A robo-advisor is an online financial advice and portfolio management provider with little or no human interaction. The best example of robo-advice that I can think of is asking Google Home or Amazon Echo which mutual funds to own on your company 401(k) retirement plan menu.
Maybe that is an extreme example. The robo-advisors actually provide risk tolerance questionnaires before they provide investment advice.
Robo-advice tools have increased the acceptance of technology and automation in the company 401(k) retirement plan account investment management process. Going forward, portfolio management and investment decision-making will be digital commodities. Individual company 401(k) retirement plan participants need help understanding the role that independent, third-party, fiduciary investment advisors play in the robo-advisor offering. Your company 401(k) retirement plan account is a good place to start your journey into robo investment advice.
My individual company 401(k) retirement plan investment advice clients take full advantage of the robo-advice toolbox. Individual company 401(k) retirement plan mutual funds are screened for annual fees and expenses.
Next, the entire default menu of company 401(k) retirement plan mutual funds is ranked on short-term and long-term investment performance. This analysis provides a much clearer view of “what to own.” More importantly, it also screens out “what not to own.”
When the stock markets are rising and interest rates are falling, you have to make the best company 401(k) retirement plan investment decisions possible. Robo-advisor technology and graphics improves investment management decisions.
I add the experience and perspective of a human investment advisor touch to my company 401(k) retirement plan robo-advice clients. Personal investment advice is still the overwhelming preferred choice for my individual company 401(k) retirement plan advice clients. Online robo-advice tools make sharing the personal investment advice easy.
Ric Lager
Lager & Company, Inc.
