As with many things in life, the answer to that is, it depends on your unique situation, needs and goals. For the inexperienced investor, robo investing may be an appealing way to go about investing their money. This investing environment however is associated with a learn-as-you-go strategy that people need to realize has a learning curve and many drawbacks.
While robo advisors cannot be your investment strategy forever, it’s a good place to begin, particularly, as said, when you don’t have a lot of money to invest up front.
For the more experienced investor or for the person who wants to take their investing to the next level, hiring a human advisor can make a huge difference.
Additionally, when the market goes down, your robot friend won’t be much comfort, at least not like any accountable human financial advisor would be. If you feel like you need this kind of personal, human service when it comes to taking care of your money, you may be better off talking to a financial consultant.
Finally, by the time many investors seek out a human advisor, they’re ready to have more control over their financial decisions. With robo investing, you answer a questionnaire.
The questionnaire determines how much financial risk you’re willing to take, and your portfolio of investments is based on this. You can’t really invest outside these parameters.
However, when you hire the services of an actual personal financial advisor like Claudia Weisser, you can be sure your financial advisor will design a strategy tailored to your financial reality far more than her robo counterpart ever could.
Remember that the main advantages of a human financial advisor are:
- that you will always have the option to have face to face meetings,
- a human advisor can always help you whether you’re dealing with a large or a small portfolio,
- lastly, but perhaps most important, robo advisors cannot be as personalized as a human can.