We have been hard at work, developing one of Canada’s most sophisticated technology-driven investment management services. Today, I am excited to announce that ModernAdvisor will also be one of the most cost effective services in Canada.

At 0.35% to 0.50% of your investment portfolio per year, ModernAdvisor will cost just a fraction of the average mutual fund in Canada. As a point of reference, the average Canadian mutual fund fees are approximately 2.5% per year.

Here are the details of ModernAdvisor’s management fees:

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The effect of lower costs on your wealth

Keeping your investment fees low will have a profound impact on your long-term financial wealth. For example, a 30-year old investor who is saving $10,000 per year could have $284,000 more money in retirement when investing with ModernAdvisor compared to the average mutual fund portfolio. All thanks to lower fees and the magic of compounding.

How can we afford such low fees?

You might be wondering how can ModernAdvisor afford such incredibly low fees, while every other investment option costs so much more.

The answer is simple: smart technology and a direct to consumer model.

We have spent a year developing a technology-driven solution that automates many of the tasks that an advisor would traditionally do manually. We’ve also built an easy-to-use interface that lets us eliminate the middleman and offer our services directly to the client. These efforts have resulted in significant cost savings that we pass on directly to you.

When can you open your ModernAdvisor account?

We’re putting the finishing touches on our software, and expect to start live testing in beta in two to three weeks. Once we are satisfied that everything works as it should we will open the service to the public. Stay tuned!

Thank you for your continued interest in ModernAdvisor.