I’m genuinely excited about what’s coming in 2018 and so have decided to join the game of new year’s predictions. Here goes … my prediction is …
Disruption has arrived to the financial services industry. To thrive in this new world, financial advisers will need better financial planning software
Investfit and FinPal aim to streamline the advice process by delivering real-time advice modelling to an adviser’s financial planning software system.
Investfit has developed a tool that helps advisers present information in a way their clients are able to understand how much retirement income they give up in exchange for more stable short-term investment returns. The question for the client becomes “you could have $64,000 per year in retirement with 90% certainty* (top right of the chart), but you will likely experience some large negative investment returns on the way (eg a loss of 35% in one year), or you can have only $44,000 per year in retirement with the same 90% certainty* (bottom left of the chart) but experience a smoother ride, which would you prefer?”
It may be the experience I’ve gained over 20 years working in both the technology and financial services industries, or it could just be because I’m an avid Avengers fan, but I’m going to go out on a limb and make a bold prediction; the Robo-Adviser will be no match for the Enhanced Adviser.