At a glance
- Disruption in planning software has historically taken a decade or more, according to InvestmentNews, which traced the line from NaviPlan and MoneyTree in the 1990s through MoneyGuidePro's 2000 release and eMoney Advisor's 2001 launch to RightCapital's arrival in the mid-2010s.
- For a principal weighing the agent, the diligence question is how its calculations are verified.
- Deal Tracker records two Altruist deals in the past 12 months, both with Altruist as the target: one announced, one closed, the most recent on Sept. 21.
Altruist launched an AI financial planning agent, InvestmentNews reported Nov. 10, entering a software category where eMoney, RightCapital and MoneyGuidePro have held what the publication calls a stable Big 3.
Disruption in planning software has historically taken a decade or more, according to InvestmentNews, which traced the line from NaviPlan and MoneyTree in the 1990s through MoneyGuidePro's 2000 release and eMoney Advisor's 2001 launch to RightCapital's arrival in the mid-2010s. Two of the three current leaders are at least 25 years old and the relative newcomer is over 10, the report said. Kitces Research on Advisor Technology shows RightCapital gaining market adoption while MoneyGuidePro has fallen and eMoney has stayed relatively steady atop the market.
For a principal weighing the agent, the diligence question is how its calculations are verified. InvestmentNews said the hard part of putting AI into planning is keeping its output reliable while meeting SEC and state requirements, describing the technology as a black box that is opaque about the calculations inside and prone to hallucinating responses — neither trait desirable in software that client recommendations rest on.
Deal Tracker records two Altruist deals in the past 12 months, both with Altruist as the target: one announced, one closed, the most recent on Sept. 21.
As Private Wealth Daily previously reported, Vanguard raised $4 billion in private debt for its Altruist deal.
Reported by the RIA desk from InvestmentNews, Form ADV (SEC IAPD), Private Wealth Daily Moves Wire and Private Wealth Daily Deal Tracker. Published . Corrections