Why You Should Be Wary of Financial Robo-Advisors

Innovation is good; financial innovation is bad. It gave us the global financial crisis, after all, along with multibillion-dollar bailouts for entities such as AIG Financial Products, which almost nobody had heard of before they suddenly turned out to pose a mortal threat to the entire economy. That said, there are two financial innovations that are generally considered to have been clearly positive for society. One is the ATM, for reasons which should be self-explanatory. The other is passive investing.