Wealthsimple Review 2024

What Is Wealthsimple Review?

Wealthsimple, a robo advisor, is making waves globally. They’ve got offices in Canada, the USA, and Europe, and it all started back in 2014 when their CEO, Michael Katchen, had this idea to make financial smarts accessible to everyone, no matter their age or bank account digits.

The company takes advantage of a top-notch squad of finance pros and tech wizards on board. These software gurus, design maestros, and data whizzes have all worked for some of the biggest names in the business including Amazon, Google, and Apple.

Right now, they’re a 235-strong crew managing over $8.4 billion in assets and taking care of around 1.5 million users worldwide. They’re basically the robo-advisor kings and queens of Canada.

Features of Wealthsimple

No doubt about it, Wealthsimple is one of the top options when it comes to robo-advisors in Canada. Their lineup of awesome features and services is a real game-changer for their clients. Check out this quick rundown of what makes them stand out:

• Minimum Investment: None (for the Basic Account).
• Accounts: From RRSP and TFSA to RESP, RRIF, LIRA, and more, they’ve got you covered.
• Tax Loss Harvesting: Automatic for Black & Generation clients, helping you save those hard-earned bucks.
• Portfolio Rebalancing: They’ll help keep your investments in check and well-balanced.
• Automatic Deposits: No sweat, they’ve got your back for hassle-free contributions.
• Advice Type: A mix of automation and human touch, with licensed portfolio managers ready to chat.
• Fractional Shares: Even a tiny investment goes a long way, thanks to fractional shares.
• Socially Responsible Investing: Build portfolios with a conscience using low-fee SRI ETFs.
• Access: Online, app, and phone – wherever you are, they’re there for you.
• Transfer Fees: Get reimbursed for transfer fees over $5,000 after a quick survey.
• Customer Service: It’s top-notch, no need to worry.
• Bonus: Score a $25 cash bonus when you open your first Wealthsimple Invest account with at least $500.

But wait, there’s more:

• Portfolio Review Service: They’ll take a peek at your non-Wealthsimple accounts and offer insights.
• Free Tax-Loss Harvesting: Automatically done for Black & Generation clients, saving you money on taxes.
• Access to Financial Advisors: Human experts are on call for financial advice.
• Investment in Fractional Shares: Even small contributions get invested right away, with no waiting.
• Socially Responsible Investment Options: Build ethical portfolios with companies that walk the talk.
• Pays Your Transfer Fees: Move your account and they’ll cover transfer fees up to $150.
• Other Innovative Products: Beyond robo-advising, they’ve got trading, high-interest savings, crypto, and even Halal investing.
• Tools to Help You Save Money: Tricks like “Overflow” and “Roundup” make saving and investing a breeze.

So, whether you’re a newbie or a pro, Wealthsimple’s got the goods to help you level up your financial game.

The Wealthsimple on Pricing

Alright, let’s talk fees – the part where Wealthsimple really shines with its straightforward pricing across three tiers. Check this out:

Fees:

• Basic Accounts(First $99,999): 0.5%
• Black Accounts(Above $100,000): 0.4%
• Generation Accounts(Above $500,000): 0.4%

And let’s dive a bit deeper:

ETF MERs (Management Expense Ratios):

• Around 0.1% to 0.2% annually
• For SRIs (Socially Responsible Investments): 0.25% to 0.4%

Wealthsimple’s ETF MERs are some of the lowest out there. We’re talking 0.10% to 0.20%, which, when you factor in both MERs and account management fees (depending on the funds you choose), adds up to a total cost of 0.50% to 0.70%. For the SRI crowd, MERs range from 0.25% to 0.40%, so the all-in cost is 0.65% to 0.90%.

But there’s more to love. Those 0.4% fees for Wealthsimple Black and Generation clients? Crazy reasonable when you consider the VIP treatment you’re getting. And it’s not just about the fees – they throw in financial planning access, tax-smart features, and even a free ride to the airline lounge.

Also, don’t sleep on that tax-loss harvesting – it’s a potential money-saver if you’re investing outside of your TFSA or RRSP. So, not only are you getting bang for your buck, but you’re also riding the VIP wave. Who doesn’t dig that feeling?

How Does Wealthsimple Work?

Let’s break it down: Wealthsimple’s strategy is based on the Nobel Prize-winning Modern Portfolio Theory. Back in the 1950s, a man named Harry Markowitz cooked up this theory that became the go-to for managing your money over the long haul.

It’s all about playing the long game by putting your money into a mix of investments that spread the risk. This passive approach is like the tried-and-true method of growing your money over time.

Now, Wealthsimple takes this fancy theory and runs with it. They craft portfolios that use low-cost ETFs (Exchange-Traded Funds) to mirror the whole market. What’s cool is that this strategy cuts down on the ups and downs of individual stocks and rides the winners by investing in a bunch of stocks at once.

It’s like a masterstroke in optimizing your investment returns. Peep these investment portfolio options:

• Conservative: This one’s all about stability with a hefty focus on low-volatility bonds – about 62.5% of its holdings. It’s for those who like a comfy ride with a moderate return, and it’s pulled off an annualized return of 5.34% over five years.
• Balanced: This is a 50/50 split between bonds and equities. It suits folks with a low-to-medium risk tolerance. This balanced portfolio’s five-year annualized return dances at 6.10%.
• Growth: Here’s where the stocks shine, with up to 80% of the goods in emerging markets, foreign stocks, Canadian stocks, and more. It’s got some kick for those with medium-to-high risk tolerance. The growth portfolio’s five-year annualized return? A solid 8.18%.

Also when you sign up, they’ll toss a few questions your way to figure out which of these portfolios is the best fit with your risk tolerance and time frame. They’re all packed with ETFs, so your money gets spread wide without all the heavy costs of constant trading.

It’s like having your financial cake and eating it too. Plus, if you open your first Wealthsimple Invest account, there’s a nice $25 bonus waiting for you.

Who is Wealthsimple For?

Alright, let’s talk about who should give Wealthsimple a try. This robo-advisor’s got something cool for different money vibes. Check it out:

Wealthsimple is a good fit for:

• Newbies in the Investing Game: If you’re just dipping your toes into the investing world, Wealthsimple’s user-friendly interface and guidance can help you get started without feeling overwhelmed.
• Busy Bees: Don’t have time for the nitty-gritty of managing investments? Wealthsimple’s automated approach means you can set things up and let it do the heavy lifting.
• Hands-Off Investors: If you’re all about the “set it and forget it” mindset, Wealthsimple’s passive investment strategy aligns with your style.
• Ethical Investors: With socially responsible investing options, Wealthsimple caters to those who want their money to make a positive impact while still growing.
• Diverse Portfolio Seekers: Wealthsimple’s portfolios are built with a mix of investments, offering diversification without the headache of picking individual stocks.
• Long-Term Visionaries: If you’re in it for the long haul and want your money to grow steadily over time, Wealthsimple’s strategy is tailored for you.
• Tech-Savvy Individuals: Love doing things online? Wealthsimple’s app and web platform make managing your investments a breeze in the digital age.
• Those Who Want Extra Perks: From tax-loss harvesting to goal-based financial planning, Wealthsimple brings a bunch of extras to the table, making it more than just a robo-advisor.

So, whether you’re a rookie, a time-strapped pro, an eco-warrior, or just someone looking for a fuss-free way to grow your wealth, Wealthsimple’s got your back.

Wealthsimple Review – Final Thought

Wealthsimple is a versatile choice for folks of all ages seeking financial growth and security. While fees are a bit higher than the norm in the robo-advisory world, their $0 account minimum opens the door for new investors.

Their portfolio construction follows the tried-and-true Modern Portfolio Theory, offering diversified investments and the ease of a buy-and-hold approach. Yet, customization options are somewhat limited, with a focus on socially responsible and Halal choices.

If simplicity and hands-off management appeal to you, Wealthsimple’s strategy aligns well. Keep in mind, though, that if you’re after extensive customization, you might want to explore other options.

If that all sounds good to you check out Wealthsimple today!