I’ve been marking some assignments for the CERTIFIED FINANCIAL PLANNER™ course and a question in the assignment about Robo-advice has got me worked up. Why you ask, because I care about what I do and understand the impact it has on people’s livelihood.
It’s a buzzword in the industry at the moment. It’s the next big thing, the game changer in financial planning.
It’s a cleverly coined phrase isn’t it? Robo-advice…robotic advice that gives the impression it’s smarter and superior to fallible humans. I actually have no issue with Robo-advice itself. It’s resonated with many in the US and it’s going to hit Australia in a big way in the not too distant future. What I am against is profit at the expense of society, with little regard for the end outcome for the individual.
Robo-advice in its current form is basically automated portfolio management services. It’s typically low-cost, simple to use and cloud-based. I applaud Robo-advice for it helps to engage those that may have previously been disengaged with their super, and engagement is a good thing. After all, it’s your retirement nest egg. But here is the all-powerful question you need to ask yourself before using it. It’s the question I always ask myself when dealing with a big purchase or important decision in life.
Do they really care about me? It applies to everything important. Does this doctor I’m dealing with really care about me or am I just a 15 minute block? Does this sales representative give a rip about how it will turn out or are they just interested in hitting their target? Does this accountant really care about me and my business or am I just profit to them?
Does the Robo-advice provider really care about you? If you believe so, do business with them and entrust them with your hard earned cash. If you don’t believe it, stay away and find someone who does, or up-skill and do it yourself (with caution).
To be continued…
By Ray Ong
General Advice Warning
Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.
Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.
Contact us on 08 9381 6811 for a complimentary consultation. Ray is a CERTIFIED FINANCIAL PLANNER® and LIFE RISK SPECIALIST® and has a Bachelor’s of Commerce in Financial Planning (with distinction). He is a member of The Financial Planning Association of Australia. We are based in Perth, Western Australia and specialise in retirement planning, wealth accumulation and wealth protection (life and disability insurance).
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