It’s hard to pin the definition down, but I think a robo-advisor is a computer programed with algorithms which are known as formulas in the simple world. What do robo-advisors do and how do they work? I think I give them my money, answer some questions and they put me into one of a few categories and distribute, i.e., invest my money in a variety of investments.
If you know better, please let me know.
What hurts people? Accepting bad advice. What helps them? Good advice. But bad advice frequently feels comfortable while good advice requires you to grow and change.
A computer is non-emotional but people are highly emotional. The biggest trap for most investors is the emotion and inability to “buy low” and “sell high.”
But with good advice you learn to do it.
We can’t imagine robo-advisers are the answer to individual planning but we are sure they have helpful “algorithms” for the process.
If a robo-advisor is not the right option for you, click here to get in touch with one of our financial planners.
