Mylo Canadian Review – Best Features & Comparison (2019)

In this article, I’ll review everything about Mylo, what it is all about and will compare the pros and cons, then will dive deep into the topic.

First of all, what exactly is Mylo? Why do you need it? Whats the use of the app? Let’s get started.

What Is Mylo? 

Mylo is a Canadian app that helps you save and invest. They automatically round up every purchase you make and invest the spare change. There’s no investment knowledge required, and you don’t have to change your lifestyle.

With this app, you turn your spending habits into saving habits.

History Of Mylo 

Mylo Financial Technologies Inc. is a Canadian Financial Technology Company that was launched in 2017 by Phil Barrar.

In June 2017, Mylo acquired investment firm Tactex Asset Management and by January 2018, they had secured over $2 million in seed funding from Desjardins Capital, Robert Raich, and Ferst Capital Partners.

The Mylo app is the first automated goal-based savings and investing app to give Canadians the opportunity to easily invest their loose change and grow their wealth.

Recently, in partnership with CanadaHelps, they also launched “Round Up to Give” an automated way to donate to your favourite charity using the app.

Why Mylo? 

Recent stats show that 32% of Canadians between ages 40-64 have nothing saved for retirement. This is indeed alarming! At 64 years of age, you should either be retired or be planning to do so soon.

Simplifying the savings and investing process is what automated savings apps like Mylo will do.

Using Mylo, there will be no drastic changes to your current daily lifestyle, and you do not get into understanding the nitty-gritty details of portfolio management. The app will pretty much take care of where best to invest your money and they are pretty good at doing it. 

Simply set a savings goal and the app does the rest by moving small amounts of money – spare change from your bank account into a diversified portfolio that continues to grow and increase your net worth over-time.

In 2018, Wealth simple, which is Canada’s largest robo-advisor, joined Mylo in offering their users an opportunity to invest their spare change automatically. Their own spare-change-savings feature is referred to as “Roundup.”

What is the Mylo App all about? How to use it? 

Here’s the thing right – when I first heard of Mylo, my reaction was: “Spare change? How does that work?”

The idea behind Mylo and meeting your financial goals is very simple.

They invest your money through micro investing which is actually pretty smart.

Can you remember how many times you have given up on a savings simply because you felt you could not afford to set aside enough funds?

With automated savings app like Mylo – all it does is to help you save small amounts of money.

That means you do not need to deprive yourself of savings or radically change your current lifestyle. Mylo will  simply round up your purchases to the nearest dollar and save the difference – spare amount. 

What Is Mylo Roundup?

A roundup is what Mylo call’s the spare change on your credit and debit card transactions.

Automatically investing roundups is an easy way to save, and they add up quickly! Simply link your checking account (funding source) and your debit and credit cards (roundup sources) to your account, and they’ll automate the process for you.

For example, If you spend $3.25 on a coffee using a linked credit or debit card, we’ll automatically round up your purchase to the nearest dollar ($4.00) and put 75 cents aside in your account.

Every week on Monday, they’ll add up all your roundups from the previous week, withdraw the total from your funding source, and invest the money in your investment account.

If you activate the in-app multiplier, you can accelerate your savings by multiplying your roundups by 2X to 10X.

Case Study – Example 

Let’s say you buy a cup of coffee at a cost of $1.30 using your debit or credit card.

The app rounds up your purchase to $2.00 and puts the extra 70 cents into your account.

Round up to the nearest dollar value happens throughout the week.

Every Monday, round-ups from the previous week are withdrawn from your checking account and invested into Mylo investment account on your behalf.

The best part is, you can check your investments anytime and withdraw your funds at any time.

In addition to rounding-up savings, you can also accelerate the growth of your investment account to meet your financial goal faster by using:

Recurring Investments: You can choose to deposit a fixed amount every week in addition to the usual roundups.

Roundup Multiplier: You can setup your account to multiply your roundups in multiples of 10.

For example, if you want a 5x multiple on the loose change you invest, a 75 cents savings becomes $3.75 (75 cents x 5).

One-Time Investments: You can make a lump-sum deposit to your account whenever you want to quickly reach your savings goals.

Are Mylo Services Free?

Mylo costs $1 a month and Mylo Advantage costs $3 a month. That’s it. No matter how much you invest. To make investing affordable and accessible to all, Mylo invests in exchange-traded funds (ETFs).

The companies that manage these funds typically charge a Management Expense Ratio (MER) that range from 0.05% to 0.37% for regular portfolios and 0.20% to 0.60% for SRI portfolios. These MERs are among the lowest in the industry.

Mylo does not make any money from MERs and will always invest your money in the most efficient investment vehicles.

How to Open a Mylo Account? 

Now let’s talk about opening a new account. The process is pretty easy and straight forward, should take around 5 minutes.

Follow the steps below to open a new Mylo Account:

1. Go to the link – https://signup.mylo.ai/ or Click the link here 

2. While creating an account, answer few basic questions to build your investor profile and to determine your financial goals and overall risk tolerance

3. Link your bank account to the app – You can link more than one bank here – Example TD and CIBC. One other thing to note – For the same bank, example TD, you can link more than one account type – checking and credit cards

4. That’s it! You are done setting up the account and ready to use Mylo. 

Why Does Mylo Charge a Monthly Fee?

Here’s what Mylo has to say about charging a Monthly Free to end-users: 

“We Charge a flat monthly technology fee so we can develop Mylo to serve you better.

We never charge hidden fees or surprise costs, unlike other investment services, and we pride ourselves on working hard to keep costs as low as possible”

How Do They Invest Your Money 

Every Mylo account out there is managed by a Canadian portfolio manager at Tactex Asset Management, a subsidiary of Mylo Financial Technologies Inc.

So what does the portfolio manager at Mylo actually do? Where does he actually invest you money? 

Like I said earlier, Investment accounts opened through Mylo are non-registered by default.

However, they have plans to allow registered plans for your TFSAs and RRSPs in the near future.

At Mylo, the portfolio manager invests your money using a diversified portfolio of low-cost ETFs that is modelled after the Modern Portfolio theory.

mylo

The 5 Investment Portfolio Types at Mylo:

  • Conservative: 100% savings

  • Conservative-Moderate: 40% savings and 60% Bonds

  • Moderate: 60% Bonds and 40% Stocks

  • Moderate-Aggressive: 40% Bonds and 60% Stocks

  • Aggressive: 20% Bonds and 80% Stocks

Mylo Monthly Charges – Breakdown and Review

In this section let’s take a look if Mylo monthly charges are really worth it and how does it work. 

 
Here’s the breakout of the fees per month and it working overall towards your investment: 

Mylo

4.6

Value For Money

4.5/5

Benefits

4.5/5

Rewards

4.8/5

Pros

  • The Mylo App is especially great for you if you find it difficult to put down significant sums of money at once to invest or save
  • As per the company, they employ the same security and encryption measures that your bank uses
  • No prior Investment knowledge is required on your part given that your portfolio manager does all the asset allocation and re-balancing for you

Cons

  • Desktop Version could have been better
  • Mylo Advantage is the only premium version of Mylo and comes with a $3 monthly fee
  • Could have more Investment Portfolios

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