Why digital advice might be right for you
I first became aware of the potential of digital advice, better known as robo advice, about 5 years ago when attending an investment conference on ETFs in Amsterdam about 5 years ago.
Jon Stein, the founder of US robo advice company, Betterment, was a main platform speaker. He formed Betterment in 2008 and by 2014 the company already had $5 billion under management. I was astounded. Jon was a fresh-faced young man in his early thirties when he spoke at the conference. Now just 5 short years later Betterment has $18 billion under management. Staggering. Betterment has become the largest robo adviser in the world.
So what exactly is digital or robo advice? Well for a start the description of robo advice is misleading because it implies that the advice is given by a computer whereas in fact the advice is merely digital i.e. given by a computer. Robo advice companies have evolved. Now they tend to be supported by human advisory support where requested by the client.
So why use a robo advice platform rather than appoint a traditional financial adviser offering face to face advice? Well the main reason appears to be speed and the second reason appears to be lower cost.
Who is driving the demand for digital advice? Why Millennials of course. Young people want low cost and speed. They also want digital solutions. They are of course the product of the digital revolution who spend inordinate amounts of time in front of their devices. The age of robo advice is upon us.
You can complete your application within 10 minutes and have an investment or pension set up and running for you. Simple.
So which robo advice platforms are the best ones? Fortunately, there is a robo advice comparison site called asktraders. Currently the number one ranked robo adviser in the UK is Nutmeg. Check out askadvisers’ website at https://www.asktraders.com/broker/robo-advisor/ for further details.
If robo advice isn’t for you and you prefer human interaction why not contact my team at Wealth And Tax Management https://wealthandtax.co.uk/ for further advice? You know it makes sense.