W E A L T H M A N A G E M E N T
Robo-AdvisoRs:
Not foR EvERybody
Automated, online investment management services offer a low-fee
alternative to those with limited assets and basic investing needs. But
for investors with more than $100,000 to invest, the holistic, hands-on
approach of a traditional Financial Advisor may make more sense.
For example: Are there certain types of investments you wish
to emphasize or avoid? Is tax minimization being taken into
account? What about your children’s upcoming education
expenses or your aging parent’s financial needs? None of these
questions are likely to be addressed by a robo-advisor.
Automated advisory services are also confined to investment
management. They do not address estate planning, most tax
issues, insurance, home finance, debt management or other
aspects of a comprehensive financial plan.
In short, robo-advisors cannot provide the holistic approach
that a live Financial Advisor offers. This perspective is
particularly important if you have a large portfolio or have
sophisticated investment needs. Investors with more than
$100,000, or with multiple investing goals, may want to
work with a live Financial Advisor, who can help design a
comprehensive plan.
A full-service financial services firm advisor may be a
better choice if:
• You are investing more than $100,000, or more than 25% of
your investible assets
• You prefer active portfolio management
• You seek professional direction when markets are turbulent
• You have multiple financial goals
• You have financial needs beyond investing
• You have a complex financial situation that requires
personal attention
• You seek a holistic approach to planning and managing
your finances
Like most things in life, managing your money is not simple,
especially as you mature and your assets grow. Beware of
seemingly easy solutions to complex issues, and turn to a real
professional for guidance.
9
Ami Forte is Managing Director-Wealth Management/Wealth
Advisor of The Forte Group at Morgan Stanley located at 4114
Woodlands Parkway, Suite 200, Palm Harbor, FL 34685 and may be
reached at 727-773-4610 or ami.forte@morganstanley.com. Ami has
been featured in publications such as Business Week and The Dow
Jones Newswire.
There is a new breed of financial advisor getting a lot of
attention: so-called robo-advisors. But think again, if you
have visions of the Star Wars character C3PO in a suit. Roboadvisors
are simply companies that offer automated, online
investment management services, such as asset allocation, fund
selection, rebalancing and tax-loss harvesting. Using computer
algorithms based on answers to online questionnaires, roboadvisors
are able to automate these services while charging lower
fees.
Before you abandon your flesh-and-blood financial advisor,
however, you should first consider what a robo-advisor does
– and does not – provide. Online Financial Advisors base their
investment recommendations on answers to questionnaires,
bucketing clients into preset portfolios, based on those
answers. These surveys are generally short and do not take into
consideration multiple goals or unique or complex situations.
If you’d like to learn more, please contact Ami Forte.
Article by Wealth Management Systems Inc. and provided courtesy of Morgan Stanley Financial Advisor.
The author(s) are not employees of Morgan Stanley Smith Barney LLC (“Morgan Stanley”). The opinions expressed by the authors are solely their own and do not necessarily reflect those of Morgan Stanley. The information and data in the article
or publication has been obtained from sources outside of Morgan Stanley and Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of information or data from sources outside of Morgan Stanley. Neither the
information provided nor any opinion expressed constitutes a solicitation by Morgan Stanley with respect to the purchase or sale of any security, investment, strategy or product that may be mentioned.
Morgan Stanley Financial Advisor(s) engaged Tampa Bay Magazine to feature this article.
Ami Forte may only transact business in states where she is registered or excluded or exempted from registration. Transacting business, follow-up and individualized responses involving either effecting or attempting to effect transactions in securities,
or the rendering of personalized investment advice for compensation, will not be made to persons in states where
Ami Forte is not registered or excluded or exempt from registration.
Morgan Stanley Smith Barney LLC offers insurance products in conjunction with its licensed insurance agency affiliates.
© 2015 Morgan Stanley Smith Barney LLC. Member SIPC.
CRC 1088007 01/15
1Asset Allocation and diversification do not assure a profit or protect against a loss in declining financial markets.
2Morgan Stanley Smith Barney LLC (Morgan Stanley) and its Financial Advisors do not provide tax or legal advice. Individuals should consult their personal tax advisor or attorney for matters involving taxation and tax planning and their attorney for
matters involving personal trusts and estate planning.
PAID FOR ADVERTISEMENT
Jim Streitmatter, Senior Vice President, Financial Advisor;
Chuck Lawrence, Vice President, Financial Advisor;
Ami K. Forte, Managing Director, Wealth Advisor;
Evan P. Forte, CRPS©, Financial Advisor
SEPTEMBER/OCTOBER 2015 TAMPA BAY MAGAZINE 73