How to Invest in Bonds With a Robo Adviser | WSJ Your Money Briefing

Money Briefing - June 8th

This section introduces the topic of automated bond investing and discusses the benefits it offers to investors.

Robo Investing for Bonds

• Robo investing is an automated investment tool that uses algorithms to manage portfolios.

• It allows investors to make deposits and have their money invested in a mix of stocks and bonds.

• Bonds differ from stocks as they represent a company's debt rather than ownership.

• Rising interest rates mean higher returns on bond investments, making them attractive to investors.

• Robo tools for bond investing have gained popularity due to increased interest in bond investments.

Benefits of Robo Investing

• Robo investing offers ease of use and automation, allowing investors to set and forget their investments.

• Traditional financial advisors typically rebalance portfolios every few months, but robo advisors do it automatically.

• Tax loss harvesting is a feature offered by robo advisors, which helps minimize potential tax burdens for investors.

Wealthfront's Bond Robo Advisory Account

• Wealthfront's bond robo advisory account is marketed as a safer alternative with a higher yield compared to traditional accounts.

• The advertised yield is over 5%, making it an attractive option for short-term savings goals.

• It provides a good place to park money for short-term goals like down payments or buying a car.

• The success of robo stock accounts has led to more investment companies introducing similar tools.

Timestamps are provided where available.

Introduction

The transcript begins with the introduction of Amani movies, a finance reporter, and J.R Whalen as the host for the Wall Street Journal's money briefing.

Finance Reporter Introduction

• Amani movies is introduced as a finance reporter.

• J.R Whalen is introduced as the host for the Wall Street Journal's money briefing.

No additional information or content is provided in this section.