"Won't AI just replace financial advisors?"
I hear some version of this almost every week now
It's a very fair question, and something that is on my mind too, but here is my honest take:
AI is going to be incredible at what the average financial advisor does:
- Running basic retirement projections
- Generic portfolio not tailed to clients or tax conscious
- Telling clients to limit withdrawals to 4% in retirement
The advisors who are not specialists and doing basic level planning should be nervous about this wave...
But after 10 years of doing this work, here's what I know:
People don't lie awake at night thinking about the Monte Carlo simulation that you ran
They lie awake over:
"Did I make the right call leaving that job?"
"Are we okay if something happens to me?"
"Am I being a good steward of this for my kids?"
"Am I optimizing my financial resources to work for me?"
AI can give you an answer... but it doesn't want to take accountability for giving advice
It can't sit with your spouse after a diagnosis and make sure their affairs are handled
It can't talk you off the ledge when the market drops 20% and your gut says sell
It can't know your family the way a real relationship does, and be able to help you feel fully confident you are doing what is right for you
The future to me isn't about good advisors being replaced... it's about good advisors leveraging AI and tech to allow them to focus way more heavily on the "human stuff" that we do
@BLKMDL3 Got my first road trip with 14.3.4 coming up, bay to LA. Would you recommend mad max with the improved behavior? I usually used hurry or standard to conserve batter on road trips but I hated camping in the left lane on i5 in previous versions.
This is a good take. Imagine if you won the lottery. How many of those lottery winners use all the proceeds for additional lottery tickets? I’ve found this framing helps put the concept into perspective for certain clients. Sell enough to accomplish your goals and let the rest ride!