If you’re like many Canadian investors, you’ve already started planning for your retirement years through savings vehicles like Registered Retirement Savings Plans (RRSPs), typically with a balanced portfolio of fixed-income investments such as bonds and equities to ensure you are properly diversified.
Robo-advisors promise to build your wealth with low fees. But what do robo-advisors actually do? And how do they compare to a human financial advisor?
Anyone with a variable rate mortgage in Canada understands the impact of rising interest rates. A rate hike can either cause borrowers’ debt payments to climb or reduce the amount of principal their mortgage payments pay off. Interest rate rises are caused when the Bank of Canada decides to increase its overnight rate, which is a short-term interest rate that factors into lending costs. Depending on the economic circumstances, interest rates can rise substantially over a year.