‘The fear of AI is overblown’

For Justin Castelli, the biggest challenges within the investment landscape is an inability for advisors to broaden their approach to planning – and a seemingly overblown fear of AI.

Speaking to InvestmentNews, he says that, moving forward, people will want more life planning thrown into the mix.

“Some people may not know they want it, but once they hear about it they're going to that’s what they want.”

Castelli, as founder of RLS Wealth, believes that those advisors who opt to stick with basic planning are going to have a much harder time surviving than those who choose to evolve with the market.

“At the end of the day, I think there's enough people that need help that they'll probably be okay. However, I think it's just the lack of our profession’s want and willingness to evolve with what people need and what they're asking for.”

Not least where technology is concerned. There’s no denying that AI and robotics have the propensity to revolutionize the investment space – not only in what clients invest in but where and how. And while that may seem unnerving to ‘old school’ style brokers, in reality there’s no turning the tide when it comes to AI.

According to data from Hostinger, 35% of companies are using AI in their current business model – with one of the highest AI adoption rates seen in the financial services.

However, Castelli doesn’t think there’s too much cause for concern over robots taking your job.

“I think if you’re doing planning, like the work that I'm trying to do, I don't think - and maybe this may be naive – but I don't think AI or robots can replace my ability to read your facial expressions, know there's something deeper and keep pushing.

“I think that AI is going to be just like the roboadvisors, I think it'd be a tool for advisors who adapt it and find ways to use it. It's not going to replace us financial planners – maybe areas like tax planning will take a hit.

“But if you're doing the very personal skills and working very deep with your clients, I think that that fear of AI is overblown.”

It’s this commitment to maintain that important human touch in investment that really hits home for Castelli. A key milestone in his journey was co-founding the AGC, a community for financial advisors, with fellow 40 under 40 winner Taylor Schulte. This collaboration expanded into a merger with WealthTender, offering greater benefits and resources for the community.

However, amidst these achievements, Castelli faced personal burnout, a turning point that led to his unique approach to financial planning. Castelli realized that his own past struggles mirrored those of his ideal clients, and this epiphany guided him to a new focus: integrating financial planning with a holistic view of life, addressing the spirit, mind, and body. This approach wasn't just a business strategy; it was a personal revelation.

“Somebody once said that our best prospect is a past version of ourselves. So my focus going forward has shifted - still being an advisor, still working with my existing clients, but all future clients will be focused more on this spirit, mind, body approach. And then bringing money into it.”