Webmaster No Comments

Staying Safe with Lithium-Ion Batteries: Risk Mitigation for Boats, Yards and Industrial Facilities

Dan Bookham, AAI

Dan Bookham

By Dan Bookham for WorkBoat Magazine
Lithium-ion batteries have become so prevalent in our lives that it’s almost hard to imagine life before they came along. From electrical vehicles to hand tools to our ubiquitous mobile phones, lithium-ion batteries are everywhere, every day. But while this technology offers numerous benefits, it also poses several significant hazards that vessel operators, industrial facilities and boat yards must address proactively.

It will come as no surprise that there are multiple hazards related to li ion batteries that can cause all manner of damage and injury. Thermal runaway is the most significant but there are also electrical, chemical and other physical hazards galore. It is imperative that operators on shore and on the water have plans in place for the various ‘what ifs’ that could happen.

Much like other potentially hazardous materials on board or in the yard, clear SOPs and ongoing training are the key to a successful risk mitigation strategy. Best practices include conducting thorough risk assessments to identify where lithium-ion batteries are used, stored, charged and disposed of; evaluation of potential hazards associated with each stage; designation of areas for charging and storing batteries, away from flammable materials, high-traffic zones and sensitive equipment and procedures for regularly inspecting batteries and devices for signs of damage, such as swelling, leaks, cracks or unusual odors. Damaged batteries should be immediately removed from service and quarantined for safe disposal. Put together a plan for the safe disposal and recycling of batteries according to local regulations and emphasize that damaged or end-of-life batteries should be handled as hazardous waste. Perhaps most importantly, follow proper charging guidelines (the user manual or manufacturer’s instructions are your friends here) and do not leave chargers plugged in and unattended overnight: A simple outlet or power strip timer that automatically shuts off at the end of shift or other designated time can literally be a life saver.

The marine environment can be particularly hard on lithium-ion batteries. Water, salt and the propensity for vessels and yards to sometimes encounter rugged conditions that can damage batteries during every day operations. Onboard, ensure that lithium-ion battery installations on boats are done by qualified professionals and adhere to marine-specific safety standards and regulations.  Additionally, implement safe storage practices for batteries removed from vessels during maintenance or off-season storage, considering temperature fluctuations and potential for damage. Set up strict protocols for charging batteries onboard, ensuring proper ventilation, using approved chargers and avoiding unattended charging, especially overnight.  Finally, be aware of employee, crew and guest devices: recently we narrowly avoided a significant claim on a vessel due to a crew member’s rechargeable vape pen overheating thanks to a captain’s vigilance.

By implementing comprehensive mitigation strategies, you can significantly reduce the risks associated with lithium-ion batteries and ensure a safer working environment, a much lower risk of a potentially business ending incident and the health and lives of your team. You’ll look like a star in the eyes of your insurance company, too!

Webmaster No Comments

How Much Should You Spend on Aging in Place?

Aging in place—the idea of staying in your own home as you grow older—offers both independence and comfort. But while the idea sounds appealing, the financial reality of making it happen can be more complicated than many anticipate. From home modifications to in-home care, there are a variety of costs to consider and plan carefully. Let’s break down the key costs associated with aging in place, and how you can manage them to stay on track with your financial goals.

Home Modifications: Preparing Your Home for the Long Term

As you get older, your home needs to be safe and easy to navigate. If you’re noticing that everyday tasks, such as walking up stairs or stepping into the bathtub, are becoming more difficult, now is the time to think about home modifications.

Key Modifications to Consider:

  • Stairs and entryways: If you have trouble with stairs or walking, adding ramps or installing a stairlift can improve safety and mobility.
  • Bathroom updates: Consider a walk-in shower, grab bars, or a raised toilet seat to reduce risks.
  • Wider doorways: If you use a walker or wheelchair, widening doorways can make it easier to move around.

These updates could cost anywhere from a few hundred to a few thousand dollars, but they’re far less expensive than medical bills from accidents caused by unsafe living conditions. Fortunately, there are financing options such as home improvement loans and grants specifically for seniors, and some modifications may even be tax deductible.

Financial Tip: Look into financing options early to avoid unexpected financial strain. Research grants, loans, and tax benefits to help cover the cost.

Home Maintenance: Planning for Ongoing Costs

As you age, maintaining a home becomes more difficult. If you’ve lived in a large house for years, you might find that tasks such as mowing the lawn, cleaning gutters, or even managing repairs are becoming overwhelming. At some point, you’ll likely need help with these tasks.

Maintenance Tasks to Plan For:

  • Lawn and yard care: Lawn mowing, snow shoveling, and landscaping
  • Routine repairs: Plumbing issues, fixing appliances, roof repairs
  • Cleaning services: Regular cleaning to keep the home tidy and safe

For many older homeowners, these costs add up quickly. The expense of hiring help for even basic upkeep can reach thousands of dollars annually, depending on your location and the services you need. Planning for these ongoing expenses now can help prevent surprises down the line.

Financial Tip: Set up a dedicated maintenance fund specifically for these types of expenses. This allows you to manage regular costs without tapping into your retirement savings.

In-Home Care Costs: How to Prepare for Assistance

As time passes, most people will need some help with daily activities, whether it’s preparing meals, managing medications, or getting dressed. These costs can add up quickly, so it’s important to plan for them in advance.

Types of Care to Consider:

  • Personal care aides: These professionals assist with daily tasks such as bathing, dressing, and meal preparation. They usually charge an hourly rate.
  • Skilled nursing care: If you need more specialized medical help, such as physical therapy or medication management, a nurse may be required. This is generally more expensive than personal care aides.

The cost of hiring an aide for even a few hours a day can run into thousands of dollars per month, depending on your location and the level of care needed. If you don’t already have long-term care insurance, now is the time to consider it to offset these future expenses.

Financial Tip: Check whether your health insurance covers any part of in-home care, or if Medicaid is an option in your state. And if you don’t already have long-term care insurance, look into options that might suit your needs.

Financial Sustainability: Making Sure You Can Cover the Costs

Aging in place requires long-term financial planning to ensure that you can cover all these costs without depleting your savings. You may need to explore different strategies for funding your home modifications, maintenance, and care needs.

Options to Consider:

  • Downsizing: If your current home is large or costly to maintain, selling it and moving to a smaller, more affordable property can free up cash.
  • Long-term care insurance: This can help cover the cost of in-home care, helping protect your savings when your care needs increase.

Financial Tip: Downsizing is a significant financial decision. Speak with a financial advisor to fully understand its long-term implications before moving forward.

When Aging in Place Becomes Too Costly

At some point, you may find that the costs of aging in place—or the physical demands of maintaining your home—become too great. If your care needs increase or home maintenance becomes too difficult, it’s time to reassess whether staying in your home is still the best choice.

For example, you might start with part-time in-home care, but as your needs grow, you may find that full-time care is necessary. The costs of full-time care and maintaining your home could exceed your budget, making other options, such as assisted living, more appealing.

Financial Tip: Regularly reassess your needs and expenses. If aging in place becomes unmanageable, consider speaking with a financial advisor to explore other options, such as transitioning to assisted living, before you reach a crisis point.

Plan for the Long Term

Aging in place is a great goal for many, but it requires thoughtful financial planning. From home modifications to in-home care and regular maintenance, understanding the full scope of the costs involved will help you set realistic expectations. By budgeting carefully, exploring financial options, and reassessing your needs periodically, you can ensure that aging in place remains a viable option that allows you to live comfortably in your own home for as long as possible.

Webmaster No Comments

Why Loss Control is Your Friend

Chris Richmond, CIC, AAI, CMIP

By Chris Richmond
For WorkBoat Magazine
Recently, a local shipyard we work with was visited by the loss control manager from the insurance company that writes their USL&H coverage. This was a good visit all around. Although the yard and the insurance company have had a longstanding relationship, recent losses required the insurer to make several large payouts, resulting in a premium increase for the shipyard. This is not good all around.

USL&H premiums are based on payroll and the types of work employees perform. The larger the workforce, the more a company pays. Then, loss experience is factored in. The more claims you have, the higher your premium will be. It’s easy to forget about past claims – until you experience a serious case of sticker shock when the premium notice arrives.

For many years, the mindset at many yards has been to “get the job done”– a phrase often seen as a mark of strong work ethic. But it’s just as important to include the word “safely.” And the expense of a claim does not stop at medical bills. The indirect costs a yard incurs from a claim due to work stoppage, extra paperwork, corrective actions, lost time worked by injured, etc., can add up to an additional 66% of unseen costs to your business.

At our local shipyard, the loss control manager presented a spreadsheet covering five years of claims. It detailed the injured body part, the job being performed, and the cost associated with each incident.  A subsequent tour of the yard found spots for the safety director to focus on to help prevent future accidents. Suggested changes were made and a follow-up visit in four months was scheduled.

The insurance company’s loss control manager recognized this long-term relationship and provided valuable (and free) guidance to our insured to help reduce injuries at the workplace. The hope is that a safer work environment will lead to fewer accidents, fewer claims, and ultimately, lower USL&H premiums. The money saved can be invested elsewhere. Clearly a win all around.

Webmaster No Comments

Welcoming Kristin Alley to Team Allen

Kristin Alley

Kristin Alley

Kristin Alley of Vinalhaven has joined Allen Insurance and Financial as an account manager in the company’s business insurance division.

A Vinalhaven native, Kristin brings 10 years’ experience as a licensed Maine insurance agent, along with administrative and client relations experience at both a medical clinic and an eldercare facility in Vinalhaven. She is a graduate of the University of Maine in Machias, where she studied business and accounting.

Webmaster No Comments

Nick Pucello Completes Liberty Mutual Producer Development Program

Nick Pucello, a business and marine insurance producer at Allen Insurance and Financial, has successfully completed the Liberty Mutual Business Lines Producer Development Program – a rigorous 10-week course designed to sharpen technical knowledge, strengthen sales expertise and enhance the ability to navigate the complexities of today’s insurance marketplace.

Nick joined Allen in January 2025 and has quickly demonstrated a strong commitment to professional development.

“Nick’s dedication to completing this intensive program reflects both his work ethic and his focus on building a strong foundation for long-term success in our industry,” said Dan Bookham, Allen’s senior vice president for business development and commercial lines. “All of us at Allen are proud of this important step forward in his career.”

Allen Insurance and Financial is an employee-owned insurance, employee benefits, and financial services company with offices in Rockland, Camden, Belfast, Southwest Harbor and Waterville. For more information call 236-4311, or visit AllenIF.com

Webmaster No Comments

What You Should Know Before Naming a Minor as a Beneficiary

If you have young children, grandchildren, or other little ones in your life who are dear to you, you might consider including them in your estate plan. One component of that estate plan may include naming them as a beneficiary on your financial accounts, insurance policies, or other assets via a will. While leaving assets to minors may seem like a simple solution, it can lead to unintended complications. In this article, we’ll explore the challenges minors face when inheriting assets and provide practical strategies to help ensure that your wishes are carried out smoothly.

What Challenges Do Minors Face as Direct Beneficiaries?

Minors legally cannot own or manage significant funds or property without a custodian. Here are the potential challenges when leaving assets directly to a minor:

  • Custodianship: When a minor inherits assets outside of a trust, they will usually need a custodial account to manage the funds until they reach the age of majority. This account requires a designated custodian, who may be a parent, legal guardian, or another trusted person. If no custodian is named, then most often a natural parent or legal guardian will typically take on this role. Speak to your financial advisor or attorney for more information about how to elect a custodian.
  • Lack of control: In almost all circumstances, control of custodial accounts must be transferred directly to the minor once they reach the age of majority as defined by state law (often either 18 or 21). This may not align with your original intention if the child isn’t ready to handle the inheritance responsibility.
  • Probate: When leaving assets to a minor via a will, they could go through probate, a costly and time-consuming process that validates your will and distributes the assets. To avoid delays and complications, it’s important that all accounts have named beneficiaries, and you consider using a trust to bypass probate.

 How Can You Establish a Trust to Protect a Minor’s Inheritance?

A trust is often the most flexible and effective way to ensure that your child’s inheritance is distributed according to your wishes. However, it is also often the most expensive. Here are some of the features of a trust:

  • Control over distribution: You can set specific terms, such as distributing funds at milestones like graduating from college or reaching a certain age, ensuring that your child is prepared to manage their inheritance.
  • Protection from mismanagement: A trustee (either an individual or institution) will manage the funds responsibly, ensuring that they are used appropriately, such as for education or housing, until the child is mature enough to take control.
  • Extended control beyond age of majority: If you don’t want your child to have full control at 18 or 21, a trust allows you to distribute assets over time (e.g., 25% at age 25, 25% at 30, and the remainder at 35). This approach helps ensure your child’s financial maturity before receiving large sums.

Three ways to Protect a Minor's Inheritance - graphic

When Might Custodial Accounts Be Appropriate?

If you’re looking for a simpler option, custodial accounts under the Uniform Transfers to Minors Act (UTMA) or the Uniform Gifts to Minors Act (UGMA) might be a good choice. These accounts allow you to transfer assets to a minor while appointing an adult custodian to manage them until the child reaches the age of majority (usually 18 or 21, depending on the state) via a beneficiary designation.

Key features of custodial accounts:

  • Simple and cost-effective: Easy to set up with no complex administration. There are typically no ongoing fees or tax filings.
  • No probate: Funds in a custodial account avoid probate via a beneficiary designation, ensuring a quicker transfer.
  • Automatic control at age of majority: Once the child reaches the age of majority as defined by the state, they gain full control over the account, which may not be ideal if they aren’t ready to manage it. For this reason, custodial accounts may be best suited for smaller amounts or simpler needs.

Why Is Choosing the Right Trustee or Custodian Critical?

Whether you choose a trust or a custodial account, selecting the right person to manage the funds is essential. This person will be in charge of handling the money and making decisions, so they must be financially responsible, trustworthy, and likely to outlive you. It’s also a good idea to name a backup trustee or custodian in case your primary choice is unable or unwilling to take on the responsibility.

For larger sums or more complex situations, you might want to consider naming a professional trustee, such as a financial institution or estate planning expert, to ensure that the trust is managed according to your wishes. Speak with your financial advisor to determine if a professional trustee is the best option for you.

What Circumstantial and Tax Implications Should You Consider?

Leaving money or property to a minor can have tax implications that should be considered. One important factor is the kiddie tax, which applies to any unearned income (such as investment earnings) a child receives. If the amount exceeds a certain threshold, it will be taxed at the parent’s rate instead of the child’s, which could lead to a higher tax burden. Also, trusts are often taxed at higher rates than individuals, so if you set one up, it may quickly reach the highest tax bracket, even if the income is relatively low.

Additionally, retirement assets left to minors could affect their eligibility for student aid, and naming special needs beneficiaries could affect their government benefits. Always consult with your financial advisor and a tax professional to structure the inheritance in a way that minimizes tax consequences and aligns with your overall financial goals.

Have You Considered 529 Plans for Education-Specific Inheritance?

For those who want to leave funds specifically for a child’s education, a 529 college savings plan can be an excellent option. These state-sponsored accounts provide tax advantages when funds are used for qualified education expenses. The benefits include:

  • Tax advantages: Contributions grow tax free, and withdrawals for education expenses are not taxed.
  • Control: The account owner maintains control of the funds, even after the child reaches adulthood.
  • Flexibility: If the child doesn’t need the funds, you can change the beneficiary to another family member. Additionally, starting in 2024, you can transfer a certain amount of funds into a Roth IRA for the beneficiary, offering additional flexibility for long-term savings.

Some estate planners recommend using a 529 plan alongside other inheritance tools, such as trusts, to create a comprehensive financial plan.

While naming a minor as a beneficiary is a thoughtful gesture, it requires careful planning to ensure that your assets are used responsibly and in the best interests of your child or grandchild. Consulting with an estate planning attorney, tax professional, and your financial advisor is key to creating a plan that aligns with your goals, minimizes tax implications, and helps avoid unnecessary complications in the future. By taking proactive steps today, you can ensure that your loved ones are supported when they need it most.

The fees, expenses, and features of 529 plans can vary from state to state. 529 plans involve investment risk, including the possible loss of funds. There is no guarantee that an education-funding goal will be met. In order to be federally tax free, earnings must be used to pay for qualified education expenses. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10 percent penalty. By investing in a plan outside your state of residence, you may lose any state tax benefits. 529 plans are subject to enrollment, maintenance, and administration/management fees and expenses.

This material has been provided for general informational purposes only and does not constitute tax, legal, or investment advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a qualified professional regarding your situation. Commonwealth Financial Network does not provide tax or legal advice.

© 2025 Commonwealth Financial Network®

Webmaster No Comments

The Growing Role of Biosimilars in Employer Health Plans

As the potential for biosimilars continues to grow, it’s important for employers to consider how these drug alternatives may impact health care plans, coverage, and formularies. We are sharing an article,”Biosimilar Market Trends,” exploring key developments in 2025 and provides insights into what employers can expect this year and beyond. We encourage you to review this content for valuable information on navigating these changes.  Click here to read the article. 

Webmaster No Comments

AIO Food and Energy Assistance awarded $10,000 through Make More Happen Awards

Thanks to the support of the community, Allen Insurance and Financial has officially awarded a $10,000 donation to AIO Food & Energy Assistance (AIO), a nonprofit organization that provides low barrier access to food, energy, and diaper assistance with compassion and respect to households across Knox County, Maine.

AIO plays a vital role in the community, assisting over 10% of Knox County residents in Maine. Each week, more than 450 families rely on the AIO food market, while 750 students benefit from the weekend meals program. In 2024, AIO provided 526 energy assistance gifts, easing the burden for households so they don’t need to decide between “heating or eating”. The $10,000 donation would provide food for 450 families coming to the AIO market, Weekend Meals for 750 students, diapers for 35 families, and energy payments for approximately 15 households.

“Helping to make our community a better place has always been important to our team, and AIO has given us a way to make a real difference,” said Jill Lang, marketing director at Allen Insurance and Financial, in a news release. “We are grateful to Liberty Mutual and Safeco for providing much-needed funds to continue their impactful work and thrilled at the opportunity to double the donation just by calling on the community to show their support.”

Allen Insurance and Financial has supported AIO for years through volunteer efforts, fundraising campaigns and community outreach. Since 2020, the Allen team has mobilized volunteers and provided significant sponsorship each year. In 2025 alone, AIO, with the support of Allen Insurance and Financial and others in the community, has collected nearly 2,400 pounds of food and raised $39,000 in donations—enough to sustain AIO’s essential programs through the harsh winter months .

“Recognizing independent agents’ dedication to their communities and nonprofit partners is what the Make More Happen Awards are all about,” said Stephanie Davis, Safeco Insurance Senior Territory Manager. “Allen Insurance and Financial is an outstanding example of how agencies can make a real difference, and we hope sharing their story inspires others to give back as well.”

Throughout 2025, Liberty Mutual and Safeco Insurance will select up to 36 independent agencies nationwide for a Make More Happen Award, donating up to $360,000 to nonprofits they support. Agencies become eligible for the award by submitting applications showcasing their commitment to a specific cause.

For more information, visit www.agentgiving.com.

From left, Dan Bookham; Sarah Toomey, senior territory manager, Liberty Mutual Insurance; Alan Kearl, executive director, AIO Food & Energy Assistance; Jill Lang, and Stephanie Davis, senior territory manager, Safeco Insurance.
From left, Dan Bookham; Sarah Toomey, senior territory manager, Liberty Mutual Insurance; Alan Kearl, executive director, AIO Food & Energy Assistance; Jill Lang, and Stephanie Davis, senior territory manager, Safeco Insurance.
Webmaster No Comments

Passenger Protection Starts on Shore: Why Terms and Conditions Matter

Chris Richmond, CIC, AAI, CMIP

By Chris Richmond
For WorkBoat Magazine

Passenger vessel operators have many options for risk management. While much of this focuses on board the vessel, one often overlooked area is before passengers even board. By adding terms and conditions to your ticket sales, you can add another layer of protection.

Including terms at the time of purchase can help:

  • Limit liability for risks, including passenger injury
  • Control time limits and specify legal jurisdiction to manage litigation
  • Clarify refund policies for cancellations or delays, including force majeure clauses

Passenger injury. You may not be able to have all liability waived, and you will still need to comply with maritime law, but by informing your passengers that by purchasing a passage ticket they accept and understand that travel at sea can be potentially dangerous.

Time limits and specifying legal jurisdiction. Being able to manage potential litigation can minimize legal expenses as well as the inconvenience of fighting a lawsuit long distance. You will be thankful you have established this should a passenger who cruised with you in Boothbay, Maine file a claim in their hometown court in Houston, Texas.

Refund policy.  You can control many things on your boat but you cannot control the weather. Include a force majeure clause detailing situations where you are not liable for cancellations due to events outside of your control which result in delay or cancellation.

It goes without saying that you should consult a professional when preparing this language. An admiralty attorney would be able to draft this document to suit the type of trip that you are doing and to make sure that you are abiding by the state and federal laws applicable for your location.

Risk management comes in many different forms. Proper terms and conditions on your boarding pass can be just as important as the life jackets that you keep on board.

Webmaster No Comments

Why Artificial Intelligence Can’t Replace Your Financial Advisor

In today’s digital age, artificial intelligence (AI) has transformed how we shop, communicate, and manage our finances. From budgeting apps to automated bill payment systems that track spending patterns, AI tools provide convenient ways to monitor and organize your financial life. They’re available 24/7, typically cost less than human services, and can process vast amounts of data in seconds.

With all these benefits, you might wonder: Do I still need a financial advisor? The answer is a resounding yes. While AI brings impressive capabilities to financial services and can certainly supplement your financial strategy, it falls significantly short of replacing the comprehensive value a human advisor provides. Here’s why the human touch remains essential in financial planning.

Human Understanding and Emotional Insight

AI excels at analyzing numbers and identifying patterns, but financial decisions aren’t just about the math—they’re deeply personal, tied to your life goals and values.

An AI-enhanced tool may calculate the maximum amount to contribute to a retirement plan or education funding, basing the figure purely on numbers. Still, it won’t understand the deeper emotional significance—the pride in helping family, the desire to leave a meaningful legacy, or how their own experiences with financial hardship affect what they consider “enough” for retirement security. These emotional dimensions require the human understanding a financial advisor provides.

Human advisors bring emotional intelligence to the table. They can help you process the complex emotions that often come with money decisions—whether it’s the anxiety of market volatility or the excitement of buying a home. Unlike AI, a human advisor can recognize when the “rational” financial choice isn’t the right one for you emotionally and help you balance both.

Regulatory Knowledge and Technical Expertise

Financial advisors stay current on the ever-changing landscape of tax laws, retirement rules, and financial regulations—areas where AI might lag unless specifically updated.

When tax laws change (as they often do), your advisor will understand how these changes affect your specific situation and can adjust your strategy accordingly. They can tell you when it makes sense to harvest tax losses, which retirement accounts to draw from first, or how new regulations might affect your estate plan.

This specialized knowledge becomes particularly valuable during major life transitions. When you’re navigating a career change, inheritance, or retirement, your advisor can bring technical knowledge and contextual understanding that automated systems simply can’t match.

Infographic

Complex Family Dynamics

Financial planning often extends beyond individual goals—it could involve navigating complex family relationships and financial legacies.

Issues like inheritance planning, supporting aging parents, or managing family business assets require sensitive conversations and thoughtful solutions. Dividing an estate fairly among siblings or deciding how to support a child with different financial needs involves more than just math—it requires emotional insight and negotiation skills that AI lacks.

An advisor who knows your family history and financial dynamics can offer tailored advice that AI can’t replicate. They can help prevent family conflicts over money and create plans that honor both financial efficiency and family harmony.

Behavioral Coaching and Accountability

Money decisions aren’t just logical—they’re psychological. Fear, greed, and overconfidence can cloud judgment, even when the data points one way.

A good financial advisor acts as a coach, helping you manage emotional reactions and stay focused on long-term goals. AI might send automated “stay-the-course” messages, but it can’t replicate the impact of a trusted advisor reminding you of your objective-driven strategy and reassuring you during uncertain times. Your advisor knows your financial history and can remind you of how you’ve weathered previous market downturns when panic starts to set in.

Data Privacy and Security

AI tools that handle sensitive financial information are potential targets for hacking and data breaches. While human advisors are also vulnerable to cyberthreats, they provide added layers of protection, such as secure communication channels and strict confidentiality protocols.

Additionally, when you work with a human advisor, you know exactly who has access to your financial information. With AI platforms, especially free ones, your data might be shared with third parties or used for purposes beyond your immediate financial needs.

Real-Time Adaptation and Strategic Insight

AI relies on historical data to make decisions, but it can’t fully anticipate unprecedented events or shifting market conditions.

During a market crash, AI might recommend selling assets to minimize short-term losses because that’s what the algorithm suggests. A human advisor, however, can step in, remind you of your long-term goals, and help you stay the course—potentially avoiding costly decisions driven by panic.

Beyond market fluctuations, life itself is unpredictable. Divorce, an unexpected illness, or a sudden career opportunity can change your financial picture. An advisor who knows you and your goals can adjust your plan thoughtfully, considering both financial and personal factors. AI can’t replicate that kind of nuanced, real-time guidance.

The Value of Human Advice

Perhaps the most compelling reason human advisors remain essential is their ability to serve as true thinking partners. They bring perspective gained from working with hundreds of clients through different life stages and market cycles. They understand not just how markets work—but how people work with money.

Human financial advisors are legally required to act in your best interest. AI tools, on the other hand, are not held to the same ethical standards. In some cases, algorithms may be designed to prioritize the platform’s profitability over your financial well-being. Having a human advisor helps ensure that your interests remain the priority.

AI will continue to evolve and enhance financial services, but the human connection, contextual understanding, and strategic guidance that advisors provide are irreplaceable. The future of financial advice isn’t about choosing between human and artificial intelligence—it’s about combining the strengths of both to create better financial outcomes for you and your family.

© 2025 Commonwealth Financial Network®

image_pdfPrint page as PDF