Robo Wealth Advisor: The new state of advice

Robo Wealth Advisor - Yet another jargon in the booming WealthTech domain or a potential disruption that can change the way people manage their money? Well, I leave it to you to decide. If you feel it would make a difference in your life to have a Robo Wealth Advisor solve these listed 10 issues for you, then I think you have your answer. 

1. Can I retire early?

Earlier, retirement was a thing to think about when one hit 60. So, when one retires, they start thinking “Let me check my finances and see how I can work around the fact that there won’t be any income anymore”. 

Times have changed. There are 30-year-olds who have launched startups at the age of 20 and are already saturated enough to say, “Let me check my finances to see if I can retire today”!

A logical calculation of one’s cash flow (pre-retirement and post-retirement) by a personal Robo Wealth Advisor can give a clear picture of one’s financial future enabling an individual to decide on the above golden question faster.

2. Can I afford the vacation to the Maldives?

Dreams should be uninhibited. What are we slogging for anyway?

Keeping a reality check to balance out one’s assets vs his or her dreams is the need of the hour. How nice would it be if they could ask a Robo Wealth Advisor the above question and it could tell them if the person can or cannot take their dream vacation?

A quick analysis of one’s assets and goals and an intelligent mapping between the two is all that a Robo Wealth Advisor needs to permit an individual to fulfill his or her heart’s desire.

3. How much does it cost to get an MS degree in the US?

Selecting a university abroad is a pain. There are too many parameters to be balanced. The most critical among them is the cost of availing of that kind of education. 

There are education counsellors who can do this for people, at a cost. Determining the future value of one’s educational goal is a complex calculation. A Robo Wealth Advisor has enough data to give its client at least an approximate picture of how much it would cost to get any degree anywhere in the world.

4. Am I earning enough to send my daughter abroad for further studies?

Education doesn’t come cheap. Besides, this is not like a vacation that one can maybe postpone for a while. When it has to be done, it has to be done! As simple as that. 

To save away from the anxiety of achieving this mandatory goal, Robo Wealth Advisor can chalk out a neat plan. An ideal asset allocation and recommended investment plan can ensure this mandatory goal is achieved well before the due date arrives. 

5. Spending too much?

Picture this – An individual is on a shopping spree and his phone starts vibrating furiously with a message “Enough! If you spend a rupee more, your daughter’s education goal will be in danger”. Definitely, that person will drop all their shopping bags and head towards the exit!

Robo Wealth Advisor is a knight in shining armour who can save a person from these grave mistakes. Real-time mapping of all assets, liabilities, income, and expenses makes it capable to alert the concerned individual as soon as they cross the line. 

6. Do I really need to buy insurance? If yes, how much?

After the pandemic, the world realized the fear of uncertainty. The fear of what would happen to my loved ones if something suddenly happens to me. From thereon, insurance has become a must-have from a nice-to-have.Insurance agents will sell an insurance plan in the name of this fear. Here’s the thing - The higher the insurance premium, the higher their commission.  

A Robo Wealth Advisor will give the customer an unbiased picture of how much insurance one needs. This is based on a mathematical calculation called HLV (Human Life Value) which is based on an individual’s number of dependents. Powered with that figure one can just go ahead and buy the insurance policy and save a lot of money on the premium.

7. Is there a way to save taxes?

Taxes are a mandatory part of everyone’s lives. One makes money, and pays taxes - as simple as that. However, the government has also made provisions for the common man to invest in certain schemes so that he can save taxes. Awareness about such schemes is something a Robo Wealth Advisor can provide its customers with. Detailed calculations can help one get a better understanding of how they can save taxes intelligently and ethically. 

8. Are investments giving good returns?

Calculating investment returns is a complex process. More than that, deciding on further investments based on that information is much more difficult. 

A Robo Wealth Advisor can help make those complex decisions in the right way. It can present the person with a Portfolio Analysis Report (PAR) which can explain his or her investment map in a simple way. Not only that, based on the same, it can recommend future investment plan to ensure consistent returns at all times.

9. Should I invest in stocks?

Here’s an interesting bit of information - According to data provided by CDSL and NSDL, over 20 lakh new Demat accounts have been added every month since 2020. The pandemic caused mayhem at a personal level, that’s for sure. But it also brought in a new normal in many ways – one of the prime ones being how people invested. Working from home gave people the time to explore new investment avenues and the most popular among them was stocked. 

However, stocks are an investment instrument that is considered to be in the risky zone. Risky here does not mean that one shouldn’t do it. All it means is one should have an aggressive investment appetite - High risk, high returns. Not only that, an existing portfolio should have the cushion to balance the bull and bear phases of the market. A Robo Wealth Advisory will tell one exactly what to do based on his or her risk appetite and current portfolio.

10. If something happens to me, will my loved ones be able to see all my investments in one place?

Here’s another piece of shocking news - According to the Securities and Exchange Board of India, the amount lying unclaimed with mutual funds was Rs 1,590.67 crore. Most people have a mix of investments. If something were to happen to a person, who would have a track of all his or her investments in one place so family members can access it at the click of a button? A Robo Wealth Advisor will help with a holistic portfolio view of all investments.

Conclusion 

The world is changing, and so should we. The digitization of practically everything - from daily grocery shopping to managing wealth - has brought the world to our fingertips. A Robo Wealth Advisor is not jargon anymore. It is reality and it’s high time one uses it to manage their hard-earned money. 

The article has been written by Anu Khanchandani, Co-Founder & Principal Mentor (IT), Fintoo