{"id":6280,"date":"2015-08-07T06:15:14","date_gmt":"2015-08-07T13:15:14","guid":{"rendered":"http:\/\/blog.paladinregistry.com\/?p=6280"},"modified":"2015-08-07T06:15:14","modified_gmt":"2015-08-07T13:15:14","slug":"automated-investment-tools-landing-back-yard","status":"publish","type":"post","link":"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/","title":{"rendered":"Automated Investment Tools \u2013 Are They Landing in Your Back Yard?"},"content":{"rendered":"<p>Automated investment tools, or <strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/blog.paladinregistry.com\/advisors-2\/5-critical-differences-between-financial-advisors-and-robo-advisors-infographic\/\" target=\"_blank\">Robo-advisors<\/a><\/span><\/strong> as they are commonly known, are not aliens or robots landing in your back yard. You can\u2019t even have a civil conversation with them.\u00a0 But they are making investing easier and more accessible to individuals.<\/p>\n<p>Robo-advisors create outputs based on preset options, but you need to decide whether and when to rely on these tools in making your investment decisions.<\/p>\n<p>Let\u2019s review some of the things to know to get the most out of the tools:<\/p>\n<ol>\n<li>It\u2019s online \u2013 protect your personal info<\/li>\n<li>May not be right for your personal goals<\/li>\n<li>Garbage in garbage out<\/li>\n<li>What assumptions<\/li>\n<li>Understand the terms<\/li>\n<\/ol>\n<p><strong>Protect your Personal Info<\/strong><\/p>\n<p>When working with online features take precaution to protect your personal identification.<\/p>\n<ul>\n<li>Don\u2019t access through an unsecure wireless connection like a library or a computer at a hotel<\/li>\n<li>Make sure your smart phone is password protected if you access accounts this way. Even this may not be enough.<\/li>\n<li>Make sure the site is \u201cHTTPS\u201d the additional S stands for secure<\/li>\n<\/ul>\n<p>Look out for scams designed to trick you into revealing personal financial information.\u00a0 Unless you are accessing an account that you established, do not provide bank or brokerage account numbers, passwords, PINs, and credit card information or Social Security numbers.<strong>\u00a0<\/strong><\/p>\n<p><strong>May Not Be Right For Your Personal Goals<\/strong><\/p>\n<p>You are dealing with a computer, it does things really well based on very specific instructions, but if you fall out of those parameters then you may lose the value that human judgment and oversight, or more personalized service provides.<\/p>\n<p>For example, the system may not take into account that you need some of your investment money back in a few years to buy a second vacation home. Specifically,\u00a0an automated investment tool may estimate a time horizon for your investments based only on your age.<\/p>\n<p>Some automated investment tools may suggest investments (including asset-allocation models) that may not be right for you.\u00a0A robo-advisor may not assess all of your particular circumstances, such as your total wealth, other investments, taxes, financial situation and needs.<strong>\u00a0<\/strong><\/p>\n<p><strong>Garbage In, Garbage Out<\/strong><\/p>\n<p>The software asks only the questions it knows to ask. It can\u2019t adapt like a human to your answers.\u00a0 Be aware that the robo-advisor may ask questions that are over-generalized, ambiguous or just don\u2019t fit you. You may have to speak with a person to understand the question more.<\/p>\n<p>The way a robo-advisor asks questions may limit or influence the information you provide, which in turn directly impacts the output that is generated.<strong>\u00a0<\/strong><\/p>\n<p><strong>What Assumptions<\/strong><\/p>\n<p>Software, by it nature is limited to what the person thought you needed. If you need something else this is a limitation.\u00a0 The questions and output are designed to meet what the company offers.<\/p>\n<p>As we know the world changes. But if the automated investment tool assumes that interest rates will remain low but, instead, interest rates rise, the tool\u2019s output will be flawed.\u00a0The Robo-advisor relies on assumptions that could be incorrect or do not apply to your individual situation.<\/p>\n<p><strong>Understand the Terms<\/strong><\/p>\n<p><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/www.paladinregistry.com\/advisors\/online-financial-advisor-list\" target=\"_blank\">Some sponsors get paid for the products it offers<\/a><\/span><\/strong>. Ask them or look for additional compensation. Learn how you can terminate the contract if it is not meeting your needs. Understand how you will be billed and what all the fees consist of.\u00a0 It is important to read all the terms and the disclosures.<\/p>\n<p>Robo \u2013advisors offer some clear benefits- Simple, lower cost, and mobile accessibility. Used correctly these tools are fantastic.<\/p>\n<p>You are just a click away from creating an investment plan. <strong><em>Is it the plan for you or what the robo-advisor thinks is you?<\/em><\/strong><\/p>\n<p>For more information you can access the Securities Exchange Commission on using <strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/www.sec.gov\/oiea\/investor-alerts-bulletins\/autolistingtoolshtm.html\" target=\"_blank\" rel=\"nofollow\">Robo-advisors effectively<\/a><\/span><\/strong>.<\/p>\n<p><strong>To learn more about James Cornehlsen, visit\u00a0<em><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/capstoneinvest.com\/\" target=\"_blank\" rel=\"nofollow\">www.Capstoneinvest.com<\/a><\/span>.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Automated investment tools, or Robo-advisors as they are commonly known, are not aliens or robots landing in your back yard. You can\u2019t even have a civil conversation with them.\u00a0 But they are making investing easier and more accessible to individuals. Robo-advisors create outputs based on preset options, but you need to decide whether and when to rely on these tools in making your investment decisions. Let\u2019s review some of the<\/p>\n","protected":false},"author":27,"featured_media":6288,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[325],"tags":[],"class_list":["post-6280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advisors"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Automated Investment Tools \u2013 Landing in Your Back Yard?<\/title>\n<meta name=\"description\" content=\"Automated investment tools, or Robo-advisors, are not aliens or robots landing in your back yard. Learn what they do and whether they are right for you.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Automated Investment Tools \u2013 Landing in Your Back Yard?\" \/>\n<meta property=\"og:description\" content=\"Automated investment tools, or Robo-advisors, are not aliens or robots landing in your back yard. Learn what they do and whether they are right for you.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/\" \/>\n<meta property=\"og:site_name\" content=\"Paladin Registry Blog\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/james.cornehlsen\" \/>\n<meta property=\"article:published_time\" content=\"2015-08-07T13:15:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2015\/08\/automated-investment-tools.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"620\" \/>\n\t<meta property=\"og:image:height\" content=\"360\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"James Cornehlsen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@AUMinaBox\" \/>\n<meta name=\"twitter:site\" content=\"@PaladinRegistry\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"James Cornehlsen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/\",\"url\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/\",\"name\":\"Automated Investment Tools \u2013 Landing in Your Back Yard?\",\"isPartOf\":{\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2015\/08\/automated-investment-tools.jpg\",\"datePublished\":\"2015-08-07T13:15:14+00:00\",\"dateModified\":\"2015-08-07T13:15:14+00:00\",\"author\":{\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/#\/schema\/person\/a02057a788c86adbf0adab8945036ce5\"},\"description\":\"Automated investment tools, or Robo-advisors, are not aliens or robots landing in your back yard. Learn what they do and whether they are right for you.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/#primaryimage\",\"url\":\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2015\/08\/automated-investment-tools.jpg\",\"contentUrl\":\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2015\/08\/automated-investment-tools.jpg\",\"width\":620,\"height\":360,\"caption\":\"automated-investment-tools\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.paladinregistry.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Advisors\",\"item\":\"https:\/\/www.paladinregistry.com\/blog\/category\/advisors\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Automated Investment Tools \u2013 Are They Landing in Your Back Yard?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/#website\",\"url\":\"https:\/\/www.paladinregistry.com\/blog\/\",\"name\":\"Paladin Registry Blog\",\"description\":\"Helping You Make Better Financial Decisions\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.paladinregistry.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/#\/schema\/person\/a02057a788c86adbf0adab8945036ce5\",\"name\":\"James Cornehlsen\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2013\/11\/Jamie-e1427797249725-96x96.jpg\",\"contentUrl\":\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2013\/11\/Jamie-e1427797249725-96x96.jpg\",\"caption\":\"James Cornehlsen\"},\"description\":\"James (Jamie) Cornehlsen, CFA is an investment advisor with Capstone Investment Financial Group and Chief Investment Officer and Managing Director of Dunn Warren Investment Advisors, LLC. Jamie received his MBA from The William E. Simon Graduate School of Business at the University of Rochester, and his Bachelor of Arts in Economics from the University of Colorado and attended The University of York in England. He is a member of the CFA Society of Colorado and previously served as the President of the CFA Society of Colorado. In 1994 to 1996, Jamie began his career as an analyst with the Gartner Group working with the pension plan and 401k program. From 1996 to January 1999, he worked as a financial analyst covering the software industry for Schwab SoundView Capital Markets in Greenwich, Connecticut and Bear Stearns in New York City. Prior to founding Dunn Warren Investment Advisors, Jamie worked with Corboy and Jerde from 2000 to 2001, an investment bank specializing in public and private equity investments.\",\"sameAs\":[\"http:\/\/www.capstoneinvest.com\",\"https:\/\/www.facebook.com\/james.cornehlsen\",\"http:\/\/www.linkedin.com\/profile\/view?id=12949153&goback=nmp_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1&trk=spm_pic\",\"https:\/\/x.com\/AUMinaBox\"],\"url\":\"https:\/\/www.paladinregistry.com\/blog\/author\/jamie-cornehlsen\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Automated Investment Tools \u2013 Landing in Your Back Yard?","description":"Automated investment tools, or Robo-advisors, are not aliens or robots landing in your back yard. Learn what they do and whether they are right for you.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/","og_locale":"en_US","og_type":"article","og_title":"Automated Investment Tools \u2013 Landing in Your Back Yard?","og_description":"Automated investment tools, or Robo-advisors, are not aliens or robots landing in your back yard. Learn what they do and whether they are right for you.","og_url":"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/","og_site_name":"Paladin Registry Blog","article_author":"https:\/\/www.facebook.com\/james.cornehlsen","article_published_time":"2015-08-07T13:15:14+00:00","og_image":[{"width":620,"height":360,"url":"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2015\/08\/automated-investment-tools.jpg","type":"image\/jpeg"}],"author":"James Cornehlsen","twitter_card":"summary_large_image","twitter_creator":"@AUMinaBox","twitter_site":"@PaladinRegistry","twitter_misc":{"Written by":"James Cornehlsen","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/","url":"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/","name":"Automated Investment Tools \u2013 Landing in Your Back Yard?","isPartOf":{"@id":"https:\/\/www.paladinregistry.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/#primaryimage"},"image":{"@id":"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/#primaryimage"},"thumbnailUrl":"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2015\/08\/automated-investment-tools.jpg","datePublished":"2015-08-07T13:15:14+00:00","dateModified":"2015-08-07T13:15:14+00:00","author":{"@id":"https:\/\/www.paladinregistry.com\/blog\/#\/schema\/person\/a02057a788c86adbf0adab8945036ce5"},"description":"Automated investment tools, or Robo-advisors, are not aliens or robots landing in your back yard. Learn what they do and whether they are right for you.","breadcrumb":{"@id":"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/#primaryimage","url":"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2015\/08\/automated-investment-tools.jpg","contentUrl":"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2015\/08\/automated-investment-tools.jpg","width":620,"height":360,"caption":"automated-investment-tools"},{"@type":"BreadcrumbList","@id":"https:\/\/www.paladinregistry.com\/blog\/advisors\/automated-investment-tools-landing-back-yard\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.paladinregistry.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Advisors","item":"https:\/\/www.paladinregistry.com\/blog\/category\/advisors\/"},{"@type":"ListItem","position":3,"name":"Automated Investment Tools \u2013 Are They Landing in Your Back Yard?"}]},{"@type":"WebSite","@id":"https:\/\/www.paladinregistry.com\/blog\/#website","url":"https:\/\/www.paladinregistry.com\/blog\/","name":"Paladin Registry Blog","description":"Helping You Make Better Financial Decisions","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.paladinregistry.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.paladinregistry.com\/blog\/#\/schema\/person\/a02057a788c86adbf0adab8945036ce5","name":"James Cornehlsen","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.paladinregistry.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2013\/11\/Jamie-e1427797249725-96x96.jpg","contentUrl":"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2013\/11\/Jamie-e1427797249725-96x96.jpg","caption":"James Cornehlsen"},"description":"James (Jamie) Cornehlsen, CFA is an investment advisor with Capstone Investment Financial Group and Chief Investment Officer and Managing Director of Dunn Warren Investment Advisors, LLC. Jamie received his MBA from The William E. Simon Graduate School of Business at the University of Rochester, and his Bachelor of Arts in Economics from the University of Colorado and attended The University of York in England. He is a member of the CFA Society of Colorado and previously served as the President of the CFA Society of Colorado. In 1994 to 1996, Jamie began his career as an analyst with the Gartner Group working with the pension plan and 401k program. From 1996 to January 1999, he worked as a financial analyst covering the software industry for Schwab SoundView Capital Markets in Greenwich, Connecticut and Bear Stearns in New York City. Prior to founding Dunn Warren Investment Advisors, Jamie worked with Corboy and Jerde from 2000 to 2001, an investment bank specializing in public and private equity investments.","sameAs":["http:\/\/www.capstoneinvest.com","https:\/\/www.facebook.com\/james.cornehlsen","http:\/\/www.linkedin.com\/profile\/view?id=12949153&goback=nmp_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1&trk=spm_pic","https:\/\/x.com\/AUMinaBox"],"url":"https:\/\/www.paladinregistry.com\/blog\/author\/jamie-cornehlsen\/"}]}},"_links":{"self":[{"href":"https:\/\/www.paladinregistry.com\/blog\/wp-json\/wp\/v2\/posts\/6280"}],"collection":[{"href":"https:\/\/www.paladinregistry.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paladinregistry.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paladinregistry.com\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paladinregistry.com\/blog\/wp-json\/wp\/v2\/comments?post=6280"}],"version-history":[{"count":10,"href":"https:\/\/www.paladinregistry.com\/blog\/wp-json\/wp\/v2\/posts\/6280\/revisions"}],"predecessor-version":[{"id":6291,"href":"https:\/\/www.paladinregistry.com\/blog\/wp-json\/wp\/v2\/posts\/6280\/revisions\/6291"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paladinregistry.com\/blog\/wp-json\/wp\/v2\/media\/6288"}],"wp:attachment":[{"href":"https:\/\/www.paladinregistry.com\/blog\/wp-json\/wp\/v2\/media?parent=6280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paladinregistry.com\/blog\/wp-json\/wp\/v2\/categories?post=6280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paladinregistry.com\/blog\/wp-json\/wp\/v2\/tags?post=6280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}