Wealthify Review – Is Investing with a Robo Advisor Right for You?

I think it is time for me to make my Wealthify review post. I have been investing with the robo advisor company Wealthify for the past 7 months now, and so far, I am very pleased, it is simple to use, has a mobile app, and the Wealthify returns are great!

Join Wealthify with my link and get a discount on fees!

wealthify review

When I first got into investing, I didn’t really know where to begin, I knew I could give my money to companies, and they would invest it for me, but who the hell do I give it too, and how much are they going to charge me? After seeing lots of articles on robo advisors on websites that I visit frequently, such as Business Insider, I thought I would do some research on them.

There are lots of different robo advisors out there, but not too many of them cater to people from the UK, and being from the UK myself, I needed to find one that I could invest with. The search began.

I came across a Wealthify review on a website I visit frequently, so jumped on to Wealthifys website and starting having a look around. The first thing I looked at was the calculator tool they have. I entered in the figure I wanted to invest with them each month, and got an estimate of what my investment would be worth when I plan to retire, which is at 55 by the way, but I plan on semi retirement at 45, and hope to be generating enough passive income to do this by them, maybe even sooner.

Here is a screenshot of what my investment in Wealthify will be worth when I am age 55 – 28 years time.

wealthify review

So, as you can see from the screenshot, I will have invested £42,210 over a 28 year period, and my account will have grown to £132,378. Actually seeing this is a huge motivation, as it shows the power of investing over time, and compound interest.

I have chosen the plan with the highest risk, I was once told by a friend, who’s uncle is an investor, when you are young, go with the highest risk plan, you have plenty of time to ride out any hiccups along the way, then scale down risk as you get older. When I am 55, I plan on cutting my risk in half on this plan.

Wealthify Fees

One of the main reasons I chose to invest with Wealthify was due to the low fees, their past performance, and reviews I found on a number of different websites. According to Wealthifys website, their fees are never more than 0.7% per month, well, 0.74% to be exact. This varies depending on your balance, but, for me, my fees are 0.74%. This is extremely good, considering the average fund charges you a fee of 0.19% per month.

Lets look at some numbers to make it more clear.

Say you have £1000 in your wealthify, your fee would be £0.74 for the month. Say you earn over the space of a year, a conservative 10%, which is about 0.83% per month growth, you gain £8.30 interest per month, and are charged £0.74 per month, you still profit £7.56, provided you go with the ISA plan to avoid paying tax.

£1000 Account – £0.74 in Fees per month
£2000 Account – £1.48 in Fees per month
£5000 Account – £3.71 in Fees per month

and so on…

For accounts with a balance of £15k-£50k, the fee is 0.6%, and £50k+ the fee is 0.5%.

If you sign up to Wealthify using my link, you can get a 5% discount on your fees, meaning you will only pay a fee of 0.67%. Every little helps, right.

wealthify review fees

Wealthify Returns Performance Review

So far, my investment has gained just over 15%, and that’s in 7 months! I think this is a great start, but I have only had my account funded for 7 months, so its still a very short time frame to give any sort of realistic review on wealthify returns.

Looking at their past performance charts, in the year of 2016, they have preformed very well indeed! The highest risk plan had a growth rate of 28.50%, whilst the lowest risk plan grew an astonishing 8.86%. Using a compound interest calculator, if I plug in a conservative 15% growth for 28 years (my timeframe), which allows for fees, and some years of bad returns, my balance would be £661,367.54, provided I keep depositing £125 each month.

Time will tell though. If I hit my target of £132,000, I will be more than happy.

Wealthify Returns Graph

If Wealthify returns in the future are anything like their past returns, I think this is going to be a great investment, and will generate a nice lump sum for my retirement.

Customer Support Review

I couldn’t skip customer support in my Wealthify review post! Support is first class, all emails are replied to within 24 hours, and they are as helpful as possible, and try to explain everything as best as they can regarding any queries you may have. The live chat feature is also great for instant support, I wanted my account switched from a regular account to an ISA, so I jumped on the live chat, asked them to do that, and and that was it. It took no more than 5 minutes and they began the process the next day.

Ease of Setup/Use

Wealthifys platform is very simple to use and setup, its basically just clicking a few buttons, answering some questions about your finances to make sure you are eligible for their service (understand the risks of investing and what not) and that is your account setup and ready to be funded.

There are 2 different ways you can fund your account, either by a lump sum, or standing order, or both. I chose both. I deposited a lump sum of £50, yes, you read that right, a whopping £50! and setup a standing order of £30 per month (I had a holiday coming up, so the money was tied in other areas at that time). I was able to setup the standing order from my Laptop in 5 minutes, choose the date I wanted the payment to be sent on, then enter those details on Wealthifys platform, and that was me rolling.

I am now depositing £125 per month into my account. Changing the amount I deposit was easy, login to Wealthify, select the account, and edit the amount you deposit each month on the right hand side and save. Then, log into your online banking, edit the standing order, and thats it done.

Wealthify Review Conclusion

So, thats my Wealthify review, overall, I think Wealthify is a great place to invest some money for your future, wether you just want to save up some money for a holiday in 10 years time, or invest for retirement, it’s well worth taking a look at, you can start investing with as little as £1, so for all you new investors looking to get your feet wet, check it out!

Remember, join Wealthify with my link and get a discount on fees!