They said the performance of both classes of advisors face issues I think. Although the exact ROI year on year is dependent on the firms themselves (right?). Anyone feel free to correct me if I'm wrong. Thanks
Damn... Lol.! You are probably right... They are Already censoring & removing "Humans" in these comments and everywhere else.. Even the "Human TH-camr" removes, blocks, deletes & censor yo azz.. Now EVERYONE Will soon be censored... So I can see this happening as well with the Comments
*No 1: Don't Only Hope On Government's Responds On security Matter's And Economy growth,* *No 2: As An Individual You Should Be Safeguarded And Also Look For Different Self Business And Trade Not Only Waiting on Betterment of Stock market activities,* *No 3: Most Important Always Save The Little You Can And Think Of What To Do With It When It Become Good For Capital,* *Because Government Have Failed Us In Aspect Of Security, Economics Activities And Other Trading Systems.*
After a successful investment you have nothing to worry about whether the rise and fall of economy or anything won't affect you make your future brighter by making good investment
Currently the rich stay rich by spending like the poor and investing while the poor stay poor by spending like the rich yet not investing like the rich
My experience from financial advisors is that a lot of the time, they have something to sell and aren’t impartial with their advisory. Maybe I’m not rich enough to pay for the impartial financial advisors who think of me first instead of selling me things.
The robots will just be programmed by those in power to give advice that will make them more money while just throwing you a bone once in a while. It won't be impartial
@@WellBattle6 true. Another way is to find an Advisor with lots of experience and a small to mid-size book of business. Remember, the more clients they have the less attention they will give you.
Financial Advisors are being exposed as being over payed for underperformance. Not only do you pay 1-2 percent in fees, but they create taxable events through higher speculation, all while underperforming the market.
Financial advisors as a whole consistently underperform relative to index funds, while also skimming cash off the top. Factoring in compound interest, this can sometimes result in hundreds of thousands of dollars in losses to the customer 20-30 years down the line. So... why bother with these so called "professionals" in the first place?
@@daddsim This is where I am. 1% off the top can be several hundred or thousand dollars off the top per year. I'm extremely risk tolerant (literally buy and never check) so the emotional component is out. Plus my portfolio diversification includes index funds and ETFs. And while I personally like my advisor, I'm not sure of the value I'm getting.
Robot:"I got a great investment opportunity, it's call the T-1000, this little robot will help you around the house, be a great friend, etc.... dont worry, will never harm you or your love ones".
Impossible. I'm glad everybody is getting to see that, Cash is thrash! It is designed to fail. 3 BEST and surprisingly easy ways to double/hold your funds in 2021; Crypto, Real Estates, who can guess the 3rd?
Has to be stock trading!!! Made my first million through it earlier this year as a newbie after I met a professional from a reputable firm... Retiring by next year with absolutely no fears!!
@@august9050 Thats really impressive. Have tried doing that on my own without luck for sometime now. Getting fed up by the day. Who is the broker you worked with please
@@vargaskenneth8837 "Martha Elizabeth Linsley", she was in the news when she revived Grumac company in 2018. You can look her up on the web to get more on her!
That's what we do but we do have a financial advisor that we pay on a flat fee basis for advice beyond that. For instance, we run a business so we have a lot more options when it comes to retirement planning. We want to make sure that we plan to not be exposed to heavily taxes in our later years
The days of index fund is over my friend. Of course if you just want to invest-and-forget, index fund isn't a bad choice but your expectation should be that you are basically keeping up with inflation, not really making any money. If you can be a bit active with stock investment, i would look into tech sector and look into companies. If you want to be like invest-and-forget, but want to make money above inflation i would look into ETF.
@@7SlicesOfPizza if you think that when we go into the future and there is a possibility that majority of people use robo tech and everyone will make money, you are wrong. The Stock Market is a zero sum game. The amout of money Gained also has to be lost by the other side of the trade. When it's majority robo, tech will be fighting tech and they too will start underperforming
@@7SlicesOfPizza Aren't index funds and ETFs pretty fundamentally similar products? My index funds have been performing WAY above inflation. They lose me no ground to overall market averages.
I personally hold an all world ETF, that acts as an index. So yes it can be a similair product, you can also of course invest into a certain sector (like tech, energy, metals...)... "The days of index fund is over my friend. Of course if you just want to invest-and-forget, index fund isn't a bad choice but your expectation should be that you are basically keeping up with inflation, not really making any money." Keeping up with inflation? That's not how equity ETF's work...
Robo advisors and target date funds should replace 90% of financial advisors, but just like zillow should have replaced 90% of real estate agents, it’s not that simple. It’s a long road of re-education
So I'm a little biased because I graduated college with a financial planning degree (and am close to becoming a CFP). I think that investments could definitely become automated (not sure of current performance though). But financial planning/advising is all about insurance, estates, retirement plans, etc. Its often beneficial for people to deal with other people compared to a robot because humans are not the most rational and logical people in the world. People have different priorities & needs that aren't logical. Its often quite hard to keep people on track with goals without that connection to a person who is telling them why to do X vs Y. A blend is most likely going to be the future.
Major down side with Robo Advisor platforms is the lack of custom support. That’s a major issue when it comes to dealing with my money. Second you’re far better taking your money and not paying any fees for any type of advisor, due to the fact that educating yourself on the market will give you a better sense of what you’re buying and selling. Yeah, you can click and forget about your investments but in the long run you ROI will be far less than someone who is continuously educating themselves on the financial world. At the end of the day we are talking about your financial goals and money being made or money being left on the table. That is why I don’t like any Robo advisor’s for individuals that already know what they want in terms of financial goals or etc.
I completely agree with this. From 2017 to 2019, I have a robo advisor through Schwab intelligent portfolio. We averaged about a 2% return on investment. We got a financial planner in 2019 and he pick some stocks. We are now doing far better than that. Giving an accurate return on investment is kind of difficult at this point because the market downturn hit so hard so giving return-on-investment figures is a bit messy but suffice it to say we are doing far better. In my experience, the robo advisors trade like they are day Traders. They can't let the money sit well enough alone and grow. They capture any tiny gains and then try to sell. Plus, having a financial adviser was invaluable when it came to setting up our retirement account as we are self-employed. They were able to help answer a lot of questions so that we can plan for the long-term
I'm studying to become a financial planner. Financial planners are for people that already have more than a million in cash. Robo-advisors are a great place to start for young people like me that just graduated from college and started making money. A robot cannot replace personalized human interaction.
It can't replace it completely if you have some complex financial situation, but as for the investment portion of the equation, it can for the most part. I was a licensed financial planner before. Speaking as someone who was in the business, there is NO WAY a 1-2% fee is justifiable especially when planners will underperform the market. That's $10k a year on a million dollar portfolio. Sorry to be so harsh but I really think you're entering a dying industry.
Yes, I agree that robo-advisors could potentially take a big portion of the financial planning industry. Only time will tell us if our new generation of millionaires will trust managing their portfolio by their own through these apps versus hiring a professional to do it for them. I know for sure that financial planning agencies will have to adapt to this trend. Maybe by lowering their fees or offering some type of service that you can only get through human interaction.
@@miguellopezbo yeah I think so. Not only that, but millionaires tend to be smarter than the average person as well, and this new generation of millionaires isn't like the old generation. They have good access to information and pretty much all of them know that by buying an index fund, they will outperform the vast majority of advisors and save that 10k a year on fees. It's really only for people who need hand holding these days who are too intimidated to use the computer on their own.
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It is great to see robo-advisors disrupting the industry. Most human financial advisors are not advisors at all but simply sales people who seek commissions from selling investment products which leaves their clients with no one acting as a fiduciary. Robo-advising is probably a much more streamlined business too which leads to lower fees for clients.
Most people are just better off investing in an index fund or target date retirement fund and calling it a day. I just don't see the added value that robo advisors bring that would justify their annual fee.
I love my robo advisor with Ally. For example, you need $100 to open, but for a financial advisor, it’s $2k a year to have access to them, plus they usually want $5k to begin investing. I’ve found it was difficult to find a financial advisor because I didn’t have any “wealth” to manage. At the time, I was fresh out of college, had a good job, living at home, I was looking for advice on my next steps, like a financial roadmap. The advice I received was “just stock up on cash”. But looking back, the better advice would have been to build my emergency fund, start investing, and decide when I want to move out. And would that be a home or an apartment and how to save / invest for them.
Robo advisor is a misleading term. All it does is rebalance your investments and tailor your allocation after a short survey. From a birds eye view it’s almost identical to a target date fund. Has nothing to do with what most financial advisors do day to day with clients. In fact many financial advisors may incorporate a robo advisor as part of a broad wealth plan recommendation.
The big difference isn't the algorithms of each robo advisor between the investment firms but the firms themselves. Companies, especially those that are publicly traded or starting up, exist to grow and make money for those who invest IN them. Vanguard is not publicly traded and its investors are the people who invest WITH them. Without this constant pressure to produce huge profits for investors, Vanguard is able to focus on the products and services that better serve their clients.
Who needs a robot to tell you how to invest when learning on your own is so incredibly more fulfilling and enriching. Robo anything in finance only has a use in speed, that is all.
Robo = marketing, it's just an automated mean variance portfolio, as long as the management fees are low its the best long term option for individual investors.
2:53 Wait, it takes Financial Advisors days, weeks, and MONTHS to come up with a financial plan?!? I've never used a Financial Advisor, but I imagine you setup a meeting, talk to get to know one another, and then by the next day you should have a plan ready and started investing (minimally). To me, weeks and definately months is WAAAY too long. ...or what I do is setup a vanguard account and start investing in under half an hour 😁
And they call out when hungover, get pregnant, or refuse the pickup the phone until they got the new best pick of all time. Remember, always selling the next stock. Don't you dare let these investors cash out a dollar. Infinite growth is not impossible. It's ridiculous and insane. The new normal is getting a bit weird. Good luck
If algo-trading isn’t 100% failproof, then when would robo-advisor be any better? If more assets are channeled into ETF, then this is a “crowded trade” itself is a market risk.
Robo advisors are great for people who are just starting out and have no option but to invest I index funds and the like, but if a person is already very successful financially there are often much more lucrative options for their money. That’s where the human touch shows it’s true value
Financing is like any other skill. There is a learning curve and the more you learn, the stupider you get. And roboadvisers are in that valley of worries right now, they actually invest worse than any noob Investor, because when there is a crash, they go out of volatile assets, which means that they automatically miss out on the following catch up Rallye.
4:02 If a more sophisticated investor just wants to "set it and forget it," they don't need robo-advisors. They can pick their own ETFs. There are so many elements of a person's investing preferences that a robo-advisor can't reasonably capture. Moreover, why would a sophisticated investor want to pay an extra 1% just to pick passive investments.
I’m a financial advisor. I doubt they will replace humans for larger dollar amounts. People want a personal and professional human touch for say-their retirement. A robo advisor is great to get started and have a lower dollar amount.
I’d take the logical ai advisor over emotional humans any day. Especially during times of high volatility and stress, I’d want the robots because they stick to the facts, data, and empirical evidence instead of narratives, bias, and cloudy judgement of humans. Frankly, I don’t care about “the human connection” if robots can make me more money.
The robots have been programmed using knowledge from humans and there's plenty research to suggest that they absorb the bias and cloudy judgment within the data. See, the scandal with Amazon's job application system picking up that women are not typically selected for certain jobs and therefore rejecting women's resumes, research on A.I. systems associating darker skin with criminality, etc. Systems trained on human knowledge (which includes human biases) are not neutral, perhaps just more consistent.
If you believe that human advisors aren't needed, I challenge you to take a look at Dalbar's Investor Behavior study. The problem with the whole concept of robo advisors is it makes the assumption that investment success is based on knowledge. If you believe that, you have much to learn.
"Of course you're gonna need a human adviser" says the human who needs you to believe this to make their money or they have to return to their parents' attic in Ohio. Or not buy the latest Beamer this year.
I don’t trust anyone telling me how to invest. Everyone told me btc was worthless at $600. I definitely wouldn’t trust mockingbird bot telling me to buy equities.
The thing about robo customer service in any industry is that it sucks because they don’t listen (yes even worse than people customer service) causing or escalating frustration. BUT when every company in an industry uses it, it limits customer choice. Cough cough ISP companies. And yes I would rather pay an extra $1-$2 on my monthly bill to save my day from being ruined while being on the phone with robo customer service. “No your speech recognition can’t understand any language, so just give options off the keypad first.”
If you graduate with just an undergrad degree in finance, it will not be of use, you have to have many certifications such as the CFA or CFP and licenses such as your securities licenses like the Series 7 or 66 in order to look more appealing in today's financial services market. Finance and Banking is where the money are, you just need to be able to adapt to this changing market.
That's a dumb idea. Human: Hey computer should I be racist or a decent human being? Computer: how about stop getting sued and listen to the right people that want to work.
The more you invest the more the founder of whatever company you invest in makes retail investors think there doing something smart now but inflation will knock them back down to where they belong.
Financial advisors unless there a fiduciary are not actually there to help you. Anyone can be a financial advisor as its a meaningless title. The majority of the financial advisors the average person deals with are not required to work for your interest. Also stock picking cat, octopus, and other animals have beat these active management investments.
All the robo advisors are doing is creating asset allocation. That's not what you have a financial advisor for. If you're smart, you know a financial plan is not just about investments.
It's not so much that no one noticed but rather it is important to have a calming voice to advise you if you were let's say approaching retirement and worrying about having money in the market and needing to make up the losses
@@jasonwilkins1969 A rookie investor would be much more anxious about the market than a person going towards retirement, because he has seen life and he's seen this happen time and again
@@jasonwilkins1969 but if the market really was falling off a cliff as dot com stocks did in 2000, the "calming voice" would lead a person into bankruptcy and sleeping under a bridge. financial advisors don't know where the markets are headed anymore than anyone else.
People who claim that robo and index funds save on fees and because of that will make financial advisors obsolete don’t know what they are talking about. I see all these comments about buying and index fund, but even take something as simple as that, most people don’t even know what index fund to buy. Yes, you can buy the SP500 for free without an advisor, but little do you know that it’s probably an outdated index. Nasdaq, the index of our generation has outperformed the sp500 by 3x over the past 10 years... second, don’t compare advisors against the index of their managed portfolio, compare them against the average investors who does not have an advisor... JPMorgan study found that average individual investor underperforms the market by about 5% because of stupid mistakes. So, yes you can save 1% of fees, but you’ll probably lose 10% by investing into your grandparents index funds and making foolish decisions.
I think this segment is asking the wrong question. Automation almost never *completely* eliminates human roles. Most of the time, it eliminates *most* of the human roles, and that is enough for it to create a problem. For instance, back when the first textile machines created the luddite movement, it didn't displace every single worker - just most of them. If 90% of people in an industry are getting fired, that's enough to create social problems. Also, with the pace and growth of a.i., even the 10% of humans remaining may be further trimmed down over time.
Also, there's still hesitancy with a.i. bc the technology is relatively new. But in a few years, when a.i. is driving our cars, doing our surgery, watching our kids, etc, it'll seem commonsense to have a.i. financial advisors too
The short answer to the question in the title is no. People want someone to hold their hand during market downturns. But I would have been interested to know: What's the average annual return on these robo advisor services? How well do they do compared to human advisors? How well do they do compared to the DJIA and S&P 500? This video never covers any of that.
For the ultra-wealthy, who are fully hedged, both reallocation of assets and trading are out of the question due to tax issues. Imagine getting hit with a $1M AMT bill because you traded last March due to the coronavirus. None of the ultra-wealthy touched their core assets during any downturn. Robo investors are for people without money, more or less.
Robots will never replace all jobs. Not drug mules, Won't replace human traffickers. Not modern day slaves in India and such. These jobs will always be there.
Probably, robots will. If they do, they will actually be literally doing what a financial advisor is supposed to do. Give financial advises or manage your investments to some extent. I don't know in other countries but in my country, financial advisors are just glorified salesman. You ask them for advise like optimal allocation of your investments, but they'll end up really just trying to sell you insurance or whatever sketchy new investment plan their company is offering.
It wouldn’t surprise me. I work in a bank and 80% of the clients conduct business through AI help. COVID really spurred people to look for online help over person to person.
Both methods have benefits and negatives. However I would choose an experienced human who has 10-20+ years of experience and had deeply studied the history and can take rational long-term decisions.
4:46 - "... today Betterment has grown to be the largest independent robo-advisor in the market" - CNBC proceeds showing an article from 2016 from the official Betterment website I am missing something?
11 minutes and not a single chart comparing how well robo-advisors do vs a human advisor. Show us the numbers!
Yeah. They need to show us charts.
MrKeyFrames are you an investor
robot are not advice you, they trade/invest for u
They said the performance of both classes of advisors face issues I think. Although the exact ROI year on year is dependent on the firms themselves (right?). Anyone feel free to correct me if I'm wrong. Thanks
“You don’t want the truth”
"Yeah, you should definitely invest in tech stocks..." - Every Robo-advisor ever
Robo-advisor: Invest in this hot new tech company, Skynet inc. 🤖
"you should invest in banks" - Financial advisers
Roboadvisor be like "invest, IN ME"
@@phoreal22 there safe they have high dividends and they grow at a slow but respectable rate
But hey maybe I think that way because RY and JPM our staples in my portfolio
I know TH-cam multi-comment spammer bots will replace regular people commenting on videos in the future hahahaha...
Given the amount of comments that are just the same few memes repeated over and over, kinda seems like that already tbh
Are you a bot?
So many bots hyping bitcoin.
Damn... Lol.! You are probably right... They are Already censoring & removing "Humans" in these comments and everywhere else.. Even the "Human TH-camr" removes, blocks, deletes & censor yo azz.. Now EVERYONE Will soon be censored... So I can see this happening as well with the Comments
That's definitely true haha
*No 1: Don't Only Hope On Government's Responds On security Matter's And Economy growth,*
*No 2: As An Individual You Should Be Safeguarded And Also Look For Different Self Business And Trade Not Only Waiting on Betterment of Stock market activities,*
*No 3: Most Important Always Save The Little You Can And Think Of What To Do With It When It Become Good For Capital,*
*Because Government Have Failed Us In Aspect Of Security, Economics Activities And Other Trading Systems.*
After a successful investment you have nothing to worry about whether the rise and fall of economy or anything won't affect you make your future brighter by making good investment
@@juankeith9355 Exactly that's true if you have a good investor you have nothing to Worry about
Currently the rich stay rich by spending like the poor and investing while the poor stay poor by spending like the rich yet not investing like the rich
Wise words that's just the fact and also what is happening day by day
I'm just so Lucky to have Dr Benjamin as my investor he really understand all methods of Bitcion
My experience from financial advisors is that a lot of the time, they have something to sell and aren’t impartial with their advisory. Maybe I’m not rich enough to pay for the impartial financial advisors who think of me first instead of selling me things.
The robots will just be programmed by those in power to give advice that will make them more money while just throwing you a bone once in a while. It won't be impartial
You haven't come across a good advisor.
The only way to get an impartial financial advisor is to become their boss by directly hiring them to work only for you.
@@WellBattle6 true. Another way is to find an Advisor with lots of experience and a small to mid-size book of business. Remember, the more clients they have the less attention they will give you.
Robo is for the average Joe, real advisors are for the wealthy.
Financial Advisors are being exposed as being over payed for underperformance. Not only do you pay 1-2 percent in fees, but they create taxable events through higher speculation, all while underperforming the market.
Financial advisors as a whole consistently underperform relative to index funds, while also skimming cash off the top. Factoring in compound interest, this can sometimes result in hundreds of thousands of dollars in losses to the customer 20-30 years down the line.
So... why bother with these so called "professionals" in the first place?
@@daddsim This is where I am. 1% off the top can be several hundred or thousand dollars off the top per year. I'm extremely risk tolerant (literally buy and never check) so the emotional component is out. Plus my portfolio diversification includes index funds and ETFs. And while I personally like my advisor, I'm not sure of the value I'm getting.
Just buy a bunch of ETFs, its literally the same thing.
Exactly, they just buy etfs for you, nothing fancy
More specifically low cost ETFs or index funds
With the same success they could replace humans in casinos.
NOOO! NOT THE CASINOS!!!!
That has already started
They already do
Everything in the worldwide.
already did via smart phone
Depending on one stream of income had never made any millionaire and earning check don't put you on forbes
Investing in crypto now should be in every wise individuals list, in some months time you'll be ecstatic with the decision you made today.
I totally agree with that
Crypto is the new gold
I tried investing once but withdrew due to the fluctuations in price
You are right, in the past I tried trading on my own but made almost no profit until I was link to a professional, the result was exceptional
Robot:"I got a great investment opportunity, it's call the T-1000, this little robot will help you around the house, be a great friend, etc.... dont worry, will never harm you or your love ones".
and then he'll name himself SKyNET!
"Come with me if you want to be rich"
Lol..! 😹
Impossible. I'm glad everybody is getting to see that, Cash is thrash! It is designed to fail. 3 BEST and surprisingly easy ways to double/hold your funds in 2021; Crypto, Real Estates, who can guess the 3rd?
Has to be stock trading!!! Made my first million through it earlier this year as a newbie after I met a professional from a reputable firm... Retiring by next year with absolutely no fears!!
@@august9050 Thats really impressive. Have tried doing that on my own without luck for sometime now. Getting fed up by the day. Who is the broker you worked with please
@@vargaskenneth8837 "Martha Elizabeth Linsley", she was in the news when she revived Grumac company in 2018. You can look her up on the web to get more on her!
@@august9050 Wow I know this pretty little lady. Met her once at a fundraiser in Dallas. Great speaker.
Stripping? Go fund me?
Why not just grab an index fund and call it a day? Good long term performance and even lower fees!
That's what we do but we do have a financial advisor that we pay on a flat fee basis for advice beyond that. For instance, we run a business so we have a lot more options when it comes to retirement planning. We want to make sure that we plan to not be exposed to heavily taxes in our later years
The days of index fund is over my friend. Of course if you just want to invest-and-forget, index fund isn't a bad choice but your expectation should be that you are basically keeping up with inflation, not really making any money.
If you can be a bit active with stock investment, i would look into tech sector and look into companies.
If you want to be like invest-and-forget, but want to make money above inflation i would look into ETF.
@@7SlicesOfPizza if you think that when we go into the future and there is a possibility that majority of people use robo tech and everyone will make money, you are wrong. The Stock Market is a zero sum game. The amout of money Gained also has to be lost by the other side of the trade. When it's majority robo, tech will be fighting tech and they too will start underperforming
@@7SlicesOfPizza Aren't index funds and ETFs pretty fundamentally similar products? My index funds have been performing WAY above inflation. They lose me no ground to overall market averages.
I personally hold an all world ETF, that acts as an index. So yes it can be a similair product, you can also of course invest into a certain sector (like tech, energy, metals...)...
"The days of index fund is over my friend. Of course if you just want to invest-and-forget, index fund isn't a bad choice but your expectation should be that you are basically keeping up with inflation, not really making any money."
Keeping up with inflation? That's not how equity ETF's work...
Robo advisors and target date funds should replace 90% of financial advisors, but just like zillow should have replaced 90% of real estate agents, it’s not that simple. It’s a long road of re-education
Thanks for whatching....
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W>h>a>t>s>a>p>p>>>>
+1>2>3>4>2>1>9>7>6>1>6
So I'm a little biased because I graduated college with a financial planning degree (and am close to becoming a CFP). I think that investments could definitely become automated (not sure of current performance though). But financial planning/advising is all about insurance, estates, retirement plans, etc. Its often beneficial for people to deal with other people compared to a robot because humans are not the most rational and logical people in the world. People have different priorities & needs that aren't logical. Its often quite hard to keep people on track with goals without that connection to a person who is telling them why to do X vs Y. A blend is most likely going to be the future.
that’s why you test your machine learning models
any financial calculation, recommendation, could be scripted in python doesn’t even have to use ml
Major down side with Robo Advisor platforms is the lack of custom support. That’s a major issue when it comes to dealing with my money. Second you’re far better taking your money and not paying any fees for any type of advisor, due to the fact that educating yourself on the market will give you a better sense of what you’re buying and selling. Yeah, you can click and forget about your investments but in the long run you ROI will be far less than someone who is continuously educating themselves on the financial world. At the end of the day we are talking about your financial goals and money being made or money being left on the table. That is why I don’t like any Robo advisor’s for individuals that already know what they want in terms of financial goals or etc.
I completely agree with this. From 2017 to 2019, I have a robo advisor through Schwab intelligent portfolio. We averaged about a 2% return on investment. We got a financial planner in 2019 and he pick some stocks. We are now doing far better than that. Giving an accurate return on investment is kind of difficult at this point because the market downturn hit so hard so giving return-on-investment figures is a bit messy but suffice it to say we are doing far better.
In my experience, the robo advisors trade like they are day Traders. They can't let the money sit well enough alone and grow. They capture any tiny gains and then try to sell.
Plus, having a financial adviser was invaluable when it came to setting up our retirement account as we are self-employed. They were able to help answer a lot of questions so that we can plan for the long-term
Currently I see little benefit for retirement vehicles. The majority seem to mirror target date etfs with higher fees.
I'm studying to become a financial planner. Financial planners are for people that already have more than a million in cash. Robo-advisors are a great place to start for young people like me that just graduated from college and started making money. A robot cannot replace personalized human interaction.
Depending on how much money you have, financial planning services can cost less than 1%.
yes
It can't replace it completely if you have some complex financial situation, but as for the investment portion of the equation, it can for the most part. I was a licensed financial planner before. Speaking as someone who was in the business, there is NO WAY a 1-2% fee is justifiable especially when planners will underperform the market. That's $10k a year on a million dollar portfolio. Sorry to be so harsh but I really think you're entering a dying industry.
Yes, I agree that robo-advisors could potentially take a big portion of the financial planning industry. Only time will tell us if our new generation of millionaires will trust managing their portfolio by their own through these apps versus hiring a professional to do it for them. I know for sure that financial planning agencies will have to adapt to this trend. Maybe by lowering their fees or offering some type of service that you can only get through human interaction.
@@miguellopezbo yeah I think so. Not only that, but millionaires tend to be smarter than the average person as well, and this new generation of millionaires isn't like the old generation. They have good access to information and pretty much all of them know that by buying an index fund, they will outperform the vast majority of advisors and save that 10k a year on fees. It's really only for people who need hand holding these days who are too intimidated to use the computer on their own.
Can we get Robo politicians?
We already do, politicians make predetermined to automated decisions that benefit lobbyists and campaign donors.
Al gore was a prototype
Online investments and trading have really helped many people achieved FINANCIAL FREEDOM, although many also had losses due to lack of knowledge and self trading. I recommend Cecily Bullara for anyone who wishes to make huge profits from investing. She is selfless and reliable.
Feels so good to also see someone here who knows about Mrs Cecily Bullara's investment. Her investment changed my life for good.
I have been doing self trading for years now without making profit, only losses. Please how do I reach Cecily Bullara to start with her?
Her investment is very popular over here in California, many of my colleagues invested with her and made huge profit.
I lost my job due to the Pandemic and life became very difficult for my family and I until i saw a post made here about Cecily Bullara's trading investment. I doubted because of scam but i reluctantly lnvested with her, and i do not regret lnvesting with her. Thank you for bringing joy to my family once again. Please lnvest with her.
She's been the one handling my husband's trade for a long time now, with high profit earnings. She is trustworthy.
Me studying finance right now in college 👀🥲😒
Exactly what I feel.
then quit, being accountant or etc will be useless
Nah, don't worry man. They can't have all of the jobs. The government should do something about it. It's not fair for the people.
yo I feel that too. Even though it will take me longer to graduate, I am defiantly switching my major.
Use your superior finance knowledge to sell financial plans through AI. You are probably qualified to sell this technology and be successful
It is great to see robo-advisors disrupting the industry. Most human financial advisors are not advisors at all but simply sales people who seek commissions from selling investment products which leaves their clients with no one acting as a fiduciary. Robo-advising is probably a much more streamlined business too which leads to lower fees for clients.
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Also Robo advisor: *nOt FInanCial aDvicE*
it is comfortable giving out the responsability of taking care of your money to a robot so you dont have to be responsible for the losses
Most people are just better off investing in an index fund or target date retirement fund and calling it a day. I just don't see the added value that robo advisors bring that would justify their annual fee.
S&P is not diversified enough. The average investor doesn't know about GLD and Bond ETFs which you need to have in case of a downturn
I love my robo advisor with Ally. For example, you need $100 to open, but for a financial advisor, it’s $2k a year to have access to them, plus they usually want $5k to begin investing. I’ve found it was difficult to find a financial advisor because I didn’t have any “wealth” to manage. At the time, I was fresh out of college, had a good job, living at home, I was looking for advice on my next steps, like a financial roadmap. The advice I received was “just stock up on cash”. But looking back, the better advice would have been to build my emergency fund, start investing, and decide when I want to move out. And would that be a home or an apartment and how to save / invest for them.
Robo advisor is a misleading term. All it does is rebalance your investments and tailor your allocation after a short survey. From a birds eye view it’s almost identical to a target date fund. Has nothing to do with what most financial advisors do day to day with clients. In fact many financial advisors may incorporate a robo advisor as part of a broad wealth plan recommendation.
Thank you for watching, endeavor to write as soon for more enlightenment or tips +_19_0_1-4_6_8-3_5-4_2....
For more info
Cool! Now make also a Robo-husband to deal with my wife and I'm off for long-time vacations.
Ok boomer
Robo-jiggalo 😂😂
Why not just get a robo wife?
The robot is going to steal your wife ,
LMAO..!!! Daaaaammm, Bruh.. 😹😹😹
I like how the financial advisor at the end plain faced links 'investors' w/ "the inherence". Dudes lived a life helping the privileged make money.
The big difference isn't the algorithms of each robo advisor between the investment firms but the firms themselves.
Companies, especially those that are publicly traded or starting up, exist to grow and make money for those who invest IN them. Vanguard is not publicly traded and its investors are the people who invest WITH them. Without this constant pressure to produce huge profits for investors, Vanguard is able to focus on the products and services that better serve their clients.
Who needs a robot to tell you how to invest when learning on your own is so incredibly more fulfilling and enriching. Robo anything in finance only has a use in speed, that is all.
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Robo = marketing, it's just an automated mean variance portfolio, as long as the management fees are low its the best long term option for individual investors.
2:53 Wait, it takes Financial Advisors days, weeks, and MONTHS to come up with a financial plan?!? I've never used a Financial Advisor, but I imagine you setup a meeting, talk to get to know one another, and then by the next day you should have a plan ready and started investing (minimally). To me, weeks and definately months is WAAAY too long.
...or what I do is setup a vanguard account and start investing in under half an hour 😁
And they call out when hungover, get pregnant, or refuse the pickup the phone until they got the new best pick of all time. Remember, always selling the next stock. Don't you dare let these investors cash out a dollar. Infinite growth is not impossible. It's ridiculous and insane. The new normal is getting a bit weird. Good luck
For low income, this may be a cost-effective way to invest. Higher-income individuals should NOT use robo-advisors.
look if it replaces our job it must do the same with those politicians and executives too
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Bitcoin is the feature investing in it now is the wesest thing to do now especially the current rise
Despite all the economic crisis this is the right time to start up an investment
Stocks are good but crypto is more profitable
I wanted to trade crypto but got confused by the fluctuations in price
That won't bother you if you trade with a professional like Mr Wayne
Yeah
If algo-trading isn’t 100% failproof, then when would robo-advisor be any better?
If more assets are channeled into ETF, then this is a “crowded trade” itself is a market risk.
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Not to worry.
There is always money printing and too-big-to-fail bailouts to make up for that.
Its all about Crony Capitalism.
Well, legally Financial Advisors can put their interest despite their client's interests.. so I would pick a robot advisor.
Robo advisors are great for people who are just starting out and have no option but to invest I index funds and the like, but if a person is already very successful financially there are often much more lucrative options for their money. That’s where the human touch shows it’s true value
Creating a balanced portfolio of stocks real estate, business acquisitions and sales, etc...
Do a video on why there are Xfinity stores.
Robo investors...easily manipulated by the company to sell certain stocks....
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After looked at all the markets, all robos would just gonna say "PLEASE JUST BUY BITCOIN ALREADY" repeatedly.
Better buy tulips 🤣🤣🤣
Financing is like any other skill. There is a learning curve and the more you learn, the stupider you get. And roboadvisers are in that valley of worries right now, they actually invest worse than any noob Investor, because when there is a crash, they go out of volatile assets, which means that they automatically miss out on the following catch up Rallye.
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4:02 If a more sophisticated investor just wants to "set it and forget it," they don't need robo-advisors. They can pick their own ETFs. There are so many elements of a person's investing preferences that a robo-advisor can't reasonably capture. Moreover, why would a sophisticated investor want to pay an extra 1% just to pick passive investments.
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I’m a financial advisor. I doubt they will replace humans for larger dollar amounts. People want a personal and professional human touch for say-their retirement. A robo advisor is great to get started and have a lower dollar amount.
I’d take the logical ai advisor over emotional humans any day. Especially during times of high volatility and stress, I’d want the robots because they stick to the facts, data, and empirical evidence instead of narratives, bias, and cloudy judgement of humans.
Frankly, I don’t care about “the human connection” if robots can make me more money.
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The robots have been programmed using knowledge from humans and there's plenty research to suggest that they absorb the bias and cloudy judgment within the data. See, the scandal with Amazon's job application system picking up that women are not typically selected for certain jobs and therefore rejecting women's resumes, research on A.I. systems associating darker skin with criminality, etc. Systems trained on human knowledge (which includes human biases) are not neutral, perhaps just more consistent.
Nice video
can you see where this is going?
this is manipulation of the financial markets on a massive scale with minimal human responsibilities and liabilities.
Betterment vs Wealthfront! Find out next time on DragonBall Z
Younger investors are too focused on the crypto market rn
If you believe that human advisors aren't needed, I challenge you to take a look at Dalbar's Investor Behavior study. The problem with the whole concept of robo advisors is it makes the assumption that investment success is based on knowledge. If you believe that, you have much to learn.
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"Of course you're gonna need a human adviser" says the human who needs you to believe this to make their money or they have to return to their parents' attic in Ohio. Or not buy the latest Beamer this year.
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Financial advisors go instinct no matter what happens
*extinct
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Robo-Advisors: I found this wonderful company called Skynet
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I don’t trust anyone telling me how to invest. Everyone told me btc was worthless at $600. I definitely wouldn’t trust mockingbird bot telling me to buy equities.
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The thing about robo customer service in any industry is that it sucks because they don’t listen (yes even worse than people customer service) causing or escalating frustration. BUT when every company in an industry uses it, it limits customer choice. Cough cough ISP companies. And yes I would rather pay an extra $1-$2 on my monthly bill to save my day from being ruined while being on the phone with robo customer service. “No your speech recognition can’t understand any language, so just give options off the keypad first.”
Of course sales people will always tell you the "human element" is needed. Robo-advisors FTW.
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Yeah, I don’t have time to worry about my money... here take it and do what you want...
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that's what they are hoping for..
If you graduate with just an undergrad degree in finance, it will not be of use, you have to have many certifications such as the CFA or CFP and licenses such as your securities licenses like the Series 7 or 66 in order to look more appealing in today's financial services market. Finance and Banking is where the money are, you just need to be able to adapt to this changing market.
I would vote for my robot overlords in the 2024 election if they ran for the u.s. presidency! All hail Unit354!! #100110011
Remove money printing from the equation and it becomes apparent
how disastrously many of these financial guys would perform.
Everything Andrew Yang said would happen.... Will happen...#yangwasright #yangmediablackout
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Nah, financial advisors have a certificate ir degree to offer advice and connect with people robots cant do
And robo advisors will be branded on their return. Another bot vs. bot contest.
That's a dumb idea.
Human: Hey computer should I be racist or a decent human being?
Computer: how about stop getting sued and listen to the right people that want to work.
The more you invest the more the founder of whatever company you invest in makes retail investors think there doing something smart now but inflation will knock them back down to where they belong.
Just wait till the first robo-adviser lawsuit or ethics hearing. That'll be intriguing.
Backend them to a robonet and they can make the market.
Taylor Crane looks like Loki without make up
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The thing is machines are not corrupt unlike most humans working in the financial sector.
the people who program and run the machines could well be corrupt
@@mth469 true.
Financial advisors unless there a fiduciary are not actually there to help you. Anyone can be a financial advisor as its a meaningless title. The majority of the financial advisors the average person deals with are not required to work for your interest. Also stock picking cat, octopus, and other animals have beat these active management investments.
Flipping coins in the bathroom for what to buy next!
Cons: No one to blame in case of screwing things up...
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All the robo advisors are doing is creating asset allocation. That's not what you have a financial advisor for. If you're smart, you know a financial plan is not just about investments.
At least in manufacturing, the optimal performance is of automation with human guidance and lead.
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Yeah, nobody noticed that there was a pandemic and needed a person to tell them that is why the stocks are going down
It's not so much that no one noticed but rather it is important to have a calming voice to advise you if you were let's say approaching retirement and worrying about having money in the market and needing to make up the losses
@@jasonwilkins1969 A rookie investor would be much more anxious about the market than a person going towards retirement, because he has seen life and he's seen this happen time and again
@@jasonwilkins1969
but if the market really was falling off a cliff as dot com stocks did in 2000,
the "calming voice" would lead a person into bankruptcy
and sleeping under a bridge.
financial advisors don't know where the markets are headed anymore than anyone else.
@@mth469 the algorithm would probably be no better there. There's no data for that because there were no algorithms trading at that time
@@jasonwilkins1969
My point is it's all useless - financial advisor and algorithm. May as well be investing their own money.
People who claim that robo and index funds save on fees and because of that will make financial advisors obsolete don’t know what they are talking about. I see all these comments about buying and index fund, but even take something as simple as that, most people don’t even know what index fund to buy. Yes, you can buy the SP500 for free without an advisor, but little do you know that it’s probably an outdated index. Nasdaq, the index of our generation has outperformed the sp500 by 3x over the past 10 years... second, don’t compare advisors against the index of their managed portfolio, compare them against the average investors who does not have an advisor... JPMorgan study found that average individual investor underperforms the market by about 5% because of stupid mistakes. So, yes you can save 1% of fees, but you’ll probably lose 10% by investing into your grandparents index funds and making foolish decisions.
I think this segment is asking the wrong question. Automation almost never *completely* eliminates human roles. Most of the time, it eliminates *most* of the human roles, and that is enough for it to create a problem. For instance, back when the first textile machines created the luddite movement, it didn't displace every single worker - just most of them. If 90% of people in an industry are getting fired, that's enough to create social problems.
Also, with the pace and growth of a.i., even the 10% of humans remaining may be further trimmed down over time.
Also, there's still hesitancy with a.i. bc the technology is relatively new. But in a few years, when a.i. is driving our cars, doing our surgery, watching our kids, etc, it'll seem commonsense to have a.i. financial advisors too
Poor people let other people manage their money
Rich people always manage their own money and let people do other works
The short answer to the question in the title is no. People want someone to hold their hand during market downturns. But I would have been interested to know: What's the average annual return on these robo advisor services? How well do they do compared to human advisors? How well do they do compared to the DJIA and S&P 500? This video never covers any of that.
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For the ultra-wealthy, who are fully hedged, both reallocation of assets and trading are out of the question due to tax issues. Imagine getting hit with a $1M AMT bill because you traded last March due to the coronavirus. None of the ultra-wealthy touched their core assets during any downturn. Robo investors are for people without money, more or less.
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Answer: They already are.
I applied for a credit card once... online it rejected... human approved... I would not go to a preprogrammed robo for financial advice
I low-key hope tech phase out minimal human interventions, especially those middle mans
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Thank You
Robots will never replace all jobs. Not drug mules, Won't replace human traffickers. Not modern day slaves in India and such. These jobs will always be there.
Probably, robots will. If they do, they will actually be literally doing what a financial advisor is supposed to do. Give financial advises or manage your investments to some extent. I don't know in other countries but in my country, financial advisors are just glorified salesman. You ask them for advise like optimal allocation of your investments, but they'll end up really just trying to sell you insurance or whatever sketchy new investment plan their company is offering.
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jason snipe should be very concerned
Betterment has the *worst* customer service.
I wonder how the Redditors will mess with this.
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too many investors not enough savers
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How about "cyborg" advisors that handle the algorithms for you, but let you handle the investments yourself?
It wouldn’t surprise me. I work in a bank and 80% of the clients conduct business through AI help. COVID really spurred people to look for online help over person to person.
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this is what how robots take over the world in the real world
then whats the point in going to school if every well or low paid job is taken by machines
Automation does more damage then good
@@nutmaster7794 the more people out of work that means less tax for the gov and intern the economy would flop
and loose black money and disposable income? never.
Who cares that robo advisors will replace humans at the end consumers benefit more
M1 Finance user for 5 years. Gains gains gains
Both methods have benefits and negatives. However I would choose an experienced human who has 10-20+ years of experience and had deeply studied the history and can take rational long-term decisions.
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Answer yes guys more advanced robotics can plan 1000 year's action acknowledge.
I love A.I. and Robotics but I see wallstreet taking advantage of this someday.
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4:46 - "... today Betterment has grown to be the largest independent robo-advisor in the market" - CNBC proceeds showing an article from 2016 from the official Betterment website
I am missing something?
what do the robo-advisors expect in future growth in robo-advisor money management?
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"Will Robots Replace Human" yes, the answer is always yes
Can't do repair though
@@aaddiis45021 sure they can