Wealthsimple Robo-Advisor Update

Wealthsimple Robo-Advisor Update

August 13, 2018 0 By Jeremy




Wealthsimple Robo-Advisor: Update to Robo-Advisor Account Opening

In a previous post I explained the process of opening up a Wealthsimple account.  Robo-advisors have been a huge force in the fin-tech space, and I wanted to go through the process for two reasons:

  1. To diversify my account
  2. To gain experience in the rob0-advisor space

I am happy to report that the transfer from one of my other RSP accounts is complete the money is now invested.

How My Wealthsimple Account is Invested

As with most robo-advisors, the money gets automatically invested for me.  The only thing I have control over is my risk profile.  Based on a survey done during the account opening phase, Wealthsimple either classifies you as a Conservative, Balanced, or Growth investor.

In my case, I was deemed to be a growth investor.  This means that my account will hold more equities than fixed income in order to maximize long-term growth.

What that means in practice, is the portfolio can see larger paper-losses in the pursuit of more gains.  I am good with that, as it fits in with my beliefs that you need to take on risk to maximize gains.

Here is what the account looks like as of August 9, 2018:

Wealthsimple Asset Allocation - August 2018What this breaks down in terms of asset allocation is a 90% equity, 10% fixed income split:

Wealthsimple Asset Allocation Split - August 2018So far so good, and I look forward how this account does over the years.  This money will not be touched until retirement so it has lots of time to compound.  It better perform better on a risk-adjusted basis than a standard 60/40 portfolio after fees, or I will be disappointed.  However, given the low cost of the funds, I think that it can do that over a 10 year plus period.

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