Justwealth Review: Earn Up to $500 Free

Are you in search of a Justwealth review? The rise of robo advisors in Canada has made investing more accessible, particularly due to the straightforward application process. This user-friendliness makes robo advisors appealing not only for novice investors but also for seasoned individuals looking for an efficient investment strategy.

It’s essential to clarify from the outset that robo advisors are not actual robots. Although the investment process is automated through an algorithm, it is designed and overseen by financial experts—real people who are also available to assist with customer service inquiries.

For those seeking a hassle-free approach to retirement savings, robo investing can be ideal. Among the various robo advisors available in Canada, Justwealth is a notable contender spotlighted in this review.

Justwealth operates under the philosophy of “investing the way it should be.” This Canadian robo advisor takes pride in delivering a broad array of investment services that are accessible, cost-effective, and tailored to meet client needs. Through this Justwealth review, I aim to assist you in deciding if this robo advisor aligns with your investment objectives.

Justwealth Accounts

Justwealth provides a range of account types, including:

• RRSP
• Spousal RRSP
• TFSA
• RESP
• Non-Registered taxable account
• RRIF
• Locked-In Retirement Account
• Life Income Fund
• RDSP
• FHSA

Once you select the account that best aligns with your goals, you’ll answer a series of questions to assess your risk tolerance and objectives. Based on your responses, a tailored portfolio will be curated for you, which will be automatically adjusted as necessary.

Prospective clients should remember that a minimum investment of $5,000 is required to open a Justwealth account, except for RESP or FHSA accounts, which do not have a minimum.

Do you already possess an RRSP or other investment accounts? Discover how to transfer them here. Justwealth will even reimburse your institution’s transfer fees up to $150 for accounts of $25,000 or more.

Bonus: Money We Have readers can receive up to $500 for free when signing up for Justwealth through my referral link.

Justwealth Fees

A significant advantage of using Justwealth is its uncomplicated fee structure.

• For accounts under $500,000, a 0.5% management fee applies
• Investments exceeding $500,000 incur a 0.4% management fee
• A minimum monthly fee of $4.99 will be charged if the annual fee calculated at 0.5% is less than $4.99

Justwealth employs a tiered fee structure akin to other robo advisors like Wealthsimple. Should investments surpass $500,000, the initial $500,000 will incur a 0.5% fee while any additional funds will be assessed a 0.4% fee. The first $500,000 consistently attracts a 0.5% fee, regardless of total investments.

Additionally, there is a Management Expense Ratio (MER) fee of approximately 0.25% on the ETFs within your portfolio, implying that your total annual fees hover around 0.60% to 0.70%.

The $4.99 minimum monthly fee applies only if the 0.5% fee divided by 12 months results in a figure less than $4.99. For RESP or FHSA accounts, the minimum monthly fee is set at $2.50.

Clients will be billed either the minimum monthly fee or the annual fee of 0.5%, whichever is greater, but it’s important to note that both fees will never be charged simultaneously; it’s always one or the other.

This fee model is appealing when compared to average mutual fund MERs, which can reach 2%. While not as economical as self-managing, the low fees offer considerable convenience.

Justwealth Review

Established in 2016, Justwealth ranks among the more seasoned robo advisors in Canada. Its foundation is supported by years of practical experience and a diverse team of professionals with extensive expertise in managing financial portfolios.

A distinguishing feature of Justwealth is that every client receives personalized attention from a dedicated portfolio advisor and support team. Additionally, clients can access complimentary financial planning services and free portfolio reviews, even for non-clients. Justwealth claims to provide the most extensive array of portfolio options in Canada, offering 80 different portfolio choices that utilize 50 various ETFs. Your assigned portfolio advisor will guide you in selecting the most suitable options tailored to your financial needs.

Justwealth particularly excels in its Registered Education Savings Plan (RESP) portfolios, which are designed with target dates in mind. These portfolios adjust their asset allocation over time, being more equity-heavy in the early stages for optimal growth, and gradually becoming more conservative as the child nears post-secondary education.

This target-date strategy also applies to their Retirement Target Date portfolios, which become less aggressive as clients approach the time they need to begin withdrawals.

Moreover, Justwealth offers tax-efficient portfolios optimized for after-tax performance in non-registered accounts, which could be appealing to various investors.

An added advantage is Justwealth’s fiduciary commitment. This means financial advisors at Justwealth prioritize the clients’ interests and well-being, providing additional peace of mind for those seeking assistance with money management and future savings.

Advantages and Disadvantages of Justwealth

Like any service, Justwealth is not without its flaws. Here’s a summary of its key advantages and drawbacks.

Justwealth Advantages

• Diverse selection of portfolio types
• Fiduciary duty ensuring client interests are prioritized
• Options for personalized financial advice
• Exclusive cash bonus of up to $500 for Money We Have readers

Justwealth Disadvantages

• Minimum initial investment of $5000
• Costs more than self-directed investing

Justwealth Compared to Other Robo Advisors

How does Justwealth stack up against other Canadian robo advisors?

When it comes to portfolio variety, Justwealth stands out as a leader, which is a vital consideration when selecting a robo advisor. Furthermore, its fiduciary duty is a significant advantage, providing reassurance for both novice investors and those contemplating utilizing robo advisors.

Justwealth’s RESP options are particularly noteworthy and arguably the best available among Canadian robo advisors.

However, the principal drawback is the $5,000 minimum investment requirement. While this might not pose a challenge for those transferring existing RRSPs, it could be a considerable hurdle for younger or first-time investors. Other platforms like Wealthsimple and Nest Wealth do not impose a minimum, while Questwealth Portfolios only require $1,000.

Transferring a TFSA or RRSP to Justwealth is a seamless process, with assurances that you won’t incur any taxes.

Conclusion

There’s no denying that Justwealth offers a favorable experience. Its fiduciary commitment, extensive portfolio diversity, and low-cost structure position it as one of the leading options among Canadian robo advisors. This platform is especially beneficial for those seeking the simplicity of a robo advisor while maintaining access to a solid support network.