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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.