The word automated says it all. Automation is good when you want to improve your productivity.
We believe that a robotic or algorithmic process of asset allocation and rebalancing is not a good approach for your investments. Productivity in investing helps robo-advisory firm, not you. They have produced a system where they can have one employee look after thousands of clients. Do you really want to be like everyone else?
Let’s say two people rely on an automated software to do their asset allocation. They’re both 40 and have a moderate risk tolerance. One is single with no children and the other one’s married with five kids. The first individual has $1 million in liquid assets, the second has none. Should they have similar portfolios? Probably not.
A computer cannot recommend what’s best for you. It can only give you a “good enough” solution. Automated processes also can’t capture complex issues. Today’s macroeconomic conditions combined with your unique financial situation requires a more customized investment approach.
Contact us so we can explain this concept to you in more detail.