Expert Advice

What Is The Difference Between Rebalance And So-Called “Robo-Advisors?”

Mitch Tuchman, Managing Director of Rebalance, on why you need a dedicated expert that can help you look at the holistic situation.

Mitch Tuchman: There are new advisors that have come out called “robo-advisors”, which is a software-driven advice service online where the client interacts solely with the website and there’s no human being that helps you figure anything out.

At Rebalance we use a lot of the same methods of investing as robo-advisors. We both use low-cost index funds and we both rebalance the portfolios periodically. However, a robo-advisor is great for someone who’s kind of a beginner investor, someone in their 20s and 30s – they’re just getting going, maybe they bought their first house, they’re paying off college loans and their investment situation is very simple. Software can deliver a great result for those people. Rebalance, however, was formed to focus on people over 45 years old whose lives are a little bit more complicated. For example, once you’re married, have a few kids, or maybe you’ve had a few jobs, or your spouse has had a few jobs, there are things that just software can’t help you figure out. Software won’t know or identify that I have this account, my wife has that account but there’s three other accounts we had from prior jobs that we need to rollover. Software won’t account for the fact that maybe I’m planning to retire but then become a consultant later and I’ll have a stream of income.

That’s why you need a dedicated expert that can help you look at the holistic situation in which you find yourself and solve different types of problems, come up with new ideas, and that’s where Rebalance differs. We offer dedicated expert, highly credentialed advisors for every client to work with them through this path of how to fund retirement and get the result that they want when that time comes.