Oct 8, 2018
Randy Cass is the CEO and founder of Nest Wealth, Canada's #1 robo-advisor.
I am a do-it-yourself kind of investor, but if a family member or a friend asks me who could help them with their investments, I would not hesitate to recommend Randy Cass and his firm Nest Wealth.
A robo-advisor is a firm which provides financial advice or investment management service online, performed by software algorithms to reduce cost and to reduce the input of human's emotions which could be detrimental to one's portfolio. A robo-advisor automatically allocates, manage and optimize clients' assets with zero human intervention.
Nest Wealth is based out of Toronto, with a team of about 45 people.
Randy had about 25-years experience in the financial service industry.
He went to law school only to discover, after graduation, that he didn't want to be a lawyer.
While working in law, he started an investment club, where they invested in penny stocks. He lost money most of the time.
I discovered that penny stocks were not the best way to get rich
One of the worst thing that could happen to you is to buy penny stocks when you are young and it goes well.
Canadians only had three choices when it comes to investing
Do it yourself, but the vast majority of Canadians don't want to
Full-service advisor, but some firm are not willing to service Canadians unless they have a minimum of one million dollars in assets.
High expense ratio mutual funds sold by the major banks and the majority of commission-based financial advisors.
Robo-advisor is the other option
How about all the stuff that all the high net-worth individuals
A relationship with portfolio managers
A customized portfolio
A sophisticated asset mix
A fiduciary relationship
Nest Wealth can offer a better value proposition because it doesn't have all the legacy cost of:
Huge office in downtown Toronto,
A team MBA, CFA stock analysts,
Huge marketing expenses,
Trailer fees of 1% payable to the adviser for keeping the account current
Fee structure of Nest Wealth
Nest Wealth have some of the lowest fees in the country? Starting from as low as $20 a month, Nest Wealth offers a professionally managed portfolio with no account minimums.
Under 75K, $20 per month
75K to Under 150K, $40 per month
150K & Above, $80 per month
Your portfolio under commission based "Free advice"
Let's imagine a 1 million portfolio with commission based mutual funds. At 2.5$ management fee that would be $25,000 (Free is very expensive).
The same $1,000,000 portfolio managed by a financial adviser who charges 1% of assets. That would be $10,000
The same $1,000,000 portfolio managed by Nest Wealth. That would be only $960. And it's always the same cost, whether it's one million or 10 million, the cost is always $960.
Nest Wealth client demographics
47 years old
$175,000 of assets