Justwealth Review

Check out our review on Justwealth; an online robo-advisor with a passive approach to investing and real-life expert advisors behind the scenes.

WRITTEN BY
Lisa Rennie
Updated November 11, 2020


RATING

Justwealth is one of a growing number of robo-advisors available to Canadian investors. The purpose of robo-advisors is to provide investors with a more convenient and affordable way to invest as an alternative to dealing face-to-face with investment brokers. You’ll still get a highly personalized approach without the sky-high fees that are typical of conventional portfolio managers. 

Robo advisors like Justwealth are also geared towards those who want a more passive approach to investing with the help of algorithms and real-life expert advisors behind the scenes. With platforms like Justwealth, investors have the distinct advantage of tapping into the market without much hassle or cost. 

Justwealth is comprised of a team of experienced professionals, including investment managers and marketing experts. As such, you can rest assured knowing that you’ll be leaving your capital in capable hands that will ensure that your portfolio is well-diversified and made up of assets that will maximize your returns while hedging against risk. 

Let’s get into more detail on Justwealth to help you decide if this is the right robo-advisor to work with. 

How Does Justwealth Work?

With Justwealth, you’ll have the opportunity to create an investment portfolio that’s made up of low-cost exchange-traded funds (ETFs) while paying the lowest management fees. You’ll pay 0.5% in annual management fees on the first $500,000 of your account, and 0.4% on higher amounts. 

ETF investing is a great way to grow your wealth, whether you’re a newbie investor or have had your hand in this for quite some time. Picking the right ETF will expose you to a wide array of stocks and bonds to help diversify your portfolio. Doing so will help increase your returns while mitigating risk. When balanced properly — which your Justwelath team will help you do — your portfolio will do well even amid volatile markets. 

To get started investing with Justwealth, all you need to do is answer a few questions about the type of account you want to open and enter your employment and financial information.  

You will be assigned a personal portfolio manager who will be available to you to figure out your financial goals and risk tolerance, to answer your questions, and to provide support and guidance. Based on the answers you provide, an optimal investment portfolio will be automatically picked for you. Then, you can fund your account and your personal portfolio manager will take over for you to invest your funds into ETFs. You’ll need a minimum of $5,000 to start investing.

Justwealth offers over 70 different portfolios to choose from, so they can easily be customized to suit your needs. The portfolios are comprised of over 40 ETFs from 9 different ETF providers. Your portfolio will be monitored every day and will be automatically rebalanced when the asset allocation gets over 5% out of balance.

You can transfer any accounts from another bank to Justwealth. A $150 transfer fee will be charged on an account with less than $25,000 but will be waived for accounts with more than $25,000. 

Important Features to Consider When Choosing To Work With Justwealth

  • Various account types. Investors can choose to invest in RRSPs, spousal RRSPs, RRIFs, TFSAs, RESPs, LIRAs, LIFs, and non-registered plans.
  • Over 70 different portfolios. Justwealth covers dozens of portfolios that are crafted to suit your investing style and goals, whether it’s to grow your wealth, boost income, or preserve your capital. 
  • Tax-loss harvesting. Investors can offset their capital gains taxes with tax-loss harvesting, which involves selling securities at a loss come tax time.
  • Automatic rebalancing. Along with market fluctuations comes the potential for certain assets in your portfolio to go up or down in value. When this happens, automatic rebalancing can bring your portfolio back to its specified allocation.
  • Client bulletin board. Interacting with Justwealth is easy thanks to the client bulletin board which allows you to open a new account, request to transfer money, or start automatic contributions.
  • Live support. While Justwealth is a robo-advisor, you’ll still have quick and direct access to live advisors who can answer your questions and provide you with any guidance you need with your investments. 
  • Funds protected. Your investments will be protected by the Canadian Investor Protection Fund (CIPF) when you invest with Justewelth, up to a maximum of $1 million.
  • No minimums or fees for students and new graduates. Any students or grads who have graduated over the past two years can take advantage of no fees or minimums for the first 6 months. 
  • Dedicated portfolio manager. You will have a personal portfolio manager to your avail to provide you with support along your investment journey. 
  • RESP target-date portfolios. Custom Education Target Date Portfolios are available for RESPs that mature when your child starts post-secondary education.
  • US dollar portfolios. If you prefer to invest in US dollars, you’ll have that opportunity with Justwealth.

How Much Does Justwealth Cost?

Justwealth charges 0.5% on the first $500,000 invested, and 0.40% on anything above that. Management fees are $4.99 per month and $2.50 per month for RESPs. MER fees are typically no more than 0.25%. 

How Personalized Are the Investment Portfolios?

With Justwealth, your investment portfolio is tailor-made for you. With dozens of portfolio options to choose from, you should be able to easily find one that best suits your investment style, appetite for risk, and financial goals. 

Account Types Offered

Justwealth accounts include the following:

  • RRSPs
  • Spousal RRSPs
  • RRIFs
  • TFSAs
  • RESPs
  • LIRAs
  • LIFs
  • Non-registered plan
  • Group RRSP
  • Corporate accounts

Justwealth Portfolio Options

Justwealth offers four overall types of portfolios to choose from, and for each of these categories, about 70 custom portfolios can be designed using nearly 40 different ETFs. Here are the general portfolios offered:

  • Starter Portfolios: Best suited for wealth initiation.
  • Growth Portfolios: Best suited for wealth accumulation.
  • Income Portfolios: Best suited for wealth distribution.
  • Preservation Portfolios: Best suited for wealth retention.

What Perks Does Justwealth Have?

Personal dedicated account manager. One of the biggest perks of investing with Justwealth is the personal portfolio manager that you have designated to you. Someone will always be available to you to have your questions answered by phone or email. It’s a great perk for an automated platform. 

Low fees. Justwealth offers low account and MER fees thanks to the ETFs that make up your portfolio. MER fees are typically no more than 0.25%, and account fees go as high as 0.5%. Keeping investing fees low will help you grow your wealth faster.

Personal portfolio manager. You will be provided with a dedicated portfolio manager who will come up with a tailor-made portfolio based on your risk tolerance and financial goals and will help manage it.

Many portfolios to choose from. With so many portfolios available with Justwealth, it will be easy to find one that best suits your financial situation.

Who is Justwealth Best Suited For?

Like other robo-advisors, Justwealth is perfect for those who are looking for a more cost-effective way to invest while building substantial wealth over time. By investing with Justwealth, you can experience passive investing while professionals and carefully-crafted algorithms ensure that your portfolio maintains optimal balance. 

And with the exposure to various ETFs, your risk level is significantly lower compared to other types of investing. Plus, Justwealth’s personal portfolio manager will give you quick access to a professional who can provide you with any guidance and support you may need to ensure your investments stay on track to meet your goals. 

Is Justwealth Safe?

All assets in your portfolio are held in your name at Justwealth’s custodian BBS Securities Inc. Plus, up to $1 million of your investments are protected by the CIPF, so Justwealth must always maintain a fiduciary legal standard. 

Overview of Justwealth

Fees– Up to $500,000: 0.5%
 – $500.000.01+: 0.40%
 – $4.99 monthly management fee
– $2.50 monthly fee for RESPs
– MERS: up to 0.25%
Account types– RRSPs
-Spousal RRSPs
– RRIFs
– TFSAs
– RESPs
– LIRAs
– LIFs
– Non-registered plan
– Group RRSP
– Corporate accounts
Minimum Investment$5,000
Tax-loss harvestingYes
Dedicated personal portfolio managerYes
Automatic rebalancingYes
Socially Responsible InvestingNo

Should You Use Justwealth Or Work With a Human Advisor?

Working with a robo-advisor like Justwealth is a novel idea and is different from taking the traditional investing route by working with an investment broker. But the great thing about robo-advisors is that you can still realize significant wealth-building without having to pay the exorbitant fees that typically come with a human advisor. 

And with Justwealth, you don’t have to sacrifice human interaction, as you’ll be partnered with a real-life dedicated portfolio manager who will be available to answer your questions and manage your portfolio. 

If paying lower fees, having a customized investment portfolio made for you, and having a team of professionals behind the scenes protecting you against risk and ensuring a higher ROI sounds good to you, then perhaps Justwealth might be the perfect robo-advisor for you to try.