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Why AI Isn't the Best Answer for Your Finances

By Michael Nedreski

As AI and robo-advisors become more common, it's tempting to let technology handle your financial decisions. But what happens when you face a complex situation or an unexpected economic shift? That's where the guidance of a trusted financial advisor comes in. Working with a personal advisor offers several advantages that robo-advisors simply can't match. 

Proficiency

Robo-advisors are helpful when you're just starting your financial journey and have smaller balances to manage. Since there are often fewer fees with a robo-advisor, it's a good fit for beginners. However, if you've been letting your robo-advisor run the show for a few years while your finances have grown and become more complex, it might be time to upgrade to a human financial advisor. 

These are certified professionals with years of experience and skill in a wide variety of financial situations. Financial advisors are trained to help clients manage their finances and pursue their money goals. They stay up to date on the latest financial news and trends, which can help you receive the most current and relevant advice. No matter what's happening in the markets or in your accounts, your financial advisor is equipped to develop the plan you need to pursue your financial goals with confidence. 

Personalized Advice

The help of a robo-advisor is limited to its algorithm or the lines of code it uses to make decisions; and it only makes decisions with the basic information you provide. Data such as your risk tolerance, investment amount, and time horizon are used to calculate the best investments for you. Again, great for beginners. 

When life gets more complex, you need financial advice that's customized to your specific situation. A financial advisor takes a holistic approach to managing your money by reviewing your situation in greater detail. They get to know you, not just the numbers. They help you identify areas of improvement and find ways to solve your biggest financial issues. 

A financial advisor is there to help you lay out a plan toward your financial goals too. A human advisor might help you strategize how you can retire early, how to expand your small business, or how to pay for your child's college tuition.

Emotional Support

Finances are usually seen as a more logical topic, but emotions are deeply connected to your financial situation in ways you might not have considered. During times of economic uncertainty, you might feel scared, stressed, or concerned. When things are going extremely well, you might feel overjoyed, carefree, or impulsive. These emotions affect your ability to make wise financial and investment decisions. 

A trustworthy human financial advisor guides you through those decisions with greater clarity. Instead of letting your emotions run the show, advisors look at your situation objectively to help you make an informed decision even in challenging moments.  

Accountability

If you've had trouble sticking to your financial plan before, a knowledgeable financial advisor could provide the accountability you need. Financial advisors and planners can help you create a budget, track your expenses, and monitor your progress toward your financial goals.

They also help you keep those end goals in mind when you consider the other financial decisions you want to make. If your goal is to buy a home, your financial advisor might remind you of that when you want to purchase a new Rolex. 

Partner With a Personal Financial Advisor

Robo-advisors can handle straightforward financial situations, but when your needs go beyond automated investment decisions, it's time to reach out to a financial advisor. These professionals craft personalized strategies tailored to your specific goals and financial circumstances. 

If you're ready to partner with a financial advisor who sees the bigger picture, we at White Oak Wealth Partners are here to help. To get started, contact us by calling 814-835-4551, emailing MICHAEL.NEDRESKI@LPL.COM, or scheduling an appointment here.

About Michael

Michael Nedreski is managing partner at White Oak Wealth Partners, a specialized financial lifestyle and wealth management firm serving entrepreneurs, business owners, executives, and their families. Mike has 30-plus years of experience in the financial services industry and is committed to serving his clients through holistic financial planning, disciplined investment strategies, and proactive personal service. 

A native of Erie, Pennsylvania, Mike began his career in the financial services industry in 1988. He has earned the Chartered Retirement Planning CounselorSM (CRPC®) designation conferred by College for Financial Planning (188-LPL). Mike is also an active member of the Financial Services Institute (FSI) and Financial Planning Association (FPA).

When not working, Mike enjoys spending time with his wife, Amy, and their children. He volunteers in his community and at his church and his children's schools. An outdoors enthusiast, Mike loves hunting, fishing, golfing, and spending time near or on the water. He also enjoys working out and watching some of his favorite sports teams, the Pittsburgh Pirates and the Cleveland Browns. To learn more about Michael, connect with him on LinkedIn.