WealthSimple – An Easy Way to Start Investing With Little Money

Earlier I had mentioned that investing your money is the start of becoming financially independent. Making your money work for you is the best way of spending your money. If your money is working for you, you will have more time to play video games.

But Murasa, I have no idea how to invest my money! Here’s a simple way of getting started.

** Note: This post contains a referral link that lets me get some nice benefits when you sign up. They don’t add any additional costs in order to accommodate me, the price you see is what you pay and I wouldn’t be recommending it if I don’t like it. Anyway, more info over at my Affiliate Disclosure page.

Introducing WealthSimple

WealthSimple is a robo-investor that manages your investments. It diversifies your investments into many, many stocks. Traditionally, a person who knows way more about money than you or me tells your money where to go, but with robo-investing, a robot does this for you. Basically, by putting your money into many little egg baskets which runs around and does stuff for companies that own those baskets, your money is passively earning income! That sounds pretty great, doesn’t it? You also have the benefit of not talking to another person, which means more time playing games.

Usually, you start by going to your local bank branch and tell them that you want to open up an investment account. They’ll book you an appointment with one of their financial advisers and tell you what you can do. Their advice is pretty solid until you realize that they follow the old tried and true thinking around sticking to your good 9-5 job to get enough money to retire. Following this means you’re going to retire at 65! That’s not what you want to do!

I don’t deny that they give really good advice, but you have to also realize that they’re also working for the bank. The bank is interested in taking some of your hard earn bucks for their own! We want to really minimize this! WealthSimple actually minimizes this by charging you only their management fees; they don’t charge you for withdrawals, transfers or if you forget to put money in your new account (or close it after transferring out, leaving $0). In short, they only charge you 0.5% to your account based on how much money is in there. It’s so cheap it’s relatively free*.

The Stock Exchange is pretty complicated. I can’t game that.

* Well, that’s again based on how much is in your portfolio; which by the time you’re financially independent, this is literally pennies for you. Also, your money is working for you so you need to invest some to get some. Here is WealthSimple’s Management fee breakdown. Also, clicking on my referral link saves you from these fees for your first year! Talk about a deal!

Unfortunately, WealthSimple is currently only available in the United States, Canada and the United Kingdom. They do have a mailing list to let people know that they’re opening up business in your country!

If you’re in any of the countries above, let’s talk about getting started.

How to Get Started

First step is to make an account on WealthSimple using your email. Follow the prompts; they will require you to input your employment and your social insurance number (or taxpayer information number, whatever they use for taxes).

Once you create and confirm your account, then you will need to start answering their questionnaire about you. This includes stating how much debt you have, how much you earn, what will you do if the market crashes, etc. This will help WealthSimple figure out what your account will look like and the type of investing style. They will also go through the trouble of linking your bank accounts with your WealthSimple account if you provide them your information.

This is pretty simple and easy to do from your couch on your phone, or having it done on your second screen while you sit in respawn after you died in DOTA 2. They even have a mobile app on both Google Play and on iTunes!

You will be eventually greeted to a screen where you will be asked to create an account type. You can open all the accounts, but it’s best to start with one. Since I’m in Canada, I will recommend opening up an RRSP and a TFSA. Canadians, please look forward for my reasoning in a later post! If you’re in the US or UK, please do some research on what type of accounts are available. Fortunately, WealthSimple has provided Investing 101 pages for Canadians, Americans and Brits.

As always, I highly suggest doing your own research before deciding upon an account.

Now Give your Money to a Robot and Not Worry About It

Now that you have your account set up it’s time to tell the robot to invest your money into the great beyond. Your bot at WealthSimple works for you and mostly you. (We just have to pay the management fees as discussed above.)

It should look like this when done.

Because we’re gamers, and we tend to handle money kind of frivolously, I will recommend doing an automated approach. WealthSimple can be set up to automatically withdraw money from your bank account at a timely interval and at a set amount you tell it to. As long you have money in your bank account, WealthSimple will withdraw your amount from the account and tell your dollars to do work. Easy!

If you also wanted to transfer an account over, that is also available to you. Not only that, if you do transfer another account over to WealthSimple, WealthSimple handles the transfer process very easily! And at no cost! They’ll do it for you! They can expedite the process (and with less errors) if you provide your information about the account to them.

It’s pretty easy to save!

WealthSimple proves to be a pretty simple way for people start investing. Especially with no initial investment, you can easily do it from the simple comfort of your couch. (Most financial advisers that aren’t with a bank tend to tell you that you need a really large portfolio (like $100 000) before they deal any business with you and banks charge you too much.) Once you set up automated transfers, you are well on your way of being free to play video games.

It’s just getting started in the right direction is hard.

Just in case you missed it, here’s my referral link to WealthSimple. If you sign up with my link, you will have your money managed for your first year for free (for real, no caveats)! Those fees do add up, and will multiply the longer you go. I’m just paying it forward and I wish you guys success.

EDIT: I found out that my link gives Americans $100 bonus for signing up. Please confirm in the comments below! For you Canucks and Brits, you still get your year free if you click!

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16 thoughts on “WealthSimple – An Easy Way to Start Investing With Little Money”

  1. I have been active in the stock market for over twenty years and have done a lot of study, followed many tipsters and used many systems.  Frankly, I have not gotten rich. 

    Before making a $10,000 commitment to any system or individual, I need to see documented results.  Is that available?  How long has this company been in operation?  Are there any testimonials with certified bank documents showing profits? What kind of algorithms are the bots using?

    With those sorts of answers, I can give some consideration to joining.

    Thanks.

    1. WealthSimple has been in business since 2015. Unfortunately, I can’t find any testimonials with documents showing profits; most reviews I have read are happy about their customer service, ease of use and low fees. In fact, WealthSimple has won multiple awards since it opened, including Webby (Best Financial Site for 2017/2016) and in their first year, they won Toronto’s Product Hunt Best Product of the Year Award. This is actually Canada’s biggest Robo-Investor.

      The algorithm will do tax-loss harvesting and portfolio rebalancing for you. It is based on the Modern Portfolio theory, a Nobel Prize winning concept.

      If you’re still looking for documented results, your dashboard can expand to show you a very detailed overlook as to what’s going on with your investments. I can just say, for simplicity’s sake, that it’s pretty early to see profits. Like all investments it is not a get rich quick scheme. It will take time to build, you need to keep contributing and watch it grow.

      Right now on my screenshot I am showing negative earnings. I just transferred my account a few months ago (and started contributing to my TFSA with larger amounts), but because of the recession going on, I’ve lost quite a bit to the market. For someone with a larger portfolio, they might have similar (and more magnified) results. I also know that in the near future my balance will bounce right back up. The negative impacts haven’t affected me too greatly; but that’s what diversification is for.

      My recommendation is to try it out anyway! Your fees are actually pretty small and you do have a nice bonus signing up.

  2. Thank you for the suggestions. I have some knowledge of investments and stocks. I have never heard of WealthSimple before, but it looks like a great tool to use to start investing. That is interesting that this system is automated by a robot. Goes to show how far investing has come. That is great that they do not charge you that much. This is worth looking into. 

    1. Robo-Investors are a pretty new concept, starting in 2008. Betterment is probably the most prominent if you’re from the States. (It’s not available in Canada unfortunately) I like that they charge much less than your traditional adviser, where they typically charge from 1-2% on your portfolio, where if they go on longer, they can cut your profits in half! It’s definitely worth looking into if you’re looking to cut down on outrageous management fees.

      Also WealthSimple is pretty new, they opened up in Canada back in 2015, which is most likely why you’ve never heard from them.

  3. Wealth Simple has some similar characteristics to the Raiz Investment App in that it’s an easy way to start saving – which I’m always on the look out for. I’m in Australia though, so will sign up for the email to be notified when it is available here. 

    I really like that you can have your portfolio managed with no fees for a year! It definitely does make a difference, especially when you’re starting with a small investment amount!

    1. Yeah! I have seen some offers from other sites that give you an extra $50 bucks into your account when you sign, but that’s really nothing compared to the fees you can save in over a year. If you put in at least 50% of your paycheck every month and invest that through WealthSimple, you will see your savings grow! The less pulled from your account, the more you will keep! It’s pretty great!

  4. Thanks for writing this article. I really wish someone had told me about the importance of investing a lot earlier in my life. I spent my first 10 working years not investing a thing because I was ill-informed! Thankfully, I have started now while I am still young. When you invest with WealthSimple, does the robot actively move your money around depending on how the market is performing to avoid ones that are falling?

    1. I actually did the same thing when I first got out of high school. I didn’t start investing until I was 23, when my dad suggested I should get an RRSP set up under Royal Bank of Canada. (I haven’t transferred my RRSP because of rebates with them! Big banks are also a problem, another post for later.)

      Yep, the robot actively buys and sells stocks based on the market. So far, my robot has been buying shares; the market (despite the recession) is pretty ripe to buy so that’s what the bot has decided to do.

      Of course, take what I said with a grain of salt; I’m not really a finance expert. I just happen to invest in my future and I’d like to just play video games when I retire.

  5. Dear Murasa,

    Thanks for this insightful and helpful post. I got great insights from your post.

    Once I read “Its not what we earn makes us rich, its what we save and in what we invest makes us rich”. I really liked and enjoyed your statement “Making your money work for you is the best way of spending your money” this is a great secret. Thanks for sharing.

    Unfortunately I am not able to participate in this program since I am from India which really hurts. And as you mentioned I hope they will open up business in my country soon.

    Much Success!

    Paul

    1. Heya Paul

      I hope they’re opening in India soon! I’m glad you came and commented! I do suggest that you sign onto their mailing list! They’ll let you know if they opened up in India soon!

  6. This looks really interesting and is definitely something I would try. To bad for me that it is not available where I live. Hopefully it will become available in other parts of the world as well.

  7. This is an interesting post. It seems to me that this is similar to Raiz investment that pretty much does the same to which I am an existing customer.
    Very good to come across a similar platform. Its amazing how small investments can make a big difference in due course.

    Wish you all success.

    Anil

    1. Raiz seems to be the dominant investor app in Australia. It looks similar to what WealthSimple is providing in Canada, which includes RoundUp that you guys also have where it rounds up purchases and puts the change into your investment.

      Seems like they have a wider variety of portfolios to choose from. Very interesting.

  8. Hi Murasa,
    This seems to be interesting. I feel this is kinda mutual fund concept done by a robot. Am I right? So all the investments are done through online? Will someone is involved or contact us? Because investment through online seems to be risky!

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