At a recent ETF conference in Hollywood, Florida, the topic of a panel discussion turned toward the rising popularity of robo-advisors, the technology providing online investment management services without human interaction. Ruth Delaney, president of Greenleaf Financial Strategies Inc., who was attending the conference, acknowledges that some of these services are better than others. In a recent interview with The Suit, she explained that mutual fund companies and other large financial institutions are developing their own robo-advisor platforms – and they  will require additional fees if a person wants to speak with a human advisor.

“I think that is probably the way a lot of advisors may go. The millennials and Generation Z are very tech savvy, but eventually I think many of them will need some handholding. Most financial mistakes are made by reacting to markets, not working with them. “Of course, large contingents of baby boomers are not ready for robo-advisors,” Delaney stressed.

As an independent, fee-based wealth management firm, Greenleaf Financial Strategies must, by law, act as a fiduciary to their clients – that is, they must always provide professional services that represent a client’s best interests, and not those of the advisor. Broker-dealers, by comparison, represent financial products offered by companies and are only bound to a “suitability” standard, which many say isn’t enough to protect clients.

The Dodd–Frank Wall Street Reform and Consumer Protection Act calls for a uniform fiduciary standard for all financial advisors, but Delaney is not a fan of the pending legislation. “I think the rule doesn’t deal with the reality on the street, as well as the other rules and regulations spawned by the Dodd Frank Act. A lot of them are more harmful than they are protective of individual investors,” she said. In fact, she is a member of the Financial Services Institute, an organization fighting against passage of a uniform fiduciary standard. If it is passed, Delaney foresees most financial advisors moving to a fee-based model “because it won’t be worthwhile to do things on a commission basis.”

Greenleaf acts as a client’s “personal CFO.” Working with families in the Tampa Bay area who have a minimum of $500,000 in investable assets, the firm focuses on comprehensive wealth management for individuals and families, including estate, tax and retirement planning. They also assist business owners with company retirement plans.

Delaney, who has long worked with Dimensional Fund Advisor, LP noted, “I have taken a conservative approach from the beginning.” She prefers asset class funds over those actively managed to try to beat a benchmark index.

“As a result, my clients weathered the 2008 financial crisis very well,” Delaney said. “I don’t try to chase performance – and my clients understand that and appreciate the smoother ride that they are getting.”

For more information, visit: www.greenleaf-financial.com