2020 - Not All Robots are Created Equal
Financial planning robo-advisors have risen in popularity over the past year. Many people were predicting the beginning of the end for financial advisors. 2019 proved to many investors that there are distinct advantages to speaking with a real person when talking about how to invest your money.
Robo-advisors might be a choice for those with limited funds who want to get try out the investment world. But, the problem is a lack of a relationship with a real person can prove to be less than optimal, at the least, and perhaps even detrimental to their future finances.
There are several reasons why using a financial advisor is a good idea. Here are a few of them:
- Personal touch: If you want to have someone you can call when the market drops, or an educated advisor to help with your full financial future. A financial advisor can be particularly important when just starting to invest, as they can help you identify your goals, look at the near and distant future, and devise a way to get you where you want to be financially.
- Involvement: Robo-advisors tend to be more of a one-size-fits-all solution, which may be perfect for you at this point, but may not match well with getting you to your goals. However, when you become more knowledgeable about the market and what investments may work better for you, having a financial advisor to assist you can make a huge difference.
- Knowledge: If you’re a doctor, you wouldn’t send your sick child to a plumber for treatment. If you want the best chance to be successful in your investments, spend some time with a professional that has the financial expertise you need. Yes, your brother-in-law may have a head for stocks, but he likely doesn’t have the credentials that a licensed financial advisor has.
- Maximize your Money: If your money is currently resting in a low-interest savings account and you have no idea how to start investing, a financial advisor can guide you through the initial creation of a financial plan that suits both your income level and your personality. A financial advisor can also help you avoid making emotional decisions when looking to invest.
- Access to resources. Financial advisors have access to a variety of tools and resources that help them perform their job better, in the process, providing you with the latest information on stocks and other investments that are not necessarily accessible to the general public. In addition, most financial advisors are part of a team, giving you accessibility to a wide variety of expertise when investing.
Giving your financial future a chance might be worth meeting with a financial advisor to see what they have to offer.