June 2, 2015 Affluent Investor Fact: Investors who use Robo-Advisors are more dependent on Financial Advisors
MILLIONAIRES THAT USE ROBO-ADVISORS ARE ACTUALLY MORE DEPENDENT ON FINANCIAL ADVISORS THAN OTHER INVESTORS.
What is a robo-advisor? It’s a class of financial advisor that provides portfolio management online with minimal human intervention. The recommendations are generally based upon algorithms, and therefore, many investors – especially younger investors – feel they are more trustworthy or reliable. Some of the most well-known robo-advisor names includes firms like Betterment or Wealthfront.
In research recently conducted by Spectrem Group, it was found that individuals who use robo-advisors are actually more likely to describe themselves as “Advisor Dependent” than those investors using other types of advisors. In fact, 75 percent of Millionaires that use a robo-advisor indicate they are dependent on an advisor to some extent. And 14 percent are Advisor Dependent….this means they look to the advisor to make all of the decisions. In contrast, only 61 percent of other investors use an advisor to some extent and 10 percent describe themselves as Advisor Dependent.
If you think about it…..a robo-advisor is a perfect solution for an Advisor Dependent individual. Many investors don’t want to have to make decisions and the robo-advisor makes all of the decisions for them. Don’t be surprised if you see an increasing number of individuals beginning to rely upon robo-advisors.
To learn more about how investors use robo-advisors click here or contact Randy Wostratzky at firstname.lastname@example.org or 224-544-5195