The Super Age," told Yahoo Finance. 'And younger Gen Xers and early millennials are going to be the ones that get the first wave of this from their parents.' If you're not quite ready for a financial adviser to join forces with you, consider a robo-advisor. Learn more: How to start investing right now with a robo-advisor Vanguard, for instance, offers several layers of advice for those who might want less handholding, but all include tax-efficient strategies and portfolio management for retirement planning and advice customized for you. To have access to a robo-advisor, you'll shell out an annual advisory fee of $15 for every $10,000 you have invested at Vanguard. For access to a hybrid personal adviser and robo-helper, it's $30 for every $10,000 invested as long as you have at least $50,000 in Vanguard artificial intelligence approach can be a smart first step. That said, 'artificial intelligence is not designed to be a counselor and partner in retirement,' Schurman said. 'AI offers a great starting point, but it doesn't have the emotional intelligence needed to assist individuals in the long run,' Schurman added. Learn more: How to start investing — a 6-step guide Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky. Sign up for the Mind Your Money newsletter Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Wall Street Journal
7 days ago
- Business
- Wall Street Journal
Best Robo Advisors of 2025
Key takeaways Robo advisors use algorithms to create and manage an investment portfolio. Robo advisor fees are usually charged based on the size of your account or a flat monthly fee. Compare features you need, such as types of available accounts, customization, fees and access to financial advisors, to determine the best robo advisor for your situation. Robo advisors are increasingly popular in 2025, thanks to benefits such as low fees, automated portfolio management and accessibility for various investor types. However, not all automated investment platforms are the same. As you compare robo advisors, look beyond fees to consider the types of accounts offered, the level of customization available and whether you have access to specialty portfolios that match your values.
Yahoo
18-05-2025
- Business
- Yahoo
Trading bots are evolving: What happens when AI cheats the market?
Malevolent trading practices aren't new. Struggles against insider trading, as well as different forms of market manipulation, represent a long-running battle for regulators. In recent years — however — experts have been warning of new threats to our financial systems. Developments in AI mean that automated trading bots are not only smarter, but they're more independent too. While basic algorithms respond to programmed commands, new bots are able to learn from experience, quickly synthesise vast amounts of information, and act autonomously when making trades. According to academics, one risk scenario involves collaboration between AI bots. Just imagine: hundreds of AI-driven social media profiles begin to pop up online, weaving narratives about certain companies. The information spread isn't necessarily fake, but may just be the amplification of existing news. In response, real social media users start to react, highlighting the bots' chosen message. As the market is tipped by the crafted narrative, one investor's roboadvisor rakes in profits, having coordinated with the gossiping bots. Other investors, who didn't have the insider information, lose out by badly timing the market. The problem is, the investor profiting may not even be aware of the scheme. This means that charges of market manipulation can't necessarily be effective, even if authorities can see that a trader has benefitted from distortive practices. Alessio Azzutti, assistant professor in law & technology (FinTech) at the University of Glasgow, told Euronews that the above scenario is still a hypothesis — as there's not enough evidence to prove it's happening. Even so, he explains that similar, less sophisticated schemes are taking place, particularly in 'crypto asset markets and decentralised finance markets'. 'Malicious actors… can be very active on social media platforms and messaging platforms such as Telegram, where they may encourage members to invest their money in DeFi or in a given crypto asset, to suit themselves,' Azzutti explained. 'We can observe the direct activity of human malicious actors but also those who deploy AI bots.' He added that the agents spreading misinformation may not necessarily be very sophisticated, but they still have the power to 'pollute chats through fake news to mislead retail investors'. 'And so the question is, if a layman, if a youngster on his own in his home office is able to achieve these types of manipulations, what are the limits for the bigger players to achieve the same effect, in even more sophisticated markets?' Related OpenAI launches first AI agent 'Operator' but it won't be coming to Europe yet Visa wants to give artificial intelligence 'agents' your credit card The way that market information now spreads online, in a widespread, rapid, and uncoordinated fashion, is also fostering different types of trading. Retail investors are more likely to follow crazes, rather than relying on their own analysis, which can destabilise the market and potentially be exploited by AI bots. The widely-cited GameStop saga is a good example of herd trading, when users on a Reddit forum decided to buy up stock in the video game company en masse. Big hedge funds were betting that the price would fall, and subsequently lost out when it skyrocketed. Many experts say this wasn't a case of collusion as no official agreement was created. A spokesperson from ESMA, the European Securities and Markets Authority, told Euronews that the potential for AI bots to manipulate markets and profit off the movements is "a realistic concern", although they stressed that they don't have "specific information or statistics on this already happening". "These risks are further intensified by the role of social media, which can act as a rapid transmission channel for false or misleading narratives that influence market dynamics. A key issue is the degree of human control over these systems, as traditional oversight mechanisms may be insufficient," said the spokesperson. ESMA highlighted that it was "actively monitoring" AI developments. One challenge for regulators is that collaboration between AI agents can't be easily traced. 'They're not sending emails, they're not meeting with each other. They just learn over time the best strategy and so the traditional way to detect collusion doesn't work with AI,' Itay Goldstein, professor of finance and economy at the Wharton School of the University of Pennsylvania, told Euronews. 'Regulation has to step up and find new strategies to deal with that,' he argued, adding that there is a lack of reliable data on exactly how traders are using AI. Filippo Annunziata, professor of financial markets and banking legislation at Bocconi University, told Euronews that the current EU rules 'shouldn't be revised', referring to the Regulation on Market Abuse (MAR) and the Markets in Financial Instruments Directive II (MiFID II). Even so, he argued that 'supervisors need to be equipped with more sophisticated tools for identifying possible market manipulation'. He added: 'I even suggest that we ask people who develop AI tools for trading on markets and so on to include circuit breakers in these AI tools. This would force it to stop even before the risk of manipulation occurs.' In terms of the current legal framework, there's also the issue of responsibility when an AI agent acts in a malicious way, independent of human intent. This is especially relevant in the case of so-called black box trading, where a bot executes trades without revealing its inner workings. To tackle this, Some experts believe that AI should be designed to be more transparent, so that regulators can understand the rationale behind decisions. Another idea is to create new laws around liability, so that actors responsible for AI deployment could be held responsible for market manipulation. This could apply in cases where they didn't intend to mislead investors. "It's a bit like the tortoise and the hare," said Annunziata. "Supervisors tend to be tortoises, but manipulators that use algorithms are hares, and it's difficult to catch up with them." 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