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What Is a Robo-Advisor?
A robo-advisor is an online investment service that automatically builds and manages a portfolio for you based on your goals and risk tolerance. They use algorithms to create diversified portfolios of low-cost ETFs.
Think of it as hiring a financial advisor, but the "advisor" is software that follows proven investment principles consistently.
How Robo-Advisors Work
- You answer questions about your goals and risk tolerance
- The platform recommends an appropriate portfolio
- You deposit money and the robo-advisor invests it
- Portfolios are automatically rebalanced
- Some offer tax-loss harvesting on larger accounts
Popular Canadian Robo-Advisors
Wealthsimple Invest
- Fee: 0.4-0.5% annually
- Minimum: $0
- Features: SRI and Halal options, tax-loss harvesting
Questwealth
- Fee: 0.25% annually
- Minimum: $1,000
- Features: Lower cost, part of established brokerage
CI Direct Investing (WealthBar)
- Fee: 0.35-0.6% annually
- Minimum: $0
- Features: Access to human advisors
BMO SmartFolio
- Fee: 0.4-0.7% annually
- Minimum: $1,000
- Features: Bank backing, integration with BMO accounts
Pros for Seniors
- Hands-off investing — no decisions required
- Automatic rebalancing maintains target allocation
- Lower cost than traditional advisors (1%+)
- Removes emotional decision-making
- Easy to use interfaces
💡 Note: Robo-advisors are ideal if you want professional-quality portfolio management without the time, knowledge, or desire to do it yourself.
Cons to Consider
- More expensive than DIY ETF investing
- Less personalized than human advisors
- Limited customization options
- No complex planning (estate, tax optimization)
- You still need to understand the basics
Who Should Use a Robo-Advisor?
Robo-advisors work best for those who want a completely hands-off approach and are comfortable paying a small fee for that convenience. They're not ideal for those with complex situations requiring human advice, or for those willing to manage their own ETF portfolio.
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About Maple Wealth Guide
Maple Wealth Guide is an independent Canadian financial education website. Our team of educational writers researches and explains investment concepts, retirement-related topics, and personal finance information for Canadians aged 50 and over. We are not licensed financial advisors and do not provide personalized recommendations. All content is for educational purposes only.