19JULY 2024Investors using robo-advisors often feel like they are giving away control of their investments to a machine. Instead, think of it like using a tour guide to set up your own visit to a destinationEvery client's portfolio recommendation is reviewed by our dedicated team of (human) Portfolio Advisors. Once an account is opened, we use technology to constantly monitor every account to ensure our client's investments remain suitable to the information they've provided to us. When they don't, our Portfolio Advisors make trades within the account to bring the investments back to the plan that is appropriate for the client.Secondly, Human Advice. Investing is emotional (as much as we may believe otherwise) and therefore is prone to bias and often rash decision-making. Thus, having an expert advisor can help clients understand and navigate a confusing market environment and ensure that their investments are being managed in a way that will help them achieve their financial goals. Typically, robo-advisors will have a team of human experts available to investors when they need advice. 2022 was a year where investors experienced pretty significant volatility and clearly demonstrated how access to these advisors helped investors remain committed to their investment plan. This is important during similar times of volatility. Think of it like speaking to a professional trainer or dietician when you may be tempted to deviate from your healthier lifestyle.Finally, Control. Investors using robo-advisors often feel like they are giving away control of their investments to a machine. Instead, think of it like using a tour guide to set up your own visit to a destination. A tour guide can recommend certain attractions to check out and provide information on the history and culture of the place you want to visit. Still, you as the tourist retain control over the purpose of the trip and how to spend your time.Similarly, a robo-advisor can recommend specific investment opportunities. Still, the client controls their investment goals and how much to invest. With an investment service like RBC InvestEase, clients get the benefits of both the "robo" and the expertise of a human "advisor." As technology progresses, robo-advisors can use these advancements to deliver a more personalized and efficient service to their clients. At the same time, the expertise of those who manage these platforms and provide advice will continue to play a crucial role in ensuring that clients receive relevant advice.
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