Invasion of the robo-advisors: Don't be afraid

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Contrary to what you might think, traditional wealth managers and online investment advisors—known colloquially as "robo-advisors"—don't hate each other.

In fact, the sentiment between the two models borders on admiration.

A recent report from MyPrivateBanking Research suggested that traditional wealth management firms are late in realizing the threats posed by robo-advisors.

According to the report, assets under management for all registered investment advisors is said to be about $5 trillion. Robo-advisors presently hold only $14 billion of those assets, but their numbers are growing because of lower account thresholds and popularity with tech-savvy young professionals in the asset accumulation phase of their career.

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