Wealthsimple’s quest to remove the intimidation factor from investing continued with the launch of Roundup yesterday.
The new feature allows people to save or invest their spare change from everyday purchases. When they buy something with their credit or debit card, the amount is rounded up to the nearest dollar and the difference deposited into an investment or savings account.
The online platform aims to make it “really, really easy to start investing without making a big lifestyle change” and believe this is an approachable way to get into the habit of putting money away regularly.
In a statement, Wealthsimple said it aims to “take the intimidation out of investing by starting with small, regular contributions”. For example, buy a cappuccino for $3.30, and it automatically invests $0.70 into a diversified, low-fee investment account, or a high-interest savings account.
Mike Katchen, CEO and co-founder, said: “Good habits — starting early, contributing regularly — are what make investors successful over the long term. We see Roundup as a way to encourage people to get into the habit of putting money aside for the future.
“We hope this feature will inspire Canadians who've been considering investing to get started, and be a fun, easy way for those who are already investing to put away a little bit more.”
Roundup is available through Wealthsimple's mobile app, and is compatible with most Canadian credit and debit cards. It's part of Wealthsimple's automated investing service, which also includes: 0.4-0.5% management fee; a personalized investment portfolio; on-demand financial advice from experienced portfolio managers; auto-deposits; portfolio rebalancing and dividend reinvestment; and an intuitive app.
Rachael Factor, Wealthsimple’s head of communications, told WP: “Our aim is to make the tools that can help people achieve their financial goals as accessible as possible, and we see Roundup as another approachable way in to investing, which can be intimidating to a lot of people.
“We've had a lot of requests from clients for this feature so we're excited to be adding it to the app as another option for how people can top up their savings or investment accounts.”
Wealthsimple manages more than $3 billion for about 100,000 clients.
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