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.
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.
Like I said before, Mylo charges a flat fee of $1 per month to use their financial investment savings platform. Now, this fee is irrespective of the amount of money you have in your account. Be it $100 or $50000; it is still going to be a flat fee of $1 per month.
What Are Mylo Perks?
Mylo Perks are exclusive deals and discounts from brands that you already love.
Each month, Mylo’ll bring you valuable cashback rewards that will help you save on the brands, services and products that you most commonly use.
What Is Mylo’s Socially Responsible Investing?
Socially responsible investing (SRI) is the term used to describe investing that supports companies trying to make a positive change in the world.
Traditional investing considers factors that have an immediate financial risk, whereas socially responsible investing considers factors related to doing social and environmental good, too.
What is Mylo’s SRI Fund?
The investment objective of the Mylo SRI Fund is to provide long term capital growth by investing in a manner consistent with addressing the world’s major social and environmental challenges such as:
Gender diversity in the workplace
To achieve this investment objective, the fund will invest primarily in low-cost exchange-traded funds (ETFs) and units and/or shares of other investment funds managed by third-party managers selected to provide a risk-return profile similar to a well-diversified portfolio of Canadian large capitalization equity securities.
The fund may also invest in securities of non-Canadian issuers. These particular investments will generally be no more than 40% of the net assets of the fund and the fund may engage in derivatives transactions to hedge against changes in currency exchange rates.
The fund may hold a portion of its assets in cash, government bonds, short-term debt or money market securities while seeking investment opportunities or for defensive purposes in a certain market or economic conditions.
How To Delete My Mylo Account?
If for whatever reason you wish to delete the Mylo Account, its easy to do so.
You have two options for deleting the Mylo App:
First, Email Mylo support team at [email protected] with your associated “Mylo email ID” and you should be hearing back from the team pretty soon. But please bear in mind, once you delete your Mylo account, all your existing data will be forever gone, including the connected bank accounts and investments.
Second, log in to your Mylo account on the App, go to the live chat option and chat wit ha rep there to delete your account.
How Does Mylo Transfer Money From My Bank Account To My Investment Account?
Mylo transfers money from your bank to your Mylo account weekly on Mondays.
Most Canadian banks impose a limit on your monthly transactions and charge for each transaction over this limit. To keep transactions at a minimum, we aggregate all of your roundups, boosts, and recurring deposits and transfer the grand total from your bank account to your investment account once a week on Mondays.
What Banks And Cards Does Mylo Support?
Mylo currently supports chequing accounts, debit cards and credit cards from all major Canadian banks including but not limited to:
Canadian Tire credit cards
Coast Capital Savings CU
Costco Capital One
First Ontario CU
PCF credit cards
Rogers credit cards
Simplii (formerly PC Financial)
TD Canada Trust
Valley First CU
Mylo’s Round-Up To Give
We process your donations once a month, so we save your roundups in your charity goal as cash before sending them to your selected charity. This means there is no investment risk related to any of the funds you want to donate.
All your referral bonuses will be deposited into the first goal that you created in the Mylo app. This means that if you were saving and investing towards a goal before you create a donation goal, the $5 bonus will be deposited into your original goal. If you want to donate the $5 to your selected charity, simply withdraw the money from your original goal and boost your donation goal with the same amount.
How Can I Withdraw Money From Mylo?
You can request a withdrawal anytime.
Mylo’ll process withdrawal requests every Friday, so depending on what day of the week you request your withdrawal, it can take between 2 to 8 business days for your money to be deposited back in your funding source. There are never any fees or penalties related to withdrawing money from an account, whatsoever.
How Does Mylo’s Free Next Day Withdrawals Work?
Next-day withdrawals are only available for Advantage accounts: TFSAs, RRSPs or any investment account made up of a Socially Responsible Investment (SRI) portfolio.
Mylo uses something called EFTs (electronic funds transfers) to process your withdrawal requests within one business day.
With Advantage accounts, you’ll have faster access to your funds, and best of all, withdrawals are still free.
Mylo Vs Wealthsimple
Personally speaking, I use both these Canadian Apps to save and invest money.
I am a big fan of both these platforms, with a slight edge to Wealthsimple. You can probably try out both for different needs, for example – WealthSimple for TFSA and Mylo for roundups. Look at the user interface, menus, use the app, let the investments grow over time (automate it), give it at least like 6 months to a year, then see which ones doing better and ditch the other if you dont like.
You can find my detailed comparison, listing down the differences here. You can join any of these two platforms, both are great in their own ways. Our ultimate goal should be to keep more money invested and saved, rather than spent on unwanted stuff.
Don’t forget money invested early, grows faster over time.
Lack Of Funds In My Bank Account To Cover Mylo Roundups?
Many banks charge their clients a fee when they overdraw from an account.
If there’s only $10 in your bank account, for example, and you withdraw $20 at an ATM, you may be charged for withdrawing too much money. This charge is called non-sufficient funds or NSF fees and can cost you upwards of $40. Please note that this fee is charged by your bank and not Mylo.
To protect you from NSF fees, Mylo prevents transfers between your funding source and investment account when they see that there isn’t enough money in your bank account.
However, Mylo also recommends that you pause roundups when the balance in your account is very low.
Mylo is a goal-based saving and investing platform. The App is great, intuitive and easy to use.
Having a goal will motivate you to save, and it also gives your portfolio manager some important information about how they should invest your money, including what kind of account makes the most sense for you and what investment strategy they should use.
If you have a TFSA, RRSP or SRI investment account, next-day withdrawals are included at no extra cost. We use EFTs (electronic funds transfers) to process your withdrawal requests within one business day.
Definitely give Mylo a try today! I can assure you won’t regret the savings.
Please leave your thoughts and comments below.
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- 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
- 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