Robo-advisors are online services that use algorithms to make portfolio recommendations. These algorithms are based on the information an investor provides by answering a questionnaire, which helps the software create a generic investor profile. While robo-advisors sometimes offer a faster and cheaper alternative to human advisors, their value is limited. The profiles that robo-advisors create tend to be formulaic, which means they are simplified and often don’t account for variables like risk tolerances. Human advisors are able to consider the complexities of financial situations and assist with ‘big picture’ planning, as well as take the guesswork out of investing.