Financial Advisors and Brokers: Will Robots Replace Them?

 Some rights reserved by peyriIt’s very important to research a financial professional of any sort. They will have access to your personal information for one thing, and another is that you will be relying heavily on their advice. You want to be sure that their values align with yours, and you can trust them.

How can you decide who to use for financial advice? This is a personal choice for everyone. Perhaps you want to go to someone you know well, or perhaps you don’t want to know them at all! Just make sure you make an informed decision.

A good general internet search would be a good idea for any professional you plan to use. There you could find some less official, but nevertheless beneficial information on the person.

Then take a look at this link on the SEC website. It provides some valuable information on researching this situation and some good questions to ask.

Often it is recommended you use an independent financial advisor to guide you towards certain decisions. They are not affiliated with any certain company and thus can make an unbiased decision as well as help you with various tasks like budgeting for goals, etc., and create a healthy financial plan.

Sometimes you are limited to going to an advisor that specializes in selling for specific companies. As long as you recognize they are getting a financial benefit, go ahead if you are comfortable with them and you have researched who they sell for. For more information on the differences, check out this link on Forbes.com.

Brokers are also important to research. They may not be independent like the financial advisor might be, however they should be ethical. Some of the biggest financial scandals have included brokers. You can check out your broker by using the Financial Industry Regulatory Authority’s Broker Check tool. Also known as FINRA, the Financial Industry Regulatory Authority’s Broker Check tool will show you the status of the broker’s license and if there is anything on their record that is concerning. It’s a valuable tool to check out your financial broker in advance.

The Florida Office of Financial Regulation also offers a way to check out Florida brokers at their website, https://www.flofr.com/StaticPages/VerifyALicense.htm.

Some red flags to look for include disputes filed against them or regulatory proceedings.

Interestingly enough, robo-advisers are on the rise. What is a robo-adviser? It’s automated investment advice found on many new investment sites. It’s all algorithm-based and is probably going to be seen on more and more investment sites as time goes by because it is very cost-effective, and can cost a fraction of the price of a real person. They are well-suited for many types of investors, and are appealing to those who need quick service and perhaps lack time for appointments with real people. However, they are not good for specialized situations or those requiring detailed investment advice that can’t be determined by a robot. Thus, the jobs of brokers and advisors are safe for a while as their specialized service cannot be replaced in all instances.

Attorney Christopher D. Smith, Sr. is designated a Board Certified Consumer Bankruptcy Lawyer by the American Board of Certification.  SmithLaw is located in Lakewood Ranch, Florida.  Attorney Smith concentrates on bankruptcy, civil litigation, probate, estate planning, and elder exploitation cases in the Sarasota and Bradenton area.  Call 941-202-2222 to learn more.  SmithLaw offers free consultations in certain areas, including consumer bankruptcy, probate, and personal injury matters.

Image: Some rights reserved by peyri

,

Comments are closed.