Young And Thrifty http://youngandthrifty.ca Saving Generation Y Mon, 23 Jan 2017 02:57:53 +0000 en hourly 1 https://wordpress.org/?v=4.7.1 2017 Personal Finance Goals http://youngandthrifty.ca/2017-personal-finance-goals/ http://youngandthrifty.ca/2017-personal-finance-goals/#respond Mon, 23 Jan 2017 02:57:53 +0000 http://youngandthrifty.ca/?p=16499 It’s somewhat of a personal finance blogger to have personal finance goals for the new year.  After all, this blogs help keep us accountable, and I find it very helpful to motivate myself to achieve these goals.  There isn’t much change from last year’s personal finance resolutions, just a little bit of a tweak here […]

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It’s somewhat of a personal finance blogger to have personal finance goals for the new year.  After all, this blogs help keep us accountable, and I find it very helpful to motivate myself to achieve these goals.  There isn’t much change from last year’s personal finance resolutions, just a little bit of a tweak here and there.

If you need a little inspiration for your personal finance goals, you can check out the Reddit forum for the 2017 personal finance goals on other people’s minds.

I also got a little inspiration from my husband to keep my records more organized (you  know, not just stuffing everything into a folder to sort until the end of the year) since my  new sister in law (a real accountant!) will be doing my taxes starting next year.

Here are my 2017 personal finance resolutions.  Wish me luck!

Increase net worth to $475,000

2017 Personal Finance GoalsLast year my goal was to increase it to $420,000 and I managed to achieve this and increase my net worth by over 17% from last year.  I hope to increase my net worth to $475,000 by my January 2018 net worth update.  This would represent an increase of about $35,000 in 12 months.

Max out Tax Free Savings Account

I don’t even know if I should write this as a goal because it will be completed in the first week of January and just involves transferring money from my non-registered account into the Tax Free Savings Account.

Anyway, it’s nice to keep in there because we all need some easy goals to achieve in order to feel better about ourselves hah.

Related: Should I open a TFSA or RRSP

Max out Registered Retirement Savings Plan

Again because of my defined benefit pension, I don’t have as much contribution room for the RRSP as others, so this wouldn’t be very difficult and usually involves contributing somewhere less than $3000-$5000 which again would involve transferring some money to my RRSP account.

Read Five Financial Books

Last year I had a goal of reading four personal finance books and ended reading a bit more than that I think.  For this year, will aim for five titles that I have always meant to read.

I’m thinking about titles such as:

  • The Little Book of Common Sense Investing by John Bogle
  • Security Analysis by Benjamin Graham and David Dodd
  • Think and Grow Rich by Napolean Hill
  • The Behaviour Gap by Carl Richards
  • The Richest Man in Babylon by George S. Clason

Spend Less than $4000 on Travel in 2017

Oh goodness, this is going to be a difficult one…already have two trips booked which I estimate will take about 50% of this budget. This is $1000 less than I spent last year.  Planning on going to Iceland and will be bringing a cooler and some dry goods there so we don’t have to spend $50 per person for dinner on a daily basis.

Get Rid of One Thing a Day

I got this inspiration from Forbes list of 27 Financial New year Resolutions to Build Wealth however am toning it down from getting rid of 5 things a day to getting rid of one thing a day.  It will definitely help me with my goal of being more minimalistic (which I am very far from judging from all the clothes and shoes I have still).

Again Attempt to Increase Dividend Income to $6000 per Year

I am still holding out for this goal since I failed it for the past two years.  It would be nice to get an average of $500 a month in passive dividend investment income.  It will be difficult to do because previously it was easy but my asset allocation was off (I was too heavily invested in the TSX and still am but much less so).

Organize My Financial Documents and Data

Although I don’t do very much buying and selling especially in my non-registered account, out of sheer laziness because I can’t keep track of adjust cost base and other details like that, I should start.  My husband gave me an Excel spreadsheet to track my Trading Summary so that come tax season it will be easier to see the information.  I’m terrible with Excel myself and can’t even input instructions to summate numbers so am appreciative of the pre-done spreadsheet.

Happy New Year and best of luck with your personal finance goals for 2017!

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January 2017 Net Worth Update $452,500 (+13%) http://youngandthrifty.ca/january-2017-net-worth-update-452500-13/ http://youngandthrifty.ca/january-2017-net-worth-update-452500-13/#comments Wed, 18 Jan 2017 14:00:51 +0000 http://youngandthrifty.ca/?p=16488 2016 was a stellar year, I must say (well not for the rest of the world I suppose, but it was for my portfolio)! I increased my net worth by $68,330 from last year’s update and reached my annual goal of increase my net worth to $420,000, that’s a 17.8% increase from last year’s January 2016 […]

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2016 was a stellar year, I must say (well not for the rest of the world I suppose, but it was for my portfolio)!

I increased my net worth by $68,330 from last year’s update and reached my annual goal of increase my net worth to $420,000, that’s a 17.8% increase from last year’s January 2016 update.  I surpassed my goal of increasing my net worth by $32,500.  If I include my pension contributions, my net worth is over $510,000, which means I am a half-a-millionaire!  If I include the home value according to my municipality assessments (which apparently went up by 24% over last year) I will be over $660,000, which brings me much closer to my $1,000,000 net worth goal which I hope to reach within 7 years.  It might actually be doable!

Hopefully this wonderful upswing will continue for 2017.

Okay, so here’s the breakdown for January 2017: $452,500 (+$13,670)

ASSETS:

January 2017 Net Worth Update
CASH: $61,700 (+10.9%)

  • Once I deplete the cash in my non-registered account (yes, there is more cash in there) I will start moving this cash into investing accounts.  It is nice to keep it here for an emergency fund anyway.
  • I added up my chequing and savings accounts (High Interest Savings Account). I automatically deduct money from my chequing account and have it siphoned to the HISA account (paying yourself first)

Non-Registered: $83,380(-3.7%)

  • It’s down this month because I transferred $5500 cash into my TFSA in the first few days of January
  • These are stocks that capture the “moment in time”, including unrealized gains or losses in my BMO Investorline and Questrade accounts.

RRSP: $66,960 (+3.4%)

TFSA: $68,650 (+12%)

  • Increase is mainly from the $5500 cash injected into the TFSA account, but the TSX has done remarkably well this year (17%!)
  • It will be very exciting the day that my TFSA account reaches over $100,000.
  • One of my to do tasks is to track my dividend payments in an excel spreadsheet
  • Watch out for TFSA over contributions, guys, the CRA will get you for every last penny.
  • I signed up for a Tax Free Trading Account with Questrade in 2009 and haven’t looked back!

HOME: $272,000

  • This is the approximate purchase value
  • Am planning to rent it out in two years or sell it.  I think am leaning more towards selling it.
  • I don’t use the municipal assessed value, but if I did, my net worth would increase by $150,000!

CAR: $15,625 (0.0%)

  • I updated it for 2016-2017 with the Canadian Black Book price, will update it again in July 2017 with the depreciated price

LIABILITIES:

Credit Cards: -$640

  • I just have my MBNA World Points World master card right now as I cancelled the other cards… I’ll be looking for more cards again with the goal of travel hacking my way to trips.
  • I use Mint.com account but I only added my credit card (this is helping a bunch so that I can keep track of my spending)
  • I’ve redeemed $250 for 2016 so far with my MBNA World Points World mastercard
  • I pay off my full amount every month (and folks, it’s VERY important you do so otherwise you’re losing out on a 19% return!) but include it in my net worth update so I have an accurate picture of my actual net worth. I sort of think “If I were to sell everything right now, what would my net worth be?” I guess I shouldn’t put it in the liabilities column since i pay it off regularly, BUT in mint.com it’s under the liability column so I’ll do the same.

Mortgage: $115,180 (-1.2%)

  • I pay an extra mortgage payment a month
  • I usually put $20,000 annually on top of the extra mortgage payment per month but haven’t decided what I’m going to do this year, I will probably not put in $20,000 so I have more liquidity
  • My intent is to rent it out in a little while (see above). In order to offset future rental income, I chose to acquire a mortgage instead of paying for the majority of the condo, and would rather not put all my eggs in one basket (e.g. real estate).

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2016 Personal Finance Goals Recap http://youngandthrifty.ca/2016-personal-finance-goals-recap/ http://youngandthrifty.ca/2016-personal-finance-goals-recap/#comments Mon, 16 Jan 2017 02:53:34 +0000 http://youngandthrifty.ca/?p=16482 And just like that, 2016 has come and gone and 2017 is here.  It is tradition to review last year’s goals and create new goals for the new year.  In summary, I achieved most of my 2016 personal finance goals but definitely failed on one of the goals, which you will read about shortly. Here is […]

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And just like that, 2016 has come and gone and 2017 is here.  It is tradition to review last year’s goals and create new goals for the new year.  In summary, I achieved most of my 2016 personal finance goals but definitely failed on one of the goals, which you will read about shortly.

Here is a review of my 2016 Personal Finance Resolutions:

Max out Tax Free Savings Account

The TSX has done mighty fine in 2016 and the maximum allowable limit in the TFSA for 2016 was $46,500.  My TFSA which is comprised mainly of TSX listed exchange traded funds and equities has surpassed the $60,000 mark and is sitting around the $63,000 mark.  Here is the chart detailing the maximum allowable limits since the inception of the TFSA in 2009.

Achieved!

2016 Personal Finance Goals Re-Cap

Max out RRSP

This wasn’t very difficult to do because there isn’t much RRSP contribution room since I have a defined benefit pension.  I was able to max this out and streamline the RRSP this year to just include US and International exchange traded funds and equities.

Achieved!

Increase Net Worth to $420,000

My goal for 2016 was to increase my net worth to $420,000 and $450,000 if I included the commuted value of my defined benefit pension.  So far, I have surpassed this goal by almost $32,000.  With my pension contributions I am at $510,000.  This feels amazing because that means I am half way to becoming a millionaire!  Hopefully it won’t take me as long to reach the second $500,000 as it did the first!

To be honest I was worried about achieving this goal because I was off by $800 last year with a similar goal ($385,000 if I recall correctly).  However, the stock market performed amazingly this year, our wedding was under budget, and I was able to sock away more money than I anticipated.  I decreased my exposure to Canadian dividend stocks so that my asset allocation was better distributed and hence my portfolio saw better returns, although the TSX was stellar this year.  My 2016 return was about 7% which is perfectly fine with me!

Achieved!

Read Four Financial Books

I think I achieved this.  One of them wasn’t really a financial book per se, but a real estate investing book.

They were all good and I especially liked the Warren Buffett book.  It was great since I went to see him at the Berkshire Hathaway Annual General Meeting and got to stalk him at the steakhouse and at his house.

The Real Estate Investing in Canada book was also pretty good and very persuasive and convincing, almost tempted me to want to buy an investment property (he talks about them like “doors” and makes it sound very easy to invest) but then I calmed down and stepped away from the Kool-aid.  The book was written in a style similar to The Wealthy Barber by David Chilton, like a narrative story.

Achieved!

Spend a Set Amount on Travel

I set the amount of $5000 for annual travel (which is kind of ridiculous if you ask me, it’s quite a lot) but given that I used to spend $5,000-$7000 a year on travel (oh you know, one month trip in South America and then another trip to Tibet).  This year I managed to go to the Yukon (to save money we used points and we stayed with a friend), Omaha to see Warren Buffett, a cruise, Myanmar and Thailand, and Hawaii under this budget!  A bit of the Hawaii budget went to the wedding budget since we got married in Hawaii.

It was indeed an epic year for travel.

Achieved!

Continue Alternate Month Shopping Ban

I think this was passable, I did pretty good on most shopping ban months but wasn’t completely regimented about it.  I found that on the non-shopping ban months I still wouldn’t really be buying much.  I think the shopping ban helped me increase awareness and consciousness about my purchases.  It really helped to declutter my home and try and embrace more minimalism because when you declutter and get rid of clothes you wonder why you bought those clothes in the first place!  I even turned down a trip to a warehouse sale with a friend!

Fair.

Increase Dividend Income

In 2015 my dividend income was $4900 and in 2016 my goal was to hit $6000 in passive dividend income.  In 2016 my dividend income was even less than 2015, and somewhere around $4500 for the year.  Although I am disappointed that my dividend income isn’t that great, I am happy with the growth in my portfolio.  I did tell myself that:  “I won’t do this at the expense of chasing dividends, and would be happy with a growth in my portfolio even if I don’t hit the $6000 target.”

Fail!

Readers, how did you fare on your 2016 resolutions?

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Questrade Portfolio IQ Robo Advisor Review http://youngandthrifty.ca/questrade-portfolio-iq-robo-advisor-review/ http://youngandthrifty.ca/questrade-portfolio-iq-robo-advisor-review/#comments Wed, 11 Jan 2017 22:03:36 +0000 http://youngandthrifty.ca/?p=15998 If you have been living under a rock (aka, not tuning into regularly scheduled programming here at Y&T), you have probably not heard of robo advisors before.  Well, robo advisors are definitely here to stay and are moving and shaking the financial world by merging finances and technology (hence the term “fintech”).  People want to […]

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If you have been living under a rock (aka, not tuning into regularly scheduled programming here at Y&T), you have probably not heard of robo advisors before.  Well, robo advisors are definitely here to stay and are moving and shaking the financial world by merging finances and technology (hence the term “fintech”).  People want to access their money when they want, where they want, and on their own terms.  More and more Canadians are waking up to low-growth realities and they don’t like to feel gouged with the high fees and lack of performance typically associated with traditional mutual funds.  For more information on the overall industry and FAQ, check out our complete guide to robo advisors available in Canada.  Today’s post is honing in on one of the robo advisors available since 2014: Questrade’s Portfolio IQ.

Who’s Behind Portfolio IQ

Who’s behind Portfolio IQ, you ask?  Our old friend Questrade is behind Portfolio IQ.  They are Canada’s fastest growing online discount brokerage, with 30,000 accounts opened every year.  Questrade has over $4.5 billion of assets under management (that’s a lot!) and has established themselves as a leading player when it comes to presenting Canadians with ultra-cheap DIY investing options.  Questrade is a big company compared to the other robo advisors out there.  They also have some pretty snazzy commercials that make you question your current investments with the big banks.  To put all of our cards on the table, we have been fans of Questrade for a long time now and love the fact that they let you purchase individual ETFs for free within a discount brokerage account.  Let’s hope they bring the same passion for savings to the robo advisor space going forward.

How Portfolio IQ Looks and Ease of Use

Portfolio IQ is embedded within the Questrade dashboard and interface (see below).  It has a sharp purple and green motif and it is easy on the eyes and fun to look at.  It is also easy to use – which shouldn’t be a surprise given their time in the online investing space.

To see how your portfolio is performing, you can look at Investment Summary in Questrade (which is the usual platform that you will see if you are already a Questrade account holder).

Questrade often updates the interface (as well as the rest of their platforms) but usually the change is intuitive enough to figure it out fairly quickly.

How it Works

How Questrade Portfolio IQ works is that you don’t need $100,000 to benefit from a financial advisor who will actively manage your portfolio – you can start with as little as $2,000.  It is for people who want to invest but don’t have the time, energy, or know-how to DIY.  It is also for people who want to retire 30% wealthier (one of their slogans) because that’s how much you are paying more in terms of sacrificed growth due to fees if you go the traditional big-bank mutual fund route.  (I would argue that this is an imprecise measurement – and that the total for most people would actually be substantially higher than that.)

Basically instead of you managing your ETFs and re-balancing twice a year or so (aka couch potato investing), they will manage your ETFs for you and re-balance your ETFs (almost completely hands-off once you set your initial target allocations – if that’s what you want) and you will pay a fee for that (see below).

Many people are too worried or scared to get into the stock market, or are worried about their emotions and how they might react when the next crash happens, so having your money managed for you might be a good idea if you fit into this category.  If looking up individual ETF symbols and doing a little investment reading isn’t your thing, robo advisors such as Portfolio IQ are probably your best bet.

What Portfolio IQ Will Cost You

The pricing of Portfolio IQ is based on a tier system (similar to several other robo advisors).  The more you invest, the less it will cost you as a percentage of your account. The minimum that you need to invest with Portfolio IQ is $2,000, if you have less than $2000 you can still open an account but it will be in cash until you meet the threshold.

The Portfolio IQ MER fee does not include the underlying ETF fee which they say ranges from 0.31-0.83%.

  • $2000-$99,999- 0.7%
  • $100,000-$249,000- 0.6%
  • $250,000-$499,999- 0.5%
  • $500,000-$999,999- 0.4%
  • $1,000,000+ – 0.35%

Types of Accounts

The types of accounts that you can open with Portfolio IQ are:

  • Cash Account- Personal or Joint
  • RRSP
  • TFSA
  • RESP
  • LIRA- Locked In Retirement Accounts
  • RIF- Registered Retirement Income Fund
  • Corporate Accounts
  • LIF- Life Income Fund

What Makes Portfolio IQ Unique

Portfolio IQ is actively managed – sort of.  This is probably the biggest difference between Portfolio IQ and the offerings of Canada’s other robo advisors (also probably accounts for why their fees are slightly higher at the lower tiers).  The believe is that by mixing some basic vanilla index ETFs with actively managed options they can offer better value and superior returns.  They state they have assembled a team of experts who do daily research and market analysis and they adjust their strategies to take advantage of the market.  To be honest, I remain sceptical on this specific point.

Account Protection up to $10 million If you have $9 million lying around and you don’t want your investments protected up to the $1,000,000 level that the Canadian Investor Protection Fund automatically protects you with, Questrade protects ALL clients for up to $10 million for free.

MyFamily Program– You can link your Portfolio IQ accounts with your friends and family, and you will be a able to access lower fees (if your accumulated portfolio value meets the next tier for lower Portfolio IQ pricing).  Find your friend who has $999,999 in portfolio assets and together you guys can decrease the cost of your Portfolio IQ pricing!  (Perhaps there is a side benefit to getting Canadians to talk about investing and personal finance a little more?)

They Show you the Robo Portfolio’s Past Performance– What makes Portfolio IQ unique compared to other Robo Advisors, in my research so far… is that you can see the past performance of the selected portfolio (Aggressive, Growth, Balanced, Income, or Conservative Portfolio) since 2011.  It is not the actual performance of Questrade Wealth Management Inc. clients but created by One Capital Management LLC (a company based in California, USA) based on the ETFs performance within that portfolio (pretty snazzy if you ask me).  I should also note that five years is not really an indicative frame of reference for long-term retirement planning, but at least there is some data there if you are curious.

Automatic Reinvesting when you make any cash deposits or have any dividend distributions, Portfolio IQ will automatically reinvest this into your portfolio.

A Peek Inside Portfolio IQ

When you first sign up for an account, you will be asked the standard questions to assess your timeline for savings and your risk tolerance.

For example, the question below asks the account holder whether they want to preserve capital, provide a steady stream of income, have a balance of income and growth, generate substantial asset growth or achieve maximum asset growth.

screen-shot-2016-11-26-at-10-25-53-pm

After a number of questions, you will be given an asset allocation.  In the demo account that I opened, it says I would work best achieving a balanced approach, which involves 60% equity and 40% fixed income.

screen-shot-2016-11-26-at-10-27-51-pm

Then the balanced portfolio is created and reviewed with you, you will be able to see the exchange traded funds that are held within this portfolio.

This is a screen shot of the example of ETFs that Questrade IQ will use to create your customized portfolio.

screen-shot-2016-11-26-at-10-30-55-pm

The great thing about Portfolio IQ that is different from the rest of the robo advisors is that they allow you to see the past performance of this particular portfolio (that extends beyond 2 years since Portfolio IQ was only created in 2014).  They do this by aggregating the exchange traded funds and analyzing their performance.  Once again I would caution that it is wrong to put too much stock in this short-term performance, but it is a cool feature.

You can see below the 1-year performance, the 3-year performance, and the 5-year performance.  Inception would be a more accurate performance of the Portfolio IQ balanced portfolio since Portfolio IQ was only available 2 years ago in 2014.

Portfolio IQ

Act Now!  How to Open up a Portfolio IQ Account

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Sound enticing to have your money managed with Portfolio IQ and to not have to worry about re-balancing and checking the stock market all the time?  Well, you are in luck because Young and Thrifty Readers can get their first month with Questrade’s Portfolio IQ managed for FREE.

All you have to do is Click HERE to open up a Portfolio IQ Account and you will get your first month managed for FREE.

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Invisor Robo Advisor Review http://youngandthrifty.ca/invisor-robo-advisor-review/ http://youngandthrifty.ca/invisor-robo-advisor-review/#comments Mon, 09 Jan 2017 06:14:38 +0000 http://youngandthrifty.ca/?p=16466 To be honest I have not heard of Invisor, but that’s probably because I don’t live in Ontario, where Invisor is founded.  Other than autocorrect trying to change Invisor to Incisor (you know the front teeth used to tear the food that we put into our mouths), Invisor seems like a pretty unique name, I […]

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To be honest I have not heard of Invisor, but that’s probably because I don’t live in Ontario, where Invisor is founded.  Other than autocorrect trying to change Invisor to Incisor (you know the front teeth used to tear the food that we put into our mouths), Invisor seems like a pretty unique name, I assume combining Investing + Advisor = Invisor!  Although I suppose it’s not that unique because there is another financial company in the United States named Invisor but it has no relation to Canada’s Invisor.

Here’s a review and peek behind Invisor’s curtain, as we continue to review the robo-advisor market in Canada.

Who’s Behind Invisor

Invisor has been in the robo-advisor market since 2014 and is based out of Oakville, Ontario.  Looking at the Who We Are section, Invisor was co-founded by Pramod Udiavir, a CFA previously working for TD Asset Management and Dan Poole, a licensed insurance advisor.  Other team members include a marketing associate, lead developer, senior developer, and VP of Investments.  Invisor also has strategic advisors and a chairman on their board of directors who provide general business advice for Invisor.

Invisor was not able to answer what their assets under management are at the present time, but they did say that their goal is to be the first choice for Canadians, when it comes to online wealth management services.

Investment services are provided by Invisor Investment Management Inc., a firm registered as a portfolio manager in the provinces of Ontario, British Columbia, Alberta, Saskatchewan and Manitoba.

For the insurance portion of their business (Invisor Insurance Services, Inc.), they are only licensed for the sale of life and health insurance products in Ontario and Manitoba (life insurance, critical illness insurance, and disability insurance).

The custodian for Invisor is Credential Securities Inc. though this information wasn’t easily found on their website but instead stated in their Youtube video series.  That means that Credential Securities holds your assets and your assets are protected for up to $1,000,000 (they are a member of the Canadian Investor Protection Fund).

How Invisor Looks and Ease of Use

The Invisor platform is easy to use and looks appealing and simple.  I like how it is interactive and when you click on charts, it leads somewhere (e.g. clicking on the Vanguard ETF in the portfolio leads you to the Vanguard website).  Most people who use Invisor are over the age of 35 (the older Millennials, Generation X, and Baby Boomers), but they would like to target all demographics.  The graphics, in my opinion blend maturity and youthfulness and I think appeals to a broad cross section.

How Invisor Works

Just like most other robo-advisors, Invisor works by charging you a flat fee to re-balance and monitor your exchange traded fund portfolio.  In the Invisor Youtube video “We Make Investing Easy”, they state you can access your portfolio details 24/7 from any mobile device (rather than calling your “financial advisor” or mutual fund sales person at the big banks) to see how it is doing.

Here’s another video with the co-founders talking about how Invisor works, complete with catchy, motivating background music.

  •  A personalized investment strategy and portfolio built around your goals
  •  Regular portfolio monitoring and re-balancing as required
  •  Your portfolios are managed by our experienced investment professionals
  •  Market updates and reviews of your portfolio’s performance
  •  No trading or administrative fees

What Invisor Will Cost You

One of the good things about Invisor is that to invest with them, there are no minimum requirements, but they often have a promotion that if you invest more than $5,000 they will add an additional $100 to your account.

If you have under $250,000 invested with Invisor, your Invisor fee will be 0.50%

If you have $250,001-$500,000 invested, your Invisor fee will be 0.40%

If you have over $500,001 invested, your Invisor fee will be 0.30%

In addition there is the cost of the ETFs within that portfolio, which seems to be on average about 0.20%.

Therefore, if you have less than $250,000 invested, you will be paying about 0.70% to invest your portfolio with Invisor.

Types of Accounts

The types of accounts that you can open with Invisor are:

  • Tax Free Savings Account
  • Registered Retirement Savings Plan
  • Spousal Registered Retirement Savings Plan
  • Locked in Retirement Account (LIRA)
  • Registered Education Savings Plan (RESP)
  • Non-registered Account

What Makes Invisor Unique

The main thing that makes Invisor unique is that they are one of the first to offer a goal planning and tracking tool, called InvisorGPS.  They just launched this recently and it allows you to keep track of your progress and goals.

With InvisorGPS you can:

  • Set short and long term goals
  • See how long it will take you to meet those goals
  • View and shortfalls in your plan, and adjust accordingly
  • Track your progress
  • Receive a free insurance needs analysis

They have a proprietary portfolio construction methodology and it considers all types of investment funds, including mutual funds and exchange traded funds; both actively and passively managed.  Invisor also aims to provide clients with insurance solutions and you can review your insurance needs with them.

Soon, they will be providing Invisor TermLife, a flexible term life insurance solution that can be purchased online without any medical tests, up to $500,000 in coverage, which will only be available in Ontario and Manitoba.

A Peek Inside Invisor

As with other robo-advisors, when you are opening an account, they ask questions to ascertain your risk profile in a multiple choice format so that they can come up with a customized portfolio that is right for you.  These questions were easy to answer and pretty standard, comparable to the other robo-advisor questionnaires/risk assessments that I’ve answered.  They also ask questions such as “Why are you investing?”  “What is your retirement timeline?” as well as the usual age, income, etc.,

One downside when going through the questions to assess your level of risk and your goals, is that when inputting your target retirement age, the minimum retirement age they have set is 60!  I personally would like to retire before age 60!

The finished product is a look at the ETFs in your recommended portfolio.  One great thing is that when you click on the individual ETFs comprised in your portfolio, you automatically get sent to an external link (e.g. Vanguard’s website) providing more information about that particular ETF.  You can also adjust your portfolio risk score, and if you kick up the risk up a notch too high, there will be a reminder that your risk level is not in accordance with the risk assessment questions that you just answered.

Invisor shows you the historical data of the ETFs within that particular portfolio and compares it to the performance of an “average global equity tilt mutual fund” to see the difference in money you would have if you invested in Invisor and not the typical mutual fund.

Act Now!  How to Open up an Invisor Account

In just a short 20 minutes (that’s only 2-3 Youtube cat or beauty vlogging videos), you can be on your way to opening up financial freedom and financial independence by opening up an Invisor account.  You can do this all from the comfort of your own home and they have a document verifying service which allows you to upload your identity documents to open an account.

Invisor Robo Advisor Review first appeared on Young And Thrifty

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