Roboadvisors and the Irreplaceable Value of Empathy

It seems like every time I turn on my TV at home, I am slammed with commercials for robo-advising firms. They tout low fees, ease of use, and a "simpler" way to invest than dealing with an in-person financial advisor. Why pay advising fees when you can let a computer do it for you, from the comfort of your home? 

These robo-advisors take the emotion out of investing as much as possible. As their client, you are simply a portfolio and a set of numbers. Therefore, without the stickiness or drama of your emotions, financial calculations can be made swiftly – based on concrete numbers and facts. That has led many advisors to worry about being replaced by a quick-calculating AI.  

But there's one thing the robots can never do: connect to clients with empathy. And empathy happens to be one of the essential qualities that many investors want and need.

Empathy is crucial to financial planning because money is much, much more than crunching numbers and coming up with a one-size-fits-all equation. 

As humans, when we talk or think about money, a lot of strong feelings come up, as money is considered one of the most stressful topics for anyone to discuss. Talking about money is often so complicated that many people can't even get themselves to an advisor. So those who can overcome these emotional barriers and walk into an advisor's office want empathy (in addition to sound financial advice and guidance). 

An empathic advisor:

• Understands clients more holistically, including their emotions
• Makes talking about this topic more manageable
• Understand how to adapt your investments to where you are in your life, emotionally and physically 

Being in this industry for over 30 years, and as a Spokane financial advisor, I have seen time and time again, other colleagues in the industry who place profits over people. For me, that has never been the case. I am a financial planner because I love being able to help people understand how their financial life can lift them and free them to focus on whatever gives them the most joy.

I have dedicated my entire career of helping people navigate financial decisions to help build comfort and peace of mind around their money. For myself and my business, it does not matter how much money a client has or doesn't have. What is more important is showing my clients how to create good habits, emotional comfort, and dare I say it, JOY around their finances. 

Money does not solve money problems, but good advice will. Where others have failed by focusing too much on profits and how big their book of business is, I have survived and thrived by doing things a little different.

The financial industry likes to pretend that we are dealing with rocket science with our acronyms and our fancy words, but it is not. As an empath myself, I often catch myself caring more about how my good advice will affect clients' lives positively than the money aspect of it. One of my proudest achievements is seeing families grow into wealth and then passing it along to their children, grandchildren, community, and more. 

Conclusion

I see the positive ripple effect of what useful advice can do, and it inspires me to keep working and caring genuinely about my clients. I am not alone in being an empathetic financial professional. We are out there; we are interested in helping you, and you are worth it.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.