Thursday, September 17, 2020

Moka: Turn your spending habits into saving habits

Updated on Sep 17, 2020: Mylo has rebranded to Moka. If you want to open a new Moka account, please click this link to install the app, registers in-app, and connects your financial account. Thanks. 

Mylo app has been around for more than 3 years. Mylo rounds your purchases up to the nearest dollar and invests the spare change on your behalf. 

Since launching in 2017, over 450,000 Canadians have created accounts to save and invest with Mylo. Using the app's automated savings and investing platform, Mylo users can easily save over $1,000 a year, which can be invested in a diversified portfolio of ETFs and provide valuable tax benefits through the use of TFSA and RRSP accounts. There’s no investment knowledge required, and you don’t have to change your lifestyle. It helps Canadians to turn their spending habits into saving habits. 

Roundups make it easy to put money aside without changing your lifestyle. You simply link your chequing account (funding source) and your debit and/or credit cards (roundup sources) to your Mylo account, and Mylo automates the process for you.

For example, If you spend $3.25 on a coffee using a linked credit or debit card, Mylo automatically rounds up your purchase to $4.00 and put 75 cents aside in your Mylo account. Every week on Monday, Mylo adds up all the roundups from the previous week, withdraw the total from your funding source (typically your chequing account) and invest it in your Mylo account. In addition to roundups, you can also choose to put recurring deposit in your Mylo account.

Mylo uses the same security measures as major Canadian banks, such as 256-bit encryption, SSL connections and strict internal security policies based on ISO standards to ensure your information is never at risk.

Every Mylo user is advised by a registered Canadian portfolio manager at Tactex Asset Management, a subsidiary of Mylo Financial Technologies Inc. Mylo will ask you some questions when you are signing up. Your answers provide the Know-Your-Client information that your portfolio manager needs to understand three main things: 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.

As with most investments, it is possible for you to lose the principal investment and returns are not guaranteed. That’s why it’s important to be honest when answering questions during the sign-up process, so that your portfolio manager can create an investment portfolio for you that matches your lifestyle, risk profile and financial goals.

Mylo costs $1 a month. No matter how much you invest. And there are no hidden fees. You can deposit or withdraw money at any time and at no additional cost. You can withdraw money from your Mylo account anytime through our mobile app. It may take between 2 to 8 business days for your money to be deposited back in your funding source.

From my point of view, Mylo round-up savings program can make sense for someone who is starting out in life with less investment knowledges, or for people that don't want to spend too much time on self-directed investment. It can provide certainty in reaching a goal – be it a vacation, retirement or buying a house.