The RRSP contribution deadline is coming up fast on March 1, 2017. If you haven’t started investing in an RRSP yet because you “don’t have time”, check out Wealthsimple for its automated investment solution, which you can manage right from your iPhone.
Toronto-based “robo-adviser” Wealthsimple uses algorithms to invest your money in a portfolio of low-fee diversified ETF (exchange traded funds), automatically rebalancing and reinvesting dividends.
The Canadian company say it is the largest automated investing service in the country, with over $750 million invested by 20,000 clients. The company is backed by a $30 million investment from Power Financial Corp., which manages over $780 billion in global assets. Last month, Wealthsimple launched in the USA, while also introduced its new Wealthsimple Black program.
The advantages of Wealthsimple over traditional mutual funds from your bank, are the low fees involved. The company takes a management fee of 0.5% on net deposits under $100,000; for accounts between $100,000 to $250,000 the fee is 0.4%. Mutual funds from your bank may have a Management Expense Ratio (MER) of 2-3% or higher, depending on what you are investing in. These fees over time can erode your returns, which is why ETFs gaining in popularity.
There are no minimum investments to get started with Wealthsimple—all you need to do is sign up (then have a quick phone call as per Canadian securities regulations; the company wants to change this), make a deposit or schedule an ongoing contribution, then sit back and watch your money grow. You’ll have access to an advisor via phone, text or email, all the time, while controlling everything from the company’s award-winning iOS app.
While it is also possible to manage your own ETF portfolio through an online trading account—nobody has time for that. With Canadians leading busy lives, Wealthsimple can do the heavy lifting for you, so you can spend more time with your friends and family.
This bonus is available for any deposit made, whether it’s for an RRSP, TFSA or a personal account.
Again, click here to sign up for Wealthsimple and start investing your money today.
Disclosure: Wealthsimple is an affiliate partner of iPhoneinCanada.ca and this offer allows readers to support the site.