Justwealth RESP Review 2024: Post-Secondary Savings Simplified
Justwealth RESP Review Rating: 4.8/5
As a parent, the everlasting investment you can make to your children lies in education.
But with the growing inflation in Canada, the cost of education continues to rise at all levels in the country.
However, the cost of post-secondary education has always been on top of the roof, leading many into student loans while others are out of school.
If you want to ease yourself or your children the financial burden of post-secondary education in Canada, Justwealth could help you do so cost-effectively through its customized RESP account.
A Registered Education Savings Plan (RESP) is one of the tax-advantage investment accounts in Canada that allows you to save for your children’s post-secondary education while accessing government grants and less tax burden.
But is it worth opening an RESP on Justwealth? That’s what this review helps you determine.
Overview of Justwealth
Justwealth is an award-winning registered Portfolio Manager operating in all Canadian provinces.
Officially known as Justwealth Financial Inc, the robo advisor was launched in 2015 to offer Canadians customized and affordable investment solutions.
Besides having multiple ETF portfolios, Justwealth also has a comprehensive collection of registered and non-registered accounts, such as:
- Tax-Free Savings Account (TFSA)
- Registered Retirement Savings Plan (plus spousal RRSP)
- Registered Retirement Income Fund (RRIF)
- Registered Education Savings Plan (RESP)
- First Home Savings Account (FHSA)
- Life Income Fund (LIF)
- Locked-In Retirement Account (LIRA)
- Taxable accounts
Among all these accounts, Justwealth treats RESP and FHSA accounts especially on fees, minimum investment balance, account size and more.
With this special treatment and a dedicated RESP portfolio, Justwealth is highly recognized by many as the best robo-advisor for RESP in Canada.
Learn more about the robo-advisor on this Justwealth review.
What is Justwealth RESP?
Justwealth RESP refers to the Registered Education Savings Plan (RESP) of Justwealth that offers customized and low-cost solutions.
Unlike other Justwealth registered accounts, the Justwealth RESP account has a low monthly fee of $2.50 with no minimum balance.
In addition to zero withdrawal fees, the RESP account also has a dedicated portfolio known as RESP Target Date Portfolios.
Overall, you can count on Justwealth if you’re looking to save for your children’s post-secondary education in a low-cost RESP account.
How Does Justwealth RESP Work?
Justwealth RESP works like other RESP accounts in Canada. Justwealth invests on your behalf in the perfect RESP portfolio that suits your needs and situation.
Most robo-advisors in Canada collect information about your risk tolerance, investment objective, and time horizon to determine the perfect ETF or value-loaded portfolio for you.
Based on such information, the robo-advisor will invest your funds through a registered or non-registered account.
But in the case of Justwealth, you will be matched directly with a dedicated RESP portfolio based on your risk tolerance and situation. This gives you a more tailored solution.
That said, once you open a Justwealth account and you’re matched with the perfect RESP portfolio by a dedicated Portfolio Manager, you can proceed to fund your account with CAD or US dollars so far you’re comfortable with the recommendations.
Unlike other robo-advisors and even Justwealth’s non-RESP accounts, you can deposit any amount to your Justwealth RESP account as there’s no minimum investment required.
After you make a deposit, your dedicated Portfolio Manager will be responsible for your portfolio investing and rebalancing.
Since Justwealth custodian, CI Investment Services Inc, is a member of the Canadian Investor Protection Fund (CIPF), your assets up to $1 million are covered on the robo-advisor.
Finally, you can leave your RESP investment in Justwealth throughout the lifetime of the portfolio or when your child is made for post-secondary education.
Key Features of Justwealth RESP
Justwealth is obviously a specialized RESP robo-advisor when you compare its key features with other robo-advisors in Canada. Let’s take a glance at these features.
| Monthly fee | $2.50 |
| Minimum investment | None |
| Minimum account size | None |
| Portfolio | RESP Target Date Portfolios |
| Insurance | Up to $1 million |
| Full account transfer fee | $150 (rebated when you transfer up to $25,000) |
| Withdrawal fees | None |
| Accessibility | All the provinces of Canada |
In the comparison section of this review, you would see how the above features add up to make Justwealth a specialized RESP robo-advisor in Canada.
Justwealth RESP Target Date Portfolios
The Justwealth RESP Target Date Portfolios is one of the several portfolios of Justwealth. Others include Tax-Efficient and US Dollar portfolios.
As the first of its kind in Canada, the RESP Target Date Portfolios is strictly dedicated to RESPs.
The asset allocations and underlying holdings of the portfolios are customized per each child and they change as the child grows.
Consequently, you can expect a more aggressive risk level when your child is young.
As your child approaches the age of post-secondary education, the portfolio will automatically adjust itself to a conservative fund.
Justwealth RESP Fees
There are five major fees involved in the RESP account as shown below:
| Management fee | Average of $2.50 per month (or an annual fee of 0.50% on the first $500,000 investment and 0.40% on more than $500,000 investment) |
| Management expense ratio (MER) | Average of 0.20% annually |
| RESP withdrawal fees | $0 |
| Partial account transfer | $50 |
| Full account transfer fee | $150 (rebated when you transfer up to $25,000) |
Notably, the average monthly fee of the RESP is $2.99 less than the monthly fee of Justwealth’s non-RESP accounts ($4.99).
Pros and Cons of Justwealth RESP
Judging from the above Justwealth RESP review, it’s obvious to identify the following pros and cons of the account:
Pros
- No minimum investment and account size: You can start investing in the account with any amount as it has no minimum investment or account size. This is unlike the Justwealth non-RESP accounts that require a $5,000 minimum balance.
- Tailored portfolios: Justwealth is the first to offer a customized RESP portfolio in Canada that gives you a customized and seamless experience.
- Low fees: With no withdrawal fees and low monthly management fees, you can save costs on your RESP investment on Justwealth.
- Dedicated Portfolio Manager: You can count on your dedicated Portfolio Manager for professional counselling and support.
- Transfer fee rebate: You will get a $150 transfer fee rebate when you transfer an RESP account with up to $25,000 to Justwealth.
Cons
- High MER: The 0.20% average MER on the RESP account is one of the highest in the industry.
- Limited access: If you reside in any Canadian territory (Nunavut, Yukon or Northwest Territories) you can’t access the RESP account cause it’s only available for the residents of Canadian provinces.
My Justwealth RESP Review Rating
I rate Justwealth RESP 4.8 out of 5-stars based on comparative analysis and the total rating of the following features:
- Minimum investment: ⭐⭐⭐⭐⭐
- Portfolios: ⭐⭐⭐⭐⭐
- Fees: ⭐⭐⭐⭐
- Accessibility: ⭐⭐⭐⭐
- Overall rating: ⭐⭐⭐⭐
With this, my Justwealth RESP review is positive and recommendable for anyone looking for a low-cost RESP account in Canada.
Is Justwealth RESP For You?
It’s up to you to decide based on your needs and current situation. But if you ask me, I will say you should go for this RESP account if you’re looking for:
- A low-cost RESP account
- An RESP account with no minimum balance and minimum size
- Customized RESP portfolios
- Personal Portfolio Manager for professional advice and counselling
- Automated investment solutions for your child’s post-secondary education
But if you reside in any Canadian territory or are concerned about the high MER of the account, you need to explore its alternatives which I discussed before the end of this review.
Update
I no longer recommend using Justwealth. Join them at your own risk.
Requirements to Open a Justwealth RESP Account
If you’re okay with the RESP account, then it’s essential you know the requirements of signing up to avoid disappointments. To open the RESP account, you must:
- Reside in any Canadian province (with the exception of territories)
- Have a personal and spousal Social Insurance Number (if applicable)
- Reach the age of 18 or older
- Possess a valid government-issued photo ID
How to Open a Justwealth RESP Account
You can open the RESP account online or by phone. To open online, visit the application page and click on the ‘Get Started” button.
If you want to sign-up by phone, you can schedule a 30-minute call with a Justwealth representative.
Regardless of the option you’re going with, you will be required to provide your personal, employment and financial information. If you have a spouse, you will also be required to provide their details.
After providing the required information, you will be recommended a portfolio which is subject to your approval or rejection.
Once you accept the recommendation, Justwealth will assign you a dedicated Portfolio Manager upon requesting more information from you.
From there, you can fund your account to have your Portfolio Manager set up and invest your portfolio.
Special Offer:
As a My Wealth Experience reader, you will get up to a $500 cash bonus when you sign-up on Justwealth.
The exact cash bonus you get depends on the balance of your assets as shown in the following table.
| Assets Balance | Cash Bonus |
| $5,000 and $24,999 | $50 |
| $25,000 and $49,999 | $100 |
| $50,000 and $99,999 | $225 |
| $100,000 and above | $500 |
How Justwealth RESP Compares
Below is a quick highlight of how Justwealth RESP compares with Wealthsimple RESP and Questrade RESP.
| Profile | Justwealth RESP | Wealthsimple RESP | Questrade RESP |
| Minimum investment requirement | None | None | $1,000 |
| Management fee | 0.4% / 0.5% | 0.4% or 0.5% | 0.20% or 0.25% |
| MER | 0.20% average | 0.13% / 0.16% | 0.17% to 0.22% |
| RESP portfolio | RESP Target Date Portfolios | N/A | N/A |
Let’s now take an overview of each of the above alternatives.
Justwealth RESP vs Wealthsimple RESP
The popular wealth management and financial institution, Wealthsimple also offers Canadians access to invest in RESP accounts through its Wealthsimple Invest robo-advisor.
But unlike Justwealth, Wealthsimple Invest doesn’t have a dedicated RESP account. Instead, it invests funds through three different portfolios – classic ETF, SRI and Halal portfolios.
As one of the best robo-advisors in Canada, Wealthsimple Invest, doesn’t have a minimum balance requirement on all its registered and non-registered accounts.
While Wealthsimple Invest also returns the $150 account transfer fee to you, it has a considerably lower MER than Justwealth.
RELATED: Wealthsimple Halal Review
Justwealth RESP vs Questrade RESP
Questrade’s robo-advisor, Questwealth Portfolios allows you to invest in an RESP account more cost-effectively.
But like Wealthsimple Invest, Questwealth Portfolios doesn’t also have a dedicated RESP portfolio. The available portfolios on Questwealth include standard ETF and SRI portfolios.
While Questwealth Portfolios requires a minimum of $1000 balance on all accounts, it has a lower management fee and MER than Justwealth.
Like Justwealth, you will also get the $150 account transfer fee back on Questwealth Portfolios. This makes Questwealth a cost-effective alternative to Justwealth.
RELATED: Kaleido RESP Review
The Bottom Line on Justwealth RESP Review
Getting a government grant and tax advantage on your child’s post-secondary education savings are some of the lifetime opportunities you can’t afford to miss in Canada.
From the above review, you can see how Justwealth positioned itself as a specialized and reliable automated platform for RESP investing.
Even with the side-by-side comparison of Justwealth with some of the leading robo-advisors in the country, Justwealth still appears as the best in RESP investment.
While my Justwealth RESP review is positive, you have the final say on where to go from here. I will be pleased if you could share your decision with me in the comment section.
If you enjoy reading this article, kindly read my other related articles to learn more about the best investment deals in Canada.
Update
I no longer recommend using Justwealth. Join them at your own risk.
Justwealth RESP Review
Summary
Justwealth treats RESP accounts especially on fees, minimum investment balance, account size and more.
