October 18, 2016

[Ep. 66] Everything You Need to Know About Robo-advisors with Andrew Kirkland

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This episode is sponsored by Justwealth — investing the way it should be. Just for you. Justwealth is one of Canada’s leading robo-advisors, and they’re offering More Money Podcast listeners a special $50 bonus when opening an account. All you have to do is visit justwealth.com/jessica-moorhouse.

I’ve been getting more and more interested in investing lately, and it could be for a number of reasons. Firstly, I’m not as young as I once was. Ever since I turned 30 I can’t help but feel a sense of urgency when it comes to building my wealth. Retirement is only a few miles away, and I want to be prepared!

Maybe I’m exaggerating, but that’s sometimes how I feel if I’m honest.

Another reason is that there are a lot of cool things happening in the investment industry — the big one being robo-advisors. The name itself makes it sound like a robot is taking your money and trading it on the TSX floor, but in reality, it’s just a more efficient way of investing. You’ll be paying fewer fees and you don’t ever have to leave your living room.

Robo-advisors are a big topic lately, especially amongst Millennials since I feel like they are just a natural fit together. But since it is a relatively new idea, I wanted to interview someone who really knew the ins and outs. That person just so happens to have started his own robo-advisor — Justwealth.

For this episode, the president of Justwealth Andrew Kirkland breaks down some core principles of investing (what’s the difference between an index fund and ETF for instance), and what robo-advisors are all about. Enjoy!

Important Things to Note About Robo-advisors

  • Robo-advisors in Canada aren’t managed by robots or just some algorithm (though that can be the case for some in the United States). Although there’s an online interface and pre-packaged portfolios you’re suggested by doing an online survey, there are most definitely humans involved, and yes, you will have to talk to them (though maybe just over email).
  • You won’t lose all of your money by using a robo-advisor. Although they are relatively new to the investment scene, they are very regulated in Canada, and their intent is not to scam you. Scamming is bad for business.
  • Robo-advisors deal mainly with exchange-traded funds (ETFs), however, mutual funds are being slowly integrated into the mix too.

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