Part 7/10:
The Future of Wealth Management: The Rise of Robo-Advisors
Finally, wealth management fees, traditionally around 1% of assets under management, have faced significant downward pressure thanks to robo-advisors. Companies like Betterment and Wealthfront are leading the way with lower fees and automated investment strategies that cater particularly to cost-sensitive Millennial investors who are increasingly aware of how fees impact long-term returns.
As this trend continues, traditional advisors will need to adapt their service offerings to compete successfully. Robo-advisors have already demonstrated that lower fees can attract large segments of the investing public, further solidifying the shift towards more democratized financial advice.