IF 1999 WAS THE YEAR of the unicorn on Wall Street, 2016 is the year of the cockroach. Financial institutions are more hated than ever, with an increasing number of Americans questioning motives. Case and point: the financial advisor.
“One of the great misconceptions is that financial advisors have your best interests at heart,” explains Adam Nash, CEO and president of the automated investing service Wealthfront. “But they make money from fees, commissions and kickbacks… so, it’s nearly impossible for them to stay neutral.”
John Oliver nailed it when he explained their innate douchiness (er, bias) on Last Week Tonight. Advisors aren’t accredited; they have no legal requirement to work in your favor. Their evils go on and on. But Disruption likes to focus on solutions, and in this case, that means automated investing — computer programs that algorithmically invest on your behalf.
But can a computer comprehend risk? And would you trust one with your savings? In this article, we explore whether technology can replace the need for human advisors on Wall Street.