Wealthsimple Review! Simple investing on autopilot

Wealthsimple Review! Simple investing on autopilot


Hey everyone! Bridget from Money After
Graduation here to give you a totally honest review of Wealthsimple. This is not a
sponsored video but I am an affiliate of Wealthsimple which means if you sign up
using my link — which I’ll leave in the description below — I do get a small
payout for you opening an account with them. To say thank you for this they’re
actually going to give you up to $10,000 managed for free! So
Wealthsimple already has pretty low fees but nothing’s lower than zero, and
they’ll give that to you for a full year if you sign up using my link. If you
don’t want me to use money to pay my rent and clothe my baby you can still
sign up for Wealthsimple by just going to Wealthsimple.com and not using my link.
But that’s okay. Like, it’s fine. It’s totally fine. Anyway, let’s jump into it! The
best features of Wealthsimple are obviously hassle-free investing. You
don’t need to have a degree in finance like I do and paid a lot of money for, in
order to invest with Wealthsimple. It’s a robo-advisor, which means investing is
automatic for you. It’s not actually a robot behind the scenes. It’s a person, or
probably a team of people, that are actually making the decisions of what
stocks to buy and sell for your portfolio. The “robo” part just means you
put your money in and the rest is taken care of. This is perfect because frankly,
everyone should be investing in the stock market and before when you needed
to learn how to do so, that was a huge barrier to people gaining access to the
stock market. So Wealthsimple removes that barrier and it really makes the stock
market available for everyone. If you know that investing is something that
you should be doing, but are not, Wealthsimple is the perfect solution for you.
Alternatively, if you’re currently managing your portfolio like I am
outside of Wealthsimple, it can still have a place for you in your financial plan. I
resisted signing up for Wealthsimple for a really long time because I was
managing my own stock portfolio and I didn’t think that it could do a lot for
me. But I signed up for account because so many of you were asking me to review
it. Once I did, I loved it! And now I actually love having some of my money
being managed by someone else. I mean it’s just a way of further diversifying
your portfolio. So I still do manage most of my investments on Questrade where I
make my own stock buying and selling decisions, but I love having my Wealthsimple account and having some money just being taken care of for me.
Wealthsimple charges a small fee of 0.5% for managing your portfolio. This is a
fraction of what’s being charged for traditional mutual funds so it’s like
honestly a steal of the deal. And that pays for the expertise of someone else
taking on the project of deciding what to add and remove from the portfolio
while you just sit back and watch the balance grow. As mentioned previously, if
you use my links that I’ve left in the description below, you will get this
fee waived up to $10,000 so you can invest totally free. One of the really
great things about Wealthsimple is they’ll let you open an RRSP or TFSA or
RESP for your child. They let you have both unregistered or registered accounts
so you can take advantage of tax sheltering your money in the stock
market. This is really important because the best way to put these accounts to
work is to invest in the stock market but a lot of people don’t know that! And
I don’t blame them because RRSP is called the Registered Retirement “Savings” Plan
and the TFSA is called the Tax-Free “Savings” Account. But these can and should
be investment accounts and you can make them investment accounts at Wealthsimple.
Think how awesome it is for all your dividends, interest, capital gains to grow
completely tax-free in the TFSA or tax deferred in the RRSP in Wealthsimple.
That’s amazing! Another great aspect is, if you do open all these accounts like
an RRSP, TFSA, an RESP, and just an unregistered investing account, if you
hit a balance of $100,000 over all your Wealthsimple accounts, you’ll actually be
eligible for their VIP service which is called Wealthsimple Black. This
entitles you to a lower management fee, so it actually drops from 0.5% to 0.4%,
and it comes with a few additional perks like access to airport lounges,
one-on-one financial coaching, and things like that. I haven’t tried Wealthsimple Black yet because I don’t have a $100,000 in my Wealthsimple
account yet, but ask me again in a year or two. No. But it does seem to be a
really great option that adds a little bit more to your investing experience. I
found getting my money into Wealthsimple was ridiculously easy. I just set up
an electronic funds transfer and it showed up right away in two to three
business days, like electronic funds transfers always do. But now I actually
have an automatic deposit going from my KOHO account to Wealthsimple every month and that shows up on the day it’s due.
I can see my money appearing mu Wealthsimple account and get immediately
invested in the stock market before I even registered as withdrawn from my
KOHO account. If you don’t know what KOHO is I have a video on that, which I’ll
link below as well. The only thing I want to note is my referral code for KOHO has
changed. It’s actually BRIDGET20 now instead of BRIDGET10 because as you might
guess, you get more money. You get $20 instead of $10 when you sign up.
But this is not a video about KOHO! This video is about Wealthsimple. Some other
things that I really love about Wealthsimple is just the user interface. It’s
really beautiful, it’s really easy to use. I love the web-based platform and I love
their app. So great, nice to navigate. This is the best part of FinTech because
I find the Canadian banks — not gonna call them lazy with their user experience, but
it’s not that slick. And Wealthsimple definitely has that cool startup feel,
where it’s a beautiful intuitive experience for you to use on
your computer or on your phone. One of the things that I love about it, is it
shows how much you’ve invested, what your rate of return is, and it also gives
you a projection of what they expect your account to grow to over time. So you
can actually see how your money is going to work and have a little bit in mind of
what exactly it’s going to become over time for you. The other thing I really
like in their app is they link news stories, and a series they call the Money
Diaries, where they interview celebrities about their finances. Because I’m just
super curious about what everyone does with their money, I love reading these
stories and seeing how other people are managing their money. So it’s not totally
just financial content of your own accounts , Wealthsimple does bring a lot
more to the table that is like entertainment valu. Another thing to
note is they also offer a savings account called the Wealhsimple Smart Savings. This savings account has an interest rate of 2% right now which is
really good. The only thing I can think of that’s higher than that is EQ Bank
right now, at 2.30%, but 2% is still really solid. It’s
higher than most other places. So if you’re in a position where you’re like,
“man, I really got to get my finances in order! I gotta save money! I gotta invest!”
You can do it all with Wealthsimple. So now I’ve done nothing but sing the
praises of Wealthsimple for many minutes, but there are
some downsides and drawbacks to using it, depending on what kind of investor you
are. And because this is an honest Wealthsimple review, I’m gonna share them here.
The first downside of Wealthsimple is obviously that it is totally automated
and therefore as an investor you don’t have a lot of control of how your money
is being invested. I mean, this is the point of Wealthsimple, but if you’re
typically a self-directed investor like me, it’s a little uncomfortable to not be
able to make every single trading decision for your portfolio. Instead when
you sign up for Wealthsimple, you just do a quiz that assesses your risk
profile, and then they’re like, “here are some of your choices, what portfolio do
you want?” Some of the things and the stocks that they buy, and
allocations, I’m like, I’m not sure that I would buy that for myself. It’s not that
they’re bad investments by any means, it’s just like not what I would pick. And
every month I get an email from them with like an update on my account and
they’re like, “we made 85 trades for you this month” on it. Holy cow, that’s so
many, cuz I’m more a passive investor in my own portfolio and I would
never make that many trades. So just even seeing that number, I’m like “yikes!”
But again this isn’t necessarily a bad thing, it’s just I have a different
perspective of it because I’ve always been managing my own stock portfolio.
Another thing that bugged me initially but has since been resolved, I think
maybe because I was tweeting and blogging about it, but when I was first
invested in Wealthsimple’s portfolios, they only listed the stock tickers of what
companies you were invested in. And granted I knew what they were because I’ve
been staring at the stock market every day for ten years, but if you’re a less
experienced investor it wouldn’t be really easy to know which company your
money is being invested in from just the stock tickers. They’ve since resolved that.
It’s really clear of where exactly your money is going and how that makes you
feel is the other issue. They do offer socially responsible investing
portfolios but even when I clicked on those I was a little surprised at some
of the companies that are on that list. If that’s something that’s important to you,
just take a close and critical look at it because what you might think is
socially responsible, maybe a company that identifies as socially responsible
doesn’t agree. Nevertheless, Welathsimple offers an awesome,
no hassle approach to investing in the stock market and it’s easy for
absolutely everyone to get started with. Whether you need a TFSA, RRSP, or you’re
looking to just invest in a general unregistered account, this is the perfect
option no matter your investing savvy. Like I said, I’m a self-directed investor
with an MBA in finance and I still love having my money invested with Wealthsimple. I hope you guys enjoyed this long overdue review of Wealthsimple! If you did
please give it a thumbs up and subscribe to my channel. Leave a comment below and
let me know if you’re currently investing with Wealthsimple or you’re
managing your portfolio another way. And I’d love to hear your thoughts on what’s
out there or what you would like me to review next! I’ll see you guys later. Bye!

12 Comments

  1. Charlee Wayne says:

    Opening a TFSA with Wealthsimple is definitely my next money move

  2. Angela Madsen says:

    Does the 0.5% management fee include the fees for all the trades that are made?

  3. Meagan says:

    Thanks for the review! 😊 Does wealth simple offer in kind transfers? Could you do a step by step video on opening an account with them?

  4. Tony T says:

    So happy to see that you're back making videos. Learned so much from you! And signed up for KOHO because of you!

  5. Brandan Kerr says:

    Whoa been awhile since your last video. Glad to see something new! Great video!

  6. ONYX Pages πŸ“šπŸ³οΈβ€πŸŒˆπŸ‡ΉπŸ‡Ή says:

    Great video! Thanks for the review!

  7. Infernitysx says:

    sounds too good to be real , why isnt everyone doing this..?

  8. Andra Andra says:

    hi there ! does wealth simple also work in europe ? thanks

  9. shish99 says:

    At 2:45 into the video, you misspelled the word 'registered'.

  10. Ian Morrison says:

    Did you say Questrade?

  11. Ian Morrison says:

    Is Wealthsimple available in UK?

  12. Jaden Lui says:

    Just wondering how do I create a TFSA account for my child?

Leave a Reply

Your email address will not be published. Required fields are marked *