I was poking around the site of one the most prominent robos and it didn’t even ask me about time frame or cash flow needs before it recommended a portfolio. Those are two pretty important data points when constructing a portfolio.

Most robos won’t survive as strictly a direct-to-consumer or advisor outsource provider, but I do see some potential. I am optimistic that the user experiences are going to improve and be adoptable by firms like mine. This is already happening, but as the competition between robos intensifies, the speed of progress should pick up a bit.

The speed at which a massive amount of information is thrust at the public makes navigating the complexity of personal financial issues all the more difficult. Making sense of it all within the context of each family’s unique attributes is a service that is desperately needed and wanted by many.

A real advisor is far more likely to identify threats to and opportunities for clients than a tech-based enterprise. It isn’t just because there is so much more to personal finance or that only a human can genuinely care about another person’s well-being.   

It is that the lower the rate and the more tech-based, the less likely there will be any effort to look for all the things that matter to that client. A cut-rate outfit won’t look or care because they simply can’t afford to.

Dan Moisand, CFP® has been featured as one of the America’s top independent financial advisors by Financial Planning, Financial Advisor, Investment Advisor, Investment News, Journal of Financial Planning, Accounting Today, Research, Wealth Manager, and Worth magazines.  He practices in Melbourne, FL.  You can reach him at [email protected].

 

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