With M. Owen Donley, Chief Counsel – Office of Investor Education and Advocacy at the U.S. Securities and Exchange Commission
The Internet is shaking things up all over the place, including the world of Finance. Now, online wealth management services offer a lower-cost, automated approach to personal investing that’s challenging and transforming the existing financial advisory paradigm. These new, so-called robo-advisors differ from traditional brick-and-mortar financial advisory firms staffed by humans.
A robo-advisor is an online service provider that provides automated investment management with limited human contact. By contrast, a human that does the same thing and more, a Financial Advisor definition is typically located on Main Street in your city and provides personal advice and services with an emphasis on human contact. So which one’s really better for you? A bot that dispassionately dissects the market and tells you what to do with your money or a human advisor and all the advantages he brings? Tune in to understand the pros and cons, straight from the SEC.