3 Ways Millennials Are Saving Money on Financial Advisors — With AI
Written by
Chris Adam
Edited by
Daria Uhlig
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Artificial intelligence may already be helping in some aspects of your personal finances without you thinking much about it. For example, it may help power customer service chatbots for your bank or help power a budgeting app you use.
But would you rely on AI to help you make important financial decisions? How about replacing your human advisor with an AI-powered one? It’s already happening.
In fact, millennials are among those embracing this technology. Here’s a look at three ways millennials are saving money on financial advisors with AI.
Paying as They Go
“A new raft of AI-powered startups wants to disrupt the financial advice industry,” Axios reported “Their pitch: Pay a flat fee once in a while, when you need advice, rather than a percentage of your assets every single year.”
That means millennials who have turned to AI-powered financial advisors could be saving thousands of dollars a year.
In addition, they may be able to get more of what they want when it comes to financial advising.
“Most Americans under the age of 55 don’t need or even particularly want regular hand-holding and check-ins with a financial advisor,” per Axios. “A well-constructed financial plan can easily last years until circumstances arise that require a new one.”
Avoiding High Hourly Rates
“One of the biggest advantages of AI financial advisors is the cost,” per EarnUp. “While human advisors often charge a percentage of assets under management or a high hourly rate to give personal advice, many AI advisors offer their services for a much lower fee or even for free.”
Since AI-powered options take away some of the human element, users pay a lower fee to access them. What’s more, they can get assistance 24/7, unlike with human advisors.
Eliminating Additional Fees
A third way millennials are saving money on financial advising by using AI is the lack of extra fees for additional services.
“These digital platforms provide tailored recommendations based on unique financial situations, offering tools for budgeting and goal-setting,” according to EarnUp. “They’re more affordable than traditional advisors, making professional guidance accessible to younger generations.”
Keep in mind that giving up human guidance also has a cost — You’ll have to do more of your own work and research to keep your finances on track.
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