It is a sign of the times when a world renowned investment management firm such as Goldman Sachs invests in a small tech company that offers a cheap automatic way of picking stocks and bonds for savers. The types of savers that this technology is aimed at are small companies and self-employed workers. Builders and taxi drivers are not exactly Goldman’s usual set of customers, so this is a sign of a revolution in asset management.

Their new technology now offers a new breed of “robo-advisors” that offer a cheap, automatic version of something that used to take a long time and cost a lot of money. Instead of an expensive advisor picking out stocks and bonds in which savers should invest, a computer does a more sophisticated job at the touch of a button.

The days of asset allocation and an active highly paid asset manager to pick funds are numbered. A computer with access to a standard array of index funds and exchange traded funds can devise a suitable long-term investment strategy for most people in the blink of an eye.

Simply select your risk appetite, enter your annual income and time horizon for investing and the roboadvisor immediately finds you an investment solution. The robot suggests a blend of US, health and tech equities, such as tech indices which track Amazon, Apple and Google, adds some corporate and government bond funds, and a portion is held in cash.

Robo-advisory start-ups are growing rapidly. They offer investors ease and simplicity

at a very low cost — often a quarter of the fee an investment advisor at Morgan Stanley or Bank of America Merrill Lynch would charge. This is because they are rolling the financial advisor, the investment manager and the fund platform into one service, so there are large cost savings for the investor.

Hold on…. say people in the wealth management industry at this point. Robo Advisors apply common sense in a user-friendly way, but this is not the same as giving sophisticated advice. “Someone who can sit with you and work through a series of complex decisions — that is not going to go away,” We are told…

Humans often are slaves to their own emotion which can often end in tears. A successful trader needs to act like Mr. Spock from Star Trek, using logic for trading decisions and this is where Robo-advisors are very effective, beating humans hands down especially when looking at the medium to long term.

Themoneypouch.com is one of a new breed of Smart Robo Advisors where upon registration the site can work out your risk factor and investment goals and in ten minutes you can be on your way to harnessing the power of your own Robo-investor picking you the best stocks and bonds to balance and target a steady, stable return on your investment, and of course they have real people to speak to as well. Whilst you won’t get rich quick, this will help you stop making human behavioral errors such as buying high and selling low.

Also, you will have way more free quality time to spend with your family & friends

To have a look what a robo advisory can do for you click here: