Traditional forms of creating and delivering asset allocation advice are costly, impersonal and inefficient. An astonishing 15-25% and more of annual retail investor return is destroyed through a combination of advisory fees and portfolio allocation inefficiencies. Financial advice based on costly in-person advice is broken. Financial firms can’t provide personal advice to everyone profitably, few customers want to pay for it, and many customers don’t trust financial advisors. Such advice typically puts investors in impersonal “model portfolios” that commoditize and marginalize financial advisors. Worse still, investing clients rarely know how inefficient their portfolios really are, and financial advisors are unable to validate the value of their services.
ActiveAllocator scores consistently high across these criteria.