WealthSimple: Am I doing something wrong, or is this roboadviser not that good?

[p1saint]

@christianfamily

 

[zosha123]

@christianfamily it's designed this way for a reason to trap to investors in investments that help the bank and not the client

 

[resjudicata]

@p1saint No risk nets you 5.25% lmao people are just stupid

 

[wannab]

@resjudicata Not after tax and inflation, probably closer to 0 or -1 in terms of real returns

 

[resjudicata]

@wannab Just use a tfsa and rrsp I don't understand we ain't day trading here.

Also ALL investments are effected by inflation. Not sure what you mean by real returns.

If you do nothing you are negative

 

[christabella]

@resjudicata Yep. TFSA with a GIC at 6%. Will be doing that in October to avoid the bears. Then I can reassess next year and see how we end up doing.

 

[wannab]

@resjudicata Real returns means net of inflation… y’all are lost

 

[summer63]

@p1saint I agree about bounds, but Gold is not a low risk asset though... it's pretty speculative

 

[smfoster37]

@davidcn My RRSP/TFSA is 10, and I’ve made quite a bit.

My RESP is 6 and its lost money (still getting that 20% grant so it’s worth more than what I put in ), but definitely wish I had gone higher.

With savings accounts at 5-6% now, I’m wondering if there is a way to move RESP into a savings account

 

[apthunder]

@smfoster37 You can move your RESP into CASH.TO without moving accounts

 

[aprilusaraga]

@apthunder Not with WS. RESP must be in Roboadvisor

 

[belle_me777]

@aprilusaraga You can put your WS RESP in an HISP, which is invested in PSA (identical to CASH.TO). Mine is making 5.5% in that.

 

[aprilusaraga]

@belle_me777 Woa. Where is that option on their app? You mean a High Interest Savings Account?

 

[belle_me777]

@aprilusaraga HISP = High Interest Savings Portfolio. You have to request the change via email if the account is already setup. Or indicate that you want the lowest possible risk when you’re setting up the account. I think this has recently become their default "conservative" portfolio.

 

[japysymn]

@apthunder What is cash.to?

 

[matthewbridges10]

@japysymn Don't tell them

 

[dexter234]

@davidcn It's at 7 risk

 

[davidcn]

@dexter234 Well if there are interest rate cuts, the bonds will appreciate in value.

One thing I don’t like about this risk survey approach is it tries to dumb down investing down to fear of loss. It’s the wrong lens to use and the assumptions made were violated when bonds had their worst performance in 40 years.

What the “experts” think is safe and has been “safe” for 4 decades isn’t always the case. Such is the case with any kind of investing.

The take away is to just keep investing imo.

 

[duckdodger56]

@davidcn Counterpoint though: when the economy slows down and does poorly, bonds will come back to life and do very well.

Until then, you are collecting 3-4% on long term bonds but getting hit on the capital appreciation side of things.

This has been the worst 3-year streak for bond prices in modern recorded financial history. When we hit recession, this will reverse violently.

Currently, you can get a 4% yield on a 20-30 year Canadian bond. That's quite insane since the yield should be a composite of real GDP growth. There is no way Canada will grow at 4% GDP over the next 30 years.

 

[flipflip]

@duckdodger56 Bonds also have another crucial purpose which is to reduce volatility.

That’s why you’ll find most well designed portfolios still have some bond component. The primary goal is that the bonds beat equity returns.