Robo-Advisor vs Financial Advisor: Which is Better?

People now have more choices when it comes to investment management and guidance thanks to the rise of “Robo-advisors.” However, when deciding between a Robo-advisor and a human-independent financial advisor, it is important to understand what each can bring to the table. The right financial knowledge and insights can help you build a well-balanced, well-diversified investment portfolio that will help you grow your retirement funds, and having the correct independent financial representative in Singapore with you can help your financial journey to be fruitful.

Robo-Advisor vs Financial Advisor

Services that use computer algorithms to design and maintain an investor’s portfolio are referred to as “Robo-advisors.” Little human engagement is required by these devices. You decide the parameters, such as the length of time you want to invest and the level of risk you’re willing to take, and then let the computer models do their thing. For people who only want or need investment management and not full financial planning, this could be a good low-cost option.

People who are looking for ongoing or one-time assistance with their financial affairs, from investment to estate planning, can turn to independent financial advisors or financial consultants. Your independent financial representative in Singapore will provide you with unbiased and unrestricted advice and will help design your financial strategy and assist you to make informed decisions. Your independent financial advisor most likely may require that you visit his or her office, or visit you at your office or home to discuss and finalize your financial strategy.

An independent financial advisor’s fees tend to rise in direct proportion to the level of human interaction necessary. Some offer a flat fee, while others take a percentage of your assets which starts from 0.50% per year depending on the size of your investment account.

The fees charged by Robo-advisors range from 0.50% to 0.88% of the amount of money they handle each year.

How to pick a financial advisor

As an example of the contrasts between traditional financial counselors and Robo-advisors, consider the following:

Where financial advisors excel

While robo advisors may be good for buying and selling assets and rebalancing the asset portfolio over time, they are not as good at helping you and your family figure out where your money is going wrong and where it may be improved. Therefore, many experts agree that a human independent financial advisor can truly make a difference.

For example, how to buy a house, a car, start a business, or have a child in the next five to ten years are all major concerns for many people, and a traditional in-person financial advisor can guide you carefully with their insights, expertise, and professional and personal experience.

Here’s a quick comparison of what you can get from each.