Digital advisors, also known as robo-advisors, have made investing easier and more accessible than ever. With low fees and automated portfolio management, they seem like the perfect solution for hands-off investors. But behind the convenience, digital advisors can sometimes trigger unexpected tax consequences. If you’re not paying attention, these surprises can chip away at your investment gains. This is especially important if you’re working toward long-term goals like retirement or college savings. Understanding how digital advisors impact your tax bill is key to making smart financial decisions and keeping more of your hard-earned money.
