Most of you may not be aware of the new and changing trends in the financial industry where the traditional approach of a human financial advisor was there to cater your financial needs and now, there is a new concept of a robo financial planner also known as an automated investment service. A lot of people may love the idea of the new concept however, most of them would still prefer going for the traditional approach. Let’s try to convince them with the reasons to use a robo financial planner over the conventional advisory approach.
- Bargain Prices
Professional investment management services provided by the conventional method required a lot of time, energy, effort and as a result, it was pretty costly to avail such a service. The fees that is charged in the conventional method by the financial advisors is usually 1 to 2 percent of the value of portfolio.
In order to overcome this cost, the robo financial planner comes in handy as it has a solution to both the problems; keeping a minimum balance requirement as well as the fees that is highly charged.
- No Emotions
Wherever there is system, mechanization or computer, it means that there is no human intervention involved in it. That’s the best part about it because human emotions tend to confuse a person with regards to the decisions made when it comes to financial matters. In robo financial planner, when you sign up an account there are some questions that help in assessing the level of risk you are willing to take and as a result, builds a portfolio for you.
- Invest and Forget
One of the biggest benefits of using an automated service for investment is that you can easily sign up an account and invest in it and then get along with your life. In short, you can invest and forget about it while everything is handled by the robo advisors. This allows one to be free from the hassle of check and balance. If you have a busy schedule and so many other things to do, a robo financial advisory is the best service you could avail for yourself. This means that the time that you put in investment related problems can rather be used on other important situations of your life.
- Best for New Investors
When we compare traditional advisors with an automated one, it can be said that traditional planners mainly target people who are looking for investing a bigger amount and have been in this business since quiet a time. However, robo financial advisors make sure to target both, fresh investors with smaller amount as well as people with larger investments to make.
