Unicorns, centaurs, hippogriffs… hopefully you don’t think of robo-advisors as another type of mythical creature. Let’s bust 5 common myths about robo-advisors.
False! You’ll always have access to real people for the support you need.
We don’t have any robots at RBC InvestEase. The “robo” in robo-advisor really means all the underlying technology used to help manage your account. Behind the scenes there’s an experienced team of investment professionals who take care of the important stuff — like reviewing your goals, buying your investments and rebalancing your portfolio as required. You can call, email or chat with our team of real, live humans any time you have a question. Learn more about how robo-advisors like RBC InvestEase work here.
False! Robo-advisors are a convenient tool for anyone who wants help growing their money.
Everyone has a financial goal, no matter how old they are. Maybe you’re saving for retirement. Maybe you’re planning your dream vacation. Maybe you want to buy a home. Maybe you bought a home and now you want to renovate it. Maybe you’re simply building a nest egg for the future.
Whether you’re a millennial, a baby boomer, or part of Generation X, Y or Z, the key to investing is just getting started. After answering a few simple questions online, RBC InvestEase will build you a portfolio that’s designed to help you achieve your financial goals. Whatever your age, you can start investing now for the future you want.
False! Your investment plan will be tailored to you and your financial goals.
Just like your favourite shirt, your RBC InvestEase investment portfolio is designed to fit you just right. When you first go onto our website, we’ll ask you a few questions about yourself and your financial goals — questions like what you’re saving for, when you’ll need your money, and how comfortable you are with risk. As soon as you’re done answering our questions, our smart technology will recommend a personalized investment portfolio that’s designed for you. Our team of Portfolio Advisors will review that recommended portfolio to make extra sure that it’s appropriate for you and your objectives. Not too snug and not too loose — your personalized portfolio will make you feel great about growing your money. To learn more about how robo-advisors work, read ‘What’s a Robo-Advisor?’.
False! Your money will be invested in a portfolio that matches your risk profile.
Nobody can predict how financial markets are going to perform, so we focus on managing the amount of risk you are comfortable taking on. A riskier portfolio is associated with the potential for higher future returns, but also has the potential for higher losses. A less risky portfolio won’t gain as much if markets rise, but also won’t lose as much if markets fall.
You won’t take on more risk than you’re comfortable with. After you answer a few online questions, you’ll receive a recommendation on a risk level and your money will be invested in a portfolio that has the right mix of equities, fixed income and cash to match your risk profile. Don’t leave your investments to chance with RBC InvestEase.
False! Both types of advisors may be appropriate, depending on your financial goals.
A traditional financial advisor is a person you hire to make investment decisions for you. They’ll likely recommend buying specific stocks, bonds or mutual funds they think will outperform other assets, and may help you with the more complicated aspects of financial plans, like estate planning. Traditional advisors may charge more. But the higher price may be worth it for a more hands-on approach, especially if you have complex financial goals.
A robo-advisor is a service that automates investing for you from the comfort of your home. It’s a great option for people who want the convenience of opening and managing their investment account online, but still want to be able to reach out to an expert when they need one. It’s also a lower-cost option than a traditional advisor; RBC InvestEase charges an annual management fee of just 0.5% on your investment balance. Learn more about RBC InvestEase’s pricing here.
And you can use both! You can use RBC InvestEase to save for your more straightforward financial goals, and hire a traditional advisor to manage your more complex financial needs.
RBC InvestEase is backed by RBC, one of the world’s strongest banks and an organization that Canadians have trusted for over 150 years. With our Online Security Guarantee, you will be reimbursed 100% for any direct losses in your account if an unauthorized transaction is made in your account through the RBC InvestEase online dashboard.
When it comes to investing at RBC, we want to help you grow your money in a way that makes sense for you.
4 Things to Know About Robo-Advisors Before Getting Started