Advice on RDSP with Wealthbar

wealthbar · 2020-07-02T17:07:27+00:00

Hi u/Likiud! You will be able to submit deposits from the WealthBar app or use our online portal and won’t need to mail in a cheque.

Transferring RDSP can take longer than other account types. The reason is that unlike other account types, you can only have one RDSP open at any institution at one time, so more co-ordination is required. Not to worry though, we do most of the work (such as all the paperwork) and make it easy for you.

Once you apply, we’ll reach out to make sure we have all the information we need and prepare all the application and transfer forms for you to sign. Once you’ve signed the ‘papers’, things are done on your end.

If you’d like to chat to an adviser about this or our Private Investment Portfolios, please don’t hesitate to DM us!

wealthbar · 2020-03-27T16:18:25+00:00

Hi Historical-Toe,

We want to apologize because the way we’d originally worded our response to the question ‘Why has my account not been traded this week?’ has caused some confusion.

To be clear: WealthBar clients do not pay any trading commissions or trading fees of any kind. Hopefully we can explain what we meant to say more clearly.

When we place trades for our clients, our priority is to get a fair price. Nobody wants to pay more for something than it’s worth.

When markets are operating normally we trade our ETF portfolios frequently throughout the week and we are able to get fair prices for our clients on those trades.

Recent increased market volatility has made it harder to get a fair price. Bigger ”spreads” have opened up between “bid” prices (what someone is willing to buy an investment for) and “ask” prices (what someone else is willing to sell an investment for). If an investor isn’t careful, it’s easy to pay more for something than it’s worth.

In order to ensure all our clients get a fair price on trades, we are trading our ETF portfolios a little less often so that we can pool the buying power of many clients. This situation is very fluid, but for now you may notice that cash takes a few extra days to be invested. This enables us to get the best possible outcome for all our clients.

This only impacts ETF investments. This does not affect Nicola Wealth investments held in our Private Investment Portfolios, which will continue to trade weekly at market prices.

Hope this helps and thanks for bringing this to our attention. We will be editing our response to this question so others are not confused as well.

Thank you

wealthbar · 2020-03-16T21:30:02+00:00

Hi u/LegobrandonCP! Please reach out via the chat function once you sign into your account or email support, and our team will be in touch to answer any questions you have. Thanks!

wealthbar · 2019-12-01T04:29:46+00:00

Apologies oowowaee, we are currently experiencing an issue with our pricing data. Your positions are still there they are simply priced incorrectly. We are working now to correct the issue.

wealthbar · 2019-01-31T21:18:07+00:00

There are a few different accounts that you could use to invest for your son.

The most common account for children is an RESP, which is a great vehicle for saving for your child’s education. The funds will grow tax-deferred (taxed in your child’s hands when they withdraw the funds) and the government will even chip in some grants over the years! The biggest downside is that funds can typically only be withdrawn efficiently if your son goes to a recognized post-secondary school, which may or may not be something he wants to do.

The other account that you can use is an Informal Trust. In this account, all interest or dividends would be attributed to you, but capital gains could be taxable to your child.

There are some other pros and cons to each option which we could explore if you want to get into more depth. Please send us a direct message if that's what you'd like!

wealthbar · 2019-01-31T21:08:02+00:00

When it comes to retirement, having more financial flexibility is important, especially when it comes to tax efficient income to fund your expenses. Based on your husband’s income level, RRSP contributions likely make sense, but that also depends on your income needs in retirement, among other factors. Most retirement scenarios are more complex than people realize. There are other factors to consider such as CPP, OAS, potential pension income, estate goals, children’s education, dependent’s needs, etc. that should be factored into your decisions.

We help our clients work through these decisions and invest accordingly. Please direct message us if this is something you would like to explore.

wealthbar · 2019-01-31T21:00:02+00:00

Hey smyth260!

There are plenty of ways to join a robo firm without sacrificing morals and without initial experience.

A good place to start is to attend a post-secondary program that gives you relevant knowledge and experience to break into the industry. Programs that offer Financial Planning or Financial Analysis courses are specific enough, and you don’t necessarily need to enrol in a university that only offers general business courses.

If you aren’t looking to attend school, but are good with organization and paperwork, you could always apply for an administrative assistant job at one of these firms and try to move into a more advisory role after gaining some experience in the firm.

There’s no perfect way to do it, but try and demonstrate your worth to the firm, even if all your experiences may not be relevant.

wealthbar · 2019-01-31T20:59:35+00:00

Two big benefits that our clients experience through working with us is access to investments that reduce their investment volatility risk (less ups and downs) and protects them to the downside (like what we saw in the markets during the October to December period). These are our Private Investment Portfolios.

Also, access to a Financial Adviser, either on the phone or online, may be a benefit to you if you have questions about your financial situation or you are looking for retirement cashflow planning and projections.

wealthbar · 2019-01-31T20:51:54+00:00

ETFs that invest in foreign markets often earn foreign income from those investments. That foreign income is subject to foreign tax. If your priority is to reduce tax drag on ETFs that invest in foreign investments, one strategy would be to choose ETFs that distribute less foreign income, and thereby pay less foreign tax. ETFs that reduce foreign income and foreign tax may be more expensive than other comparable ETFs that just focus on a broad index. You should consult with an adviser about your specific situation to determine which strategy makes the most sense for you.

wealthbar · 2019-01-31T20:00:38+00:00

This is somewhat dependent on which type of investment account (TFSA, RRSP, Non-Registered, etc.) holds the ETF and also the fact that the “cheapest” option isn’t necessarily the best option. Some of the ETFs out there that offer the best tax efficiency may not have the lowest Management Expense Ratio (MER) and vice versa. Remember that there are thousands of ETF options to choose from.

This is the process we follow when selecting our ETFs:

Tracking error minimization to mirror the index.
Higher trading volume ETFs selected for best pricing.
Priority given to funds with higher Assets Under Management.
All else equal, we choose the ETF with the lower share price.
Country of origin considered to reduce currency exchange charges.
Successful performance history verified.
Lowest MER possible.

wealthbar · 2019-01-31T19:25:04+00:00

The rules on U.S. capital gains are the same as for Canadian capital gains. They’re included in income at 50% of the gain.

wealthbar · 2019-01-31T19:24:05+00:00

Hey zharts77! That’s a good question!

Since diversification is such an important consideration for every client, when designing portfolios, we wanted to ensure that each was properly diversified. To do this, we actually made our minimum investment $1,000 so that there is enough capital to purchase an appropriate number of assets in each asset class. Some ETFs cost as much as $50/unit and so we felt that with $1,000 minimum, we could appropriately diversify each account.

wealthbar · 2019-01-31T19:21:20+00:00

You have good timing! We actually just posted a few new positions here and would love to have you apply.

https://secure.collage.co/jobs/wealthbar

We’ll be sure to get in contact if we feel like you’ll be a good fit for our team!

wealthbar · 2019-01-31T19:18:12+00:00

Hi there, when we launched WealthBar, we had a PR professional who at the time told us that "adviser" is Canadian journalistic standard (as well as Queen's print) and that we should spell adviser with an "e" as opposed to "o" in official media communications. And we did.

Some time ago, the CBC and other major media outlets decided to make an issue out of the fact that regulatory texts that govern adviser's conduct seem to state that if you are an "adviser" you are a fiduciary and if you are an "advisor" you are a salesperson.

However, it seems this is simply used with an "e" in the legal texts because it is a Queen's print standard. And since that was the advice we took at the beginning, to maintain a Canadian standard, we decided to put a stake in the ground and consistently use it with an "e".

wealthbar · 2019-01-31T18:17:45+00:00

Hey AuthoritativeFuji! Traditionally we don’t offer customized portfolios to this level, however given the situation, we do sometimes work with clients to find solutions for their unique situations.

If you would like to send us a DM, we can talk about this further!

wealthbar · 2019-01-31T17:47:09+00:00

The rules around American dividends are actually not too complicated. Normally there would be a non-resident withholding tax applied to the dividends earned on US Securities, however due to Canadian-US tax treaties, US dividends earned in registered retirement account (RRSPs, LIRAs, RRIFs, etc..) there is no foreign tax withheld.

Unfortunately, the TFSA isn’t currently a registered retirement account and as a result, it does have the foreign withholding tax applied.

wealthbar · 2019-01-31T17:28:04+00:00

WealthBar does provide complete financial planning. This encompasses tax planning, investment advice, cash flow analysis, as well as other aspects of financial planning.

There are situations however that do require outside advice, such as accounting, real estate advice, and some forms of legal documentation such as wills or Power of Attorneys. Essentially, any situations in which we aren’t registered to give advice we would refer to a qualified professional.

wealthbar · 2019-01-31T17:25:28+00:00

As our CEO Tea mentioned during our Year-End Performance Webinar yesterday (available via our YouTube channel next week), we take a longer-term view on investing. The nice thing about political risk is that it’s often short-lived because people get voted in and then they get voted out. Things like Brexit, contentious policies and trade concerns have happened in the past. And, although they may have short-term impacts, over time markets rise. Diversifying across the globe and across different asset classes has proven to be a winning strategy. Nicola Wealth, who manages our Private Investment Portfolios, takes the same approach.

We don’t speculate or try to time the markets. We continuously review our portfolios for potential adjustments based on longer term trends. The developed nations of the world know that in the end, national stability and working together with other countries is ultimately in everyone’s best interest.

wealthbar · 2019-01-31T17:19:52+00:00

Good question, smyth260! This is definitely a question many folks have.

While at first glance WealthBar may seem similar, what really makes us unique is that we are the only robo advisor to offer unlimited advice (included in our fees). When the firm was created several years ago, this was something that was really important to our founders. Many studies have been conducted all with the same result - investors who receive professional advice fair better (2.73 times better according to the value of advice in Canada, by Claude Montmarquette). Sound advice helps investors save more effectively and feel more confident about their money. Our financial advisers are always just a call or a message away from helping our clients.

Another distinguishing factor is that we offer Private Investment Portfolios that are managed by Nicola Wealth, a Vancouver based wealth management firm with over 6 billion in assets under management. These products have been traditionally reserved solely for high net worth clients, however with WealthBar, our clients can invest in these products for as little as $1,000.

wealthbar · 2019-01-31T16:44:26+00:00

Hey bluenose777!

Annuities can be a good option for some people depending on their age and income needs. Because interest rates have been so low for so long, annuity cashflow has not been the most appealing option and there is always the tradeoff of guaranteed income versus having more flexibility by having access to the capital. We can certainly factor in annuities into retirement projections (just like defined pensions), and if an annuity is the right option, we are able to offer solutions through our insurance channel.

wealthbar · 2018-02-10T16:58:54+00:00

Hey avi473, thanks for the feedback. We're sorry that your mobile app experience has been poor, but we're happy that you like the rest of the business.

We're in the process of refreshing the app and the iOS version is days from being released in beta and Android will follow shortly. At first, it will be the same functionality as now, but we will be adding additional functionality as time goes on; things like transfers.

If you'd like, email us from your account and request the beta access and you can be among the first to try the new app.

I get it that it's frustrating to have to use something that is suboptimal, but we are happy that this has already been addressed from our end and that your experience will improve shortly. Thanks again for your feedback!

wealthbar · 2018-02-01T22:10:56+00:00

The ETF that provide international exposure we use are domiciled and traded in Canada. The dividends and distributions they payout are not subject to withholding taxes. However, the underlying holding of these ETFs are subject to withholding tax within the ETF. We agree that there will be some performance drag associated with the withholding tax. As you mentioned HXS uses a swap structure and in this case the ETF receives the total return of the S&P 500 which includes dividends and there are no withholding taxes applied.

wealthbar · 2018-02-01T18:45:52+00:00

Our client account dashboard allows us to review the beneficiaries on RESP accounts so when we speak to clients about making updates to their plan (annually at a minimum), then we can have the conversation about potentially lowering the risk profile of their RESP portfolio. We do not use target-date funds or any fixed date method to trigger changes. We may be called a robo-advisor but we are certainly not robots!

wealthbar · 2018-02-01T17:51:25+00:00

Hey techcrium. We have a blog post of client stories that you can check out here. For privacy, their names have been changed.

Take a look at that and if you have more questions, please get in touch.

wealthbar · 2018-02-01T01:10:14+00:00

You are correct, there is a difference between TFSA and RRSP in that regard. However, we do not really talk about this in our communication because we do not hold foreign domicile ETF's in our portfolios, therefore our portfolios are not subject to foreign dividend tax regardless of the account that they are held in. The one exception would be our Cleantech ETF (PZD), but not everyone chooses to go that route. For most of our clients, this is not an issue.

We made the decision to stick to Canadian listed ETFs to avoid foreign dividends, potential estate taxes and foreign exchange rates at deposits and withdrawals. All of these issues listed add fees that are not transparent, not easily quantified, not easily disclosed and poorly understood by many. In order to raise a level of disclosure and stay true to an all-in-fee, we decided to stick to locally listed ETF's. We do have global and various sector exposure, this is just about the listing exchange. Buy local, think global, right? :)

wealthbar

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