Why IFAs still beat robo advisors
While a computerised system can often successfully select an appropriate fund when it is provided with some contextualising information such as ethical preferences or risk profiles, it cannot deliver the comprehensive programme of financial planning advice that many people find invaluable.
When independent financial advisors talk to their clients about what they want their future financial landscape to look like, the most important factors often are not things that can be easily inputted into a machine. When advisors receive client feedback, they are often thanked for helping individuals to lay the foundations for the future they want to achieve and this can typically only be achieved through sound investment choices and tax planning, rather than FTSE tracking methods that robo advisors often rely on.
The most successful financial advisors have saved their clients millions of pounds by shaping strategic financial plans which take the unique situation of each individual into close consideration. Meeting client objectives whilst also meticulously monitoring a variety of circumstances is something that even the most sophisticated robo advisors cannot achieve.
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Delivering advice with empathy
Computerised systems cannot deliver advice with the same empathy and understanding that a human advisor can provide. Although the computerised analysis delivered by robo advisors will undoubtedly be informative, the nature of the delivery means that it can be more difficult to identify possible internal biases that could influence the advice being given.
Building a relationship based on trust
If you are looking for an independent financial advisor Swindon is home to highly respected and experienced professionals, which includes the team that can be contacted here https://chilvester.co.uk/. This Financial Times article shares several pieces of advice to consider when selecting an advisor and the notion of trust features heavily throughout.
The ability to build trust with a financial advisor is important and is something that can only be achieved through in-person interaction and meaningful conversation. Not only does this process help advisors understand the ambitions, hopes and fears of each individual client, it allows clients to believe that their advisors have their best interests in mind when they are making their recommendations.
Technology undoubtedly helps independent financial advisors to deliver first-class services, however, these systems cannot comprehensively answer every question posed by potentially worried or uncertain clients in a manner that will assuage their concerns and heighten their confidence in their financial decisions.
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The author is an expert on occupational training and a prolific writer who writes extensively on Business, technology, and education. He can be contacted for professional advice in matters related with occupation and training on his blog Communal Business and Your Business Magazine.