The financial field is evolving a rapid pace, accelerated by new fin-tech innovations and low-cost investment solutions. Robo-advisors are taking share from human advisors, and people are ditching traditional money managers in favor of passive index investing. It begs the question – why even have a financial advisor anymore? Well, the reality is that while these new innovations certainly do have a place in the investment world, a qualified investment advisor still serves a critical role. In fact, with all the changes occurring in the world, we would argue that it has never been more important to work with a future-ready advisor than right now.
What can an advisor do to benefit you? In addition to working with you to understand your financial needs, goal, and constraints, we can break this down into several categories. When we’re developing high level plans for our clients, our objectives are to:
- Maximize investment returns over the long-run
- Help clients keep more of what they earn through tax mitigation strategies
- Protect a client’s assets through a strong legal/estate framework and risk management plan
- Provide professional and emotional support during times of severe market turmoil (which is when people are prone to making mistakes that damage their wealth)
- Educate clients’ children about the importance of thinking long-term, controlling spending, and investing over their lifetimes
- Organize all of the above into a coherent, strategic plan
The truth is that for young investors fresh out of college working their first job, a robo-advisor can probably satisfy most financial-related needs. But as people age, accumulate more wealth, have children, and invest in a 401(k) plan at work, their financial life gets exponentially more complicated. Throw in the fact that tax laws always seem to be in flux and you can see how keeping a high-level view of everything starts to get murky. We take this stress away from our clients. The process and plan that we have in place keeps our clients protected and gives them peace of mind. Further, we are invested in the same strategies alongside our clients, aligning our interests and providing an incentive to make us all wealthier.
While we know that we add significant value to the lives of those we work with, we recognize that the finance industry has violated the trust of the investing public on many occasions – examples like Bernie Madoff and the Wells Fargo account-opening scandal come to mind, just to name a few. This creates a challenge for us. When Bill founded Cox Capital back in 1997, it was because he saw many of these abuses first hand during his career in the institutional investment world. He recognized what was going on, and genuinely wanted to help people by providing sound money management, protecting clients from unnecessary risks, and conducting completely independent research. This was the principle our firm was founded on, and it is ingrained in the culture here. More recently, we’ve invested in industry leading research software, portfolio management systems and financial planning tools – all for the benefit of our clients. This is a serious business, and we do everything in our power to be future-ready.
We hope that this piece gave you a sense that financial advisors are still relevant and won’t be completely replaced by robots any time soon! Beyond that, we hope that it gave you confidence that there are still trustworthy and qualified advisors out there that can and have and will continue to do great, value-added work for their clients. To learn a bit more about us, check out the video on our homepage. If you’re interested in speaking with Bill or Ethan, please fill out this contact request form.