#RetirementInvesting #WealthSimple #RoboAdvisor #FinancialFreedom 🚀
Hey everyone! 👋 I’m considering using a WealthSimple managed account to kickstart my retirement savings journey. But I have a few questions swirling in my mind:
– Can I rely solely on a WealthSimple managed account for the next 30 years for retirement?
– Is it a viable strategy to make regular deposits and let it grow untouched?
– What about my DBP pension from work – how does that factor into my retirement planning?
I’m looking for some insights and advice on whether this approach is solid or if I need to diversify my investments for the long haul. What do you think?
Personally, I believe that a WealthSimple managed account can be a great tool for retirement savings, especially when complemented with other retirement investments like a pension. But it’s always a good idea to stay informed and make informed decisions for your financial future. Looking forward to hearing your thoughts! 💡
Its probably fine, but I personally prefer a passive instead of an active portfolio like the one wealth simple have
!InvestingTrigger
You should also prioritize TFSA over RRSP because you have DB pension unless you make crazy money
Yes. The three most important factors are 1 that you are saving in the first place, 2 you have a diversified portfolio that matches your risk tolerance, and 3 you are minimizing your costs. Wealthsimple managed portfolio is a great (but not perfect) solution for all 3 criteria.
I would listen to rational reminder podcast about WS robo advisors before you make that decision.
**Short answer:**
Probably yes. It’s essentially the same concept as bank mutual funds but with less egregious fees.
**Long answer:**
There are very slightly more involved ways to make more money over 30 years compared the managed account.
The managed portfolios have underperformed compared to “all in one” ETFs, but it’s one less step, just deposit the money and forget. If you can figure out setting out auto purchasing of an ETF that fits your risk profile, that will most likely beat out the managed fund over 30 years.
I would opt for an all-in-one ETF on WS Trade that suits your risk appetite instead. It’s the exact same idea, except WS managed accounts claim they’re passive but aren’t really (and have underperformed as a result). Instead of taking the risk survey via WS managed, take the vanguard survey instead and it will suggest the right fund for you. For a 30 year timeline, likely VGRO or VEQT (or XGRO/XEQT, same idea different company) depending on your risk appetite. Then you do exactly as you would with WS, just buy more shares of the same stock as you have the money to invest. The fees are also slightly lower than WS.
I mean, over the next 30 years it should probably do better than the “select” or “comfort” mutual fund that your bank would offer, and plenty of people rely on those…
Sure, but you could (and in my opinion should) use a self managed account and just by XEQT
You may want to read this: https://www.theglobeandmail.com/investing/personal-finance/article-wealthsimple-is-killing-it-as-a-company-but-the-performance-of-its/