Robo Advisors

Recently, there has been much discussion about robo-advisors.  A robo-advisor is an online wealth management service that provides automated, algorithm-based portfolio management advice without the use human financial planners.  The events of last week are clear reasons why you want to think about whether you should be working together with a real person.

In the nascent stages of a bull market, I would agree that there is some merit to the robo approach.  It’s analogous to the saying, “a rising tide lifts all ships”.  In the beginning stages, it’s as easy as throwing a dart and whatever stock or fund it lands on, you’re up. 

However, up until last week, we were 6 years into this bull market run with very little volatility and with almost none of the standard corrections along the way.  As we have seen, this too shall pass.  This past week clearly demonstrates that a computer alone is unable to help manage your lifestyle.  At Gartenhaus, that is our entire focus. Are the robo’s sitting on 20% cash like we are?  No.  Did robo’s call to help you better understand what’s going on in the markets?  No.  Are the robo’s algorithms based on data from the past 15 years?  Yes.  Is it likely we will see the next 15 look like the previous 15?  No. 

At Gartenhaus Financial, we care about our clients.  We are there to help them celebrate the victories, and we’re there to help console during times of distress.  We have a unique blend of talent that is very rare for a small independent firm.  When you couple the diversity of talent with a genuineness to do well for our clients, you really have something special at Gartenhaus Financial.