Advisor Threat? Wave of New Online Services Incoming

Get ready for a new wave of low-cost, online-only financial advice companies.

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Comments (4)
A service that can show investors the fees and commissions they are being charged for various products in a clear way is a great idea. That should help advisors that are using low fee products and adding value to their customers.

As far as online money management services: if an investor wants an algo to manage their money then go for it. We all learned in school that the output of a software system in only as good as the input. Many people hire advisors because they want professional advice or don't have the time to do the work themselves, much like they hire CPA's to do their taxes even though plenty of cheap online solutions exist. I don't know that low fees can replace the personalized financial advice and investment knowledge that a good advisor can provide, particularily in these times of rapid change and high uncertainty.
Posted by james m | Thursday, August 29 2013 at 1:25PM ET
I think the new online services will be a big threat for advisors that want to work with the self-service generations that have grown up using the internet

-- Mike Byrnes, President of Byrnes Consulting, LLC, www.byrnesconsulting.com
Posted by Mike B | Wednesday, September 04 2013 at 12:40PM ET
Today's Gen X and Y consumers want easy do-it-yourself online services, but when it comes to their money, they know that they need help from professionals as long as they can vet and trust them online. The future of the financial advice profession for both the advisors and consumers will be in the ability to mix technology with personalization. It's amazing that LPL and Bloomberg could not figure this out. This will happen. It needs to happen. 150 million consumers are in need of it, but can't get it. It's not that hard given what has been done to-date and where consumers and advisors are with their use of technology.

--Ron Peremel, CEO Myfinancialadvice.com/OnlineAdvisorCentral.com
Posted by Ron P | Tuesday, September 10 2013 at 2:54PM ET
Given the fact that many people in their 20s grew up with technology and are entirely comfortable communicating online, I expect some of these new online services will flourish. In particular, I think LearnVest appears to have a great mix of educational content that is paired with the ability to speak to an advisor, all at a reasonable cost.
Posted by neil r | Thursday, September 12 2013 at 9:45AM ET
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