A robo-advisor is a type of automation that can determine an investment portfolio for you. Robo-advisors use algorithms and advanced software to analyze your financial situation, risk tolerance, and time horizon to create a personalized investment plan. Depending on the provider, your robo-advisor might also help with portfolio management, rebalancing, and tax optimization. That's what makes robo-advisors a low-cost option for people who want a hands-off approach to investing.