They are old, out of touch, inconvenient and increasingly corporate focused. Financial advisors are increasingly being pushed further and further away from being able to properly respond to client’s needs. With corporately driven campaigns contrasting with the new needs of customers financial concern’s, it is no wonder that more and more people are turning to the internet as a way to patch together their personal financial lives.
Financial illiteracy still remains, despite the recent recession, one of the biggest issues in our culture today that is not being responded to. In Ontario, our government is more concerned with making sure our 8 year-olds know about homosexuality, 12 year old’s about oral sex and STD’s by the end of grade nine but fail to address the issue that many high schooler’s have no idea what the difference between a stock and a bond is by the time they graduate. Financial literacy, it is safe to safe, is not on the forefront of anyone’s minds. This then, is where electronic advice and the new ‘Robo Advisors’ come in.
I still use a real advisor, however it is on my own initiative, and I direct my own plan. As for advice, I do not receive much, and have to rely on what I think might be a good idea for my finances. I still rely on the old mantra, put as much away as possible (but it still fails to be enough). For the rest of the population that wants some direction without a pesky sidekick, this new trend solves a huge void. You can get moderately priced investments with direction at your choice. My question to you is, are you read for this?