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Systematically allocating your assets will only go so far. People don't seek out financial advisers for asset allocation, they seek them out for the sage advice

Systematically allocating your assets will only go so far. People don't seek out financial advisers for asset allocation, they seek them out for the sage advice that they'll offer for big financial decisions they have in life: should I go to grad school? Should I move in with my SO? Should I buy this house when I have $X in savings? A parent died, what do I do with their estate? etc. An algorithm isn't going to give you that kind of human touch (at least not yet). Traditional financial advisers aren't going anywhere.

tedmiston 11y ago
> People don't seek out financial advisers for asset allocation, they seek them out for the sage advice that they'll offer for big financial decisions they have in life I've been wondering lately: When is the right time or what are the right circumstances to choose to seek out a human advisor especially with regard to tax efficiency, offshore banking, etc.? I spoke to one advisor (a friend) who manages HNWIs; he suggested a net worth of $100k-250k is when it starts to make sense. I'm still curious to find a general answer.
- poikniok 11y ago
  Offshore banking with 100k?!? You are off by several orders of magnitude there.
  - tedmiston 11y ago
    Sorry, just trying to clarify _some_ of the services they advise about, and when reaching out for that advise starts to make sense -- not suggesting that they're right for every client.
toomuchtodo 11y ago
I don't think financial coaches are going to go away, because of how poor financial education is in the US in traditional learning environments, but I do believe a lot of money managers are going to be eaten up by roboadvisors.
- aianus 11y ago
  > because of how poor financial education is in the US in traditional learning environments Financial literacy is a pretty basic combination of Grade 5 math and common sense. If you can't grasp it yourself with a tiny bit of effort, no structured learning environment is going to help you.
briHass 11y ago
In those cases, one would be best served to speak with a fee-based financial advisor (http://www.napfa.org/ http://www.napfa.org/) These advisors make money in a way that is far more transparent and typical of professional relationships: they charge you a price for their service, and you don't continue to pay them when they aren't adding value. I would even argue that many of the cases you listed are better suited for a lawyer. Another example of a typical relationship where I pay them $X for their service instead of X% of my assets in perpetuity.

tedmiston 11y ago

> People don't seek out financial advisers for asset allocation, they seek them out for the sage advice that they'll offer for big financial decisions they have in life I've been wondering lately: When is the right time or what are the right circumstances to choose to seek out a human advisor especially with regard to tax efficiency, offshore banking, etc.? I spoke to one advisor (a friend) who manages HNWIs; he suggested a net worth of $100k-250k is when it starts to make sense. I'm still curious to find a general answer.

poikniok 11y ago
Offshore banking with 100k?!? You are off by several orders of magnitude there.
- tedmiston 11y ago
  Sorry, just trying to clarify _some_ of the services they advise about, and when reaching out for that advise starts to make sense -- not suggesting that they're right for every client.

toomuchtodo 11y ago

I don't think financial coaches are going to go away, because of how poor financial education is in the US in traditional learning environments, but I do believe a lot of money managers are going to be eaten up by roboadvisors.

aianus 11y ago
> because of how poor financial education is in the US in traditional learning environments Financial literacy is a pretty basic combination of Grade 5 math and common sense. If you can't grasp it yourself with a tiny bit of effort, no structured learning environment is going to help you.

briHass 11y ago

In those cases, one would be best served to speak with a fee-based financial advisor (http://www.napfa.org/ http://www.napfa.org/) These advisors make money in a way that is far more transparent and typical of professional relationships: they charge you a price for their service, and you don't continue to pay them when they aren't adding value. I would even argue that many of the cases you listed are better suited for a lawyer. Another example of a typical relationship where I pay them $X for their service instead of X% of my assets in perpetuity.