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Roboadvisor geared to the 50+ investor

Using an AI powered roboadvisor, one can optimally save and spend such that one can achieve dreams while meeting obligations

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Who is your idea designed for and how does it support the dreams and obligations of those 50 and older?

The idea is designed to be a low cost financial advisor for those 50 and older. Through the roboadvisor, users will be given advice on how to appropriately allocate savings across different asset classes to preserve wealth as well as determine the optimal budget that allows for them to spend on the things they want while ensuring that enough money is saved to meet future obligations.

Quality financial advice can be difficult to find and often expensive if you want it tailored to your specific needs. However, with advances in technology, roboadvisors allow for low cost access to high quality financial advice. Through structured algorithms as well as machine learning, roboadvisors can help users allocate their savings into the appropriate asset classes to meet the risk/reward objectives. Through a more tailored algorithm for the 50+, the roboadvisor can identify the long term cash needs as well as the spending goals and dreams of the user and help them achieve both cash preservation as well as identify the appropriate budget that enables one to spend such that they can achieve their dreams. Moreover, the roboadvisor would be developed to be user-friendly, informative, and transparent to ensure ease of use and trust in the product.


Currently, roboadvisors are either focused on 1) asset management (i.e. Wealthfront), or 2) savings tips (i.e. Mint). As a result, one knows to save more and what asset classes to invest it, but they don't know how much they should be spending and saving to meet their specific obligations while still spending on the things that make life enjoyable (traveling, entrepreneurial ventures, hobbies, etc). Further, the interfaces of current roboadvisors are typically geared towards millennials and don't address the challenges of building trust with the 50+ community.


I believe that current offerings can be improved upon by identifying one's goal's and potential future obligations. By looking at one's age, current wealth, current and expected income, retirement age, personal and family health, and life ambitions/dreams, a robo advisor can help one identify their potential future cash outflows (i.e. their financial obligations), see how their current and expected wealth and income meets those needs, and see how much one can spend or save towards the things that make their life meaningful. Further, I believe that by using chatbots and a light salesforce, the user will feel that their experience is more personal and higher-touch than simply an automated advisor (even though the automated advisor is providing them with very personal/customized advice). 


What early, lightweight experiment might you try out in your own community to find out if the idea will meet your expectations?

A lightweight experiment would be to offer financial advice (partially automated on the backend) through a user friendly computer interface rather than person to person. The recommendations would be found through a combination of a simple rules-based algorithm and manual computations . We can see if the user finds the financial advice useful and the format of primarily machine interaction with some interpersonal interaction sufficient.

What skills, input or guidance from the OpenIDEO community would be most helpful in building out or refining your idea?

All kinds of skills! UX Design, Computer Science, Finance, and Research skills are all useful.

Tell us about your work experience:

I am currently an MBA student at London Business School, but have previously worked at Goldman Sachs where I structured financial products for wealth advisors and also helped large corporates manage their pension risk. In these roles, I helped design products that improved our clients' experiences.

Please check all that apply:

  • I'm not currently involved in a credit union, but am curious to learn more!

This idea emerged from

  • An Individual

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Hi Malavika, thanks for the post! Any chance you could find an image to go along with it? Images help grab attention and tell a story. You should be able to use the Edit Contribution button on the top of your post and follow the instructions to add images from there. Looking forward to seeing more of your inspiring insights on OpenIDEO.

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