Episode 2: Attack of the PCs


Not really but I needed a catchy title in the vein of my Star Wars inspired homage.

In Episode 1, we looked at the fascinating, so called, “robo-advisors” and defined what they are.  To build on onto what was laid out last time, we are going to look at what they do and who might benefit from such a construct.

I am a big believer that technology has helped improve many aspects of our lives and believe that investing and financial planning are just scratching the surface as far as what can be done thanks to technological advancements.

Robo-advisors are obviously not for everyone and as with any financial decision it depends on the specific situation.  Then, with that framework in mind, what are some reasons for choosing an “advisor-less” relationship?

  • Robo-advisors may be a wonderful alternative for people who have not yet accumulated enough assets to meet the account minimums that most traditional financial advisors require.Thus, a robo-advisor may be the perfect option when you are just beginning to invest.
  • A robo-advisor may be a good fit for investors that have a financial situation that is pretty simple.If you don’t have any sophisticated tax planning or estate planning needs and retirement planning is not an immediate concern then a robo-advisor may make sense for you.
  • Nevertheless, robo-advisors might be a good match for investors who are comfortable utilizing online tools and technology.If you can live with very limited human interaction and are comfortable doing your own online research then a robo-advisor may be for you.

In our final episode of our journey we will look at the limitations and issues with robo-advisors.


Until next time A Thought From the Factory on Main
Best wishes


Peter Huminski


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.