Wealthsimple moves its Robo Adviser service upmarket

Wealthbar Ad
Wealth simple founder and CEO Michael Kitchen

My latest Financial Post blog looks at Tuesday’s announcement by Wealthsimple of a new premium service it calls Wealthsimple Black. See Robo-adviser Wealthsimple targeting more sophisticated investors with premium service.

Wealthsimple Black is aimed at investors who have accumulated at least $100,000 in assets with them and brings down the previous annual management fee of 0.5% to 0.4%: a threshold previously reserved for those with $250,000 invested in the automated online investment service (popularly known as Robo Advisers).

The new “premium” service includes personalized financial planning, tax-loss harvesting, tax-efficient accounts and access to more than a thousand airline lounges around the world.

The company now calls the previous version of the service available to investors with less than $100,000 “Wealthsimple Basic.” It charges the 0.5% management fee but manages the first $5,000 for free, and provides automatic portfolio rebalancing and dividend reinvestment, plus “on-demand” advice from portfolio managers.

Wealthsimple is largely a company founded by and targeting Millennials but the new premium service makes it clear it won’t say no to more affluent investors, including soon-to-retire Baby Boomers who are shifting from wealth accumulation mode to so-called Decumulation. In a press release, Wealthsimple founder and CEO Michael Kitchen (pictured above) made it clear the company is now targeting not just young beginning investors but “all investors, no matter how far along they are toward reaching their financial goals.”

Leave a Reply