The human race is going from analog to digital. There's no denying it. It's been moving this way for decades. Tedious tasks are being delegated to robots.
If someone can figure a way to automate something, without sacrificing quality, it shall be done. Robots are cheaper than humans. Bank tellers are becoming a thing of the past, for instance. And I haven't interacted with a human ticket taker at the movies since the third Fast and Furious film.
Robots can take over simple cash transactions just fine. But what about the important tasks? What about using financial software systems to replace financial advisors? Scary? Or smart?
Financial Planning Software vs. Financial Advisors
If you take a look, our Investments page, you'll find many robo investment reviews. We offer personal financial software recommendations to meet many needs. But hiring a robot for holistic financial planning isn't too common… yet.
A 2015 article from CNBC suggests that the problem with robo advisors is they aren't advisors. They don't advise anyone to do anything. That's a job reserved for flesh and blood.
The CNBC article goes on to state that people react best to emotion, not facts and figures. If someone wants to know how to safely invest for retirement, it's simply a Google search away. But people don't generally think that way. People enjoy the human touch, not the barely warm glow of a computer monitor as it projects reports from complicated financial software systems.
However, there are two sides to every argument. Robots can be prefered to humans. According to a recent Gallup survey, 1 in 5 investors over 50 would actually prefer to get investment advice from robots. When millennials get to be 50, think of how many of them will prefer robots over humans. Probably far more than 1 in 5!
Save Money by Using Financial Management Software
When planning for retirement, you have a few options:Option 1: DIY
Doing it yourself is possible. After all, saving for retirement is really just a matter of making sure you save more than you spend. Invest the different if you'd like. Many savvy people still plan for retirement this way. It's virtually free but for best results, you'll need technology to help you.Option 2: Hire an Advisor
Hiring an advisor gives you access to a trained professional. They know the business of retirement planning inside and out. They will also be there to hold your hand (figuratively or maybe even literally) if you panic and want to do something rash.Option 3: Use Robo Advisors
Using robo advisors is the cheapest and most technically accurate way of planning for retirement. Robo advisors use extremely complicated personal financial software that make no mathematical mistakes. If logic trumps emotion in your life, you would like this process. When considering a robo advisor, there are many questions to consider: What do they cost? What do they offer? Will you have access to a human advisor?
Many companies offer support from real humans. A robot is never in charge. Humans have the upper hand.
Retirement and Robots
Many investors rely on a human touch to help them deal with the emotions of investing. But as for the logical aspects of investing, robo advisors are hard to beat. Perhaps a combination of both is right for you.