Can Robo Advisers Replace Human Financial Advisers?

via Wall Street Journal

Do investors need people anymore?

The past few years have seen the rise of robo advisers, a category that includes not only fully automated investment services and advice but also “hybrids” that pair computerized services with hand-holding from human advisers. The firms generally offer passive investments, as opposed to the active management that a human adviser can provide, but they charge much slimmer fees.

Robo advisers have been making aggressive moves lately, slashing the minimum balance required for an account; some have eliminated minimums entirely. Meanwhile, some big investment firms have begun offering hybrid services or are experimenting with fully automated offerings.

Some boosters argue that many investors don’t need human help at all—robo advisers can handle their portfolio needs and deliver better performance than advisers who may be unscrupulous or simply unable to beat the market.

Critics, though, say that digitized advisers may work as a complement to humans, but can never replace the expertise of a flesh-and-blood counselor.

Read the full article here


About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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