Could a Robo-Advisor Help You Save While Going Back to School?

Going back to school has become quite popular over recent years. Since the recession, Americans have been struggling to get back on top. In fact, over 4 million adults ages 35 and up are currently enrolled in college.

Paying for college as an adult can be quite a challenge, however; chances are good that by now you have no parental support, so you are going to be financing the entire cost of your education singlehandedly while struggling to keep up with your existing bills.

If so, you may have another looming concern in the back of your mind, and that is retirement. Yes, going back to school should hopefully enable you to earn more money, which should eventually help you to save toward retirement, but what about right now?

While you are back in university or technical school, you will be juggling all of the following costs:

  • Tuition
  • Fees
  • Textbook costs
  • Supply costs
  • Transportation costs
  • Housing
  • Utilities bills and other regular costs of living

With all of this on your plate, you are going to have a hard time paying your bills, let alone saving money.  So what can you do?

Well, it is smart to try and continue saving for retirement while you are attending college. And it is possible if you are taking out student loans to pay the cost of your education. This should leave you with roughly the same amount of money free each month as usual.

If you manage to continue working at your current job for the same salary, you may still have some money to put away.

What you can do is look into using a robo-advisor. This is a software program which takes over the job of a human financial advisor, saving you money on management fees for your retirement accounts.

A robo-advisor comparison chart can help you to select the best robo-advisor to meet your needs. But one which we recommend for adults who have returned to school is Wealthfront.

Why is Wealthfront ideal for adult college students?

  • The minimum deposit is only $500. Even if you have not managed to save a whole lot over your lifetime thus far, there is a good chance you can spare this much.
  • So long as your account value ranges between $500 and $10,000, there is no annual fee. Once your account is $10,000+, the annual fee is just 0.25%.
  • All of the investment advice you receive is fully personalized based on your financial information.
  • Your portfolio is automatically rebalanced over time.

In short, using a robo-advisor like Wealthfront eliminates the expensive fees and hassles of dealing with a traditional human advisor. Accounts automated by robo-advisors like this one typically perform as well or better than fully managed portfolios, but since you can invest with them at a fraction of the cost, far more of your hard-earned money goes toward your retirement.

While you are back in college working toward your degree or certificate, you have more than enough on your plate without having to worry about taking a demanding, hands-on approach to saving for retirement. You also simply do not have the money to pay for high fees with a traditional advisor.

So read a review of Wealthfront. Once you open an account and get started with Wealthfront or another top robo-advisor, you can start saving toward retirement even while you work toward earning your degree.  The hands-off approach will allow you to focus on your studies so that you can get the most out of your education!