Every year, the True Wealth Report is released, and it is one of the best ways to find out how much you should be investing. Essentially, the report recommends the best investments to buy for you, based on your risk tolerance and time horizon. This year, the report has branched out into Robo-Advisors, which are cheaper than real people.
True Wealth Review 2021 – Cheapest Robo-Advisor True Wealth Review is a part of boltonsinvestments.com. I have been doing research on the best Robo-advisors for many months now. I have come to the conclusion that True Wealth is the best Robo-advisor in the market. It has the lowest cost of all Robo-advisors out there.
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When you don’t want to invest directly via a broker, robo-advisors are an excellent option. For a charge, they will handle your funds. While more costly than DIY investing, Robo-Advisors are far less expensive than a bank adviser.
Genuine Wealth is one of Switzerland’s top Robo-Advisors. They are the first Robo-Advisor, having been in operation for eight years. They’re also the most affordable in Switzerland.
I’ve already evaluated several Robo-Advisors. It’s time to take another look at True Wealth. I’ll examine at their investing methods, costs, and security in more depth.
True Wealth
Excellent Robo-Advisor
TrueWealth
TrueWealth is a fantastic Swiss Robo-advisor with very low fees, making it the finest Robo-advisor for serious investors.
You will only pay 0.25 percent fees for a year if you utilize this link!
True Wealth was established in 2013 by Oliver Herren (creator of Galaxus!) and Felix Niederer as a Robo-advisor. In 2014, the service was made accessible to the general public. As a result, it is Switzerland’s most experienced Robo-Advisor. In Switzerland, they currently have over 9000 customers. They also look after over 600 million CHF in assets for its customers. These are some very amazing figures!
True Wealth sells itself on two key points:
- Low fees
- Investing made easy
These are significant benefits for those who choose Robo-advisors. They also offer a virtual account, which is great. It implies you can create an account and try out a lot of different things. After that, you may select whether or not you wish to send money. You may change your virtual demo account into a genuine account at any moment.
You may invest using their services directly from your browser. Their website is mobile-friendly, however they do not have a mobile app. As a result, you may continue to use your phone.
True Wealth is currently only accessible in German and English, with no plans to release it in French or Italian.
So, let’s take a closer look at True Wealth!
Models of Investment
Let’s take a look at how True Wealth invests your funds.
True Wealth invests in a way that is both passive and profitable. True Wealth invests only in index funds. They are specifically investing in Exchange Traded Funds (ETFs) (ETFs).
The use of passive index funds is fantastic news! For the most part, this is the greatest method to invest.
You can’t pick and choose which ETFs you want to invest in. The Robo-Advisor, on the other hand, will choose a portfolio for you. A portfolio will be created for you based on the answers to various questions that the tool will ask you. But don’t worry, you’ll have a voice in the matter!
They’ll ask you a lot of questions to determine your risk tolerance. Consider the following example:
- How much and for how long do you intend to invest?
- How long do you intend to divest and how much do you intend to withdraw?
- What would you do if the value of your assets dropped by 10%?
- And so on.
You will get your portfolio after you have answered these questions (which should take no more than two or three minutes). For example, here’s what I came up with after answering them:
True Wealth’s recommended default portfolio for my circumstance
It’s a fascinating portfolio. For the average population, it makes a lot of sense. I can see why they chose this portfolio based on the responses I provide. However, it does not strike me as forceful enough.
The default portfolio, on the other hand, is not a problem since it can be customized! True Wealth offers a lot of customization options. You have a lot of flexibility when it comes to designing your investing portfolio!
To begin, you may customize each asset class. For example, you can get rid of all the bonds, real estate, and natural resources. You may also raise your bond allocation or have more cash on hand.
True Wealth can help you customize your portfolio.
In my instance, I made the portfolio with the most stocks possible (98 percent ). You may choose the portfolio that best meets your requirements. They always maintain a minimum of 2% cash on hand to assist rebalance and pay fees.
The optimization process may be taken even further. Each of the asset classes may have its composition customized by area. Metals and diverse natural resources are two options for natural resources.
Select a drill-down option for each area of your True Wealth Portfolio.
This is a great amount of customisation in my opinion. Some individuals want to take it a step further and choose ETFs directly. However, if you want to choose your own ETFs, I believe you should avoid using a Robo-Advisor in the first place. You should use a broker account to invest on your own.
Overall, I believe True Wealth’s investing method is fantastic. You’ll only invest in ETFs with minimal fees. You may also personalize your portfolio down to the last detail.
Withdrawals and deposits
We may also examine how financing and withdrawals are handled.
To begin, I must point up a disadvantage: True Wealth requires a minimum investment of 8500 CHF. For many individuals who wish to get started, 8500 CHF is too high of a starting point. Many individuals would undoubtedly want to give the service a try without having to spend so much money. You may, on the other hand, use a virtual account to try out the service.
You may deposit money into your account by sending funds to a personal IBAN number. You receive a personal IBAN since your money is stored in your name at the custodian bank account.
It’s worth noting that you may make deposits in CHF, EUR, USD, and GBP! This is a fantastic feature.
You may also withdraw your funds via the interface. The transfer may only be made to an account in your name. You will have to cancel your account if you wish to get below 8500 CHF.
In general, this is a common method of withdrawing and putting funds into your account. There are no surprises in this article.
Fees
Let’s have a look at the fees now. Investing fees are critical if you want to make a long-term investment.
You pay two fees with True Wealth:
- The costs charged by ETFs, which vary based on your portfolio.
- Depending on the size of your account, you will be charged administration fees.
These two costs, when added together, equal the amount of money you’ll lose to fees each year.
The fees charged by ETFs are determined by your portfolio. According to what I’ve observed, it’ll range from 0.13 percent to 0.2 percent. The Real Estate ETF is the most costly ETF. You are unlikely to go higher than 0.2 percent if you do not invest significantly in Real Estate. My very aggressive portfolio has fees of just 0.13 percent!
On average, the TER of True Wealth will be between 0.63 percent and 0.70 percent as a result of these factors. This TER is fantastic.
The annual management fee is 0.50 percent by default. If you have a big portfolio, it is possible that it may fall much more. The costs will drop from 0.50 percent to 0.25 percent for a 500 000 CHF portfolio to an 8 000 000 CHF portfolio! For example, a 1,000,000 CHF portfolio will cost just 0.39%. These minimal fees are a fantastic outcome. The information is available on their website. It is fantastic for your future if you intend to retire early and invest with a Robo-Advisor.
There is also a stamp duty charge to pay on top of that. I have an article on the Swiss Stamp Tax if you want further information. This fee is charged on each ETF buy and sell. A international ETF will cost you 0.15 percent, whereas a Swiss ETF would cost you 0.075 percent.
It’s impossible to estimate how much this will cost you in terms of a percentage of your portfolio since it depends on the buy and selling prices as well. It’s also not due every year. On average, it should amount to less than 0.05 percent each year. True Wealth does not include this in their overall fees, which is a shame! It would simplify everything.
Finally, each currency exchange performed by True Wealth will include a 0.10 percent charge. All Swiss Robo-advisors agree that this is the best currency conversion fee.
True Wealth’s fees are good in general! They have considerably cheaper costs when compared to other Swiss Robo-Advisors! You may invest for a minimum of 0.63 percent TER in total!
Robo-advisors are a cost-benefit analysis of simplicity. You may save money on fees if you don’t mind the bother of investing on your own. Of course, the costs are greater than when investing on your own. However, if DIY investing isn’t for you, Robo-Advisors are a good alternative.
If you’re still not persuaded that fees matter, consider what investment costs do to your retirement funds.
Is True Wealth a secure place to invest?
If you’re going to spend a large amount of money with an online service, be sure it’s secure.
Let’s start with how assets are kept. True Wealth does not hold any of your assets. Your assets are instead held by a custodian bank. True Wealth works with two different custodian banks:
- Basel Landschaftliche Kantonalbank is a bank based in Basel, Switzerland (BLKB)
- Switzerland’s Saxo Bank
You have the option of choosing which one you like. Because your shares are held in your name, they are safe against True Wealth’s insolvency in both instances. You can safeguard your money indefinitely using BLKB. Your money is safe with Saxo Bank up to 100’000 CHF. In most instances, your cash will be secure since you should not have a large amount of cash on you.
Both custodian banks are prohibited from lending your assets to other investors. The safety of your investments is improved by not permitting securities lending. And True Wealth offers this as a great assurance.
As a result, you’re adequately protected against True Wealth’s bankruptcy or takeover.
Is it possible to have true wealth?
We may now turn our attention to technological security. We don’t want a hacker to take all of our valuables!
All contact with True Wealth will be encrypted as a result of this. You may also add an additional degree of protection by using Second Factor Authentication (2FA). I strongly advise you to do so for any internet service you utilize. They support the most popular two-factor authentication systems. So this is fantastic!
Furthermore, you may only move your assets to a personal account. This restriction is very beneficial to security! If a hacker gained access to your account, they would have to also get access to your bank account in order to obtain your money. It is very improbable that you would lose your funds because of this security!
Overall, I believe True Wealth’s technological security is as excellent as it can be. True Wealth seems to be extremely security conscious. This is great news for the company’s investors.
Now, keep in mind that the most serious security issue is typically the human element. As a result, you must take internet security seriously.
Investing for the Long Term with True Wealth
These days, sustainable investment is extremely trendy.
True Wealth, luckily for investors who are driven by this, also allows you to invest in a long-term manner.
You have two investing worlds to select from when building your portfolio with True Wealth:
- All stocks for each asset class at a global level
- For each asset class, only stocks from sustainable businesses are allowed.
So all you have to do is alter one item, and your whole portfolio will be geared toward long-term investment.
True Wealth will utilize MSCI Socially Responsible Investing (SRI) ETFs when you choose the sustainable universe. As a result, all ETFs will be replaced with SRI counterparts.
The cost of these ETFs is higher than the cost of the basic ETFs. As a result, if you select sustainable investment, your portfolio’s TER will be greater. For example, the TER of the portfolio I chose for myself was 0.63 percent, but with the sustainable universe, it increased to 0.80 percent.
The True Wealth method for Sustainable Investing is, in my opinion, very excellent. I wish ETFs were less expensive. True Wealth, on the other hand, has little influence over this. Their approach to long-term investment is comparable to that of the majority of other Robo-Advisors.
If you’re not sure what Sustainable Investing, ESG, and SRI are, read here.
Advantages of True Wealth
Let’s have a look at the key benefits of True Wealth.
- Fees are much cheaper than those charged by other Swiss Robo-Advisors.
- Passive investing is a fantastic investment technique.
- Money may be deposited in a variety of currencies.
- Your portfolio is very well-customized.
- True Wealth allows you to invest in a long-term manner.
- True Wealth is a safe investment.
- In the event of bankruptcy, your assets are adequately safeguarded.
- Information that is quite clear.
- It’s quite easy to use.
- You may utilize a free demo account right now.
Disadvantages of True Wealth
Let’s have a look at the major drawbacks of True Wealth:
- To invest with True Wealth, you’ll need at least 8500 CHF.
- The management costs do not include stamp duty.
- The French version is not accessible.
FAQ
What is the smallest amount of money that you may invest with True Wealth?
To begin investing with True Wealth, you’ll need at least 8500 CHF.
How much would True Wealth cost you in fees?
A 0.5 percent administration fee will be charged. In addition, you will be responsible for the fund’s costs. Annually, the sum should be about 0.65 percent to 0.70 percent. If you have more than 500’000 CHF in your account, you will pay reduced costs, down to 0.25 percent.
Who is eligible to invest with True Wealth?
True Wealth is open to all legal residents of Switzerland who are at least 18 years old.
What if True Wealth goes bankrupt?
Your assets are securely held in a custodian bank if they go bankrupt. In the event that the custodian bank fails, your money will be safeguarded up to 100,000 CHF.
Conclusion
Excellent Robo-Advisor
TrueWealth
TrueWealth is a fantastic Swiss Robo-advisor with very low fees, making it the finest Robo-advisor for serious investors.
You will only pay 0.25 percent fees for a year if you utilize this link!
True Wealth has left an impression on me. They offer a fantastic investing method that is extremely low-cost. Plus, you have a lot of flexibility in terms of portfolio selection! You have complete control over your investments. True Wealth is a fantastic service for a serious investor in the long run.
I would invest with True Wealth if I had to pick a Robo-Advisor. They are Switzerland’s cheapest Robo-Advisor. And these cheap costs will have a major impact on your long-term results. Also, the fact that you may tailor the portfolio to your own requirements makes it suitable for the majority of individuals.
However, I would prefer that the minimum be lower. Many individuals who wish to start investing may find the minimum investment amount of 8500 CHF to be too high.
Aside than that, it’s a fantastic service!
Keep in mind that I personally do not utilize a Robo-Advisor. In a broker account, I invest in stocks on my own. Investing on your own is more difficult. However, I pay a lot less than I would with a Robo-Advisor. In the end, whether you pay an adviser or do it yourself, it’s a compromise.
Read my interview with True Wealth’s CEO, Felix Niederer, if you want to learn more about the company.
You may learn more about Robo-Advisors by reading my post on them in Switzerland.
So, how about you? What are your thoughts on True Wealth?
True Wealth 2021 Review – Best Robo-Advisor
True Wealth is the first Swiss Robo-Advisor, as well as the most affordable! They offer excellent service and allow you a lot of flexibility when it comes to customizing your portfolio.
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The author of thepoorswiss.com is Mr. The Poor Swiss. He recognized he was slipping into the lifestyle inflation trap in 2017. He made the decision to reduce his expenditures while increasing his income. This blog chronicles his journey and discoveries. In 2019, he plans to save more than half of his salary. He set a goal for himself to achieve financial independence. Here’s where you may send a message to Mr. The Poor Swiss.
There is a growing trend of super-robots in the world. These robots will perform all of your financial services. You can find these robots on the internet and through companies like Robinhood and Wealthfront. These robot services offer cheap and affordable management tools for your money. And you can use these services and just do your own financials and investing. That is true power of the true wealth.. Read more about etf robo-advisor and let us know what you think.
Frequently Asked Questions
Is True Wealth Safe?
True Wealth is a scam. It is not safe and it will not make you rich. Q:
Which Robo advisor has best returns?
The Robo advisor with the best returns is the Robo advisor that has a low expense ratio. Q:
How much should a robo advisor charge?
Robo advisors should charge a percentage of the assets they manage. Q:
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