5 Things Human Advisors Do that Robo Advisors Can’t


photo: veer

Recently, eMoney posted a list of “15 Things Human Advisors Do that Robo Advisors Can’t,” which outlined several major sellingpoints for why clients should choose a human advisor over a Robo Advisor. We took the top five list items and further developed them to demonstrate your value as a financial advisor:

1. You know their story – their priorities, family history, goals – not just their data When you first meet your clients, you ask them specific questionsabout their life that ultimately play a role in how you shape and deliver your financial advice. After that, you have regular check-ins with your clients and are in touch with their current events. Without asking the right questions, you would not be able to personalize a plan that best suits your clients’ evolving needs and without you, your clients could be misguided and risk their financial wellness.
2. You are prepared to guide your clients through unexpected life events Though absolute certainty is rare, it helps to be prepared for all of life’s unknowns. As an advisor, you have the ability to assist your clients in accounting for these “what ifs,” especially since you have successfully integrated technology to clearly and concisely show your clients how one event can impact their entire financial future.
3. You help clients take control of their entire financial picture beyond their investments Advisors are the complete package. Again, you know your clients’ histories, so you can provide better counsel as to where they should invest their assets. But you don’t stop there. You also make sure that your clients stick to their budget and suggest where they might make adjustments to their lives to better save for future goals.
4. You provide comprehensive financial plans Because you recognize that clients deserve to choose what best suits their needs, advisors not only provide insight into the full financial picture, but also offer a variety of strategies for college saving, business building, retirement planning, etc. You don’t just spit out data based on a formula – you go back through their history, analyze their present and discuss viable, tangible options.
5. You encourage your clients to answer tough questions about their financial life On their own, individuals are prone to avoid discussing sensitive topics such as “How will my/our estate be divided among family members after I/we have passed?” for example. As an advisor, you bring up these difficult subjects and encourage your clients to face reality and develop a plan before it’s too late.

While Robo Advisors seem attractive at first, their lifeless system generates a response from one angle – a simple, self-made formula. When you think about it, there’s no question that real advisors bring more to the table, particularly those who leverage technology to strengthen the advisor-client relationship.

For the latest industry trends and leading practices, check out eMoney Advisor’s range of helpful resources for professional financial advisors here.