April 7 podcast on financial advisor

Investing
1

Clark used terms both digital advisor, and robo advisor. i know what robo is, but not sure what a digital advisor is.
I realize that fee only is the best way that I have heard of.

2

https://www.vapulus.com/en/difference-between-a-robo-advisor-and-a-digital-advisor/#:~:text=Robo–advisor%20is%20a%20class,enable%20and%20promote%20business%20needs.

Difference Between a Robo-Advisor and a Digital Advisor

A robo-advisor is an online financial advisor that uses algorithms and model portfolios based on certain information that has been obtained from the client. While robo-advisors are attractive based on their low costs and convenience, there is minimal human interaction. The focus is on investment allocation, not financial planning. No one is there to hold your hand while you’re making life’s big financial decisions like how to pay off college loans, having questions about buying that next house, or the deciding on the best savings plan to reach retirement goals.

A digital advisor is a hybrid of a robo-advisor and a traditional financial planner. Offering the online ease and convenience of a robo-advisor, a digital advisor adds in the human element by making a personal advisor accessible to every client via chat or phone. Digital advisors offer more than investment advice. Because users have access to an actual financial planner, they can speak with someone directly about their unique set of circumstances and work together to create a financial plan based on their specific situation.

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I have no experience with either.
But if I wanted these services, I would check into Vanguard, Fidelity, and Schwab.

3

Hi there @ladybuglake. I just re-listened to the April 7 podcast segment to make sure I understood the context of what Clark was discussing.

Clark’s main points:

  1. If you hire a human financial advisor, only hire a fee-only fiduciary. Both “fee-only” and “fiduciary” are critical there. Here is the story I wrote about finding and hiring a financial advisor: How To Find and Choose a Financial Advisor

  2. Your biggest decision on whether to manage your own investments, to hire a robo-advisor or to hire a full-fledged human financial advisor … what services do you need, and what is your comfortability level and expertise in using those services? Here is the article I wrote about distinguishing between those options and which is the right choice for you: Investing: Self-Directed vs. Robo-Advisor vs. Financial Advisor

  3. The term “fee only” relates to a human financial advisor. A robo-advisor is a totally different thing. It’s essentially paying someone to manage your investments for you. Here’s an explanation of what a robo-advisor is and who needs one: Who Should Use a Robo-Advisor?

  4. Clark was referencing the Vanguard Digital Advisor. That’s basically a robo-advisor with a general help line that you can call on the phone. The help line is very limited in what they can do. It gives you some access to an actual human, but it’s not the same as a financial advisor. I explain the Vanguard Digital Advisor – really, Vangaurd’s full suite of advisor services – in this article. https://clark.com/personal-finance-credit/investing-retirement/vanguard-personal-advisor-services-review/

Hope that helps. Have a good week.