Make thousands of dollars with a robot

robots advisors automate

Entrusting your investments to a robot-advisor can, over the course of your life, save you a small fortune in management fees.

If you hate paying finance charges and are the type to hunt for the best banking packages, robot-advisers should be your thing.
The robots advisors automate your investments. Not the selection of financial products - it is an expert who takes care of this part - but rather operations such as purchases of securities and rebalancing your portfolio. What is the advantage? Much lower management fees.
Overall robot-advisor management fees in Canada are typically less than 1% of your asset value, compared to almost 2% for actively managed mutual funds.

You could be saying to yourself, "a little percentage factor distinction? That's all? "

There are about ten robot-advisers in Canada. Many are start-ups like Wealth simple, the nation's largest robot-advisor with $ 5 billion in assets under management, while others, like BMO Smart Wallet, come from established financial institutions. Each has its own particularities, so take the time to compare them carefully before making your choice.
Yes, that's all. But it's not small: it's huge! Thanks to the magic of substance interest, a. 1% spread in management fees can easily add tens of thousands of dollars to your pocket when the time comes to retire.
If you are asking on your own simply just how much to conserve for retirement, or if you have a complicated economic circumstance, it is best to consult a real financial planner.
It's important to understand, however, that, contrary to what the name suggests, a robot-advisor does not give financial advice. Of course, he will establish your risk profile when opening your account by asking you a few questions - a human will then contact you to validate the diagnosis of the algorithm - but that's it.

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