Robos provide automated, passive money management services for substantially reduced fees. Fee reductions are achieved by eliminating expensive investment professionals and relationships with traditional financial advisors. If you were a prudent, rational investor how much would you be willing to pay for a relationship with a financial advisor? Is the relationship worth 50 bps, 75 bps? What happens when investors need some serious hand-holding in material down markets? Will a barrage of Robo emails be an effective substitute for an advisor who listens to investor concerns and takes action to minimize losses.
Robos provide automated, passive money management services for substantially reduced fees. Fee reductions are achieved by eliminating expensive investment professionals and relationships with traditional financial advisors. If you were a prudent, rational investor how much would you be willing to pay for a relationship with a financial advisor? Is the relationship worth 50 bps, 75 bps? What happens when investors need some serious hand-holding in material down markets? Will a barrage of Robo emails be an effective substitute for an advisor who listens to investor concerns and takes action to minimize losses.