Apr 29, 2015 — More advisers will partner or find a way to leverage robo technology in their plan business, and the technology can be an efficient way to scale advice. —
Mitch Caplan, chief executive of Jefferson National, describes robo adviser technology as a GPS system that allows investors—especially those who are starting to save for retirement—to be self-directed, but still receive some guidance. High-net-worth individuals, who will demand much more human support, are less likely candidates to receive robo services, he says.
Todd Clarke, chief executive of CLS Investments, recalls that when his firm began offering money management advice to plan participants in 2001, he found participants crying out for actual advice. “This holds very true today,” Clarke tells PLANADVISER. After receiving education on the available investments, technical information on equities, bonds and asset allocation, participants in an enrollment meeting would leap at the offer of a managed account from Clarke’s firm. They wanted advice, not general information.