By now you’ve most likely have
read or heard about “ROBO ADVISORS” being used to develop business succession
financial plans. Do I and my colleagues
in the financial services industry see that as competition? You bet we do. Let me offer a few important points in this ongoing debate.
Machines crafting
financial plans can be helpful. We’ve
all seen technological advances to better our lives. I Phones, smart phones, wi-fi, tablets you
name it have all helped us to accomplish more in our personal and business lives. In my business I welcome and embrace
technological advancements. Just
recently I’ve added LinkedIn, Twitter and Facebook to my website. Machines, computers and technology will
continue to grow exponentially. It is
part of my business model to grow in this area.
So using machines is a good thing.
However, in your business
succession and in your personal financial planning do not forget or even
marginalize the human element. No matter
how good machines get, a caring human individual with great people skills and
incredible technical skills is a far more favorable financial advisor to have. Machines are programmed for technical skills but
I sincerely doubt if they care if you get the correct type of insurance, make
the right tax reduction, help you complete important financial documents such as a durable power of attorney, health care proxy or make the most appropriate reaction to volatility in
stock markets. To me there is a big difference
between being programmed to emulate compassion than actually being
compassionate.
Machines to churn-out facts
are a great tool and should be utilized.
My partners and I definitely use them.
Nevertheless, the machines or robo-advisors do not offer the human
element. They can’t sit down with you
over lunch or coffee and discuss how your family fits into your plans within
your business. They won’t attend your
family events. They won’t converse with you about alternatives and the advantages
and disadvantages within a financial instrument. They won’t hold seminars, call
you to update your accounts or just simply be by your side.
So embrace technological gains
but also keep the human element alive in your business succession and personal
financial plans. Consider using both in one package.