What’s the deal with these robo-advisors I keep hearing about?
Robo-advisors are online investing portals that allow you to invest without talking to a real person. The use of robo-advisors is on the rise, and will continue through 2020 because people are less trusting of financial advisors, understandably so, since they get paid to offer advice.
People want unbiased help with investing. Yet, the downside to going exclusively with a robo-advisor is there are numerous scenarios that a robo-advisor can't take into account, including incorporating current tax strategy, your mortgage or debt situation, or changes in your income or expenses.
Tardus Wealth Strategies offers unbiased help, while also considering the limitations of robo-advisors alone. The patented Income Snowball calculator is a "type" of robo-advisor that uses more than what most robo-advisers do, including your income, expenses, and debt information in order to come up with a strategy for becoming debt-free, mortgage-free or job-free. Our patented calculator is unique in that it creates a blueprint for each individual to follow to produce immediate results -- results that put thousands more dollars in your pocket every month, now and in the future.
Then, because we know that technology is limited, we pair this with a live, qualified financial coach who can consider even more details when coaching you to implement your plan, and may even refer you to Tardus approved financial advisors who can give you financial advice if needed. To learn more about robo-advisors, check out Tardus.com/blog where we discuss this topic in more depth and link to great articles from other trusted sources.
The robo-advisors at the forefront of the wave, including Wealthfront and Betterment, who started in 2010 and 2011, respectively, had their initial success with millennials, who were less inclined to feel the need for personal contact with an advisor, and who were instantly attracted to the convenient access of a web or mobile app to help them make their investment decisions based on algorithms.
Industry giants soon took notice. Vanguard spent two years testing the market before launching a full version of its Vanguard Personal Advisor Services in 2015, which combines personal investment advice with the use of investment management software. The company hopes to attract baby boomers. Charles Schwab joined the race that same year with its own product, called Schwab Intelligent Portfolios. Fees with these services cost investors a fraction of what they would cost with traditional financial investment services.
Not surprisingly, mid-size advisory firms such as Edward Jones and Raymond James warn against the movement away from the traditional advice offered by human advisors. These companies stand the most to lose, as the cost of their services faces increasingly stiff competition from the new wave of technology-assisted advice.
As robo-advisory services become more mainstream one thing is certain: the way investors make decisions will continue to evolve. Business Insider offers some helpful comparisons in this article. Another look at this investment trend was published by FA Magazine.
To get a free analysis and report from our patented “robo-advisor,” contact our office at (808) 440-0688 and request a free strategy session.