We live in a world where nearly every task—from tracking steps to investing money—has been automated. But when it comes to building long-term wealth, the rise of robo-advisors has not eliminated the need for a human financial advisor. Despite unprecedented access to investment tools, the behavior gap remains stubbornly wide.
In today’s digital world, most challenges seem to have an automated solution.
Want to get fit? Use a fitness tracker.
Want to invest? Use a robo advisor.
And yet, the problems persist—obesity rates are still rising, and most individual investors underperform the market.
Why? Because information alone doesn’t change behavior.
In investing—just like fitness—execution matters more than access.
According to S&P’s SPIVA scorecard, most individual investors underperform broad market indices. Meanwhile, platforms like Wealthfront and Betterment offer algorithm-driven portfolios at a fraction of traditional advisory fees.
The Behavior Gap: What Tech Can’t Solve
Knowing what to do isn’t the problem.
People know they should exercise. They know they should invest for the long term.
But emotions, biases, and habits get in the way. This is known as the “behavior gap”.
- In fitness: emotional eating, skipping workouts
- In finance: panic-selling, chasing hot stocks, saving and spending habits
Robo advisors can automate investment portfolios, but they can’t stop you from making fear-based decisions. They lack the behavioral insight of a human financial advisor. Morningstar’s “Mind the Gap” report shows that investors consistently earn less than the funds they invest in—because of poor behavior. Selling too soon, chasing performance, and reacting to headlines all erode returns.
A human advisor acts as a behavioral coach:
- Translating data into decisions rooted in context
- Offering judgment when the market gets noisy
- Helping clients stay aligned with long-term goals
What a Human Advisor Brings
A human advisor offers:
- Accountability – someone who ensures you stay on track
- Judgment – context when life changes
- Coaching – guidance during market swings
Research from Vanguard estimates human financial advisors can add around 3% in net returns annually, largely due to behavioral coaching.
Why the Future is Human + Tech
Technology is a powerful enabler. At Finomenon Investments, we use digital tools for data, reporting, and transparency. But real financial transformation comes from trust, context, and emotional intelligence—things only a human advisor can deliver. Bottom line: In the debate of human advisor vs robo advisor, the winner isn’t one or the other. It’s both—used wisely
The Future is Hybrid, Not Binary
At Finomenon Investments, we leverage technology for reporting, tax-aware rebalancing, and operational clarity. But what we truly offer is behavioral alignment, relationship-driven trust, and judgment when it matters most. In the contest of human advisor vs robo advisor, the best answer is not either/or—it’s both.
Let the machine optimize. Let the advisor guide.
Ready to Close The Behavior Gap?
Explore how a relationship with a family office changes the conversation—from what you could do, to what you will do.
Disclaimer: Nothing here should be considered investment advice. All investments carry risks, including possible loss of principal and fluctuation in value. Finomenon Investments LLC cannot guarantee future financial results.
