As most business owners do, they lean towards hiring a financial adviser in order to keep their finances in place and strength their capital. Sometimes the expense might be a bit much for someone running a business, hence the additional option called ‘Robo Advisors’ was then created.

Robo Advisors are computer systems that can review analytics and make financial recommendations based on current trends and personal wealth. This is current trend that seems as if the newer generation will become more active for using such tools.

But is having a Robo Advisor the best approach to your finances?

Financial Advisers can add discipline and help their clients from making irrational decisions. Having a professionally suited person to talk and rely on can provide a peace-of-mind and ultimately result in better long term results.  For example; Advisers can manage at the household level, allowing for the temporary and permanent tax savings afforded by location optimization. This strategy can be made more valuable through the inclusion of outside accounts. Location optimization and integration of outside accounts cannot be obtained through a robo-advise. A financial adviser can coordinate investments with time-line, risk tolerance, tax situation, cash flow needs, estate goals and contingency planning.

It’s also a new industry that’s still primitive and yet to still prove there full benefits. ‘It is hard to trust an algorithm, even if it is an algorithm with a fantastic website and a customer service number.’ – Tim Maurer contributor and director of personal finance for Buckingham and the BAM Alliance CNBC stated. Most wealthier investors trend towards having a financial adviser. On a survey created by Spectrum, around 85% percent said they where satisfied with their traditional adviser, the market is clearly still out there for traditional origins.

What about retirement planning? As most people seek financial investment advisers towards their retirement planning. Let’s think about how a Robo Advisor  would determine beneficiaries for retirement plans that sync with the estate. Or even wisely choosing a lump sum versus an annuity from a corporate pension. How about determining the optimal way to use Social Security during retirement? Or estimating current expenses and projecting those into the coming years? Examining the tax impact of prospective relocation? Initializing a portion of retirement income now or in the future? Developing an allocation designed to withstand both market forces and required minimum distributions? Let’s not forget estimating expenses and projecting the near future holdings. It’s topics like these are clearly not intended to be navigated by an electronic programs.

At the end of the day the main reason why people deviate towards Robo Advisor is the cost effect and ‘rapid’ responses but there’s no price to quality. Having a human personal touch to your investments with people of experience and gut feeling can’t come through a virtual program.  At the end of day it’s your choice and it’s highly encouraged to do some research before moving forward with a Robo Advisor.