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Why AI Falls Short in Managing Your Personal Finances

Why AI Falls Short in Managing Your Personal Finances 

By Rob Johnson

As AI and robo-advisors become more prevalent, it’s tempting to let technology handle your financial decisions. But what do you do when you’re faced with a complex issue or an unexpected economic shift? This is where a trusted financial advisor can make all the difference in your financial progress. Unlike automated systems, a financial advisor offers a human touch and personalized insights that consider your unique goals and circumstances. Read on to learn about the advantages of having a human advisor to guide your financial journey.

Expertise

Robo-advisors can be helpful when you’re just starting your financial journey and have smaller balances to manage. Since there are often fewer fees with a robo-advisor, it may be a good fit for beginners. However, if you’ve been letting your robo-advisor run the show for a few years while your finances have grown and become more complex, it might be time to upgrade to a human financial advisor. 

These are certified professionals with years of expertise in a wide variety of financial situations. Financial advisors are trained to help clients manage their finances and pursue their goals. They stay updated on the latest financial news and trends, which can help you receive the most current and relevant advice. No matter what’s happening in the markets or in your portfolio, your financial advisor is equipped to develop the plan you need to pursue your financial goals with confidence. 

Personalized Advice

The help of a robo-advisor is limited to its algorithm, or the lines of code it uses to make decisions; it only makes decisions with the basic information you provide. Data like risk tolerances, investment amounts, and time horizons are used to calculate the best investments for you. Again, this can be helpful for beginners. 

When life gets more complex, you may find that you need financial advice that’s customized to your specific situation. A financial advisor takes a holistic approach to managing your money by reviewing your situation in greater detail and getting to know you, not just your numbers. They help you identify areas of improvement and find creative ways to solve your biggest financial issues. 

A financial advisor is there to help you lay out a plan to move towards your financial goals. A human advisor might help you strategize how you can retire early, how to expand your small business, or how to pay for your child’s college tuition.

Emotional Support

Finances are usually seen as a more logical topic, but emotions are deeply connected to your financial situation in ways you might not have considered. During times of economic uncertainty, you might feel scared, stressed, or concerned. When things are going extremely well, you might feel overjoyed, carefree, or impulsive. These emotions affect your ability to make wise financial and investment decisions. 

A trustworthy human financial advisor guides you through those decisions with greater clarity. Instead of letting your emotions run the show, advisors look at your situation objectively to help you make an informed decision even in the most challenging of moments.  

Accountability

If you’ve had trouble sticking to your financial plan before, a financial advisor can help provide the accountability you need. Financial advisors and planners can help you create a budget, track your expenses, and monitor your progress toward your financial goals.

They’ll also help you keep those end goals in mind when you consider the other financial decisions you want to make. If your goal is to buy a home, your financial advisor might remind you of that when you want to purchase a new Rolex. 

Partner With a Financial Professional

For straightforward and simple financial needs, a robo-advisor may suffice, but when your situation requires more than automated investment choices, it may be time to consult a financial advisor. Rather than cookie-cutter models, these professionals craft customized strategies tailored to your individual situation. 

If you’re seeking a financial advisor who takes a holistic approach, Elevate Wealth Management is here to help. Schedule an introductory meeting by reaching out at rmjohnson@frontierasset.com or 307.461.5550. 

About Rob

Rob Johnson is a financial advisor at Elevate Wealth Management, an independent, fee-only wealth management firm serving young professionals, pre-retirees, and retirees in Sheridan, Wyoming, and surrounding areas.

With a passion for helping others achieve their goals, Rob is committed to working closely with clients to empower them to make the best financial decisions for their lives. Rob understands that every person faces unique circumstances when it comes to their financial future, so he will tailor his approach and recommendations to ensure clients feel confident about the direction they’re headed. Rob has an enthusiasm for customer service, which is apparent during every client interaction he has. Honesty and integrity are at the center of the advice and recommendations he gives, and he will work hard to build and maintain trust in every relationship.

Rob has a bachelor’s degree in economics and finance from Black Hills State University and is actively working toward his CERTIFIED FINANCIAL PLANNER®, CFP® designation. He is a Wyoming native who grew up at the foot of the Big Horn Mountains in beautiful Dayton, Wyoming. He believes strongly in giving back to the community that helped raise him by volunteering his time and serving as an active board member with various non-profit organizations in the area.

Rob and his wife Emma have two sons, Michael and Sammy, who are the lights of their lives. Rob has a passion for sports and is an avid golfer. During the warmer months of the year, there’s a good chance you’ll find him on the first tee. To learn more about Rob, connect with him on LinkedIn.


The views expressed represent the opinion of Frontier Asset Management. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Frontier Asset Management believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. The use of such sources does not constitute an endorsement. Frontier does not have an affiliation with any author, company or security noted within. Statements of future expectations, estimates, projections, and other forward-looking statements are based on available information and the Frontier Asset Management’s view as of the time of these statements. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Investing in securities involves risks, including the potential loss of principal. Past performance is not indicative of future results.

Frontier does not provide tax advice. Please consult with a CPA for recommendations pertaining to individual circumstances.

Elevate is the financial planning division of Frontier Asset Management. Frontier Asset Management is a Registered Investment Adviser. The firm’s ADV Brochure and Form CRS are available at no charge by request at info@frontierasset.com or 307.673.5675 and are available on our website www.frontierasset.com. They include important disclosures and should be read carefully. 20241119.44444