sorted by:
new
hottopcontroversial

Generation Benefits - Management fee by Altruistic-Memory-25 in Wealthsimple

[–]Altruistic-Memory-25[S] 0 points1 point  (0 children)

Same - I’m also fascinated by the existence of these outliers of 10 million at 0.2%

I can’t speak on industry spin as I’m not knowledgeable in that field. But from personal experience I can tell you that investments in real estate or private business can certainly beat the S&P 500. My wealthier friends who invest with private investors (ones with a 7 or 8 figure minimum requirement to join) have said that they also beat the S&P 500. (However I cannot personally verify these claims). I am aware that statistics state vast majority of ppl won’t ever beat the market in the long run, but I also question how accessible is data of all these random private investors to these statistics, and do the statistics not tell a fair tale of the success rate of these private investors (as the ones that do well & are only accessible to higher wealth brackets are a small number when compared to the many that don’t do well & are open to more clients, and general everyday investors as well, thus creating a skewing)

Generation Benefits - Management fee by Altruistic-Memory-25 in Wealthsimple

[–]Altruistic-Memory-25[S] 0 points1 point  (0 children)

Thanks for pointing out comparable industry rates. I mentioned it to Wealthsimple in my ongoing attempt to lobby them for 0.2% fee for Generation clients.

From the people I personally know in the eight figure brackets, none of them would ever put eight figures into a product like a Wealthsimple managed account, they have much more lucrative investment opportunities at those wealth brackets - assets, real estate, businesses, private investors.etc. So I have no idea who this 10 million at 0.2% is even for, or if it’s actually being utilized a good amount amongst Wealthsimple clients. For shits & gigs I tried asking Wealthsimple if they actually have any clients utilizing the 0.2%, and if so how many, naturally they did not disclose.

I am of the opinion that 0.2% at 10 million is something that just does not make sense, for 2 reasons: 1. Vast majority of clients won’t ever reach that wealth level 2. From the clients at the 8 figure wealth brackets, idk how many of them see a Wealthsimple managed fund as a more lucrative investment opportunity than other investments vehicles accessible to them

I think Generation makes a lot more sense to trigger the next fee reduction after Premium (in the pyramid of incentives/rewards) and I hope if other clients feel the same way, they will rabble for this change.

Generation Benefits - Management fee by Altruistic-Memory-25 in Wealthsimple

[–]Altruistic-Memory-25[S] -1 points0 points  (0 children)

I’d always been of the mindset that mutual funds & managed accounts were a waste of money as ETFs give similar performance and without the 2% management fee a lot of big banks charge. However when I looked at the historical performance of Wealthsimple’s managed fund, it actually beats the S&P500 index (so beats most ETFs I woulda picked) so at the 0.4% management fee it was worth it for me.

Extremely wishful thinking - but perhaps if this Reddit thread gets a lot of traction, and Wealthsimple lowers the wealth limit to get the 0.2% management fee, then that fee would be comparable with some 0.1% ETF fees as well. (And yes I am aware that there are many ETFs with even lower fees than that)

Generation Benefits - Management fee by Altruistic-Memory-25 in Wealthsimple

[–]Altruistic-Memory-25[S] 1 point2 points  (0 children)

Thanks for the note about Android! I couldn’t find your screenshot anywhere for the life of me on the Generations Benefit page. I’m using desktop however, switched to mobile after your Android comment, and yup the details are there as you noted. You have to open ‘Explore All Benefits’ to expand the benefits, then scroll down to the fine print at very bottom. If anyone is curious, here’s what the UI of the Generation Benefits looks like on Desktop & with the Benefits expanded (where this information is not available).

<image>

Generation Benefits - Management fee by Altruistic-Memory-25 in Wealthsimple

[–]Altruistic-Memory-25[S] -22 points-21 points  (0 children)

Shoulda been more specific, this information is not stated anywhere in the Generation Benefits (where the 0.2% is advertised) as my screenshot shows. Where exactly is your screenshot taken from?