The Future of RoboAdvisors

Today on the show we are joined by Rick Ferri. Anyone who follows or is interested in index investing will probably have read something of Rick’s. He’s written seven books, working on the eighth, and he’s written a ton online as well. Rick opened Portfolio Solutions, the first low fee index fund based wealth management shop and built it up to over a billion dollar company. Rick created the model of low cost fiduciary advice, using index funds and putting the client first, so today we’re chatting to him all about it. Inside this episode Rick shares why he is so passionate about low cost index investing, the four levels of an index investor, and the requirements for being a good index investor in the long term. We also talk about his relationship with John Bogle, who recently passed away. It was a pretty meaningful conversation! For this and more, be sure to join us on today’s episode!

Key Points From This Episode:

• Rick’s passion for low cost index investing. [0:02:24.0]
• The four levels of an index investor. [0:05:0]
• Dimensional funds: active management that uses factor based investing principles.[0:10:29.0]
• None market risk factors fitting into a portfolio. [0:11:54.0]
• Rick’s thoughts on the price and the value around behavioral coaching. [0:13:44.0]
• The future of robo-advisers. [0:18:14.0]
• Three things required for a person to be a good index investor in the long term. [0:18:54.0]
• Not indexing yet? - You need repetition, repetition, repetition. [0:20:28.5]
• Having more assets than they’ll ever need in term of their equity exposure. [0:22:40.0]
• John Bogle as a person and how he changed the financial services industry. [0:24:33.5]
• How Rick defines success. [0:29:05.0]
• And much more!