The following post is my complete review and on-going case study of investing with the online robo-advisor called Wealthsimple.
You can get your first $10,000 on WealthSimple managed for free by clicking here.
You can watch all my updates as well as my initial video review of Wealthsimple by clicking here, or watching the videos below:
What is WealthSimple?
Before we jump into the review lets talk a little bit about WealthSimple and what a robo-advisor really is.
Wealthsimple has been around for a few years and over the last year or so has really started to become on of the most popular platforms for people to invest their money into. I myself have a good chunk of my investments in a Wealthsimple TFSA.
What makes investing with robo-advisors really nice is that that do all the work for you…
All you literally need to do is create an account, go through their short questionnaire to figure out what ratio of bonds / stocks is the suitable for you, and then all you need to do is regularly deposit money.
Wealthsimple does all the work of picking the ETF’s and automatically balances and invests your money for you. This does come at price however with an MER fee of 0.5% depending on what portfolio setup you have.
In comparison standard financial advisers can charge up to 2%!
I also want to point out that if you use my referral link you get your first $10,000 on Wealthsimple managed for free. You can do that by clicking here.
Who is WealthSimple For?
I honestly beleive that Wealthsimple is going to be for the vast majority of people nowadays. Everyone is so busy and the last thing most of us want to do is waste time managing our finances and in the end most of us, including myself, if left free rein would do more damage then good.
This goes to say that Wealthsimple is for anyone who loves a set it and forget it type of approach to saving and investing. The other nice thing about robo-advisors is that they make it SO EASY to get started with investing.
Wealthsimple really takes the confusion and common roadblocks out of the way that used to stop people like myself because we are too busy to go to the bank or just simply too lazy.
Now you have no excuse!
If this sounds like you then I’d strongly suggest you take a closer look at WealthSimple.
My Experience With WealthSimple So Far
So far my experience with Wealthsimple has been great! As I mention earlier I really love the simplicity of everything at the end of the day and sending any free cash I have into my TFSA with only the click of a button.
I first heard of Wealthsimple earlier this year when I first started my journey with investing.
When I first started I created 3 accounts of all different risk types. I eventually ended putting them all together into WealthSimple’s growth account because it will make you the most income in the long run. This ended up being the correct account for me because I truly am in it for the long haul.
I also love the interface and simplicity of Wealthsimple’s website. I’ve only had to email their support once, but I got a reply within 2 days and service has been great so far. I’ve heard other good stories that Wealthsimple’s customer service is one of its strongest points as well.
When I first started investing I had nothing but now I have a decent portfolio size that is slowly but surely growing and getting those regular monthly dividend payments feels really good ;).
At this time of writing I currently have $23,000 investing with my goal of reaching $50,000 by the end of 2019 / beginning of 2020. If you want to follow along with me I do an update on my YouTube channel once a month!
Pros and Cons of WealthSimple
Let’s go over the pros and cons of what I think so far in regard to my experience with Wealthsimple…
- Website and interface is really fast, beautiful and easy to navigate
- Low MER fee, and the more people/friends you have the lower!
- Investing is easy and only requires a click of a button
- Great customer service
- A diversified series of funds and etf’s in portfolios.
- The only con I can think of right now and in my experience is that although the portfolio’s are well diversified you can’t actually change the allocations of any of the etfs yourself. This does make sense however since Wealthsimple does do evrything for you, but it would be nice if you could make small adjustments if you wanted to.
- Currently there is no option for a 100% equity portfolio, closest you can get is 90% equity and 10% bonds.
Who Shouldn’t Use WealthSimple
Anyone who wants to manage their own portfolio probably won’t want to start with Wealthsimple because you won’t have the control over your portfolio, but for most people such as myself this is a good thing.
Since I started using Wealthsimple I know I have an extra 5-10% of income coming in each year based of what I have invested and average stock market returns. For me this is huge and if a simple solution like Wealthsimple didn’t exist I probably would still have my money sitting in a crappy 1% savings account.
I believe that Wealthsimple is most suited for those who are just started or getting into investing but want the easiest solution so they won’t mess anything up. Sure, you probably will still make mistakes as a beginners but a nice robo-advisor such as Wealthsimple will make sure those mistakes are minimal.
Overall I give WealthSimple a big thumbs up!