Pros And Cons Of Using A Robo Financial Planner

In today’s world, we can see almost everything being automated. The technology is taking over everything and making things easier for us. Another biggest example of technology and advancement is a robo advisor that acts as a robo financial planner to meet your financial needs and to advise you with the best. Let’s find out whether using a robo financial planner is beneficial for your or not.

Pros

  1. Efficient like a Human based Financial Planner

Robo advisors are known to be efficient like a human based financial planner are able to provide you with accessibility to good portfolios with low cost and maximum return perspective. Robo financial planners are programmed and trained to provide you with the all the details that are required with investment options.

  1. User Friendly

A lot of people may be confused about the having a robot as a financial advisor however, to make it easy for them, it should be known that robo financial planners are known to be user friendly. All that really needs to be done is make an account and sign on at the robo advisory online, answer some questions, deposit the money that needs to be invested and you are good to go.

  1. Good on Taxes

Robo financial planners are known for providing tax efficiency and making it a priority is something they are good at.

Cons

  1. No Human Interaction

People who still prefer the old school way might not be ready to use such services where there is no human interaction involved at all. The overall process is smooth and efficient but it loses the touch of human intervention which a lot of people might be looking for. This means that there is no human who will give you a personalized service or someone who can talk you through decisions or someone who is a professional as an investment specialist.

  1. Advanced Risk Management

With a robo advisor, there isn’t a chance of advanced risk management as these digital platforms are not made in a way to drill down completely the risks and some detailed questions that are related to investment related queries.

  1. No guarantee for any Life change

With having a human financial planner around, you are able to just dial their number and update them any life changes that are needed to be updated as a requirement for investment purpose, however, when it comes to a robo financial advisor, you will have to update any changes in your life or any changes in the portfolio by logging into your account where you have no guarantee whether these changes shall be acknowledged or not.