So we saw that target date funds, which are the newest thing and the hottest thing in retirement invest in these days are a simple example of customized investment, customized to just one thing, right? How old are you or how long it is, how long do you expect it to be until you retire. Take that one fact, and out of that, create an investment plan. Robo-Advisors obviously can do better than that. They can find out much more than just your age and they can customize more accurately than that. We talked about how they could gauge your risk aversion by asking targeted questions and and customize your portfolio to that. Of course, there's plenty other financial goals that you might have besides retirement. You may have the goal of buying house? You want to have a goal of buying a house and you want to save towards that goal as well, and so that's something that you can plan towards that in a very similar fashion. Or maybe you already have a house. Maybe you already own a house, and that is another source of your wealth, you're the equity in your house. Well, that's something that a Robo-Advisor can track for you. It's not that hard, right? If I know where your house is, I can go to one of your Zillow or lots of other sites and grab an appraisal that moves over time. It's going to move over time with other transactions in your neighborhood, and I can report to you what's happened to your home equity in the past month or so. You could think about how to use that fact, how to use the fact that you have that money. Do you want to take some of that out with a home equity loan? What's the rate in the home equity loan? Well, that's another thing that Robo-Advisor can present to you and maybe make a suggestion. Or how about your mortgage, right? Should you be refinancing your mortgage now? Is that an opportunity these days? Is it worth it to refinance your mortgage or pay it down? What about your student loan? You can refinance your student loan. There are companies that will help you with that. So phi that's their line of work, helping you refinance out of your student loan, or maybe you don't want to refinance out of your student loan. If you refinance out of your federal student loan into SoFi or something else like that, well, now you're going to lose your opportunity to enter income driven repayment in the future if circumstances should change. You'll miss the opportunity to enter into this program where your payment can be reduced to 10 percent of your disposable income if bad times hit. Maybe is it, how do you think about that? How do you think about the lower rate from SoFi versus losing the opportunity to enter into income-driven repayment in a bad circumstance? Those are tricky questions on the debt side of your household balance sheet that Robo-Advisor can help you think about. Also we talked about just a few things that the Robo-Advisor can ask you and bring to bear to your portfolio. There's all these other things that they don't have to ask, you they just have to watch you. If you have my app I can see when you use it, I can see what kind of events occur in the macro economy in the world that seem to trigger you using it. I can see where you click. I can see where other people are clicking right now. So, I'm learning a lot, you think you're just looking at your app. I'm learning about you constantly. I can use that in ways that could help you, or maybe you might think it's not going to help you. Maybe you think I'm going to take advantage of you somehow. Well, I'm not saying they won't, but that is all potentially useful information that then I can potentially bring to bear on the offers I send your way, the reminders I send to you, suggestions I make. All of that can be key to the behavior that I observe in you and the contemporaneous behavior I can see in other people and the decisions that they make. So, there's a real opportunity there real scope for big data approach to customizing your Robo-Advising experience. I mentioned Social Impact a bit back. This is, you think about the big trends in investing these days. Index funds, there's target date funds and the other big movement these days is social impact, and this is another area where Robo-Advisors are going to help you put to work whatever ethical guidelines you want to bring to bear. So if there are certain industries that you don't want to be involved in this sense of being being a shareholder, well, that is something you can articulate what your screens are. Don't put me in this industry. Do put me in that industry. Look for this behavior. Avoid that behavior. This is all bread and butter for the Robo-Advisor to easily pair down the universe of assets they optimize over, makes sure that this is a universe that you are comfortable with, and then put that to work. So that's another way that they can customize your investing experience.
