Opening a retirement account is the first step. The second, and the one many freelancers get stuck on, is deciding what to invest in. Picking funds, rebalancing and keeping up with the markets takes time you’d probably rather spend on clients.
That’s where robo-advisors come in. They build and manage a diversified portfolio for you automatically, for a low fee. This guide explains how they work, compares the most popular options and helps you decide whether one fits your situation.
What Is a Robo-Advisor?
A robo-advisor is an online investment service that uses software to:
- Ask about your goals and comfort with risk
- Build a diversified portfolio, usually from low-cost index funds or ETFs
- Rebalance it automatically when markets move
- Offer extras such as automatic deposits and, on some platforms, tax-loss harvesting
You deposit money, and the platform handles the rest. Fees are typically a small percentage of your balance each year, far lower than a traditional financial advisor.
Why Robo-Advisors Appeal to Freelancers
- Hands-off. You don’t have to monitor the market or choose individual funds.
- Works with irregular income. Most platforms accept deposits of any size, whenever you have cash.
- Low cost. Fees are usually a fraction of what a human advisor charges.
- Easy automation. Recurring transfers help you save consistently, as we explain in our guide to saving for retirement as a freelancer.
- Retirement accounts available. Many offer Traditional and Roth IRAs, and some support SEP IRAs.
Robo-Advisors Compared
Fees and minimums change, so treat this table as an overview and verify current details on each provider’s website before opening an account.
| Provider | Advisory fee | Minimum to start | Retirement accounts to check |
|---|---|---|---|
| Betterment | Low flat monthly fee for small balances, then about 0.25% per year at higher balances or with recurring deposits | $0 | Traditional, Roth and SEP IRAs |
| Wealthfront | 0.25% per year | $500 | Traditional, Roth and SEP IRAs |
| Schwab Intelligent Portfolios | $0 advisory fee | $5,000 | Traditional, Roth and SEP IRAs |
| Fidelity Go | $0 on smaller balances, then a percentage fee above a threshold | Low or none | IRAs, check for others |
Fund expense ratios are charged on top of these fees, and some plans have premium tiers with access to human advisors.
Betterment
Betterment is widely seen as beginner-friendly, with goal-based tools and no minimum investment. Its fee structure has tiers, so confirm what applies to your balance and whether setting up recurring deposits lowers your cost.
Best for: beginners who want to start small and automate deposits.
Wealthfront
Wealthfront charges a flat 0.25% annual fee and is known for its automation and tax-focused features. It requires a modest starting deposit.
Best for: people who want a straightforward, automated experience and plan to keep investing steadily.
Schwab Intelligent Portfolios
Schwab doesn’t charge an advisory fee, but the program requires a higher minimum and its portfolios typically hold a meaningful portion in cash, which can reduce long-term growth compared with being fully invested. Schwab says it earns money in other ways, so read how the program works before choosing it.
Best for: investors who can meet the minimum and prefer not to pay a visible management fee.
Fidelity Go
Fidelity’s robo service is often mentioned for low costs, especially for smaller balances. Fees can change at different balance levels, so check the current schedule.
Best for: people already using Fidelity who want a simple option.
A Note on Solo 401(k) Accounts
Most robo-advisors support IRAs, and many support SEP IRAs, which suits freelancers who want to save more than the IRA limit. Solo 401(k) support varies between providers and changes over time. If you want a Solo 401(k), check first whether the robo-advisor offers it. Our guide to Solo 401(k) providers explains what to confirm. If you’re unsure which plan fits you, our comparison of the SEP IRA vs. Solo 401(k) can help.
How Much Do Robo-Advisors Really Cost?
A 0.25% annual fee sounds tiny, but it’s worth understanding in dollars:
| Account balance | Cost at 0.25% per year |
|---|---|
| $5,000 | $12.50 |
| $25,000 | $62.50 |
| $100,000 | $250 |
Remember that each fund inside the portfolio has its own small expense ratio, which is charged separately.
Pros and Cons of Robo-Advisors for the Self-Employed
Pros
- Low cost compared with human advisors
- Automatic diversification and rebalancing
- Easy to start with a small amount
- Flexible deposits for irregular income
- Fewer emotional investing decisions
Cons
- Limited customization
- Ongoing fees, even when markets fall
- Little personal guidance on complex tax or business questions
- Features such as SEP IRA or Solo 401(k) support aren’t available everywhere
- No protection from investment losses. A robo-advisor can still lose money when markets decline
How to Choose a Robo-Advisor
- Check account types. Do they support the retirement account you plan to use?
- Compare total cost. Look at the advisory fee, the fund expense ratios and any extras.
- Look at the minimum. Make sure it’s realistic for your cash flow.
- Review the features. Automatic deposits, tax-loss harvesting and access to human advisors matter to some people.
- Verify the company. You can look up firms and advisors on FINRA BrokerCheck.
Robo-Advisor or Do It Yourself?
You don’t need a robo-advisor. A simple alternative is a target-date fund or a broad index fund at a low-cost brokerage, which can be just as hands-off for little or no extra fee. A robo-advisor is most useful if you want automated rebalancing, goal-based planning or tax features. Either way, the most important step is to invest consistently.
Frequently Asked Questions
Are robo-advisors safe?
Reputable robo-advisors in the US are generally regulated, and brokerage accounts are typically covered by SIPC protection against firm failure. This doesn’t protect you against market losses.
Can I use a robo-advisor for my SEP IRA?
Some do. Check that the provider supports it before you open an account.
Is a robo-advisor better than a financial advisor?
It depends. Robo-advisors are cheaper and simpler. A human advisor can help with complex situations like business sales or estate planning.
How much do I need to start?
Some start with $0, and others require a few hundred or a few thousand dollars.
Do robo-advisors guarantee returns?
No. All investing involves risk, including the loss of money.
Final Thoughts
For many freelancers, a robo-advisor is an easy way to turn retirement savings into a diversified portfolio without constant attention. Compare the total fees, check the minimum and confirm the account types you need. Then automate your deposits, which matters more than any single platform.
Fees, minimums and features change often. Always verify current details with the provider, and confirm contribution limits at IRS.gov.
Disclaimer: This article is for educational purposes only and is not personalized financial, tax or investment advice. It does not endorse any specific company, and investing involves risk, including the loss of principal. Consult a qualified professional about your own situation.
Last updated: October 1, 2026