The Problem With Model Portfolios
What is in the best interest of the Investor?
Now, technology has evolved past model portfolios, rendering most investors owning model portfolios at a distinct and material performance disadvantage.
Do model portfolios measure up against a new class of custom portfolios enabled by Robo advisors?
If you have an Investment Portfolio that is advised by a Financial Advisor chances are pretty good you have a model portfolio. Model portfolios came about based on the technology that financial advisors had to work with, chief amongst them is rebalancing software. Add in a risk profiling software and presto nearly any insurance agent and financial planner could have a serviceable solution for investment management clients. These software packages and platforms allowed financial advisors to support more clients and make more money.