A new ‘robo-advice’ solution has been launched with the aim of giving individuals more control over their financial situation.
Created by Yellow Brick Road Wealth Management, the program combines technology with financial coaching, offered at a low ongoing fee of $600 per year. A core element of the program is an interactive tool called GURU, which calculates the user’s likelihood of achieving their financial dreams based on their situation today.
Customers use GURU to complete a ‘discovery session’, during which different money decisions can be tested against desired goals over the short and long-terms. GURU then generates a ‘Roadmap’ that captures the steps required to achieve the user’s goals. These two elements of the program are offered free-of-charge.
The financial planning industry is ripe for disruption
“GURU draws on the best of robo-advice technology and uses tens of thousands of calculations to let you see your future, as it stands today. Then it puts the control in your hands to discover the best path forward. It’s an empowering and sobering session,” said Yellow Brick Road Executive Chairman, Mark Bouris.
The third and final part of the program is supported by a Yellow Brick Road money coach, who can manage the implementation of the steps set out in the Roadmap.
To address the unaffordability of financial planning, Yellow Brick Road says it has created entry-level pricing that will challenge the traditional model. Actioning a Roadmap will start at $900 for the first year, and $600 for every subsequent year.
“The financial planning industry is ripe for disruption and Yellow Brick Road is rising to the challenge. Australians are sick and tired of an industry that cannot provide them simple, affordable financial check-ups and guidance, regardless of income and assets,” Mr Bouris said.
“This model will finally give the 80% of Australians – who don’t access financial advice – a solution that works for them.”
The spin would put Warnie to shame. And the googly is back !
Pls answer these questions Mr Bouris
1 Is your advice provided under a GENERAL ADVICE approval
2 Are you offering any Direct style contracts with pre-existing illness clauses etc
3 Are you offering only Macquarie contracts
4 have any of the other life offices provided “seeding capital ”
5 Are the fees you propose to levy in addition to the commission you will earn on life risk sales
Haters gonna hate… I’m guessing your an insurance adviser, as this seems to be all you are focused on. It must be a stressful time for you – so I understand you may have skimmed over this and just wanted to have a crack at someone without reading or trying to understand the offering…
1 – why would it be provided under general advice? ‘Discovery session’ appears to be the opportunity to explore and understand clients goals and objectives – where they are now and where they want to be… Second step – as noted above – is establishing a plan, with the third being implementation… Pretty much the normal personal advice steps, summarised neatly.
2 – There is no mention of insurance in the above press release. If insurance fits the strategy, then why do you assume would be low quality product?
3 – Again, what contracts? Macquarie Life products?? Why so focused on product? Do you not have your own skillset that you promote, or are you a product guy? Yellow Brick Road is independent with a broad APL… Maybe you need to not focus on product – focus on developing your skills and knowledge base, then you wouldn’t need to feel threatened…
4 – I cant answer this, as i do not know. But again, what does that matter. This service offering is not product based at its core. Its developing the ‘Roadmap’, and the products are merely the tools to help get there. And again, YBR is independent with broad APL.
5 – GURU is not an insurance sales tool. It is a stand alone service offering… If clients need insurance as well, as is a seperate service, then of course commissions should be received as well, as the time involved may have doubled/tripled…
Dont worry BillB – change is scary sometimes.
great to hear the above:) the fees charged by a lot of “older'” generation advisers/life agents is out of control,
to see lately ( re;change of insurance comm) advisers coming out with $300-$500 p/h their cost to implement a SOA is a joke who do they think they are ? a surgeon is $100-$200 and their education and skill set is on another level, I have yet to hear a adviser saving someones hand..or life
I would think the advice would be under ASIC Factual Advice laws
Funny thing Troy, I once convinced a man to undergo the Medical Exam the insurance company asked for when he thought he was fit as a bull and wouldn’t buy the insurance if they expected that much information…. he went to the Doctor, was immediately hospitalised with extremely high blood pressure. Never got the insurance but until his later death, always said I saved his life.
With regard to the Surgeon example, remember the hospital, anaesthetist, pathologist etc all bill separately – our fee is all encompassing.
I also couldn’t care less what Mark Bouris does, I run my business on personal advice and relationships. My clients value the value I provide them with. I am proud of what I do, although I haven’t been proud of many others in the industry at times. It is sad that the minority that has caused the over-regulation of the industry has forced the cost of advice (through over the top compliance checks) up to the point it is becoming unaffordable for the average Australian.
I’ll climb down off my soap-box now mate.
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