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Robo Investing

December 3, 2015

“Let’s get to know each other…each other…each other…” Robo investing is a new way to manage money primarily using automation to direct you to the right choices. It replaces the “old fashioned” method involving relationships with real people.

Personally, I am not sure if robo investing will work well or not. It seems the main purpose is to provide access to expert advice to those with less investable assets. I can see some benefits and some problems with this. However, from my experience the stumbling blocks for most people are fear of taking unnecessary risks, doing something that cannot be easily undone, not fully understanding the risks of what they are actually investing in, and simply not knowing how to invest or what to invest in.

I think these fears can be allayed with some knowledge which many refuse to extend themselves to acquire. Professionals therefore fill in the gaps attempting to allay clients’ fears. These professionals can be people like me who charge for the project or time spent, or those that actually manage portfolios tailored to clients’ risk profiles. Either way, a person performs the service. Over time, relationships evolve and the client and professional become a collaborative partnership with the goal of the client becoming more secure in their finances while moving forward toward attaining their goals.

I do not see how robo investing can replace this model – it might and it might someday become the model of choice; but for now I prefer the present “old fashioned” method.

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