How Low Fees and Convenience Are Paving the Way for the Future of Financial Planning
Finance Tips With the fast transformation towards a digital and on demand financial industry, find out what you should be considering for your financial plan and investments.
Navid Boostani, Founder and CEO of one of Canada’s leading robo-advisors, ModernAdvisor, challenges you to evaluate if you’re getting the most out of your current financial services.
Mediaplanet: What propelled you towards creating ModernAdvisor?
Navid Boostani: Canadians pay some of the highest investment fees in the developed world. These fees are not fully transparent to clients and often the advice is biased. We started ModernAdvisor to offer Canadians a better investing experience at a lower cost and with higher transparency.
MP: What is a robo-advisor?
NB: Robo-advisors are online investment advisors that offer a more modern investing experience. As an online advisor, ModernAdvisor uses technology to streamline the account opening and investment management processes to reduce client costs.
MP: Robo-advisors are fairly new in the industry — are they safe?
NB: Yes they are. At ModernAdvisor we use a large third-party financial institution to hold client accounts. Each client account is held in their name and client funds are protected under the Canadian Investor Protection Fund up to one million dollars.
MP: How can robo-advisors be part of an individual’s personal finance team?
NB: Robo-advisors offer investment guidance for a specific goal and are a great complement to your existing financial planner. For many people, their investments are just one piece of their financial puzzle. A financial planner can help with other areas such as tax planning, budgeting, debt repayment, insurance, and retirement planning. Dozens of financial planners across Canada use ModernAdvisor to manage their clients’ investments.
MP: With ModernAdvisor, will I still be able to receive assistance from an advisor if I need additional support?
NB: Absolutely. We have licensed financial planners and investment advisors available through chat, email, and phone. For comprehensive financial planning, clients can work with one of ModernAdvisor’s in-house Certified Financial Planners, or work with an independent financial planner on our advisor platform.
MP: What is one thing investors should consider when looking at their financial plan?
NB: Pay attention to the total fees you are paying. We show people what they are paying so they can decide if they are getting good value for their money. Even if you need a financial planner, it’s often more cost effective to work with one on an hourly basis while a robo-advisor manages your investments.