Oct 29, 2020
Saving and investing have become easier and more convenient than ever before. Thanks to advances in technology, a simple online investing service, sometimes called “digital advice” or “robo-advice”, is now available to our members. It is VirtualWealth and, depending on your needs, it may be a service worth considering. Virtual Wealth needs a minimum balance of $2,000. Members can start saving through automatic transfers or payroll deposits into their credit union RRSP, TFSA or Platinum Savings first. Once they have reached the minimum, they can transfer these funds to VirtualWealth.
Here’s how it works.
You spend a few minutes answering an online questionnaire to gather information about you, such as your savings goals and timeline. You are then presented with a recommendation for a portfolio of investments that best suits your needs.
Once you’ve opened and funded your account, your portfolio is managed automatically. This includes regularly rebalancing the investments to maintain the target asset allocation. Through the VirtualWealth website and mobile app, you can easily add funds to your account, and track the value of your portfolio as well as your progress towards your goal.
VirtualWealth also gives you the option of Responsible Investing portfolios, which incorporate environmental, social and governance considerations into the investment management process, to reduce risk and provide sustainable returns.
Who should consider digital advice?
Digital advice can be a good option if your investing goal is simple and straightforward, such as saving for a down payment on a house or for your kids’ education. And it’s well-suited to people who are just beginning to build their wealth: even when you’re starting out with a smaller amount to invest, you can have a well-diversified, professionally managed portfolio.
Advantages of digital advice
The biggest advantage of digital advice services like VirtualWealth is that they are easy and convenient. You can invest in a well-diversified, professionally designed portfolio, without needing to spend any time researching or making buy and sell decisions.
Fees are quite low, so digital advice provides great value.
Another important benefit is that these services help reduce the temptation that investors sometimes feel to make decisions based on emotions. While market volatility is normal, it can lead people to become too pessimistic or too optimistic. When you’re investing, it’s usually best to stay focused on your long-term goal and ignore short-term market ups and downs. With digital advice, you delegate day-to-day investment decisions to professional managers, and your emotions are not part of the decision-making process.
Credit union-owned with members’ best interest in mind
VirtualWealth is powered by the same national organization behind Qtrade Investor, one of Canada’s top-ranked online brokers based on ratings by The Globe and Mail, Surviscor and MoneySense. These services are collectively owned by Canada’s credit union network.
When it comes to wealth services, we always make decisions in the best interest of our members and we’re committed to improving your financial well-being.
If you’re curious about VirtualWealth and want to talk about growing and protecting your wealth, contact our Investment Specialist, Betty Anne Flynn at 416-860-3675 or visit our website by Clicking here. We’ll help you choose the best approach for your specific needs.
VirtualWealth is a trade name of Credential Qtrade Securities Inc., Member of the Canadian Investor Protection Fund.