Why I Left Wealthsimple (And What I'm Doing Next)

I just took all my money out of Wealthsimple Invest, and this video is to explain why. I know it's only been a few months since I made my previous video on how much money I've earned using Wealthsimple's robo-advisor, so you may be surprised to hear now that I'm leaving. But I think in the video it will make more sense.
I'm still a big fan of Wealthsimple (I invested with them for over 4 years remember), but it was just time for a change and I'm super excited about what's next.
RESOURCES
➡️ My original video about how much I've earned by using Wealthsimple Invest for the past 4 years kzbin.info/www/bejne/hYOviqB8edWSsNU
➡️ If you haven't gotten started with investing but want to, I'd highly recommend learning more about my investing course called Wealth Building Blueprint for Canadians: jessicamoorhouse.com/wbb
➡️ Or if you want to use Wealthsimple, don't forget to use my affiliate link to get $50 when you sign up: jessicamoorhouse.com/wealthsimple-aff
➡️ To grab some of my new merch visit my shop page jessicamoorhouse.com/shop
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ABOUT ME
I'm Jessica Moorhouse, a money expert, Accredited Financial Counsellor Canada®, speaker, blogger, KZbinr, and host of the More Money Podcast. I'm based out of Toronto, ON, Canada and turned my personal finance blogging side hustle into my full-time business so I could spend all my time teaching others how they can take control of their lives by taking control of their money. To learn more, check out my website jessicamoorhouse.com
#money #personalfinance #investing
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DISCLAIMER & DISCLOSURE
The content I produce is for education and entertainment purposes only. Nothing on this KZbin channel, my website or affiliated channels should be considered financial, investment or legal advice, or an endorsement for any type of service, product, or brand. Some links in this description may be affiliate links in which I may earn a commission at no extra cost to you. Please read my disclaimer to learn more: jessicamoorhouse.com/disclaimer/

[@ellieD23]

Thanks for the video Jessica! At the risk of making a way-too long comment ...this video could not have come at a better time for me. Oddly enough, two days ago I withdrew all of my money from WS. I couldn’t quite put my finger on it, because I wasn’t unhappy with them at all, but I felt I was ready to take the plunge and do it myself. Which is exciting. I basically decided that I would still highly recommend them for people who are totally new to investing. It’s a great way to figure out your risk tolerance, watching your money go up and down, and also see if you’re disciplined enough to budget for investing. I totally get what you mean by needing some privacy. You want people to have the skills to set up their own portfolio. Not just copy you! Everyone is unique and different. Also - a suggestion you can take or leave, would you ever consider offering some modules for your course à la carte? I’m not a total beginner, so I don’t need the earlier modules. But I would be super interested in paying for some of the later stuff :) You worked really hard to create the course and this might be a way to get a few more subscribers. Thanks for all that you do and all that you share!

[@jessicamoorhouse]

Thanks Ellie! A great suggestion but it wouldn't make sense to do an a la carte type thing with how the course is structured. The flow wouldn't make sense without knowing the info/context from earlier modules (I am constantly referring back to earlier lessons so when you get to the end all the pieces come together so you understand the details as well as the bigger picture). But I appreciate the suggestion all the same! Happy to share more about what the course entails if you like. Just apply through the form then we can book a call jessicamoorhouse.com/wbb

[@LiveLifeLori]

Where did you find that retirement calculator on their website? When I log in, there's nothing there except my portfolio. No other information or retirement calculators..

[@jessicamoorhouse]

There's this retirement calculator www.wealthsimple.com/en-ca/tool/retirement-calculator Is that what you're looking for?

[@LiveLifeLori]

@@jessicamoorhouse Thanks! I didn't see it when I log in.

[@verveblack]

in the wealth invest app why is there a separate fee for each stock? so you are paying multiple fees within each invest account?

[@jessicamoorhouse]

Not sure if I know what you mean? With Wealthsimple Invest the robo-advisor, you're not buying stocks, you're buying ETFs. The fees you pay using Wealthsimple Invest include the management fee you pay to Wealthsimple, sales tax on that management fee, and the MERs of the ETFs themselves.

[@verveblack]

@@jessicamoorhouse yes but i thought per etf there is one total charge but it looks like you get dinged with fees per stock inside each etf? i see fees listed for each holding inside an etf in the invest app.

[@jessicamoorhouse]

@@verveblack I still have no idea what you mean. You don't pay a fee per security inside an ETF. You simply pay the ETF's MER, which you don't pay directly (you wouldn't see the fee on a statement). They are paid by the fund and would simply reduce your overall return (similar to a mutual fund). I'd suggest contacting Wealthsimple support and they'd be able to take a look at your account and help you.

[@tmp1k]

it's good to note it's not actually your total portfolio value that graduates you through the wealthsimple tiers but only the actual dollar amount you contributed to your invest accounts (including save etc), and not counting the changes in market values (positive or negative).

[@jessicamoorhouse]

Absolutely! Important to remember it’s $100,000 in net deposits that pushes you into the Wealthsimple Black tier, not a balance of $100,000 (probably didn’t make that clear in the video).

[@inforestsweheal]

I am currently taking Jessica's course and it's very good - very thorough. Not quite half way through and highly recommend it. Jessica, I'd love to see more info about your DIY strategy, maybe only your course students get the goods? :)

[@jessicamoorhouse]

Haha ya I might just keep that info for course students because then I can also explain my strategy within the context of the course teachings, so adding that to-do list! So glad you're enjoying the course soon!

[@shirleyhill786]

Do you then move your $ into a secure wallet??

[@jessicamoorhouse]

Secure wallet? This isn't crypto, it's ETFs.

[@SANJ0288]

Are you creating your own portfolio bc you think will perform better than the one with WS minus fees?

[@jessicamoorhouse]

No, I'd be happy with the same returns. I just wanted more freedom in terms of my portfolio, I did want to save on the management fees, and really I just genuinely enjoy managing my own portfolio. It really came down to personal preference not returns.

[@SANJ0288]

@@jessicamoorhouse interesting. I'm more hands off on the equity but ✋ on Cryto portfolio

[@a_ndersonsantos]

Thanks for the video Jessica! I'm a newcomer, have been here for a year. Got to the point where I am a bit more established and looking for ways to invest. Ended up in your channel and course doing a google search. I am still in the process of research and learn, and I would like to know if your course is recommended for people who are quite lost on where to start. Thanks!

[@jessicamoorhouse]

That's exactly what my course is for...to help you learn the fundamentals of investing all the way to getting you started investing passively by either using a robo-advisor or self-directed with a discount brokerage. Most of the students enrolled are either total beginners who haven't started investing but want a clear guide on how to get started (and what mistakes to avoid).

[@gordonmiller1]

Thank you, for the honest, well explained reasons for leaving. I appreciate the helpful advice you give. :)

[@jessicamoorhouse]

You're welcome!

[@629990]

One thing to know about Questrade. If you plan in retirement to draw income from your RRSP before the mandatory age to convert it to an RRIF they will charge you a 50 dollar partial deregistration fee for each withdrawal.

[@jessicamoorhouse]

This is normal for a discount brokerage to charge this fee. From what I can see, all of them charge this fee, with the exception of some who may waive the fee if you have a certain amount in your account (really depends on the brokerage). You can avoid this fee however by converting your RRSP to a RRIF (which you can do as early as 55) or by doing a partial conversion to a RIFF (you don't have to convert the whole thing). National Bank Direct, the other no-fee brokerage, also charges this fee, but I can't find anything that says yes or no about Wealthsimple Trade. That may be something you want to contact them about, because if they don't charge this fee but you don't want to convert to a RRIF, you could simply transfer your account over to avoid paying the fee.

[@RenoirB]

Hi, first video of you that I’ve watched. I’m looking at the process to balance manually the portfolio over time. One ETF per asset class. But I can’t find how it changes over time (since it’s just been created). You have tools to calculate or process or video about that? Hi! I’m now doing DIY, already millionaire, if we count my partner and I together. But things were under managed mutual funds, something we’re migrating out of.

[@jessicamoorhouse]

I do have a rebalancing spreadsheet inside my Wealth Building Blueprint for Canadians course, however it's not something I provide for download publicly. I'm sure there are others out there who do you can use to help you rebalance. You can also check out Passiv which is software that helps you rebalance your portfolio (it's free).

[@MinnieOnCam]

Do you still suggest wealth simple for people who want to have a 100% Robo-advisor? I do not want to actively trade

[@jessicamoorhouse]

Absolutely, really liked Wealthsimple. Only left because I wanted to go self-directed.

[@tmp1k]

​@@jessicamoorhouse I saw your BMO sponsored advertisement on BMO investorline that was very informative (watched the whole thing). that should be one of your videos. BMO does offer commission free purchases on some of their ETF's.

[@jessicamoorhouse]

@@tmp1k It was actually a video on BMO ETFs, not BMO's discount brokerage BMO Investorline. But yes they do offer free ETF purchases on a selection of ETFs. But recently National Bank Direct and Desjardins Online Brokerage got rid of all commissions on trades (both Canadian and U.S. dollar trades), and Questrade has offered no commissions on ETF purchases for years now.

[@juanmateus8560]

Hey Jessica. I'm down $700 on my wealthsimple robo investor. I'm fairly new at this. Should I find my account so I don't lose anymore money or you think I should hold tight and I'll eventually make back what I've lost? Thank you

[@MinnieOnCam]

@@juanmateus8560 You need to stick your investing goal, the market will always go up and down over time.

[@classified022]

Update for anyone watching this in the future. The WS "black" now called "premium" in addition to lower commissions now offers 4% interest on the cash account, which is a very competitive rate

[@jessicamoorhouse]

Not bad, though looks like Motive Financial offers 4.1%, the highest I've seen for savings accounts in Canada. Thanks for the update on the name change!

[@barrylewis5182]

Hi Jessica, you said you're going DIY with Questrade (I think). I'm curious why you didn't go DIY with Wealthsimple since you were already using them; it's possible to do the DIY route with them too, no? Excellent video BTW.

[@jessicamoorhouse]

True, you can absolutely use Wealthsimple Trade for DIY. But Questrade has been a go-to discount brokerage for DIY investors for decades, I really like their platform, their customer service is great (I've used their chat or phone support multiple times and never had any issues), they offer real-time quotes, they offer more account types, and honestly I just prefer their branding and values. I feel like Questrade promotes more long-term investing with a methodical strategy (get rich slowly), whereas Wealthsimple Trade is often compared to Robinhood, promoting active trading for beginner investors with no experience. So all in all, it really came down to personal preference.

[@barrylewis5182]

@@jessicamoorhouse Thanks for the prompt reply! I currently DIY with BMO Investorline using Vanguard ETFs, but i am considering switching to Wealthsimple for the bonus ($2000+, I think). That's a big incentive, but I really like having all of my banking/investment info available at my fingertips using one app, and I like that I can instantly fund my investment account from my chequing account and buy ETFs immediately. And the thought of making the switch, which would have everything in limbo for a period of time, isn't really appealing.

[@jeniferj]

Canadian Authentic. Love your journey in these videos!

[@jessicamoorhouse]

Thank you!!!

[@surassaneeclaypool7771]

ya know sew

[@debrabeck3797]

Would love to hear about the process of leaving wealthsimple. Did it cost you anything?

[@jessicamoorhouse]

It was incredibly simple and I do have to thank Wealthsimple for making the process super smooth. I just set up a plan-to-plan transfer through Wealthsimple's dashboard. I think it took about a month for the transfer from Wealthsimple to Questrade to go through (which is normal). I got a call from one of their reps to discuss why I was leaving which I appreciated. I told them it's because I wanted to go fully DIY with my investments and they understood and wished me best of luck (no pressuring me to stay). And they don't charge account transfer fees like most institutions so there are no fees. Honestly because of how smooth the process was, it left me feeling positive about my experience using Wealthsimple and I'd use them again if that's something I want to do down the road. help.wealthsimple.com/hc/en-ca/articles/360058461053

[@Kyle-MoneyProphet]

Jessica, I'm a Canadian. Looking for a flexible robo-advisor where I can build a fully custom passive portfolio that automatically takes my money every 2 weeks and invests it accordingly. I want the ability to change weightings and holdings easily and quickly. What I'm not looking for is a robo-advisor that builds my portfolio for me. Ideally, I want to use M1 Finance pie chart portfolio, but it is not offered for Canadians!?! Can you help?

[@jessicamoorhouse]

Ya nothing like that exists in Canada yet. If you want ultimate freedom of choice, then you've got to go self-directed.

[@mrshagz]

@@jessicamoorhouse What would be the best way to created something like Kyle suggested?

[@jessicamoorhouse]

@@mrshagz Like I said, if you want something automatic like he describes a robo-advisor is great but no robo-advisor in Canada allows you to customize your portfolio beyond their menu of pre-built portfolios. If you want to build your own portfolio yourself, then you'd need to open up a discount brokerage account, choose your own ETFs, set up auto-transfers from your bank into your account, set up a DRIP, but even still you'd have to do your own rebalancing and reinvest any interest or capital gains you earn. I go more in-depth about this in my course: jessicamoorhouse.com/wbb

[@sailorsoap]

RBC has one

[@jessicamoorhouse]

@@sailorsoap Has one what? Robo-advisor? If so then yes, I've done a video on it (but it still doesn't let you customize your portfolio as described).

[@niranmojo]

For most people - put your money in a ETF like VGRO with DRIP.

[@jessicamoorhouse]

Love an asset allocation ETF.

[@629990]

And each time you sell an etf questrade charges comisions when you sell. Wealthsimple doesn't charge commissions.

[@jessicamoorhouse]

Correct, though I actually don't mind this feature during the wealth-building phase. It disincentivizes you from selling too easily (such as when you see the market dip and you panic and want to sell), but because ETF buys are free, it encourages you to keep buying and staying invested. As an index investor, this works for me. And even when I rebalance my portfolio, I almost never sell as I simply rebalance by adding in new funds. But if this is a concern for you, this may not be the platform best suited for youl.

[@ravenluchinski3927]

Have you tried QTrade within Canada thus far?

[@jessicamoorhouse]

I haven't tried it myself no.

[@wildwheelsdarin]

I don’t know if it’s just me, but your audio is about a second off. Makes it hard to watch the video. Great info though and thanks for sharing. I am a mix of WS, TD and direct DRIPs.

[@jessicamoorhouse]

Ya it's just you. Just checked and there's no issue with the uploaded video in terms of time lag.

[@kristase]

It’s the same lag for me!

[@alexisrushlow9036]

It’s fine for me

[@jo_neill_keeping_it_real]

Also got a lag.

[@paulsantori8920]

So what I’m getting from this video is that you’re leaving Wealth Simple because you are already with Questrade? Hmmm 🤦🏻‍♂️

[@jessicamoorhouse]

Not quite. I decided to leave Wealthsimple and stop using a robo-advisor for my investments to instead go fully self-directed and manae my own portfolios using a discount brokerage (and the one I use is Questrade). In other words, after a few years of using a robo-advisor, I felt knowledgeable and confident enough to do it on my own and wanted to save on fees so I made the change.

[@roymcpherson1639]

You can build the portfolio and remain at WS though.

[@jessicamoorhouse]

With Wealthsimple Trade, their trading platform, yes. I didn't want to use their trading platform for a bunch of reasons, hence why I went to Questrade.

[@roymcpherson1639]

Makes sense.

[@jeremygibbens7392]

You don't seem to mention ANY of your investments. It seems like it's mainly in ETF's. You mention management fees. Do you own any actual stocks? There are no management fees when you own actual shares in companies. Management fees really drag down your returns.

[@jessicamoorhouse]

Are you asking what I invest in now after leaving Wealthsimple? I've mentioned what I invest in in some of my other videos. I invest in index ETFs then a few individual stocks but not many.

[@jeremygibbens7392]

@@jessicamoorhouse I'm the opposite! A few ETF's but mostly individual stocks.

[@canadiantrends]

National bank direct brokerage 0$ commission

[@jessicamoorhouse]

Yup they do, which I believe that started after I made this video. But I still really like Questrade personally.

[@munbruk]

I know the channel of " how rich I am" lol. When I saw your channel, I thought you were her. You need some gold and shopify lessons.

[@jessicamoorhouse]

I have no idea who you're talking about? 😂

[@EPSGplayer]

SOMEBODY has too much money! Six figures in an RRSP and she’s not even 50 years old?!? Damn.

[@jessicamoorhouse]

Well that's sort of the plan, you know, to grow my wealth to reach financial freedom lol.

[@MrEnky007]

Today, 6figures don't look like much. I hope I'll have saved 7 figures+ by the time I hit 50.