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Robots take over the financial world

Robo Advisors – The future in financial advising is here

on October 9 | in All, Opinion | by | with No Comments

There is a new group of financial advisers in town, they are called Robo Advisors. In the world of economics everything is calculated, but there is no way to predict the future. These automatic advisors will try to take the place of traditional financial counsel, they will try to be an alternative and solution to the constant disappointment that the classic investment methods have been over the last few years. The middle class investors claim that they are constantly neglected by advisorsin favor of the most wealthy, the idea is that a robot can put an end to this discrimination. But, can they?

The Robo Advisors need only the investors basic information to do all the financial planning, data such as objectives, risk profile, age, and income. The algorithm will make the necessary calculations to design the best plan according to the situation. What Robo Advisors accomplish is to optimize the investment at a very low price, there are no types of fees, and only a commission lower that 0.5% depending the Robo Advisor hired. A normal (human) advisor would charge a $300 dollar commission a year in a ten thousand dollar investment, while the Robo Advisor would only cost an average of 22 dollars in that same timespan.

Robot advisors bionic hand

Robot advisors bionic hand

You might be thinking that Robo Advisors fall short of the type of service that a traditional advisor could give you, but that is far from true, because the Robo Advisor is better, by far. The Robo Advisor uses a system of algorithms that does an amazing job at getting the client the most value and return for their money. The good news for small investors is that Robo Advisors does the job regardless of the money invested, this means anyone can get financial advice. To get more details, go to roboadvisors.com.

Now, to answer a question you may be asking yourself already: who is in charge of programming the Robo Advisors? And it is a valid question, because what good is there in a great automated advisor if it is managed by a group driven by their own interests. As of now there have not been any problems with the Robo Advisors, but we will have to pay close attention to this detail in the future. In the European experience they have proven to be very useful and have performed better that classic advisors, so the conclusion for now is: so far so good.

Sources: huffingtonpost.com

Robotic production line

Robotic production line

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