Wealthsimple Review - What I Earned After 4 Years of Investing

After 4 years of using Wealthsimple Invest, I want to share my results and my overall review of investing in my RRSP using this robo-advisor. Like I mention in the video, I opened my RRSP account with Wealthsimple in February 2017, right in the early days of robo-advisors in Canada. Honestly, back then so many people were afraid to invest with them fearing they'd go under.
Well, since Wealthsimple just announced their latest $750 million investment round, the largest private tech investment in Canadian history, Wealthsimple isn't going away any time soon. And after looking at how my retirement portfolio has grown over the years, I'm so glad I took the leap (especially since I was previously stuck in a portfolio of high-fee mutual funds with one of the big banks).
Although I don't show you my current balance, because this isn't a test account, this is my ACTUAL RRSP housing my main retirement portfolio (I do invest elsewhere, but I'll save that for a future video), you do get to see my returns, the fees I've paid, the dividends I've earned, the portfolio I'm in and the reason why I earned the returns I did.
Also, since I mentioned this in the video, although I share what portfolio I'm invested in, remember that that doesn't mean you should be in the same portfolio. Everyone's different and you should invest according to your own investment goal, time horizon, and risk tolerance.
Lastly, though this should be obvious since I always disclose any paid partnerships, this video is NOT sponsored.
If you'd like to get started with Wealthsimple, make sure to take advantage of my affiliate link to get $50 on sign up: jessicamoorhouse.com/wealthsim...
If you have any questions about Wealthsimple or robo-advisors in general, let me know in the comments!
CHAPTERS
00:00 Introduction
2:25 First Look at My Portfolio
7:10 My Portfolio's Asset Mix
11:19 My Deposits, Fees, and Rebalances
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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/

[@jessicamoorhouse]

Have you tried Wealthsimple or another robo-advisor for your investments? Let me know in the comments! 👇

[@chadcrow7611]

what percent profits are you having and what level of investment did you chose. it gives you the option between 1 and 10

[@jessicamoorhouse]

@@chadcrow7611 Did you watch the video? I show you my returns and what portfolio I'm in.

[@junetoronto4539]

I really enjoyed this video Jessica! and looking forward to your future videos about WS black and other robos. Passive DIY/self-directed investing has become so popular, and there's so much competition among different robo & brokerage firms today, and that makes it difficult to choose. True, it's interesting how your money-weighted return is higher than the time-weighted return. Thanks for this video! Take care :)

[@jessicamoorhouse]

So glad you enjoyed it! And will definitely share more review videos about the other robos!

[@bradleyprinzen4962]

Fantastic video, very informative! I just started investing this year, this video is very helpful for a beginner.

[@jessicamoorhouse]

So glad you found it helpful! Will definitely be putting out more videos on investing. Especially since I already have a big update for this video!

[@r.t.7925]

Thank you for posting . It caught my attention that the halal theme was all stocks -many out of North America. It seamed riskier . They bundle that in WSHR ETF now . The rest 20% is SPDR Gold . Its all learning for me still - I think picking some Vanguard low cost ETFs would be better than using that robo-advisor .

[@jessicamoorhouse]

If you're comfortable with self-directed investing, then I personally think that can be a great idea (it's why I made my follow up video about why I left). Over time, you can definitely save some money (as you won't have that 0.50% management fee) plus you just have more control and freedom with your portfolio. kzbin.info/www/bejne/f6HSYXmEgN2eeMk

[@CanadianDividendInvesting]

Awesome video, thanks for sharing!

[@jessicamoorhouse]

And thanks for watching! :)

[@sreenapakkath9200]

Thank you for making such a detailed video…this helps a lot! You are awesome 🙂

[@jessicamoorhouse]

You're so welcome, glad you liked it!

[@slimoueslati9479]

what to they mean by 'cash accounts are not eligible' when using your link to sign up ?

[@jessicamoorhouse]

They're referring to their Wealthsimple Cash account (I believe), which is their savings account product. The $50 sign up bonus is only if you open up an investment account with Wealthsimple Invest (the robo-advisor product).

[@safrinahanifah6695]

Hi Jessica, I am very new in Wealth simple, do I need to declare during yearly Tax reporting? If yes, how do i get the information.

[@jessicamoorhouse]

There is a Tax Documents section in your Wealthsimple Dashboard with all the docs you should need.

[@quangyung6751]

Does simplewealth have rifts account? I don't see any? What do we have to do than when it's time to turn rrsp to rifts?

[@jessicamoorhouse]

Yes, Wealthsimple Invest does offer Registered Retirement Income Funds (RRIFs). You can find the full list of accounts offered here under "Accounts that fit your goals" www.wealthsimple.com/en-ca/product/invest

[@Ricky_Mason]

I'm considering switching from RBC to Wealthsimple. I haven't heard from my adviser in 5 years. I'm doing some initial research now and came across your channel.

[@jessicamoorhouse]

Great! Well what I tell everyone is before making any moves, first decide do you 1) want to move to a robo-advisor and if so, review ALL the robo-advisor platforms out there (there are lots of great ones aside from Wealthsimple, but WS just does the most marketing), 2) or would you instead like to do self-directed investing so save even more money in fees since it's fairly easy to invest on your own through an asset allocation ETF. Also, since you won't get any financial planning help or advice when using a robo-advisor or going self-directed, I always suggest in conjunction to work with a fee-only financial planner.

[@aaammm1888]

i hate this app bcz i cant see all the stocks listed on their to buy i have a few stocks im looking to buy sign up but cant see the list till i put funds?

[@jessicamoorhouse]

You're talking about Wealthsimple Trade their brokerage app. This video is about Wealthsimple Invest, the robo-advisor. Two different platforms by the same company.

[@slimoueslati9479]

Hey ! thanks for the explanation, actually I am new in the word of investment and i want to know if we do have to report the gains from this investment during the annual government income statement?

[@jessicamoorhouse]

Yes, you need to claim all interest, dividends, and capital gains you earn in an unregistered account to the government when you file your tax return and pay applicable taxes on that income. For registered accounts, you simply need to report your contributions and withdrawals since gains are either tax-free (TFSA) or tax-deferred (RRSP, RESP, RDSP).

[@RyanSan89]

I'm 32 years old. Is a level 10 risk portfolio ideal for retirement with an existing RRSP and regular bi-weekly contributions?

[@jessicamoorhouse]

Really depends on your personal risk tolerance (are you ok with that much volatility in your portfolio?). But in terms of time horizon, with decades in front of you, it could be an appropriate asset allocation for you.

[@rookieinvestor6377]

Just curious, why not investing in WS Trade?

[@jessicamoorhouse]

If you're asking why did I use Wealthsimple Invest and not Wealthsimple Trade, I started using Wealthsimple Invest way before Wealthsimple Trade was launched. Also, one's a robo-advisor and one's a discount brokerage so very different platforms. But as you'll see in my follow up with to this, I've now moved out of Wealthsimple completely and am managing all my own investments using Questrade. I personally didn't want to use Wealthsimple Trade because they don't offer USD accounts (though I believe they're changing that) and I've used Questrade for years and really like the platform, customer service, and their overall company values.

[@mrmovieman_collectorbuff]

Why is there a monthly fee? isn’t stock works by investing which ever amount and that amount is being earn auto on a monthly basis where you can withdraw anytime.

[@jessicamoorhouse]

For Wealthsimple Invest, there's a 0.50% management fee which pays for the management portfolio, then there's the MERs of the ETFs themselves, which Wealthsimple is 0.10%, so that's a total of 0.60% on your total assets under management. Significantly lower than working with a wealth management firm or investing in mutual funds where the fees could be between 2-2.5%. With that said, it may look like a monthly fee but actually they calculate the fee on a daily basis by dividing the annual fee by 365 days and applying it to the closing market value of your portfolio on that day. These daily portions are added together and charged to your account monthly.

[@asiaryvi]

I have an RRSP account in RBC and really thinking of switching it to Wealth Simple. Can I transfer my RRSP money to Wealth Simple? or just just have to start from scratch? Great video btw :)

[@jessicamoorhouse]

You can transfer your RRSP at RBC to literally anywhere. You're not stuck there, you can do what's called a plan-to-plan transfer to another institution whenever you like. How it works is you decide first where you want to move it to, open an RRSP account there, then through that new institution, set up the transfer. With Wealthsimple, there's literally a menu option in your account to make such a transfer so it's super easy.

[@slimoueslati9479]

can we lose money by using this type of investement ? if yes in which case it happens ?

[@jessicamoorhouse]

You can lose money no matter how you invest. There's always some level of investment risk present.

[@SANsSlowPath]

Yes I am using wealth simple invest and wealth simple trade

[@jessicamoorhouse]

Great!

[@idkok7821]

Would you recommend using this as someone who’s just starting out?

[@jessicamoorhouse]

I used them for 4 years as a fairly new investor and had a good experience. I only wish I switched sooner instead of investing in high fee actively-managed mutual funds for so long (one of my biggest regrets)! I think robo-advisors in general are great platforms for new investors, especially for anyone not comfortable with the idea of being a self-directed investor yet.

[@focusinvestor4787]

What do you think about Moka? I can't make up my mind

[@jessicamoorhouse]

I'm a bit hesitant because Mogo now owns them and I've never been a fan of Mogo. But honestly you can do the spare change round-up thing with Wealthsimple.

[@slimoueslati9479]

is it easy to get our money back from the plateform at any time ?

[@jessicamoorhouse]

Yes of course. If you choose to use Wealthsimple Invest, then decide you'd like to make a withdrawal or move your account elsewhere, very easy to do.

[@rottilee950]

Hi Jessica! I have about $6 grand to start investing. I’m very new to this! Considering opening up a TFSA account with Wealthsimple and do ETF’s from there. Would u suggest depositing the $6K upfront or just do a few hundred each month? Thanks!

[@jessicamoorhouse]

So you're asking what's better, dollar cost averaging or doing a lump sum? There's a few schools of thought. If I were in your shoes, I'd probably just do the lump sum but that's just me. I'll refer you to this resource for some food for thought www.rbcgam.com/en/ca/learn-plan/investment-basics/understanding-dollar-cost-averaging-vs-lump-sum-investing/detail

[@mattsmith8865]

Wish you showed more.. like how much you'd have by 65... why you wouldn't show that and other simple things is a bit odd

[@jessicamoorhouse]

I wanted to keep some info private since I don't publicly share my net worth or how much I have invested. If I shared what they predicted my portfolio value would be at 65, you could easily reverse engineer and find out the total balance in my account. That's why.

[@random33E]

Do you want to share all your accounts on the internet? I think not.

[@Malcrom1967]

My RRSP has been down since I moved my money there 3 months ago. No impressed so far.

[@jessicamoorhouse]

It's only been 3 months? If you're investing for the long-term, which I expect you are if it's in an RRSP, then 3 months doesn't matter. You're not going to make huge returns overnight, it takes time to see growth. Moreover, if your portfolio is down it's most likely because you transferred your money when the stock market was high and it's since fallen due to news about inflation. It'll go back up eventually, just be patient.

[@Malcrom1967]

@@jessicamoorhouse Yeah I know that. I just didn't expect it to drop as soon has I put it there and not move even after dividend reinvestments. I think it was doing better at BMO.

[@jessicamoorhouse]

@@Malcrom1967 I see what you're saying but it's not really a fair comparison assuming you were with BMO for much longer and it had more time to grow.

[@angelavanroon4341]

You also invested at a high point in the market. While crypto and the expanding market has taken a dip lately, it makes sense you've seen a dib. Robo advisors follow the market trends

[@Malcrom1967]

All good now :)

[@justingarland8859]

Investing with Wealthsimple was the worst decision I ever made

[@jessicamoorhouse]

Because...? Can you be more clear why?

[@s.i.r7741]

Lol she is smart. Do you see how wide the blue is. She is taking home a big bag

[@jessicamoorhouse]

I'm doing ok, I will say.

[@bolskify]

Is this objective review of Wealthsimple sponsored by Wealthsimple?

[@jessicamoorhouse]

As noted in the description of the video this isn’t sponsored. I always clearly state when a video is sponsored, this is my honest review.

[@emilylee8156]

Gosh people would say anything to make money, this app is actually the worst! If you don't mind losing $300 out of $4000 in under a week then can't get your money out right away because the app can't even do their math correctly then go ahead. I am SO DONE with this crappy app!

[@jessicamoorhouse]

You do understand it's not the app that lost you money, but the portfolio you're invested in, right? Meaning it's some of the ETFs inside the portfolio that lost value, which should be an expectation as an investor since the market goes up and down. Before blaming the platform, take a look at what's going on with the specific ETFs you're investing in to have a better understanding of your portfolio's performance. I'd also suggest speaking with one of Wealthsimple's investing reps to discuss your portfolio. And as for saying anything to make money? Wow, clearly you don't know who I am but are making a snap judgement. I guess you didn't see that I was never paid to make this video (it's not sponsored) and after making it I decided to leave Wealthsimple to go full self-directed with a discount brokerage. I don't care if you use Wealthsimple or not. I just made this video to share my personal experience using it for 4 years.

[@quangyung6751]

@@jessicamoorhouse Some ppl think that wealthsimple is a magic moneytree and get a 200 percent return in 3 months. It's for long term investing. She's complaining after afew months. Investing isn't for her. Too impatient. Go buy a lotto buddy. Leave her alone. Noone said you had to watch.

[@JG-yr9tk]

Wait you left wealthsimple?

[@__hazel.]

You shouldn’t be investing in any stocks or ETFs if you’re not comfortable with your portfolio showing a loss. If you can’t handle losses then keep your money in a high-interest savings account or use GICs (guaranteed investment cerificates). Generally the high end of savings accounts are around 2-3.5% interest and 1-year GICs are around 5% interest.

[@modhish29]

Worst decision i made = invested tfsa vs wealthsimple

[@jessicamoorhouse]

Your typo aside, what do mean "invested TFSA vs. Wealthsimple"? Those two things aren't the same. A TFSA is a registered account type you can open with a financial institution, robo-advisor, or discount brokerage and put cash or investments inside it. Wealthsimple is a robo-advisor, which is a platform that allows you to invest in a portfolio of index ETFs and be managed for you. You can do this inside your TFSA or other account type.

[@modhish29]

@@jessicamoorhouse Thanks for replying..not sure what ur referring to by ”..typo aside”..to answer u simply & objectively as this is not personal; I opened a TFSA account with WealthSimple about 2-3 years ago and lost lots of money on constant basis..closed that & opened the same at banks like RBC and gained a decent amount but at least didnt lose any. Cheers :)

[@modhish29]

Hahahah just noticed I wrote worth not worst ☺️ got me on that one

[@jessicamoorhouse]

@@modhish29 So it has nothing to do with your TFSA (because again, that's just a container you house cash or investments in). Without knowing exactly what your portfolio looked like at Wealthsimple compared to RBC, it's impossible to know why you got different returns.