While robo-advisors lack the human expertise and experience that traditional advisors possess, they offer an important benefit for investors: Their interactive platforms make their fees and operations more transparent than those of traditional advisors.
Fortunately for investors, more advisory firms are adopting the sophisticated online solutions that robo-advisors rely upon, making them available and transparent at any time.
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For example, some registered investment advisors offer interactive client portals that enable investors to view account reports and updates, as well as educational materials such as white papers and videos, at any time. These client portals also include communication tools to facilitate more frequent interaction with advisors, and mobile apps allowing investors to log in from anywhere with an Internet connection.
When choosing a financial advisor, investors should investigate whether or not the advisor offers interactive online solutions that strengthen their relationships with clients and is committed to frequently upgrading its technology.
Online risk assessment tools can match investors with advisors that provide sophisticated technology for clients, and pass on the risk tolerance scores and other calculations they compute to the advisors that investors choose.