Mark This Month
Robo- advice: The end isn’t nigh
Robo- advice: You might know all about it; You might have only heard mention of it; Or this is the first time you’ve heard the expression and you’re thinking this is how I’ll be dressed for our next meeting: 
Hopefully not

Robo-advice is essentially automated financial advice. You put in your particulars: Age, gender, family information, income etcetera and the computer will tell you the best product/s for you and yours.

It’s touted as a simple system that makes accessing advice, quick, easy and inexpensive for people who don’t need or want advice from a planner
Some advisers are up in arms about Robo-advice, concerned it’s another indicator that we’re on the way out. Like dinosaurs facing the Ice Age, between reforms to the sector and now robots stepping in, our days are numbered.  
Don’t get me wrong, we’re in a time where advisers need to innovate and be responsive. The ‘way we’ve always done things’ isn’t necessarily going to see us through in the new environment.
However, without sounding smug or overconfident, I know that my capacity to provide to provide tailored advice, with consideration for all parts of a person/ family’s situation exceeds that of an algorithm.
Robo- advice will ask questions, just like I do but what it can’t do is read body language. The subtle signs that someone isn’t comfortable with a product or is confused about the plan I put in front of them.   
Is this a trick question?
In my experience, Robo-advice is more often than not, an educational tool for clients, a starting point for people to get advice from an adviser, face to face.
I liken what is happening now to the entrance of direct insurance to the market about five years ago. (You would remember it, when Life Insurance companies started advertising on TV.)
Advisers then were very concerned that it was the beginning of the end however, what the adviser community knows now is that what seemed like a looming threat actually created opportunities for us.
Clients started getting their premiums deducted and they wanted to know what they’d signed up for. So, where did they end up? Across the desk from an adviser.

At Rando and Associates, we certainly aren’t ruling out using Robo- advice into the future. If it’s something we can use in partnership with our existing service offering and it’s effective for us and our clients then we’ll absolutely be considering it.   
That said I remain unconvinced about the virtue of stand-alone Robo- advice. I think a product whose big selling point is that it is cheap, could potentially cost you a lot in the long term. Or you’ll probably find yourself seeking out an adviser anyway.
So, in the spirit of the value we place on face-to-face contact at Rando and Associates, we’re running a competition this month on our Facebook page with a chance to win one hour with me.
Valued at $440.00, this is an opportunity to discuss anything relating to your financial situation- insurance, super, investing, anything at all.
I’m Facebook Famous

This competition is open to all existing clients of Rando and Associates who are not already under a Service Agreement (SA) with us.

The simple fact that you are receiving this email means you are already on an SA
however, this is an opportunity to win an hour for a family member, maybe one of your kids or a friend, who you think could do with a nudge in the right direction.   
It’s simple: Like the post and tell us what you like best about Rando and Associates. Our newest team member, Naomi (who we’ve decided will be least susceptible to emotional blackmail and bribes from you lot…) will pick and announce the winning answer via video on Friday the 27th of May at 3pm.
(And for those of you who haven’t yet figured out social media yet, yes you can reply to this email and tell us how wonderful we are…)
Until next month
Copyright 2016 Rando and Associates.
All rights reserved.
Mark Rando
Authorised Representative
Rancol Pty Ltd as trustee for the Rando Family Trust t/as Rando & Associates
Corporate Authorised Representative of Millennium3 Financial Services Pty Ltd ABN 61 094 529 987. Australian Financial Services Licensee – Licence Number 244252.
This publication contains general (including taxation) information only. It is not intended to constitute financial product advice. Any information provided or conclusions made, whether express or implied, do not take into account your objectives, financial situation and particular needs. It should be relied upon as a substitute for professional advice. You should seek professional advice and obtain and consider a Product Disclosure Statement (PDS) before making any decision to acquire a product.
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