A guide to the best robo-advisors in Canada for 2022

Robo-advisors first arrived in Canada in the beginning of 2014 presenting young and middle-income investors the option of having their savings passively managed in a bundle of exchange-traded funds (ETFs) matched to their goals and risk tolerance for about a penny on the dollar per year: A perfect set-it-and-forget it solution for people with better things to do. 

Fast forward to today and the honeymoon atmosphere has dissipated. Against the backdrop of an extraordinarily long-lived bull market in stocks, active management has made a comeback (not least in the ETF space), exotic asset classes like cryptocurrency are on the rise, and new competition is coming from asset-allocation ETFs that do the job of portfolio management all in one security.

Suddenly robo-advisors find themselves having to prove their worth anew, all the while trying to establish a profitable business model in a low-margin corner of the investment universe. It’s surprising, really, because amid all the competition their fee structures and value proposition are as good as or better than ever. 

Investors now must probe deeper in their choice of robo-advisor, asking tough questions around performance, risk and the composition of portfolios. The 2022 survey of the Canadian robo industry shows, they’re not all the same.



Types of fraud

Fraud comes in many forms. Learn about the different types of fraud and ways to protect yourself using the links below. 

8 common investment scams

Boiler room scams

Pump and dump scams

Recovery room scams

Affinity fraud

Identity theft

Romance scams

Fraudster trick (email spam attack)

Crypto fraud

 

 



Financial consumer protection framework

This presentation provides information about the FCAC's public awareness strategy for Canada's new Financial Consumer Protection Framework including an overview of FCAC's planned activities and resources and highlights the importance of collective action to inform Canadians. 

Additional promotional toolkits can be found on the FCAC website. 



A guide to protect yourself against investment fraud

Today’s investment landscape offers such a range of products, investing tools, and information that the average investor may feel overwhelmed. As advancements in technology continue to accelerate, new online investing platforms and opportunities are showing no signs of slowing down any time soon.


And as the world of investing continues to innovate, so do the tactics of fraudsters when designing and carrying out scams against unsuspecting victims.


In this guide, we discuss investment fraud and some key things you should know before investing, including helpful tips to protect yourself from investment scams.

 



Banking for newcomers to Canada

Banks offer extensive information on how newcomers to Canada can get started in their new country, including checklists, information, financial services and advice.

The Canadian Bankers Association has compiled some basic information to get you started including an infographic with features of the Canadian banking system. 



Learn the 101 of financial literacy

This course is offered by the Canadian Foundation for Economic Education, a non-profit organization that works to improve economic, financial, and enterprising capability.

This financial literacy course for general audiences covers a range of topics: money basics and the economy, setting goals and making wiser consumer decisions, employment, self-employment, spending on major purchases, borrowing money, saving and investing, protecting your money and managing your money. 



National Financial Empowerment Champions Project: Summary Report

The National Financial Empowerment Champions (NFEC) Project supported leading non-profit community organizations and their local partners to develop, implement and scale proven financial empowerment (FE) interventions across Canada with the aim of improving the financial well-being of over one million Canadians.

This summary report captures the objectives, outputs, outcomes and lessons learned from the NFEC Project. A detailed Evaluation Framework and Evaluation Insights are also available.



Growing household financial instability: Is income volatility the hidden culprit?

On March 9th, 2018, leading American and Canadian researchers and policy makers from all sectors gathered in Toronto to explore the question: Growing household financial instability: Is income volatility the hidden culprit? The policy research symposium was an invitational event co-hosted by the Investment Industry Regulatory Organization of Canada (IIROC) and Prosper Canada. Its purpose was to shine a light on an issue that has gained prominence in US economic and policy circles but was just emerging as a topic for exploration in Canada in the context of
growing household financial instability.

This report summarizes key insights, conclusions and next steps from the symposium in the hopes that it will inform, catalyse and support further action on this issue. To view the conference agenda and links to all conference presentations, please see Appendix 1. Presentation videos can be found online at
https://www.youtube.com/playlist?list=PLC0J2kAG0MZZ5gd_6ZaHjqqEcenL2jCtP



Debt Relief Options in Canada – Long Term Outcome Comparison

This research report compares the long-term financial outcomes of Canadians, based on a study comparing consumers who used a debt management program (DMP), bankruptcy (BK), or a consumer proposal (CP) to obtain relief from debt.



Millennials and money: Financial preparedness and money management practices before COVID-19

Millennials (individuals age 18–37 in 2018) are the largest, most highly educated, and most diverse generation in U.S. history

This paper assesses the financial situation, money management practices, and financial literacy of millennials to understand how their financial behaviour has changed over the ten years following the Great Recession of 2008 and the situation they were in on the cusp of the current economic crisis (in 2018) due to the COVID-19 pandemic.

 Findings from the National Financial Capability Study (NFCS) show that millennials tend to rely heavily on debt, engage frequently in expensive short- and long-term money management, and display shockingly low levels of financial literacy. Moreover, student loan burden and expensive financial decision making increased significantly from 2009 to 2018 among young adults.



Financial literacy and financial resilience: Evidence from around the world

This study presents findings from a measurement of financial literacy using questions assessing basic knowledge of four fundamental concepts in financial decision making: knowledge of interest rates, interest compounding, inflation, and risk diversification. Worldwide, just one in three adults are financially literate—that is, they know at least three out of the four financial concepts. Women, poor adults, and lower educated respondents are more likely to suffer from gaps in financial knowledge.



Supporting the financial resilience of citizens throughout the COVID-19 crisis

This policy brief outlines initial the measures that policy makers can make to increase citizen awareness about effective means of mitigation for the impact of the COVID-19 pandemic and its potential consequences on their financial resilience and well-being.



OECD/INFE Toolkit for measuring financial literacy and financial inclusion

The Organisation for Economic Co-operation and Development (OECD) is an international organisation establishes evidence-based international standards and finding solutions to a range of social, economic and environmental challenges.

The OECD/INFE Toolkit includes a financial literacy questionnaire that captures the financial literacy of diverse populations, first piloted in 2010. In 2015/16 around 40 countries and economies participated in an international survey of adult financial literacy competencies; using data collected using this toolkit.

The OECD/INFE financial literacy and financial inclusion measurement toolkit incorporates:

  • Methodological guidance.
  • A questionnaire designed to capture information about financial behaviour, attitudes and knowledge, in order to assess levels of financial literacy and financial inclusion.
  • A list of the questions included in the questionnaire, and information about whether they will be used to create core financial literacy scores used in previous OECD reports (Annex A).
  • Guidance on how to create the financial literacy scores (Annex A).
  • Guidance on briefing interviewers (Annex B) and discussion around online surveys (Annex C).
  • A checklist for countries wishing to submit data to the OECD (Annex D).



Targeting credit builder loans: Insights from a credit builder loan evaluation

This report presents the results of a Consumer Financial Protection Bureau (CFPB) funded evaluation of a Credit Builder Loan (CBL) product. CBLs are designed for consumers looking to establish a credit score or improve an existing one, while at the same time giving them a chance to build their savings.

The study used random assignment to explore four research questions:

  • How does the CBL affect participants’ likelihood of having a credit score?
  • For participants who already had a credit score, how does the CBL affect their score?
  • How likely are CBL borrowers to make late payments on the CBL and other loans?
  • Does the CBL affect participants’ savings balances?



Soaring with savings

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