Human Financial Advisors
Real human financial advisors provide many financial planning related services, such as asset accumulation / decumulation planning, portfolio construction and rebalancing, tax planning, estate planning, insurance needs review and solutions, cash flow and budgeting, etc. In short, human financial advisors use their financial planning knowledge to provide comprehensive financial planning service.
VPAS as a Threat to Human Advisors
With its access to human financial planners at a “robo-advisor price point”, VPAS is a threat for the human advisor business, especially the ones who charge high fees for similar portfolio management and financial planning services, such as Personal Capital.
However, it should be noted, the scope of VPAS is not broad enough to cover all aspects of financial planning services, this leaves room for human advisors to compete in many niche areas of financial planning.
The Bottom Line
VPAS set a pricing reference point for the financial advisor services that consumers could use when they search the right advisors. Human financial advisors need to demonstrate real value added in order to justify higher fees. For complicated financial matters, consumers are probably still better off to talk to an expert in the specific areas.