NC Advisory Firm Launches Fee Slashing App for Investors.
Robin Hood Online Financial Planning Development, LLC, “Go Robin Hood”, is a Registered Investment Advisor operating exclusively through their interactive website,http://www.gorobinhood.com.
This allows the firm to offer their unique advisory service to investors nationwide. To be used in conjunction with a reputable online broker, chosen by the investor, Go Robin Hood’s annual membership program ($65 per family) provides members with access to a proprietary rebalancing app which enables them to perform account management tasks quickly, accurately, and confidently, without the expense of a traditional financial advisor.
The membership also includes: quarterly email reminders, educational videos, allocation apps, planning tips, sub-asset class and sector reviews, and short videos with commentary on the markets and economic cycle highlighting relevant trends and issues.
Millions of investors receive great initial service from their financial advisors and are set up correctly. However, once the assets are transferred, accounts all too often fade into the automated background. “This is not a bad thing” says creator and managing member,
David S. Davis. “Correct account types, appropriate allocation, quality funds, regular rebalancing, and time are the key components of a great investment plan and, historically, this has proven to be a highly successful formula. The real problem is that these investors continue to endure quarterly fee extractions from their accounts which have a negative compounding effect on their returns and account balances.”
In the absence of ongoing advice or adjustments, investors are ultimately paying a quarterly fee (percentage of their assets) for little more than computerized math calculations (automated rebalancing). When these fee extractions are prevented, that savings then grows and compounds in the investors’ accounts creating substantially larger balances over time.
Most reputable online brokers are now offering free brokerage services to investors including: no account opening fees, no annual maintenance fees, low minimums, and a great selection of high quality low cost funds with no transaction fees. They are happy to provide these services to get the assets on board. They can then attempt to funnel investors into their own managed portfolio models (advisory business) which are almost as expensive as the full-service firms.
Solution: Go Robin Hood has created a user friendly rebalancing app that allows investors to rebalance their own accounts very easily. The entire process takes only a few minutes per account per quarter. The data retrieval system is powered by Morningstar which provides speed and accuracy. Investors can also create, name, and save all of their family accounts making every subsequent rebalances even faster (account numbers and personal data not required). Investors immediately gain more flexibility and control when they want to try various scenarios, or make subtle adjustments to their allocation prior to making the actual transactions at their online broker.
“It is very important for investors to maintain discipline and stay within a range of their appropriate allocation, however, there is nothing wrong with making subtle adjustments based on market or economic conditions” adds Mr. Davis. “Every investor deserves that flexibility.”