Wealth Management in a Digital World – Part 2

Subtopic: Pinot Gris Air Date: June 11th, 2020

Misconceptions that will drive people towards Robo:

  • A financial advisor just offers stock picks and executes transactions
    • When surveyed, only 38% of millennials even know what a financial advisor does
    • Stems from an excessive amount of choice – FINRA currently lists over 200 designations
  • Advisors are only for the rich
    • Many styles of fees
      • Fee Only
        • Plans
        • Assets Managed
      • Fee Based
      • Commission only
    • You can find an advisor even if it’s just a one off planning session – some will provide you with an SOS if you already have an advisor relationship
  • Financial Advisors are only worried about making money and not my best interests
    • Trust
    • Find out if your financial advisor acts as fiduciary – legally binds them
  • Financial Advisors take a lot of energy and time- what if I move states? What if I prefer out of office meetings?
    • Technology
      • Zoom- any location
      • Planning software- ability to share updates on the fly
      • Flexibility of schedule – most advisors have flexibility to match your situation
    • Robo sticks to an algorithm and take human error out of the equation
      • Advisory firms follow rules and provide a voice on the other end of the line