Robo-advisers are perceived to be an ideal solution for small accounts that financial firms and advisors wish to keep, but there are certain issues created using the robo-adviser solution, according to Aite Group senior analyst Denise Valentine. For example, these platforms do not include insurance products or specialty products, such as the structure for a college education savings plan known as a 529 plan. The first issue is how much money a customer can afford to put into the robo-adviser. The robo-advisers do not generally provide multiple goal support or financial guidance.
Robo-advisers are perceived to be an ideal solution for small accounts that financial firms and advisors wish to keep, but there are certain issues created using the robo-adviser solution, according to Aite Group senior analyst Denise Valentine. The first issue is how much money a customer can afford to put into the robo-adviser. The robo-advisers do not generally provide multiple goal support or financial guidance.