How to Invest with a Robo-Advisor

How to Invest with a Robo-Advisor - RBC InvestEase

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Jessica Moorhouse - Canadian Personal Finance

Күн бұрын

This video is sponsored by RBC InvestEase. All views and opinions expressed represent my own and are based on my own research of the subject matter.
To check out RBC InvestEase for yourself, visit: bit.ly/2JKEMT8
If you liked my video but want some more details about RBC InvestEase, made sure to check out my blog post that goes into more detail: jessicamoorhouse.com/rbc-inve.... In that post, I share pretty much all the ins and outs of RBC InvestEase, including what all five of their portfolios are.
For this video, I wanted to actually walk you through the RBC InvestEase investor questionnaire, and show you what the dashboard looks like once you’ve invested your money. You may be wondering, how would I know what the dashboard looks like? Well, because I’m putting my money where my mouth is and have invested $1,000 of my own money in RBC InvestEase.
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I'm Jessica Moorhouse, a money expert, Accredited Financial Counsellor Canada®, speaker, content creator, and host of the More Money Podcast. I'm based out of Toronto, ON, Canada and run my own business, MoorMoney Media Inc., to educate others about financial literacy. To learn more, check out my website jessicamoorhouse.com
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Пікірлер: 85

@RisYEG 3 жыл бұрын

Best video. I wish I had seen this last week before investing with an advisor.

@jessicamoorhouse 3 жыл бұрын

It's never too late to change your investments. They're not locked in with your advisor, you can do whatever you want. It's your money after all. :)

@1508lukaz 5 жыл бұрын

Hi jessica, great review. I am super excited about this kind of stuff. I just have a question, I did not went thru invest ease rather i went directly at rbc and talked to a financial advisor. My question is do you think i'll be loosing more money for going directly to an RBC advisor instead of going thru invest ease? Or RBC has standardized interest fees? I am new to everything investing by the way. Thank you!

@jessicamoorhouse 5 жыл бұрын

Great question and yes, it will be more expensive going through an advisor because it's completely separate from RBC Investease. You see, going through an advisor, they will be building you a portfolio and actively managing it for you. Typically, an actively managed portfolio of mutual funds will cost you 2-2.5% annually. RBC Investease is RBC's robo-advisor and it's completely separate from their in-house investment advisor arm of their business. It's totally online and it's all about passive investing, not active management. That means they have pre-packaged portfolios of low-cost index ETFs you can invest in that track the movements of the stock and bond markets, instead of trying to beat those benchmarks like an active portfolio would. The cost of using RBC Investease is 0.50% plus the cost of the ETFs which can look like 0.11%-0.22% for a standard portfolio of ETFs, or 0.18%-0.30% for a SRI portfolio of ETFs. In other words, it will cost you less than 1% going with RBC Investease, compared to 2-2.5% with using an RBC advisor. Also, there's a ton of data that backs up that passive investment overtime outperforms active investment. If lots of this doesn't make sense, that's okay! You may want to check out my investment foundations course to feel more confident about investing: jessicamoorhouse.com/invesitngfoundations. I currently have a promo through my podcast where you can save 30% with promo code SEASON8. Cheers!

@evana7692 4 жыл бұрын

Would these investments be considered RRSPs? I need to repay mine since I accessed them for my first time home purchase

@jessicamoorhouse 4 жыл бұрын

So your RRSP is simply an account in which you can hold investments (investments like stocks, bonds, mutual funds, index funds, ETFs and even cash). If you wish to invest in a portfolio of index-based ETFs with RBC InvestEase, you have the option of putting those investments into an RRSP, or TFSA or simply a regular unregistered account. Hope that helps!

@KarolinaPL06 3 жыл бұрын

Great video, thank you

@jessicamoorhouse 3 жыл бұрын

Thanks for watching!

@ProfessionalTycoons 5 жыл бұрын

thanks for this video

@jessicamoorhouse 5 жыл бұрын

Thanks for watching! Will be coming out with a companion video soon as RBC InvestEase is coming out with new "responsible" portfolios.

@huyduong5716 5 жыл бұрын

How the fees compared with just getting VGRO.? Do robo advisor pays out the dividend of the etf they purchase for you to reinvest in. VGRO distributes div.

@jessicamoorhouse 5 жыл бұрын

The fees with this (and any robo-advisor out there) are 0.50% for management, and whatever the ETF fees are (though in general you're looking at under 1% in total fees). And yes, with RBC InvestEase, and other robo-advisors, all dividends are reinvested for you automatically. VGRO (Vanguard Growth ETF) has a fee of 0.22%, so looks like that's cheaper in terms of fees, but it looks like the one big difference is the customer service/advice? With a robo-advisor, you can contact them anytime with questions and for investment advice relating to your portfolio. Not sure if Vanguard's asset allocation ETFs offer this as well, or just the rebalancing?

@huyduong5716 5 жыл бұрын

Thanks for reply. I read some where that ETF rebalance itself every quarterly. But you are 100% correct when self purchase ETF or stocks, there’s no advisory.

@astromaxx7771 Жыл бұрын

Hi. I realize this is an older post, put my 2 years old RBC Investease has not shown in my account, or reinvested any dividends that XIC should have paid ( per their own distribution statements). Is RBC Investease just eating up my dividends? Instead of drip-ing them?

@TakashiNippon 5 жыл бұрын

Excellent Video

@jessicamoorhouse 5 жыл бұрын

Thank you, so glad you liked it!

@krxiamaranan 3 жыл бұрын

Hello, can I access InvestEase using RBC Mobile app?

@jessicamoorhouse 3 жыл бұрын

I just tried myself and no you can't using the app, but you can login via the mobile website.

@GePete Жыл бұрын

Hi jessica thank you for this vid. I would like to know if I can withdraw anytime whatever i earn in this investment? TIA

@jessicamoorhouse Жыл бұрын

Yes you can make a withdrawal from your account, just be fully aware of the tax consequences or penalties when doing so depending on what account you're making the withdrawal from.

@GePete Жыл бұрын

@@jessicamoorhouse example the investmenteast the unregister acct ? it is taxable? i wanted to know before ill open an account, so if they tax this im investing negative income? lol

@jessicamoorhouse Жыл бұрын

@@GePete If you make a withdrawal from an unregistered account it will likely trigger a capital gain so you'll have to pay taxes on that.

@jessieN1223 4 жыл бұрын

Jessica, i just stumbled on your video. So after a year, how's is investease working out for you?

@jessicamoorhouse 4 жыл бұрын

Thanks for asking! So I opened my account in Sept. 2018, and my all-time returns for my portfolio are 5.3%, but my year-to-date returns (so my returns for 2019) are 13.1%. There was a big dip due to the market correction in December 2018, so that's why my overall returns are much lower than my 2019 returns. I should mention that since opening the account and making my $1,000 initial contribution, I haven't made any other contributions to my portfolio, so my returns could have been higher by doing dollar-cost-averaging by making regular contributions. So, with my $1,000 contribution and never adding any new money into the mix, I've earned $75.87 (my portfolio's current value is $1,075.87). All in all, I still really like the dashboard, I appreciate that they offer responsible portfolios now too, and in my opinion using RBC's robo-advisor is way better than investing in their actively managed mutual funds with an advisor at the bank because they are way more expensive and historically don't outperform market indexes whereas these RBC InvestEase portfolios seek to match market performances which I'm a big fan of. :)

@jessieN1223 4 жыл бұрын

@@jessicamoorhouse thanks for responding. I saw your 1 year waived fee code. Still works. I used that on upon opening investease. Thanks.

@jessicamoorhouse 4 жыл бұрын

@@jessieN1223 You're welcome!

@Babz2604 3 жыл бұрын

Jessica Moorhouse Great Job Jessica. How’s your Investease performing after the pandemic ?

@peterriehm Жыл бұрын

Hi Jessica - did InvestEase automatically buy that basket of ETFs every 2 weeks as fractional shares? Or did it wait a period of time to accumulate funds?

@jessicamoorhouse Жыл бұрын

RBC Investease does not do fractional shares. You can find the answers to your questions here www.rbcinvestease.com/faqs

@peterriehm Жыл бұрын

@@jessicamoorhouse Thanks so much! BTW loved the step-by-step instructions you provided, really helpful if you are a novice.

@jessicamoorhouse Жыл бұрын

@@peterriehm Thanks! Glad you found it helpful!

@VIheavyequipment Жыл бұрын

Are the fees of .5percent on all over the money or just the money that has been made on the interest that seems like a lot of money to pay if I had 10000 in there and I had to pay 5000

@jessicamoorhouse Жыл бұрын

You pay 0.50% on your total assets under management (not including the MERs on the ETFs themselves). So, if you invested $10,000, that means you'd be paying $50 for the annual management fee ($10,000 x 0.50% = $50).

@VIheavyequipment Жыл бұрын

Oh okay, how much are mer and etf fees cost do I need to worry about that?

@VIheavyequipment Жыл бұрын

Oh okay, how much are mer and etf fees cost do I need to worry about that?

@VIheavyequipment Жыл бұрын

Oh okay, how much are mer and etf fees cost do I need to worry about that?

@VIheavyequipment Жыл бұрын

Oh okay, how much are mer and etf fees cost do I need to worry about that?

@PadinOfficial Жыл бұрын

I wana change my RBC invest ease portfolio how can I do this

@jessicamoorhouse Жыл бұрын

As per their website, if you want to make a change "If your investment plan no longer makes sense for your needs or if you’ve had an important life change, give us a call at 1-800-769-2531. A Portfolio Advisor will ask a few questions to understand your situation and help you update your plan. We will also follow up on an annual basis to make sure our information on file is correct."

@vahidespanmanesh8818 3 жыл бұрын

Thanks a lot! Can you please just make an update how your account looks like after three years? I am just curious :)

@jessicamoorhouse 3 жыл бұрын

Sure, I can update you right now because I closed that RRSP account in November 2020. So I never contributed new money to the account, but since opening to closing the account, I earned $165.16 from the portfolio and an annual rate of return of 7.6%

@vahidespanmanesh8818 3 жыл бұрын

@@jessicamoorhouse Thanks for the update!

@gpit9090 Жыл бұрын

@@jessicamoorhouse hi. so you earned 7.6% ? from your investease? what category ? is it non registered account?

@gpit9090 Жыл бұрын

One more question that management fee is it monthly or annual? the 0.5%?

@jessicamoorhouse Жыл бұрын

@@gpit9090 It was inside an RRSP. And I believe the asset allocation for the portfolio was 70/30 (I think I share that in the video?)

@hulletstreet 5 жыл бұрын

Wish u good luck

@jessicamoorhouse 5 жыл бұрын

Thanks...I think?

@drummerjohnrespectsall4602 4 жыл бұрын

Why can't u download app on Google Play?

@jessicamoorhouse 4 жыл бұрын

It doesn't look like they offer a mobile app for RBC InvestEase.

@drummerjohnrespectsall4602 4 жыл бұрын

@@jessicamoorhouse that's weird. All robo advisors do. This is requirement is overlooked by RBC

@jessicamoorhouse 3 жыл бұрын

@@drummerjohnrespectsall4602 Not all robo-advisors have apps in Canada. Justwealth, BMO Smartfolio, and Nestwealth don't have apps. Wealthsimple, ModernAdvisor, CI Direct Investing (formerly Wealthbar) do. Questwealth Portfolios I can't find a specific app for, but maybe you can use the Questrade app, I'm not sure.

@Iliinois18 5 жыл бұрын

Why isn't this available in BC?!?!?

@jessicamoorhouse 5 жыл бұрын

I know! They told me they hope to go nationwide soon, so I'm hoping that means sometime in 2019. I think they just launched in a few provinces as a pilot project so they could work out any kinks and make sure it's ready for a more wide release soon.

@bryankenney5726 5 жыл бұрын

It just rolled out here. Or did fairly recently. But it has shown up for me now if you are still looking for it.

@jessicamoorhouse 5 жыл бұрын

@@bryankenney5726 Thanks for sharing!

@Iliinois18 5 жыл бұрын

Up 7.9% pretty good so far.

@jessicamoorhouse 5 жыл бұрын

@@Iliinois18 That's awesome!

@kiryakimaria7256 4 жыл бұрын

can you do a video about Guaranteed Investment certificates or index funds ? thanks

@jessicamoorhouse 4 жыл бұрын

I definitely can! Any specific questions about them or just how they work?

@kiryakimaria7256 4 жыл бұрын

@@jessicamoorhouse i need to compare between it so i can decide which one to start investing in . Thanks 😀

@NatashaKornak 5 жыл бұрын

Thoughts on this versus Wealthsimple?

@jessicamoorhouse 5 жыл бұрын

Great question but it's not as simple as which robo-advisor is better. In my view, none of them are really better than the other, so it depends on what you're looking for and your personal preference. I'd suggest checking out all the available robo-advisors in Canada, check their fees and minimum contributions to get started, then check out what kind of portfolios they offer. Here are two good sites to help with your pro-con list: hardbacon.ca/compare-robo-advisors-in-canada/ and autoinvest.ca/

@splezzayanowhat6784 24 күн бұрын

i have 95k in a tsfa with investease

@jessicamoorhouse 22 күн бұрын

Awesome!

@ryanchinh1040 5 жыл бұрын

Betterment robot advisor are better 0.25% lower than this RBC robot advisor.

@jessicamoorhouse 5 жыл бұрын

Betterment is only available in the US, so how could you compare a robo-advisor in the US to one available in Canada? It's a completely different ballgame. Robo-advisors in the US typically charge lower fees, but they are offering completely different (US) ETFs. As a Canadian, you can't invest using a US robo-advisor.