Man and Machine: When to Use a Financial Planner or Robo-Advisor
Managing your money is more flexible than ever. Should you trust a person or an algorithm? The rise of robo-advisors allows for hands-off, automated investing, while financial planners offer a personalized, human touch. But how do you decide which option is best for you? Do you need one, both, or maybe neither? This blog will walk you through the key differences between using each (or both) and when you might not need either.

What Is a Robo-Advisor?
A robo-advisor is a digital platform that uses algorithms to manage your investments. Instead of sitting down with a human advisor, you answer a few questions about your goals and risk tolerance. The robo-advisor creates and manages a diversified investment portfolio for you.
Why Use a Robo-Advisor?
- Simple, hands-off investing – Set it and forget it.
- Low fees – Typical fees range from 0.25%–0.50% annually.
- Great for beginners – No prior investing knowledge is required.
Popular Robo-Advisors:
- Betterment – Low fees, goal-based investing.
- Wealthfront – Automated planning tools, like home-buying projections.
- Acorns – Automatically invests spare change from everyday purchases.
What Does a Financial Planner Do?
A financial planner is a professional (often with a Certified Financial Planner or CFP designation) who helps you build a whole financial strategy. While robo-advisors focus on investing, financial planners cover the bigger picture, including debt, savings, taxes, and significant life changes.
Why Use a Financial Planner?
- Personalized financial advice – Tailored guidance based on your goals.
- Help with big life changes – Marriage, kids, buying a home, or changing jobs.
- Comprehensive financial planning – Covers investments, debt, taxes, and retirement.
When to Use a Financial Planner:
- If you have complex goals like paying off debt, saving for college, or managing an inheritance.
- If you’re facing a significant life change like marriage, having a child, or changing jobs.
- If you need a human advisor to walk you through your options.
Robo vs. Human: Key Differences
Criteria |
Robo-Advisor |
Financial Planner |
Cost |
Lower fees (0.25%–0.50% annually) |
Higher fees ($100/hr or 1% of investments) |
Personalization |
Limited, uses algorithms |
High, fully customized advice |
Services Offered |
Investments only |
Full financial planning (investments, taxes, goals) |
Human Interaction |
None (fully automated) |
1:1 meetings (virtual or in person) |
When Should You Use Both?
Sometimes, using both makes sense. Here’s when this combo could work for you:
- Use a robo-advisor for ongoing, low-cost investing.
- Check in with a financial planner once or twice a year to tackle big-picture goals.
When Do You Need Neither?
Sometimes, you don’t need a financial planner or a robo-advisor. Here’s when:
- If you’re focused on paying off high-interest debt, do that before investing.
- If you’re comfortable managing your own budget and investments.
- If you’re in the early stages of learning about money and using free resources.
How to Decide Which Option Is Best for You
If you’re still unsure, here’s a quick guide to help you choose:
- Use a robo-advisor if you want simple, low-cost, hands-off investing.
- Use a financial planner if you have complex goals like managing debt, saving for college, or planning for retirement.
- Use both if you want low-cost automation with personalized advice for major life decisions.
- Use neither if you’re focused on paying down debt, handling your own finances, or using free online resources.
Key Takeaways
- Robo-advisors automate your investments, while financial planners offer personalized guidance.
- Use a robo-advisor for simple, low-cost investing.
- Use a financial planner for complex goals like paying off debt or managing a major life change.
- Sometimes, using both is the best strategy for long-term success.
Reflection Questions
- Which option would you choose: a robo-advisor, a financial planner, a mix of both, or neither? Why?
- What are the biggest pros and cons of robo-advisors vs. financial planners?
- If you had to pick one financial goal to work on right now, would you prefer human help or a tech-driven solution?