The Importance of a Financial Adviser

04/26/2022

With the current popularity of robo-advisors, some wonder what the difference is between an algorithm and a financial adviser.

Robo-advisors have been able to offer an alternative to traditional financial advisers to those with limited resources. They can provide automated advice and portfolio management based on your criteria with low costs and low account minimums.

A traditional financial adviser may have higher fees and higher account minimums, but they have the ability to offer a comprehensive package of services. They also offer personalised guidance and strategies that consider all facets of your life.

Getting Started

With a robo-advisor, investors can get started by simply filling out a detailed questionnaire indicating their investment goals and objectives. The entire process is automated, with the robo-advisor using a sophisticated algorithm to determine the best investments for your situation based on your preferences indicated on the questionnaire. No face-to-face meetings or appointments are required.

But this is why many investors choose to work with financial advisers. They want the personal touch a financial adviser can provide. Working with someone can be especially helpful if you aren't sure what your preferences or goals are yet. expatwealthatwork offer virtual meetings as well as in-person ones, so you don't need to travel for financial guidance.

A Personal Relationship

While some people prefer to do business online without human interaction, there is no way to adequately replace a person with a computer. And while it may seem easy to have a computer choose investments based on a short questionnaire, the computer knows nothing about you. Not your likes, dislikes, career path, relationship, family, or your short and long-term goals. Your financial adviser knows all of those things and can make personalised recommendations based on your current life stage and plans for the future. Plus it's nice to be able to pick up the phone or send an email to someone who can explain market fluctuations, guide you through major financial choices, or just offer some reassurance after a particularly volatile trading week.

Privacy Matters

If you like to keep your personal information private, you may have some hesitations about sharing your personal and financial data online. If you do prefer to do everything online, research how your data is being stored, protected, and used before using any provider.

A Hands-On Approach

Because robo-advisors tend to be one-size-fits-all, it can be simpler for investors that want to "set and forget". However, if you have some very definite ideas on where you want your money to go, you may want to consider using expatwealthatwork, since we can help design a strategy to help you pursue your specific goals.

Conclusion

While it can be a helpful resource for those entering the market for the first time, robo-advisors cannot provide the personalised guidance or years of experience that we as financial adviser have.

Robo-advisors are not going away, but neither are financial advisers. Both will continue to provide services to two very different groups of people, leaving it up to you to decide which option you're more comfortable using.

Contact us - info@expatwealthatwork.com - if you would like to learn more about how we can help you pursue your financial goals.