In an era where AI and robo-advisors are on the rise, it’s tempting to let machines take the reins. However, when faced with complicated scenarios or unprecedented economic shifts, the guidance of a financial advisor becomes invaluable. There are many benefits to collaborating with a financial advisor rather than relying solely on a robo-advisor.  Here are a few to consider.

Expertise

Robo-advisors are helpful when you’re just starting your financial journey and have smaller balances to manage. Since there are often fewer fees with a robo-advisor, it’s a good fit for beginners. However, if you’ve been letting your robo-advisor run the show for a few years while your finances have grown and become more complex, it might be time to upgrade to a human financial advisor.

It could benefit you to seek experienced advisors who have years of expertise in a wide variety of financial situations, and who stay up to date on the latest financial news and trends, which helps you receive the most current and relevant advice. No matter what’s happening in the markets or in your accounts, a qualified financial advisor is equipped to develop the plan you need to pursue your financial goals with confidence.

Personalized Advice

The help of a robo-advisor is limited to its algorithm or the lines of code it uses to make decisions; and it only makes decisions with the basic information you provide. Data such as your risk tolerance, investment amount, and time horizon are used to calculate the best investments for you. Again, great for beginners.

When life gets more complex, it could help to receive financial advice that’s customized to your specific situation from a financial advisor who takes a holistic approach to managing your money by reviewing your situation in greater detail. They get to know you, not just the numbers. They help you identify areas of improvement and find ways to solve your biggest financial issues.

For example, AI can be effective in attempting to rebalance portfolios by utilizing various valuation and momentum metrics. However, it lacks the ability to determine the unique rebalancing needs of each client’s portfolio, such as the differences between a young professional couple’s strategy and that of a retiree. This limitation highlights the benefit a client could have with the human touch of a financial advisor.

A financial advisor is there to help you lay out a plan toward your financial goals too. A human advisor might help you strategize how you can retire early, how to expand your small business, or how to pay for your child’s college tuition.

Emotional Support

Finances are usually seen as a more logical topic, but emotions are deeply connected to your financial situation in ways you might not have considered. During times of economic uncertainty, you might feel scared, stressed, or concerned. When things are going extremely well, you might feel overjoyed, carefree, or impulsive. These emotions could affect your ability to make wise financial and investment decisions.

A trustworthy human financial advisor’s goal is to guide you through those decisions with greater clarity. Instead of letting your emotions run the show, an advisor could assist with looking at your situation objectively to help you make an informed decision even in challenging moments.

Accountability

If you’ve had trouble sticking to your financial plan before, a financial advisor could provide the accountability you need. Financial advisors and planners can help you create a budget, track your expenses, and monitor your progress toward your financial goals.

They’ll also help you keep those end goals in mind when you consider the other financial decisions you want to make. If your goal is to buy a home, your financial advisor might remind you of that when you want to purchase a new Rolex.

Partner With a Trusted Human Advisor

Straightforward financial scenarios may be suitable for a robo-advisor, but when you require more than automated investment choices, it is advisable to consult a financial advisor. These professionals create customized strategies tailored to your specific objectives and financial circumstances.

If you’re ready to explore what a financial advisor who considers more than just the figures has to offer, Blair Capital Management is at your service. Please reach out to me by calling (914) 413-9904, emailing johnblair@blaircapitalmgt.com, or scheduling an appointment here.

About John

John Blair is President and Founder at Blair Capital Management, LLC, a Registered Investment Advisor (RIA) that endeavors to offer personalized service and customized investment solutions to individuals, trusts, and high-net-worth investors. After over 40 years of experience in the financial markets, John has had a front-row seat for every bull and bear market and wants to offer his experience, knowledge, and skills to individuals rather than institutions. With an unwavering dedication to acting as a fiduciary and a desire to build long-term, successful relationships, John helps his clients pursue their financial objectives. He cares deeply about safeguarding and growing their wealth, so they can focus on their lives—not their money. He strongly believes in a disciplined approach to investing with paramount importance placed on preservation of capital and measuring risk and reward through all circumstances.

John holds a bachelor’s degree in economics and master’s degree in business administration from the University of Southern California, and also completed graduate work in economics and philosophy. John and his wife of 45 years have four grown children and 13 grandchildren. In his spare time, he loves to read biographies and books about history and finance, and is a huge horse racing and football fan. John cheers for everything University of Southern California, and has been very involved in alumni affairs and mentoring students.

Blair Capital Management LLC (Blair Capital) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Blair Capital and its representatives are properly licensed or exempt from licensure.

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.

 All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. All investments include a risk of loss that clients should be prepared to bear. The principal risks of Blair Capital strategies are disclosed in the publicly available Form ADV Part 2A.

The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.

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