Robo-advisors have already advanced on the territory of traditional portfolio management by offering online, low-fee services that focus on ETFs portfolios. But now WealthBar, a robo-advisor based out of Vancouver, is leading the pack in offering group RRSPs.
Now, companies have a choice. Stay with the group RRSP offered by insurance companies, which often come with higher fees, or opt for a low-fee plan maintained by WealthBar. According to a press release by the company, their group RRSP plans will cost less than 1% in fees, compared to the 2-3% charged for traditional plans. You don’t have to be in a large company to set one up, either; WealthBar says that a group RRSP can be set up by any organization with 10 or more employees.
The other advantage is that WealthBar offers a seamless transition from the group RRSP to a personal robo-advisor plan if an employee leaves or retires from a company. WealthBar will also offer retirement planning advice to employees participating in the group RRSP by connecting them to a dedicated financial advisor.
Like most robo-advisors that have sprung up recently, such as WealthSimple or Nest Wealth, WealthBar offers the advantage of accessing information on your portfolio through a website or smartphone app. The minimum account size is often very low—in some cases, such as with WealthSimple, there’s no minimum at all.