I think you know where Your Survival Guy stands, but that doesn’t mean I don’t read plenty about AI and bots taking over the investment universe. It’s impossible to stop progress, and I see a role for the robo adviser, but it’s been my experience that when you get to a certain level of wealth, and to a certain point in life, you want to speak with someone you know and trust. It’s that simple. Yet it’s hard to find that person. Late 50s, early 60s, mid 60s. There’s not a set age when you know you would never rely on a robo adviser to call the shots. I don’t have any scientific evidence to back this up it’s just my experience.
Are You Guided by the Prudent Man?
In the September 2015 issue of Richard C. Young’s Intelligence Report, Dick Young wrote:
The Prudent Man Rule is based on common law stemming from the 1830 Massachusetts court formulation Harvard College v. Amory. The Prudent Man Rule directs trustees “to observe how men of prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety of the capital invested.”
Since I started our family investment management firm in 1989, I have operated under the assumption that the Prudent Man Rule to this day carries as much weight as it did in 1830. Common sense and prudence just don’t go out of style—ever.
Action Line: When you want to talk about the Prudent Man, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
Originally posted on Your Survival Guy.
