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Robo-Advisors vs. Financial Advisors

Managing investments can be quite a bit of bafflement. When looking to choose between human and robo advisor, there are quite a few befitting options. Here’s a look at what’s good and what’s not, for both.

According to a survey conducted by Nationwide Retirement Institute, more than 50 percent of millennials prefer running their own research for taking financial decisions.

While a majority opined how they would be more successful consulting a human financial advisor, only 40 percent did actually sought out one. Nevertheless, it’s grossly misleading to cast one’s vote for a robo-advisor over a flesh-and-blood individual, and vice versa.

In essence, both human financial advisors, as well as robo-advisors, have their own specific set of advantages, which in turn is highly dependent on circumstances. Certain advisors do make mistakes as well as robo advisors that don’t work according to one’s understanding curve. No matter what, they can still shell out some excellent advice for you to make a profit.

Alternately, it can also make you lose some. That being said, there are hybrid offerings as well, which takes on the right part of being both a robo-advisor that also has a human face to touch base for assistance. Take Personal Capital, for instance, an online hybrid advisor that has a plethora of investment and finance management tools, chiefly targeted at high net worth investing. One can access net worth, track expenses, optimise taxes, manage investment portfolio, plan retirement and much more.

Above all, Personal Capital helps chalk strategies that are socially responsible and help users build an investment portfolio following social governance rules.  Click here to read an in-depth review of Personal Capital, and how it can help manage your finances better.

 The following table compares what’s good and what’s not for both financial as well as robo-advisors.

This should give you better insight into knowing what’s suitable for your investments in the long run.

Weighing the pros and cons, and the fact that we tend to live by our smartphone in today’s world, robo-advisors might just have an upper hand over financial advisors. However, if you prefer living flipping the pages of a calendar, then you might want to walk the traditional way and settle for a financial advisor.

No matter what you do, make sure your investment is worthy of the medium you choose. Only then, you shall be able to reap great rewards in the long run.

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