RetireJapan

Hello.

Maybe there are a few of you who are using robo-advisors like THEO et al, which I have been for past few months since starting it after years of procrastinating on it.

I am wondering if there is a way to tell it (THEO in my case) to reinvest the gains in a periodic manner, just like it can automatically debit a fixed amount to invest every month from my bank account? Or am I thinking about this wrong somehow?

Thanks.

xtima wrote: ↑Mon Dec 14, 2020 3:21 am Hello.

Maybe there are a few of you who are using robo-advisors like THEO et al, which I have been for past few months since starting it after years of procrastinating on it.

I am wondering if there is a way to tell it (THEO in my case) to reinvest the gains in a periodic manner, just like it can automatically debit a fixed amount to invest every month from my bank account? Or am I thinking about this wrong somehow?

Thanks.

Some members wrote about their experience in the Roboadvisor forum. It seems that the costs do not make it worthwhile.

A 2-3 fund portfolio with low-cost-ETFs or mutual funds is a better approach.

Kanto wrote: ↑Mon Dec 14, 2020 4:25 am

xtima wrote: ↑Mon Dec 14, 2020 3:21 am Hello.

Maybe there are a few of you who are using robo-advisors like THEO et al, which I have been for past few months since starting it after years of procrastinating on it.

I am wondering if there is a way to tell it (THEO in my case) to reinvest the gains in a periodic manner, just like it can automatically debit a fixed amount to invest every month from my bank account? Or am I thinking about this wrong somehow?

Thanks.

Some members wrote about their experience in the Roboadvisor forum. It seems that the costs do not make it worthwhile.

A 2-3 fund portfolio with low-cost-ETFs or mutual funds is a better approach.

Theo.jpg

Thanks for the reply and sorry I missed that there is a board dedicated to robo-advisor topics. I will take a look at the topics there.

Just to make sure, are you implying that what I want to do could be done but may not be worthwhile doing with THEO?

I have used Theo for ~1 years and I am not aware of such an option. In the end I have closed my account and moved everything to low-cost ETFs due to the inefficiencies I perceived in robo-advisors (and the number of monthly transactions that made things pretty difficult to follow accurately).

I moved the thread to this board.

Personally I think THEO is better than nothing, but not as good as doing something like Tsumitate NISA.

For most people max out iDeCo, then max out NISA, then invest in taxable accounts (including THEO if you want them to do all the work and take much of the profit).

Thanks for moving the thread to the correct board and for the replies folks!

I started THEO because I liked the simple interface of operating it, which is mostly, well, automatic. But now I'm having questions like the one I'm asking and maybe that's a sign that maybe I need to study my options with a bit more effort than I have given this so far. I'm just 3 months into my investing journey so far, so it's perhaps too soon to make any big moves like suspending my THEO account but that's not totally out of the question. Anyway, I will read around and maybe come back with more questions or comments.

Thanks again.

xtima wrote: ↑Mon Dec 14, 2020 4:41 am

Kanto wrote: ↑Mon Dec 14, 2020 4:25 am

xtima wrote: ↑Mon Dec 14, 2020 3:21 am Hello.

Maybe there are a few of you who are using robo-advisors like THEO et al, which I have been for past few months since starting it after years of procrastinating on it.

I am wondering if there is a way to tell it (THEO in my case) to reinvest the gains in a periodic manner, just like it can automatically debit a fixed amount to invest every month from my bank account? Or am I thinking about this wrong somehow?

Thanks.

Some members wrote about their experience in the Roboadvisor forum. It seems that the costs do not make it worthwhile.

A 2-3 fund portfolio with low-cost-ETFs or mutual funds is a better approach.


Theo.jpg

Thanks for the reply and sorry I missed that there is a board dedicated to robo-advisor topics. I will take a look at the topics there.

Just to make sure, are you implying that what I want to do could be done but may not be worthwhile doing with THEO?

If you buy a mutual fund or ETF in your taxable account you can set it to auto-reinvest the dividends. In fact, many funds do this automatically.

You can also select your broker to buy funds on a certain schedule. This is called Tsumitate. (Not to be confused with Tsumitate NISA).

.....

With Theo, I believe the funds are set to auto-reinvest the dividends. Can anyone confirm?

Kanto wrote: ↑Mon Dec 14, 2020 5:13 am If you buy a mutual fund or ETF in your taxable account you can set it to auto-reinvest the dividends. In fact, many funds do this automatically.

Can you do that with ETFs with Japanese brokers? I haven't tried it but I didn't think DRIP was possible.

With Theo, I believe the funds are set to auto-reinvest the dividends. Can anyone confirm?

Yes. https://guide.theo.blue/algorithm/05/

fools_gold wrote: ↑Mon Dec 14, 2020 8:04 am

Kanto wrote: ↑Mon Dec 14, 2020 5:13 am If you buy a mutual fund or ETF in your taxable account you can set it to auto-reinvest the dividends. In fact, many funds do this automatically.

Can you do that with ETFs with Japanese brokers? I haven't tried it but I didn't think DRIP was possible.

With Theo, I believe the funds are set to auto-reinvest the dividends. Can anyone confirm?

Yes. https://guide.theo.blue/algorithm/05/

Actually, now that you mention it might just be mutual funds.

I am not 100% sure.

Kanto wrote: ↑Mon Dec 14, 2020 8:06 am
Actually, now that you mention it might just be mutual funds.

I am not 100% sure.

Me neither. It would be nice if we could though.