Robo Advisors VS Online Financial Planners

Did you know that you can get help in managing your money?

A financial advisor is someone whom you can hire to get your house in order. The term actually encompasses a lot of things, including financial planning, consulting and investments. One thing that’s true for all of them is that they can help you reduce debt and save money.

Under the financial advisor umbrella are robo-advisors and online financial planning programs. Here, we list out what each one does and how they work.

Online Financial Planning

Online financial planning is mainly done on the internet and with the help of a qualified financial advisor. Each session is done by phone or video call, with the advisor helping you with your financial plan or investments.

Further down, you can choose the kind of advice and service you want and if you want to pay per session or a pre-determined number of meetings.

The online model is great for those who don’t have the time to schedule a physical meeting with an advisor. It’s also more cost-efficient than hiring a traditional financial advisor at a brick-and-mortar institution, for example.

Robo-Advisors

A robo advisor is a software or program that’s designed to come up with a financial solution depending on your goals.

The first thing you do is fill up a questionnaire regarding your goals, risk tolerance and investing preferences. The company runs it through an algorithm and out comes a suitable investment portfolio for you.

Like online planning services, robo advisors are low cost and work great when you want to get recommendations on where to put your money. They’re low-risk and typically provide sound advice.

Robo-Advisor or Online Financial Services?

Robo advisors are good for simple financial or investment solutions, while online planners offer advice that’s similar to traditional services. They’re both more cost-friendly and should be worth the money as you’ll be getting personal attention and advice.