Smartphones. Drones. Cloud Computing.
Technology is embedded in everyday life.
But can technology replace the human experience? The human relationship and connection?
In the financial services industry we are seeing the rise of the Robo Advisor, but we believe they aren’t the best solution for our clients.
A Robo Advisor is a digital platform, generally an app, that offers and implements investment advice based on a short questionnaire you complete and basic demographic information.
From the information you input and the investment funds you provide, the Robo Adviser creates an investment portfolio. You are then prompted via a phone/email notification to approve any adjustments they suggest to ‘balance’ the portfolio.
It’s a low-cost investment strategy that puts your investment portfolio on ‘robo pilot’. The video below outlines how they work and why we believe they won’t replace the human financial advisor.
As you see in the video, it outlines several elements for you to consider before replacing your financial advisor with a Robo Advisor. These include:
- A Robo Advisor only looks after a small investment portfolio which is one tiny piece of your overall wealth strategy.
- A Robo Advisor doesn’t create a comprehensive financial plan.
- A Robo Advisor can only suggest investments based on the limited information you provide. They don’t ask complex questions or pick up on emotions like your human financial planner does.
- There is no consideration of your hopes, dreams and aspirations.
- They don’t understand you, your family or the legacy you are wanting to build.
A Robo Advisor will crunch data and produce a cookie cutter investment plan that doesn’t take into account enough information about you to be truly effective long term.
When you are a Farm Protector’s client, we work with you to create a solid financial plan that will serve you well now and into the future. It’s about growing and protecting your family’s business and future for many generations to come.
We value the relationship we have with our clients and know that there is more to investment advice that putting a portfolio together.
If you would like to review your current strategy or have any questions about Robo Advisor, please contact Gary on 03 5441 8043 or Stephen on 03 5022 8118.
The Farm Protectors – Protecting You, Your Family & Your Business.