One of the biggest questions advisors ask themselves today is, “What value we can add to the process of financial planning, investment planning, etc. as robo-advisors begin to gain popularity? And, how do we grow our practice efficiently while maintaining client oversight, fostering existing relationships and working to obtain new relationships?”

My answer is to implement a hybrid approach. In my practice, I’ve found that robo-capabilities plus the care and concern of a human advisor is a winning combination.

Some of the best new technologies today allow advisors to communicate more effectively with clients in areas of asset allocation, risk assessment of their existing holdings, “what if” hypothetical market scenarios, as well as tax analysis. This non-replicable type of technology allows clients to better appreciate the context of their particular portfolio, as opposed to generic articles they may read online that are not really applicable to their particular circumstances. In addition, new technology relative to improving account opening, reallocations, alerts and data entry, to name a few, are critical to improving back office capacity for advisory practices. This naturally leads to advisors having more time to better serve their clients. 

If you are looking to affiliate with a broker-dealer, pay special attention to the relationships that different broker-dealers have with technology vendors. Affiliating with a broker-dealer that is committed to investing in those types of tools can help you navigate the best ways to incorporate technology into your practice. Fighting against technology is indeed a losing battle.

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