Robo-Advisor vs Human Financial Advisor: Which Is Right for You?

Looking to invest but don’t want to choose your own stocks, exchange-traded funds (ETFs), and mutual funds? Until recently, people would hire a personal financial advisor when they wanted to create a portfolio. For a fee, advisors manage your assets and, among other things, provide financial coaching.

But ever since the 2010s, individuals have had the option of robo-advisors. These software-based tools offer hands-off investing at a lower entry cost. 

As you set out to reach your early retirement dreams and financial goals, choosing between the two is one of the first crossroads you’ll face. In the article below, we’ll help you decide which one is best for you.

Robo-Advisor Vs Human Advisor: How to Decide

Why Choose a Robo-Advisor?

According to Business Insider, eight percent of American households use robo-advisors, which are investment programs run by a computer algorithm. Ever since Betterment launched its robo-advisor in 2014, people have turned to them because of their low cost and hand-off approach. They are particularly popular with young people

After answering some financial questions, robo-advisors chart out a basic investing strategy based on your tolerance to risk. There’s no human interaction. Any shifts in your portfolio over time come from computer software calculations based on the market and your goals. 

In general, robo-advisors are good if you want to dabble in investing and don’t have much money to spend. You should also be comfortable with technology, because all of your interactions will be on your phone or computer. The auto-pilot approach appeals to people who want to increase their savings but don’t want to think about it too much.


  • Fast way to get into investing
  • Low entry minimums
  • Fewer fees and costs
  • Ideal for passive investing


  • No coaching, advice, or insider knowledge
  • Not good for complex financials
  • Investing worries will go unanswered

Why Choose a Financial Advisor?

Human financial advisors help you manage your investments. Their service comes with one-on-one time to help you build a stronger portfolio and avoid unnecessary financial risks. 

At Capital Growth, we also help you with tax strategies, financial planning, estate conservation, and take a full picture of your financial journey.

The key point to remember is that financial advisors offer personalized service. They are always just a call, email, or text away from answering your questions. This also helps you avoid making brash decisions in volatile markets, where short-sighted choices can harm your long-term goals.

Choose a financial advisor if you…

Can a Robo-Advisor Replace a Human Financial Advisor?

While automated investing has its advantages, such as buying and selling assets and managing basic portfolios over time, they lack the instinct and intelligence of human advisors. 

Some robo-advisor software companies offer human financial advisor add-ons. But the extra cost only gives you limited access to one-time questions and basic guidance. That means these programs are geared towards passive investments into low-risk index funds, where the questions are limited and the risks are minimal.

“Financial advisors truly thrive at addressing the everyday complexity of your financial life.”

Financial advisors, on average, cost more than their robotic counterparts. The higher fees can sway some people towards algorithm-based investing, but the extra expense isn’t without its benefits. Having someone on your side, weighing the risks of certain markets and helping you diversify your investment portfolio, can be worth the added costs. 

This is especially true for people who don’t want to put all their trust in computers. Besides, most professional financial advisors leverage technology to accurately project earnings and avoid unnecessary risks.

Robo-Advisors vs Human Advisors: Head-to-Head


    • You don’t see a need to talk with a person.
    • You’re just starting out with minimal investment.
    • You’re willing to trust the investment algorithm.
    • You consider yourself a tech expert.

Human Financial Advisor

    • You like having an expert in your corner.
    • You have a savings plan and/or multiple accounts.
    • You want a strong investment strategy.
    • You want a point of contact for your online transactions.

Begin Your Investment Journey Today

Are you ready to invest in your future? Consult Capital Growth Inc, San Diego’s financial experts, to set out on your personal plan towards financial freedom.

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