Experts in Personalized Retirement Plan Design & Administration

The Future of Robo-Advice

Is this another instance of technological disruption that will render a profession (in this case, financial advisors) obsolete? Or, could they actually add value to financial advisors? Source:

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Key Points from the Article:Future of Robo

“Robo-solutions work well for those early in their careers when their financial affairs are often simpler. As people age, their financial lives inevitably become more complex – there may be a divorce, a special-needs child, care of elderly parents, insurance needs, annuities, housing assets, Social Security, estate planning, and other factors to consider.”

“There’s also the emotional and behavioral aspect to investing. If the market plunges, investors often want to speak to someone. Logging on to a website and interacting with an online tool may not suffice.”

“Many investors who use these services have few alternatives. They have low account balances that are too small for financial advisors. Robo-advisors can step up to fill the advice gap and get people investing earlier in their careers.”

“Robo-advisors also will add financial planning capabilities to move up to larger accounts, and financial advisors will add robo-tools to move down to smaller accounts. The sweet spot may well be the hybrid solution that integrates robo-tools with licensed financial advisors.”

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Future of Robo

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