Why AI Isn’t the Best Answer for Your Finances
By Bill Taber
Artificial intelligence has made financial information more accessible than ever. Within seconds, you can ask a chatbot an investing question or compare retirement strategies. But having more information doesn’t always make financial decisions easier.
What happens when you're deciding whether you can retire early, navigating a major tax event, selling a business, or balancing competing financial priorities? These are the moments when generic answers often fall short because they don't take your unique circumstances into account.
AI can be a valuable tool, but it can't understand your goals, values, risk tolerance, or the life you're working toward. That's where personalized financial advice still matters.
Let's explore several reasons why many people continue to value working with a financial advisor, even in the age of AI.
Expertise
Robo-advisors are 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’s 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 money goals. They stay up to date 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 accounts, 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; and it only makes decisions with the basic information you provide. Data such as your risk tolerance, investment amount, and time horizon are used to calculate the best investments for you. Again, great for beginners.
When life gets more complex, 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. They get to know you, not just the numbers. They help you identify areas of improvement and find ways to solve your biggest financial issues.
A financial advisor is there to help you lay out a plan toward your financial goals too. 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 challenging moments.
Accountability
If you’ve had trouble sticking to your financial plan before, a financial advisor could 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 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.
Looking Beyond AI in Your Finances
Using AI in your finances can be helpful for answering basic questions and automating routine tasks, but they can't fully understand your goals, values, or the life you're planning for. When financial decisions become more complex, personalized guidance can make all the difference.
At TABER Asset Management, we provide advice that goes beyond algorithms to help you make informed financial decisions with confidence. If you're ready for guidance tailored to your unique circumstances, contact us by scheduling a 15-minute intro phone call online or reaching out at 515-557-1860 or invest@taberasset.com.
About Bill
Bill Taber is the President and Founder of TABER Asset Management located in Des Moines, IA, and Alexandra, VA. With over four decades of experience, he helps families from all across America grow their wealth, income, and preserve their financial capital. He is a BBA graduate of the University of Iowa, the E-Myth Worldwide Mastery Business Development Program, and has over 45 years of industry experience with TABER Asset Management, E.F. Hutton & Co., and the Principal Financial Group. He is Series 65 registered. Bill operates with a stewardship mentality inspired by helping his own father achieve his dream retirement. Outside the office, Bill enjoys giving back to his community and practicing yoga, pilates, and meditation.
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