BT Money Hacks: DIY, robo-advisors, or financial advisor. What’s your play?

In the latest episode of the Money Hacks podcast series by The Business Times, host Howie Lim, tackles an ever-relevant topic in personal finance - Should you manage your finances yourself (DIY), use robo-advisors, or hire professional financial management?

The engaging podcast host is joined by two experts, Isaac Ong, a client adviser at Providend, and Tim Phillips, a content creator from TimTalksMoney.com, to delve deep into this discussion.

Why the question matters

Managing personal finances can feel overwhelming, especially when traditional tools focus more on restrictive budgeting than on holistic, fulfilling financial planning. Gen Z adults and millennials are increasingly using AI software to manage their money, pointing to a significant shift in how younger generations are handling their personal finances. But the core question remains: DIY, tech-driven robo-advisors, or professional help?

Find out what Ong advocates as he emphasises that factors like the size of your assets, retirement needs, children’s education, and even legacy planning for high-net-worth individuals should guide your decision.

Considerations to ponder

On the other hand, Phillips cautions about the trade-offs associated with each method. DIY can save you money through low-cost ETFs, but it requires a substantial time investment and strong financial knowledge to effectively manage money.

Robo-advisors offer a digital, often user-friendly way to invest, but they may lack the personalised touch a human advisor can provide.

And what of personalised professional advice? Listen to the podcast for his insights.

AI game changer or not

AI is subtly influencing the realm of personal finance. While many believe that robo-advisors are leveraging cutting-edge AI to make trades, the truth is more nuanced. Most robo-advisors use basic algorithms to determine the best investment strategy based on a series of questions.

The integration of AI into wealth management faces many compliance and regulatory hurdles that could slow down its progress. 

However, some firms are pushing boundaries, using AI to enhance trading and potentially make markets more efficient - a boon for passive investors.

The importance of balance

While restrictive budgeting can accelerate achieving financial goals, both Ong and Phillips argue that it may lead to an unfulfilling lifestyle. Instead, achieving a comfortable balance between saving and spending is crucial.

This episode is a must-listen for anyone curious about optimising their personal finance strategy. Whether you’re a seasoned investor or just starting out, Ong and Phillips provide insights into the pros and cons of different financial management methods. 

Listen now to the discussion for practical advice on balancing saving and living a fulfilling life if you’re serious about your financial well-being.

Share your feedback or suggest ideas for future episodes by reaching out via email at btpodcasts@sph.com.sg.

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Written and hosted by: Howie Lim (howielim@sph.com.sg)

With Isaac Ong, client adviser at Providend; and Tim Phillips, content creator from timtalksmoney.com

Edited by: Howie Lim & Claressa Monteiro

Produced by: Howie Lim & Chai Pei Chieh

A podcast by BT Podcasts, The Business Times, SPH Media

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Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party’s products and services. Please consult professional advisors for independent advice. 

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