Justwealth robo-advisor review
Enjoy low management fees and reliable returns when you invest your money with this cutting-edge robo-advisor.Receive a cash bonus of $50.00-$225.00 when you open a new Justwealth account. RESP accounts require no minimum deposit to begin investing.
Are you looking to dip your toe into the stock market? Then you might like to check out Justwealth‘s innovative robo-advisor. It offers an expansive list of pre-built portfolios you can choose from to get started. All you need to do is input detailed information about your savings goals and risk appetite to find the right match for your unique set of needs and budget
From there, you’ll work with a portfolio manager to purchase the investments of your choice. Every portfolio includes a basket of exchange traded funds (ETFs), which are similar to mutual funds except with lower fees. This means you’ll spend much less to manage your account than you would with a typical mutual fund broker.
Justwealth is a robo-advisor that was launched in Canada in 2016 by co-founders, Andrew Kirkland and James Gauthier. It’s run by a top-caliber team of investment experts and regularly consults with an advisory board to guide its work.
This board is made up of qualified senior academics and corporate CEOs who bring a wealth of financial expertise to the table. The overall mission of the company is to deliver investment services that are convenient, affordable and appropriate for the needs of its clients.
How does Justwealth‘s robo-advisor work?
Justwealth‘s robo-advisor is your online tech guru for all things investment. It provides over 70 different pre-built portfolios for you to choose from, which is more than any other robo-advisor in Canada by a wide margin.
These portfolios are made up of over 40 exchange-traded funds that have been hand-selected from 9 different providers. They are mixed and matched to create diversified investment options for every type of risk appetite and budget.
When you settle on a portfolio you like, you can load funds into your account to start investing. From there, your personal portfolio manager will take your money and put it where it needs to be. Your accounts will also be reviewed and rebalanced periodically to make sure that your investments continue to meet your expectations.
Justwealth robo-advisor fees
Justwealth has a low annual management fee of 0.50% on any amount below $500,000 and 0.4%for any amount above $500,000. The minimum management fee you’ll pay for most account types is $4.99 per month. Registered Education Savings Plans (RESPs) have slightly different rules and are only subject to a minimum fee of $2.50 per month.
You’ll also end up paying an average of 0.20% per year in ETF management fees. This makes for a total annual fee of 0.70% when you factor in your account management fees. Considering that the average mutual fund broker charges around 2.20% for its services, it’s safe to say that you’ll save money by opting for a low-cost robo-advisor like Justwealth to manage your funds.
What makes Justwealth‘s robo-advisor portfolios unique?
Justwealth‘s robo-advisor has over 70 different portfolios that you can choose from. Some of these are standard portfolios designed for passive investing. Others are unique to Justwealth and would be difficult to find with other robo-advisors. These include the following:
- Tax-efficient portfolios. These portfolios are held in taxable accounts and are designed to optimize your after-tax returns by employing strategies such as privileging capital gains over interest. They are the best fit for more affluent investors looking to invest large sums in taxable accounts every year.
- RESP target date portfolios. RESP target date portfolios start out with an aggressive investment strategy and are engineered to lower your financial risk as your child approaches post-secondary education. This ensures that their education savings are protected and set to mature as they make preparations to enrol in college or university.
- US dollar portfolios. US currency options let you invest money into a number of growth or income portfolios using US dollars. Just be aware that all of your returns will also be in US currency so you could still lose money on the exchange rate to transfer your earnings back to Canada.
- Income-generating portfolios. Income-generating portfolios are high-risk investments that are designed to generate income. These are the best fit for retirees who need a fixed payout of income but don’t want to rely on selling securities to supplement their old age security benefits.
What are the benefits of Justwealth‘s robo-advisor?
There are a number of benefits that you can take advantage of if you opt to sign up for Justwealth‘s robo-advisor.
- Easy application. It’s easy to open an account in a matter of minutes using Justwealth‘s online application.
- Low management fees. You’ll pay much less on average to invest with Justwealth than you would with a typical mutual fund broker.
- Many account types. You can put your investments into just about any kind of account, including RRSPs, TFSAs, RESPs and cash accounts.
- Unique portfolio offerings. You can sign up for over 70 different portfolios, including unique options such as tax-optimized, US currency and income-generating accounts.
- Complimentary portfolio reviews. You’ll be able to request a portfolio review at any time to get a professional assessment of how your portfolio is performing.
- In-kind transfers. You can easily transfer your accounts from other financial institutions in the form of cash or in-kind transfers.
- Up-to-date resources. It’s easy to access timely financial blogs along with monthly performance and portfolio reports on Justwealth‘s website.
- Special promotions. You may be able to save money on your investments if you keep an eye out for discount codes and other special offers.
What should I watch out for?
Aside from its wealth of benefits, there are a couple of potential drawbacks you should keep an eye out for if you decide to sign up for Justwealth‘s robo-advisor:
Potential for financial losses. As with any investment platform, you risk losing money on your investments if the market performs poorly.
- Minimum investment amounts. You’ll need to have a minimum of $5,000 to load into your account to start investing.
- Rigid portfolio options. You won’t be able to move funds around in your portfolio manually since all of Justwealth‘s options contain a specific designation of ETFs.
- No in-person service. Since technology is doing the majority of the investment work, you won’t get much face-to-face time with an in-person advisor.
- Technology-driven software. You’ll need to be relatively tech-savvy to navigate the document upload and money transfer process to get started with your account.
Justwealth‘s robo-advisor reviews and complaints
There’s no mention of Justwealth on independent review sites such as Trustpilot or the Better Business Bureau. That said, it has several reviews from popular online finance blogs and other sources. For the most part, Justwealth receives high praises for its customer service and the high number of well-balanced portfolios it offers for a below-average management fee.
That said, there are a handful of complaints about the minimum deposit of $5,000 that’s required to start investing. Some customers are also unhappy with the fees that Justwealth charges to transfer your account to another institution.
To invest your money with Justwealth‘s robo-advisor, you need to meet the following criteria:
- Be at least 18 years old (and 19 in some provinces)
- Be a citizen or resident of Canada
- You’ll need to upload a number of personal documents to be able to sign up for an account with Justwealth. These include the following:
- Government-issued ID. You’ll be required to send in government-issued proof of ID such as a copy of your driver’s licence or passport.
- Social Insurance Number. You may be required to upload a copy of your SIN card or at the very least share your SIN in your application form.
- Bank account details. You’ll typically have to provide your bank account details by sending in a direct deposit form or void cheque.
How to apply
If you think you meet all the eligibility criteria and you’re ready to start investing with Justwealth‘s robo-advisor, you need to follow the steps below:
- Use the online application to provide personal information like your name, email address, proof of ID and relevant documents.
- Review and submit your application.
- Get verified and negotiate the terms of your investment if you meet the eligibility requirements.
How to invest and withdraw funds
Once you’ve been approved for a Justwealth account, you’ll have to link it to your bank account. From there, you’ll need to transfer a minimum of $5,000 to invest in the portfolio of your choice. You can also set up regular pre-authorized contributions if you want to add to your investments over time.
To take money out of your account, you’ll need to contact Justwealth‘s customer service team directly. Just remember that it can take up to five business days for your transaction to be processed since it takes a few days for ETFs to be sold and converted to cash.
How is my money protected?
Any assets you invest will be held in an account in your name with Justwealth‘s custodian, BBS Securities Inc. This account is protected by the Canadian Investors Protection Fund (CIPF) for amounts up to $1 million. This makes sure that you’ll get any money you invest back in the event that BBS Securities Inc. – which stores your funds – becomes insolvent.
Justwealth‘s robo-advisor customer service
For general questions, you can contact Justwealth on its toll-free customer support number during normal working hours. It’s also possible to contact the company via email at any time of day if you don’t want to call in. Once you’ve set up an account, you’ll also be able to get in touch with your personal portfolio manager directly to troubleshoot any issues with your account.
Justwealth‘s robo-advisor is a low-cost alternative to traditional investing. It offers a number of different portfolio styles with some unique options such as tax-optimized, US currency and income-generating investments. All of Justwealth‘s portfolios are designed to give you high returns by combining tech-driven investment recommendations with real-time advice from a team of skilled experts. Find out more about how this robo-advisor works and sign up for your free account today to start investing.