Fees matter, but so does advice. Do Advisor Fees offer more value than Robo-Advisor Fees?

Proponents of robo-advisors say their main advantage is lower fees due to increased efficiencies from the technology. They claim this can add hundreds of thousands of dollars to your investments over time. But is that true? I decided to do my own analysis of the impact fees can have on an average person’s retirement savings. ASSUMPTIONS I decided to look at two 50-year-olds planning to retire at age 65. I assumed a net 6% rate of return to represent the robo-advisor and a net 5% rate of return to represent the human advisor (I deducted 1% to compensate the human for her advice). My typical couple each earn $100,000 per year and each have $150,000 in RRSPs and $35,000 in their TFSAs. Both con

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