Wealthsimple Black And Wealthsimple Generation Review

Wealthsimple is a Canadian-based Robo advisor company. It offers low-cost investment among other great financial services. More so, it offers premium services to clients who could boast of at least a net deposit of $100, 000 in their account.

The plan comes in the form of Wealthsimple Black ($100,000 minimum) and Wealthsimple Generation ($500,000 minimum). Perhaps, you still want to invest with Wealthsimple but have less than $100,000. Do Not Fret.

You can invest in the Wealthsimple Basic Plan, which requires a minimum deposit of $0-100,000. However, you will pay a 0.5% account management fee if you are a U.S and Canadian citizen. For those in the UK, you will pay a 0.7% fee for the same services.

In this article, we will take a look at what both top plans have to offer in detail.

What Is Wealthsimple Black?

Wealthsimple Black is the 2nd of the three (3) Wealthsimple investment plans.

It requires that a client becomes eligible for the services and benefits of this plan by having a net deposit of at least $100,000 in their Wealthsimple “Invest & Save” and Cash accounts.

It is open for both new and old account holders. Once you meet the eligibility status, Wealthsimple sends the rewards and benefits straight to your email account.

In case you are in the UK and want to invest in the Wealthsimple Black plan, the fees payable is not the same as the U.S and Canadian-based clients. You will have to pay a 0.50% account management fee.

Wealthsimple Black

Features Of Wealthsimple Black Plan

  • 4% management fee

  • Expert financial advice

  • Financial planning session

  • Tax-loss harvesting

  • Tax-efficient funds

  • Personalized portfolio

  • Dividend reinvesting

  • Auto-rebalancing

  • Auto-deposits

1. Reasonable management fees

Wealthsimple offers one of the lowest management fees as opposed to some Robo advisors. 0.4% is a reasonable fee for an actively managed portfolio.

More so, you have 0.1% off compared to the 0.5% management fee a basic plan account holder pays.

With this plan, you simply enjoy even a lesser fee and save a significant amount of money over the years.

2. Expert advice

You do not only have to depend on Robo advisors for advice. With this Wealthsimple plan, you also get human advisors.

Do you know what that means? It means you:

  • Have full access to Wealthsimple expert financial advisors.

  • Enjoy a well-tailored service.

  • Set up financial planning sessions with any of them. You can get in touch with them through phone calls or by submitting a request to get advice.

  • Meet your financial goals faster and better.

Human advisors offer services that are more flexible and accountable as they are sensitive to emotions than robots.

3. Tax efficiency

Paying the least amount of tax as required by the law is what every investor wants. Wealthsimple Black offers you that through tax-loss harvesting and tax-efficient funds.

Tax Loss Harvesting helps to reduce your tax bill.

Your portfolio manager will help you track your investment; find out those that have lost value; help you sell them. Selling them at a loss means a reduced tax liability on capital gains.

Offsetting some taxes helps investors to maximize gains. More so, you get these features at no additional cost.

4. Portfolio management

Managing your investment portfolios in Wealthsimple Black is a lot easier. With the likes of dividend reinvesting, auto-rebalancing, auto-deposits, you allocate more time to what needs it.

Even more, with the personalized portfolio feature, you can create custom designs such as better portfolio alignment.

This will help add professionalism and drive performance to your portfolio and more.

What is Wealthsimple Generation?

Wealthsimple generation is the 3rd and last tier of Wealthsimple investment plans.

Any investor going for it must have at least a minimum net deposit of $500, 000 in their accounts. This also allows you to enjoy a 0.4% account management fee.

It has more value compared with other available plans because of its higher-net-worth individuals. Thus, it comes with plenty of investment options and personalized advice.

Perhaps, you are in the UK and will love to invest in Wealthsimple Generation. You will pay a 0.5% management fee. The rate is different from what a Canadian or U.S citizen pays.

Features of Wealthsimple Generation Plan

This plan includes all the features of the Wealthsimple Black plan and more. Some of the added features are:

  1. Personalized financial report

  2. In-depth financial planning

  3. Individualized portfolios

  4. Asset location

  5. A dedicated team of advisors

  6. 50% off Medcan health plan

1. Financial management

In addition to easy access to a human advisor, you also get personalized financial reports and In-depth financial planning.

With a personalized report, you can see your financial statement like cash flow, expenses, etc. Also, you will know your investment performance over a stipulated time.

The provided information will help you develop better strategies to grow wealth. As well as, make other financial objections.

Wealthsimple also offers comprehensive financial planning for complex investment structures like the Generation plan.

It is more like a guide that puts you through your investment journey as your asset value grows.

2. Medcan health plan

The Wealthsimple Generation plan offers a good combination of personal (health) and financial wellness.

Medcan is one of the Canadians top health care clinics. With its comprehensive health plan, Generation clients have a much affordable bundle.

The 50% off offered by Wealthsimple Generation will save you about $2,353 instead of the full annual membership fee of $4,705. The price is subject to change at any time.

The discount covers only you, the Generation account holder. You cannot share or transfer it.

More so, you are eligible for 15 diagnostic tests annual health assessment, same-day results, immediate appointment, travel health support, genetic tests, and even more.

3. Tailored portfolio

Wealthsimple designs each portfolio in the Generation plan to meet the specific exposure and financial goals of the individual.

More so, with individualized asset allocation, you can implement investment strategies to balance rewards and risks.

Along with your tax savings account, tax-loss harvesting, and tax-efficient funds features, this Wealthsimple plan got you covered.

A quick comparison between Wealthsimple Black and Wealthsimple Generation

Features

 

Wealthsimple Black

 

Wealthsimple Generation

Management fee

0.4%

0.4%

Expert financial advice

Yes

Yes

Financial planning session

Yes

Yes

Personalized financial report

No

Yes

Tax-loss harvesting

Yes

Yes

Tax-efficient funds

Yes

Yes

Asset location

No

Yes

Individualized portfolios

No

Yes

Auto-rebalancing

Yes

Yes

Dividend reinvesting

Yes

Yes

Personalized portfolio

Yes

Yes

A dedicated team of advisors

No

Yes

Medcan health plan

None

50% off

In-depth financial planning

No

Yes

Auto-deposits

Yes

Yes

Are there any cons with Wealthsimple investment plans?

We have looked into the benefits of these plans. However, there are some shortfalls too.

  • Automatic downgrade

If you have at least $100k or $500k in your account, it will make you eligible for the respective plans. However, you will need to upgrade to enjoy the offer.

On the other hand, if your balance drops below the required amount, you will automatically lose your status.

An exception may be if Wealthsimple waives the reason for your balance dropping.

  • Higher fee

Wealthsimple investment plans have a considerable management fee. However, the management fee is on the high side when you compare it with some of its competitors.

For example, the management fees for SoFi (0%), Questrade (0.20%), Vanguard (0.15%) and Betterment (0.25%). Lower management fees may likely lead to better returns.

Again, when you downgrade from either Wealthsimple Black or Generation, you will pay an even higher management fee of 0.5% instead of 0.4%.

  • No access to an immediate financial planning session

One of the benefits of financial planning sessions is that you will have interactive sessions with financial experts.

The result is that it will help you achieve your goals; reduce risks; managed cash flow and more.

However, you must set up financial planning sessions with any of the experts. Peradventure, you have an urgent need; you just have to wait until the session starts.

Wealthsimple Black

Frequently Asked Questions

Is it safe to invest in Wealthsimple Black and Generation?

Regardless of what plan you invest in, Wealthsimple is generally safe and secure.

Wealthsimple is under the protection of the Federal Deposit Insurance Corporation (FDIC) and the Canadian Investor Protection Fund (CIPF).

They are also a member of the Investment Industry Regulatory Organization of Canada (IIROC).

That means your deposits are in safe hands and your data secured, even if the Share-Owners become insolvent.

Again, they use 256-bit encryption for digital protection just like all the major banks. The 2-factor authentication is also an added security feature.

Can I lose my Wealthsimple Black and Generation Status?

Yes, you can.

You are free to make withdrawals from your investment account. However, when you do so, make sure it will not bring your net deposit below $100,000 or $500,000 respectively.

Once you have a net deposit below the required amount, you will automatically lose your status and benefits.

Again, market dips can put your portfolio balance below the required amount. In this scenario, you cannot lose your status once it is over $100k regardless of what the market does.

However, there may be an exception for retirees with the Wealthsimple Generation plan.

They can withdraw below the required amount without losing their status. That is only applicable if it is a part of their retirement income strategy.

Other forms of withdrawals can also affect your Generation status. Nonetheless, your advisor is the best person to give you such information.

Do I qualify for any of these plans with multiple accounts?

Whether you have a joint account or other types of Wealthsimple accounts, you are eligible for these offers once these accounts have a combined net deposit of $100, 000 or $500,000.

You will also receive the benefits just like any other Wealthsimple Generation and Black clients.

Can I connect my Wealthsimple Invest to Mint?

Yes, you can connect any of your Wealthsimple invest accounts to mint. Some of the account types are RRSP, TFSA, LIRA, RRIF, and RESP, personal, business and joint accounts.

To connect the two accounts, you have to:

  • Enable your Wealthsimple Mint-specific password.

  • Log in to Wealthsimple with your email and password.

  • Then, sign in to your “Invest and Save” profile.

  • At the top right side of the screen, click on your name.

  • Select “setting” from the drop-down menu

  • Then, select the banks and apps tab.

  • Check the “Allow Mint to read my Wealthsimple data” box.

  • Click on “update”.

  • You will receive the username and Mint access token on display. Note it down.

To link the Wealthsimple account to Mint:

  • Log in to com.

  • Click on “Add accounts”. It will prompt you to put your Wealthsimple authorization code.

  • That is where you use the Mint access token and email to log in.

  • You must not use the same Wealthsimple password as Mint password. That is if you want to make your account is more secured.

Note: For now, it is impossible to connect your Wealthsimple trade account to Mint.

How well does Wealthsimple stand out over other Robo advisors?

Many Robo advisers/financial management companies are available in Canada. Questrade, Vanguard Canada, Justwealth, and Nest wealth are just a few of the available options.

Wealthsimple sure has an edge over its competitors. Some of them are easy and fast account opening, great investment platforms, low non-investment fees e.g., no deposit or withdrawal fee.

However, Wealthsimple is incapacitated in some areas too. For example, its response rate is poor, have and has high management fees compared to what other competitors may offer.

Its overall performance is above average if we should go by their client’s rating on Trustpilot.

Conclusion

Wealthsimple Black and Generation may not be suitable for all Wealthsimple customers. Nevertheless, it paves way for affluent investors to save money and get the best services for their high asset investment.

Therefore, if you have more than $100,000 or $500,000 in your investment portfolio, consider upgrading to these plans to enjoy the offer.

It will not take anything extra from you or your investment. Thanks for reading, please let me know your thoughts and comments below. 

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