5 reasons to leave your robo-advisor and work with a real person

Robo-advisors have grown in popularity over the past 10 years, providing easy and affordable access to professional investment management with human interaction. Firms like Vanguard, Betterment, Personal Capital and Wealth Front use online tools and algorithms to create and manage your investments. These digital consultants attract new clients with state-of-the-art technology, attractive websites, interactive features, low fees and great mobile apps. The adoption of robo-advisors and various digital platforms has made the financial industry more accessible and consumer-friendly.

Unlike traditional portfolio management firms, most robo-advisors offer their own automated investing service with little or no account minimums. You will answer an online questionnaire. Your answers will place you in a specific risk category group. As a result, the robo-advisor will invest your assets according to your risk profile. The typical digital advisor offers automatic portfolio rebalancing and tax loss accrual. Some may even give you financial planning advice for an additional fee.

If you’ve read one of my investment ideas article (Here And Here), you know I am a big believer in fintech, mobile payments and digitization of the financial industry. The Covid outbreak created a massive tailwind for this trend to continue over the next decade. You will experience complete digital transformation in all aspects of your financial life.

With all this in mind, why would someone like you decide to leave your digital advisory service? So now let’s start.

get personalized advice

life changes. Often you will be at crossroads trying to make important financial decisions in your life. You will need to speak to someone who understands your situation and can give you personalized advice keeping your best interest in mind. Unfortunately, digital advisory services rarely provide personalized advice. Algorithms cannot understand your feelings and emotions.

Sure, you can do the research and hard work yourself. There is nothing more rewarding than getting profit from your hard work. However, there is nothing wrong with asking for help. You don’t have to do it alone. Working with a financial advisor who understands your circumstances will save you time and grudges. Moreover, it will save you and earn you money in the long run. And most importantly, it allows you to enjoy what matters most to you.

build relationships

Finding a good financial advisor is like finding a personal doctor or hairstylist who cuts your hair just the way you want it. Would you ask a robot to cut your hair? Why, then, would you leave your assets and retirement savings to an algorithm? Having a trusted relationship with a trusted financial advisor will give you objective, unbiased, and reliable financial advice when you need it most. Your financial advisor can point you to your financial blind spots and make recommendations on how to resolve them before proceeding.

I often work with clients who come from large robo-advisors. Almost always their biggest complaint is that they can’t find answers to their questions. They were calling customer service, waiting in line, and talking to a complete stranger on the other side.

Building wealth is a marathon, not a race. Why not work with a trusted partner who understands your unique needs and has your best interest in mind.

invest with purpose

Have you asked yourself whether your investment portfolio represents your philosophy and values?

For many of you, investing is a way to make a meaningful impact on the causes you love.

In addition, most robo-advisors offer a limited number of common ETFs in different asset classes. However, they do not provide any way to customize your investments according to your core values. Only you can achieve your objective through a customized investment portfolio that represents what you believe in.

impact investing

Impact investing is about making a difference, It is a philosophy that seeks to achieve sustainable long-term returns by investing in companies that create a positive and measurable social, governance and environmental impact. If you are an influential investor, your goal is to invest your money in areas that match your core beliefs and values. By choosing the path of impact investing, you will provide the support needed to address the world’s most pressing challenges in areas such as sustainable agriculture, clean energy, gender equality, social justice, food preservation, microfinance, and affordable access to housing, health care, and health care. do. and education.

thematic investment

Thematic investing is a way to achieve high long-term returns by investing in specific economic and secular trends due to structural changes in our society. it is about transactions, Thematic investment strategy relies on megatrends that are changing the way we live. Many of my favorite trends include climate change and renewable energy, 5G and cyber security, digital payments and e-commerce, blockchain and the digital revolution, increasing women’s power and population growth.

passed plan is

life is difficult. As a result, your circumstances will change. You will start a new job, move to a new place. start a family. Buy a new house. Exercise the stock options you got when you started your previous job. Above all, you must be prepared for everything that life has to offer.

Once you’ve laid the groundwork, it’s easier to update your plan than to make a new one every time your life changes. Your planning will make you feel confident while making complex financial decisions about your future.

According to Vanguard itself, working with a financial advisor can give you an average additional 3% return. Advisor Alpha comes from value-added services such as behavioral coaching, tax-smart investing, asset allocation and rebalancing.

get A customized tax strategy.

Let’s assume. The US has one of the most complex tax systems in the world. We all get confused by terms like AMT, marginal tax bracket, capital gains tax, 401k, step-up basis, tax-deferred and exempt income. With an ever-increasing budget deficit, there is no doubt that your taxes will only go up higher. Paying taxes is a part of life but managing your future tax bill is your responsibility.

One popular way to measure the efficiency of your tax strategy is your tax alpha. Tax alpha is the ability to generate additional returns on your investments by taking advantage of all available tax strategies as part of your comprehensive financial plan. Unlike robo-advisors, our firm can offer a wide range of tax planning tools that can help you get after-tax returns in the long run. For example, for us, getting tax alpha is a process that starts from day 1. As a result of this, we will create a comprehensive strategy that will maximize your financial results and minimize your taxes in the long run.