Do you need a robo-advisor?

Robo-advisors use algorithms and model portfolios to allocate investments according to a client's particular objectives and risk tolerance. However, according to Elliot Weissbluth, CEO of HighTower, they are not equipped to provide more detailed and nuanced financial planning services, which are the specialty of traditional advisory firms.

They do not have the sophistication to provide guidance, he explained, which requires a human advisor to understand the emotions driving a client's questions, concerns and needs.

While technology, and in this case robo-advisors, can help to enhance client relationships by functioning as an additional financial planning tool—an extension of the human self—the increasing success of robo-advisor platforms will most likely not lead to the extinction of the traditional advisor anytime soon.