Financial advice

Robo-advice momentum has stalled: will the much-hyped digital revolution ever take off?

Five years ago, it seemed the future of financial advice had arrived – and it came in the shape of robots and algorithms. With regulators anxious about a financial advice ‘gap’, technological advance paving the way for innovation, and the pension freedoms creating a new wave of demand for help with retirement investments, the time seemed right for automated investment advice to take off.

Anna Sofat interview: where is the vibrancy in the economy? Small firms

Anna Sofat co-founded independent financial adviser Addidi in London with her husband in 2008, with the aim of helping women grow their wealth and build their businesses. In 2019, Anna was named Financial Adviser of the Year at the Women in Financial Advice Awards. In December, Addidi joined Progeny, a national advice firm. This month, Anna won the Professional Adviser Personality of the Year award.

Editor’s Comment: what I learned when I met two financial planners

Prior to the past few months, I have had personal dealings with financial advisers only a couple of times. In my first encounter, several decades ago, I was persuaded it would be a shrewd move to pull out of the company pension and open a personal pension with the Equitable Life. That was not my finest hour, with hindsight, though I was not alone: you would be surprised how many financial journalists in the 1990s lost their savings that way.

Is it worth paying a double layer of charges for advice?

Analogies can be very helpful in clarifying our thinking on complex subjects like managing wealth. If you are wondering whether you should upgrade from an independent financial adviser to a wealth management firm, then this medical analogy might prove particularly apposite.