There is a general perception that robo-advisors should be used for less affluent clients and younger clients.
But according to Advisor Authority, a study commissioned by Jefferson National and conducted online by Harris Poll among more than 500 RIAs and fee-based advisors nationwide, the reality is very different. Robo-advice is a tool for top advisors—and an effective solution for both HNW clients and older clients. And in spite of all the robo-buzz, only 25% of advisors are extremely or very familiar with robo-advisors—and just 19% of advisors currently use any type of robo-advice in their practice.
A Tool for Top Advisors:
Top advisors are more likely to be more familiar with robo-advisors, more likely to be early adopters—and more likely to use roboadvice in their practice. 43% of High Earning Advisors (more than $500K per year) and 47% of Advisors with High AUM ($250 million or more) say that they are extremely or very familiar with the model, compared to 25% of advisors overall.
ADVISOR AUTHORITY: The Innovation and Issues that RIAs and Fee-Based Advisors Care About Most
The industry evolves as innovation disrupts the status-quo, driving a move to greater simplicity, transparency and choice, fostering new business models, and ultimately creating greater value. RIAs and fee-based advisors are driving this change—and creating the future of our industry. To download a copy of Advisor Authority, financial professionals can visit us here.
Methodology The Advisory Authority Survey was conducted online within the United States by Harris Poll on behalf of Jefferson National from April 13 – April 24, 2015 using a sample from the Harris Poll Panel of Financial Advisors. Among the 535 Financial Advisors, there were 343 Independent Registered Investment Advisors and 192 Broker/Dealers. For a complete survey method, please contact our advisor support desk at 1-866-WHY-FLAT (1-866-949-3528).
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