What is Wealthsimple’s Roundup feature?
With Roundup turned on, Wealthsimple becomes an investing service and savings tool rolled into one.
When you make a purchase, Wealthsimple will automatically round the price up to the nearest dollar and place the excess — the coins that would wind up in your pocket if you were paying cash — into a diversified investment portfolio.
Let’s say you purchase a doughnut for $2.30. Before you’re done licking the sugar off your fingers, Wealthsimple will round the amount to $3.00 and invest the 70 cent difference for you. That’s all there is to it.
Saving 70 cents or less at a time may not seem like much, but just remember that $2.50 worth of daily round-ups adds up to $900 per year — and that’s before counting all of the additional gains you could make in the market.
Signing up for Wealthsimple takes about five minutes, and you can choose the level of risk you’re comfortable with.
And with Wealthsimple’s ultra-low annual fee of 0.5%, you’ll be well on your way to meeting your financial goals with minimal effort or expense.
How does Wealthsimple invest my money?
When you sign up for your Wealthsimple account, you’ll answer a few questions about your goals and risk tolerance. Based on that, the site will recommend a portfolio that’s right for you.
Then all you need to do is link your bank account, make an initial deposit — even if it’s just $5 — and turn on the Roundup feature.
At the end of every week, Wealthsimple will add up all the roundups from your purchases, withdraw the total from your bank account and invest it.
While you can link as many debit and credit cards as you’d like to the roundup feature, all the funds will be withdrawn from that single linked bank account.
Depending on your goals, you can choose to have your spare change invested through an RRSP for retirement, RESP for education, TFSA for personal savings, a joint account for couples and more.
Just keep using your card like you normally would — and feel good about the fact that your “spare change” is now going toward something more rewarding than your next coffee.
2 million users and counting
If you’ve been thinking about investing but you’re still feeling wary about the state of the stock market, Wealthsimple could be the perfect place to start.
Millions of people have already used the app to turn their spare change into real money-making investment portfolios.
Don’t let them have all the fun — sign up today.
Fine art as an investment
Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.
That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.
Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.
And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.
On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.
Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.
Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.