Free for 90 days: Sign up now and get 90 days managed free after your first deposit. See offer details

Coming soon: our new one-on-one advice packages. Learn more

Now available: our new one-on-one advice packages. Learn more

Get your entire Smart Saver balance managed free for 3 months. Enroll today

Get your entire Smart Saver balance managed free for 6 months. Enroll today

Introducing Smart Saver: You could earn 1.83% with our low-risk investing account for your extra cash.* Learn more

Bloomberg News

How Technology Is Killing Off Lame Financial Advice

By Ben Steverman

People pay financial advisers thousands of dollars a year to pick investments, rebalance portfolios, adjust risk levels and minimize taxes. And these are all things that computers are learning to do more quickly, more reliably, at a quarter of the cost and with flashier graphics.

A funny thing is happening on the way to total automation, though. While new “robo-advisers” pop up regularly, many are relying on flesh-and-blood advisers. They’re finding a human with a sophisticated computer system can be better at winning trust than an algorithm alone. That highlights the big question for investors and their advisers: How much is the human touch worth? At a time when 0.25 percent will build a perfectly adequate investment portfolio, advisers need to justify fees that can top 1.5 percent.

Read the Original Article

This article originally published October 15th, 2014 on Bloomberg News

Search our site