Mylo Canadian Review – Smart Investing Through Spare Change (2020)

Mylo is a Canadian app that helps you save and invest. They’ll 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.

First of all, What Exactly is Mylo? Why do you need It? What are the other features and benefits Mylo Offers? Let’s look at all possible answers to every question you might have.

With Mylo, you turn your spending habits into saving habits. Let us get started. 

What Is Mylo? 

Mylo was created with the social mission of helping Canadians achieve their financial goals. This online platform makes saving and investing accessible to everyone.

Here’s a fun fact – Over half of Canadian millennials have less than $1,000 in savings, regardless of their income. Mylo’s actively working to fix that with a simple, automatic and stress-free solution for saving money and building wealth.

It starts with roundups, but micro-saving is just the beginning. Mylo uses machine learning in conjunction with financial and transactional data to make personalized recommendations that help our users make smart decisions with their money.

Mylo was launched as an investment app in July 2017.

Today, the app has already been downloaded by over 500,000 Canadians from coast to coast.

How Do I Connect My Bank Account To Mylo?

Mylo needs a funding source to start rounding up your purchases.

Your investment account is funded by the bank account that you designate as your funding source, typically a chequing account. 

If you want to use a savings account as a funding source, simply update your information in the app under Account and Banks.

You can fund your Mylo account by connecting it with a funding source, such as a chequing account, as well as any credit and debit cards you regularly use to make purchases. Every time you make a purchase with your cards, Mylo will round up the price to the nearest dollar and invest the spare change.

You can reach your financial goal faster by making a deposit in your Mylo account anytime. First, click on the goal in which you’d like to make a deposit. Next, hit the orange plus sign and select an amount to add to your goal.

How Does Mylo Work?

Mylo asks for a couple of starter questions during signing up

Your answers provide the information that your portfolio manager needs to understand – your financial situation, your risk profile and your financial goals.

Using this information, your portfolio manager will recommend an investment portfolio that reflects your unique situation. Since your investment account is fully managed by a registered Canadian portfolio manager, you do not need any prior investment knowledge to use Mylo.

Is Mylo Safe To Use?

First of all, before answering this question you need to understand that there is a certain level of risk associated with any type of investment. In the case of Mylo, Tactex Asset Management invests your money in a well diversified portfolio of low cost ETFs, so your investment is far less volatile and risky than it would be if you were picking specific stocks on your own. 

All the ETFs that you’ll be investing in are held in trust by a custodian at Mylo, which is insured by the Canadian Investor Protection Fund (CIPF).

The custodian for these funds is Fidelity Canada Clearing and our trustee is TMX Trust, who is a wholly-owned subsidiary of the Toronto Stock Exchange Group (TSX).

The only risky element you need to note here is that – while the funds in your Mylo account are insured and safe, your investment account itself is not CIPF insured.

Also, all Mylo accounts are audited by an international accounting firm annually.

Mylo Roundups For More Than One Financial Goal?

Mylo rounds up your purchases and will put the same amount of spare change in every financial goal that you have created. Now, imagine you are saving for a vacation and also donating to a charity.

If you buy a coffee for $4.50, Mylo will deposit 50 cents on both goals.

In other words, you’ll be putting $1 aside on a $4.50 purchase.

You can also disable or accelerate roundups for specific goals.

If you want to focus on your donation goal, for example, you can temporarily pause roundups on other goals. If you want to reach a goal faster, you can multiply roundups (by 2X to 10X) for an individual goal.

Is Mylo Really 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.

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 Mylo Invests 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 your 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

Is Mylo Worth It?

If you ask me, yes Mylo is definitely worth it! That’s because you have nothing to lose here. All you have to do is invest your spare change by connecting a couple of your bank accounts and the investment will grow over time without you having to do anything. Its plain simple. And the withdrawal process is simple too, you’ll never have any hassles as such, it is a premium Canadian company!

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

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

Sagar Sridhar

Sagar Sridhar Is a Personal Finance Blogger from Toronto, Canada. He is a Computer Science Engineer by profession and works in IT Industry. What started as a hobby, quickly turned into serious blogging and income. In this blog, Sagar passionately writes articles about Personal Finance, DIY Investing, Retirement, Stocks & ETFs, Frugal Living and much more. Do visit about page to know more about him. If you would like to get in touch, you can do so by emailing him at [email protected] and he'll get back to you at the earliest.

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