Quote:
Originally Posted by rsmurano
As for AI, Schwab has had their Robo-advisor investment process that cost nothing to use, for many years now. The drawback is this robot process keeps some cash (could be good or bad) sitting in your portfolio.
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It costs nothing bc they make all their money by holding disproportionally high amounts of cash in their Robo-Portfolios and paying below market rates on it. There is no point in holding
any cash in a Robo-Portfolio other than maybe a miniscule amount for rebalancing. Cash should be earning the highest rate possible and instantly liquid, otherwise there is no point having it.