Thoughts on 'robo-advisors' served cold, compliments of Kitces and Waymire
With the potential for channel conflict, wirehouses are the most handcuffed in thwarting automated financial 'advice'
Marty Morua
Comprehensive Services
Two little words that stood out in this interview. That’s probably the 'key’ to what financial advisors (real ones…..humans) need to offer in order to differentiate themselves from the Automated Investment Services (Robo-Advisors). Both serve different markets and both have their own unique value propositions.
Marty Morua
Stephen Winks
beyond human comprehension
Stephen Winks
My earlier comment was lost in transmission.
Advice as defined by statute requires continuous comprehensive counsel which means advanced technology (Robo Advice) is essential to address and manage an unlimited number of investment and administrative values for an unlimited number of clients in real time. There is no such thing as robo advice, just tools that allow advisors to manage information in a manner that transcends the three dimensional ability of humans to reason.
Robo advice should not be feared as it greatly elevates the level of counsel it is possible for advisors to render and manage. But it does render flipping high cost mutual funds as a service of little or no value.
The number of advisors who are accountable and responsible for recommendations will greatly increase while the number of brokers who are neither accountable or responsible will eventually disappear.
SCW
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