Great stuff here from youngresearch.com:
The robos save money on phone reps, have a big marketing spend, and a neat looking website.
But what if there’s a problem? A couple of years ago, when stocks were down 1,600 points, Bloomberg reported that the websites of robe-advisers Wealthfront Inc. and Betterment crashed. For this reason, I’ve never been comfortable with the idea of robo-advisers.
Also, it’s been my experience that investors want regular conversations about their life savings, especially when they’ve made money over a lifetime and it would take another one to replace the losses.
Losing $500 on a company like Shopify might be a cheap education to help a young saver seek out a diversified portfolio with the help of a robot.
Investing your life savings for and during retirement might require a more personal touch, especially when you have a lot more to lose than money.