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Published on Feb 14, 2018
I review one of Canada's top robo-advisors, Nest Wealth, sharing some important facts about the company and doing a full tutorial on how to open an account and what it looks like once you're all set up.
I'm personally a big fan of robo-advisors (I use them myself to invest for my future), because they are a very simple way to start investing right away, without you having to go to a bank or an office and talking to an investment advisor.
Not only that, the fees! Omg the fees! It is so much cheaper to invest with a robo-advisor, because they invest you in low-cost ETFs, as opposed to high MER actively-managed mutuals funds. And why this is so important is because over the course of many years, those fees compound into thousands of dollars (if not hundreds of thousands).
Last but not least, I'm a big fan of index investing. The ETFs that robo-advisors invest in for the most part track the stock market (I say the most part because there are other types of investments they invest in like REITs). By tracking the stock market (instead of trying to beat it), they historically outperform actively-managed mutual funds.
So with way lower fees and historically better performance, what's not to love? Basically, if you're just starting out and you know this is the way you want to invest, a robo-advisor is a great way to get started today. Yes, you can do self-directed investing through a brokerage, but you may not have the knowledge, time or desire to do it, so going with a robo-advisor that makes you a portfolio and rebalances for you is definitely worth the extra cost compared to DIY investing in my opinion.
To give you an idea of one such robo-advisor, and actually one of Canada's top 3 robo-advisors, here's my review on Nest Wealth that includes a tutorial on how to do their questionnaire to get a portfolio suggestion.