Investors Want the Best of Both Worlds

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Investopedia - FPA Research Report  - Version 2.0Robo-advisers are never going to replace you.

Turns out the conversations shouldn’t be about either/or, but rather how to best combine human and robo advice. New research from the Financial Planning Association and Investopedia finds that investors don’t want one over the other; they want both.

“The debate about whether robos or human advisers will win is moot. The future of financial advice is bionic—a powerful combination of both,” David Siegel, CEO of Investopedia was quoted as saying in an article on Investopedia, “Investors Want the Best Tech, a Human Touch with Financial Advice.” 

“As investors get more comfortable with automated investing platforms, they’re starting to demand both the low-cost benefits such platforms provide and the irreplaceably customized and high-touch approach of financial advisers,” Siegel said to Investopedia.

The FPA and Investopedia report found that 70 percent of respondents were very satisfied with their financial adviser or financial planner, while 73 percent of survey respondents were satisfied or very satisfied with their primary automated investing platform. But only 40 percent of respondents felt comfortable relying solely on an automated platform during times of volatility.

“Technology is rapidly changing the way people invest and manage their finances, but clearly investors value the high-touch financial advice afforded by professionals,” 2016 FPA President Pamela Sandy, CFP®, told Investopedia. “Those investors who utilize the benefits of technology and maintain a face-to- face relationship with a qualified financial planner, like a CFP® professional, will be best positioned to meet their financial goals and achieve financial security.”

For more on the study, click here.

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Ana Trujillo
Associate Editor
Journal of Financial Planning
Denver, Colo.

 

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