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The Best Thing We Saw Last Week? Robo Advisors < Human Advisors

The Best Thing We Saw Last Week? Robo Advisors < Human Advisors

April 03, 2022

The Best Thing We Saw Last Week is a weekly series bringing our readers insights and analysis from Associated's thought leaders on news across the financial planning, investment, employer sponsored retirement and group health insurance industry.

Move Over Robo-Advisors... We're Switching to a Human

Associated's CFP® Luana Mobley Corral was catching up on reading when she saw an article in Financial Advisor magazine entitled, “Nearly 90% of Robo-Advised Clients Would Switch to Humans”.

The article dove into a recent study from Vanguard in which they surveyed 1,500 investors with at least $100,000 in investable assets. The study found that more than 90% of human-advised clients say they would not consider switching to a digital advisor, while 88% of robo-advised clients would consider switching to a human advisor in the future. 

Corral believes there are multiple reasons on why human advisors are preferred over the robo-advisors:  

  • You get to have a relationship with a live person instead of dealing with a “robot” in the chat box.
  • You can create something that takes into consideration your values - what is truly important to you and your goals – short, intermediate, and long term.
  • You can get help with budgeting and cash flow.
  • You can talk about ways to protect your family and your paycheck.
  • You can get advice on a variety of life issues – divorce, death of a loved one, changing jobs, how to put your kids through colleges, etc.
  • And let’s not forget. You can get a portfolio that fits you.

Corral believes it might cost a little more, but in the end, to steal a line, it would probably be priceless.

Check out the details from that Vanguard study in this Financial Advisor magazine piece HERE.