Frequently Asked Questions
So, you have questions. Great!

We think most of your questions should be covered off below. If we missed an item that you need more information on, feel free to contact us at questions@nestwealth.com or start a chat conversation.

How much does Nest Wealth charge for its service?Open an AccountFees

Instead of charging a percentage of your life’s savings like other firms, Nest Wealth charges a flat monthly subscription price starting at $20 a month and capped at $80 a month no matter how large your account becomes. Our pricing page has all the details.

Are there any other fees associated with my account?Fees

None from us, but there are a few fees that will be charged by our custodian, NBCN Inc., and the companies of the ETFs you own. We keep these other fees as low as possible for you—we cover the custodian fee on your first account and any trading fees above $100 per year per account, and we only use low cost ETFs. Check out our pricing page for details. 

Where is my money held?DepositsOpen an AccountInvestment Policies

Your assets are held in a brokerage account in your name at NBCN Inc., a subsidiary of National Bank of Canada. NBCN Inc. is backed by the strength of National Bank, ranked as one of the world’s 20 strongest banks from 2010-2013 according to Bloomberg Markets. NBCN Inc. is a Member of the Canadian Investor Protection Fund. NBCN Inc. is also a member of the Investment Industry Regulatory Organization of Canada (IIROC), the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.

What would happen to my account if Nest Wealth were to be acquired or cease doing business?Investment PoliciesWithdrawals

Nest Wealth never actually holds your assets. They remain in your name at NBCN Inc. at all times. If Nest Wealth is acquired or closes, your brokerage account will remain in your own name. In the unlikely event Nest Wealth were to cease doing business, your account will still be held by NBCN, and you can make a decision to transfer your account to a new broker of your choosing or liquidate your account to receive a cheque.

How are my assets protected?DepositsInvestment Policies

Your assets are protected in the following three ways:

  1. We use a third-party custodian. Your assets are held in an account in your name at NBCN, the custodian arm of one of the largest banks in Canada. Nest Wealth only has the right to issue trading instructions against your account. It cannot access your account other than to receive its monthly advisory fee. In the unlikely event that Nest Wealth becomes insolvent, your assets will not be impacted and will remain seperate in your own account at NBCN Inc.
  2. Your accounts are covered by insurance. In the unlikely event that NBCN Inc. becomes insolvent, the Canadian Investor Protection Fund (CIPF) can reimburse you for any shortfall in your account within defined limits, to a maximum of $1 million per account. There is no cost to you for this protection through CIPF, and covers your account as soon as you open your account with NBCN.
  3. We do not allow any custodian to re-hypothecate your assets. Nest Wealth clients only have cash accounts (vs. margin accounts). That means at no time can the cash or securities held in your account be loaned out or borrowed by any third party.

What does a Nest Wealth portfolio look like?Investment Policies

We use a combination of large, liquid, low-cost ETFs from the largest ETF providers in Canada to construct your portfolio. Keeping your fees low, rebalancing as needed and having your investments in a mix of asset classes to provide proper diversification has been proven to be amongst the smartest ways to invest for the long term. Each ETF in your portfolio represents an asset class. The broad asset classes you will hold amongst 7 ETFs are 1) Equities 2) Fixed Income and 3) Real Estate.

How do I open an account with Nest Wealth?Open an Account

You can open a new account with Nest Wealth entirely online. There is no need to visit our offices or print off documents and mail them. If you have any questions during the process you can reach us by emailing us at support@nestwealth.com, calling us, asking to chat with us or by scheduling a call with us.

Are there any exit fees if I close my Nest Wealth account?FeesWithdrawals

There are no exit fees charged by Nest Wealth associated with ending your relationship with Nest Wealth. NBCN Inc. may charge fees for closing your account with the bank.

What’s to keep me from mimicking Nest Wealth’s trades at a discount broker?Investment Policies

Nothing, but there’s no reason to do that. Because of our pricing model there is no additional fee charged by Nest Wealth to you if your account is $150,000 or $1,000,000. We will continue to do all the trading, all the monitoring and all the reporting for the same flat monthly fee.

What is an ETF?Investment Policies

An exchange-traded fund (ETF) is an investment fund that is traded on stock exchanges throughout the day, much like a stock and unlike a mutual fund. An ETF holds assets such as stocks, commodities or bonds, and trades close to its net asset value over the course of the trading day. Many ETFs track an index, such as the S&P 500 or MSCI EAFE. Low-cost ETFs tend to track broad, well-established indexes. Nest Wealth evaluates ETFs and selects the ones that are most attractive based on their low cost, liquidity and, where applicable, tracking error — that means how well they track their underlying index.

What is your historical performance?Investment Policies

Since we don’t believe in putting our clients into buckets and we custom build every portfolio, we don’t have generic portfolios with historical performances we can show you. You can see the individual historical performance for any of the ETFs we use by going to our ETFs page and clicking on their fund fact sheet.

How do you calculate my return?Investment Policies

There are four primary methods of calculating investment performance: Time-weighted return, Simple return, Internal rate of return and Money-weighted return.

In accordance with regulations that come into effect during 2016, Nest Wealth displays your return using a Money-weighted return process, which takes into account the returns you earn on deposits, as well as the returns on your investments.

How did you determine my risk score?Investment Policies

We ask a series of questions to help us determine the level of risk that we feel is appropriate for someone of your financial situation and risk tolerance. We ask objective questions to get an understanding of your financial situation and subjective questions to understand your attitude towards risk. 

Does Nest Wealth consider my outside holdings when creating my portfolio?Investment Policies

Nest Wealth will gather information to understand what percentage of your complete holdings this portfolio represents. However Nest Wealth will not take specific external holdings into consideration when creating your suggested portfolio.

How do you pick ETFs?Asset AllocationInvestment Policies

We look for ETFs with the lowest annual expense ratios so we can save you money on fees, minimal tracking error so we know they will do what they are supposed to do and sufficient liquidity so that we can easily rebalance your portfolio.

Why do you recommend the same ETFs to everyone?Investment PoliciesAsset Allocation

Nest Wealth’s investment methodology is based on Modern Portfolio Theory. It states that you earn the greatest return for any level of risk through the optimal mix of investments. ETFs remain the same for everybody since we select what we think are the best ETFs for each asset class. The customization is reflected in the way we combine them to make the most sense for each individual's risk tolerance and goals. 

Why are my allocations among asset classes the same no matter how much I invest?Investment PoliciesDepositsAsset Allocation

Your allocations are a function of your risk tolerance, not the amount you invest.

Will Nest Wealth hold individual stocks in addition to my managed portfolio?Asset AllocationInvestment Policies

No. We offer a service to manage a client’s portfolio that assesses your risk tolerance, recommends an optimized portfolio of carefully selected ETFs spanning amongst multiple asset classes, and monitors and periodically rebalances the investment mix to maintain your desired risk tolerance. We do not use Nest Wealth-related brokerage account to hold securities other than the ones we choose and manage.

How often do you rebalance my portfolio?Asset AllocationInvestment Policies

Research has shown that rebalancing a portfolio’s holdings makes more sense when an asset class has drifted from its target allocation by a certain percentage (i.e., threshold-based rebalancing) rather than on a set-time basis (e.g., quarterly or semi-annually). We continuously monitor your portfolio and periodically rebalance it back to your target mix based on threshold breaches. We are not able to predict when we are likely to rebalance because that depends on the performance of each of the asset classes. A study performed by David Swensen, Chief Investment Officer of Yale University, found that threshold-rebalanced portfolios earned an average of 0.4% more per year over 10 years than portfolios that were not rebalanced.

Your portfolio will also be rebalanced each year based on the new asset mix suggested by your answers to the annual KYC (Know Your Client) questions.

What types of accounts does Nest Wealth support?DepositsOpen an Account

Nest Wealth currently supports almost all types of investment accounts. You can open individual, joint, corporate and trust accounts.

Who may open a Nest Wealth account?Deposits

Any individual 18 or over, who is a legal Canadian resident or a Canadian citizen (with a permanent Canadian address in a province where Nest Wealth is regulated) may open a Nest Wealth account. Nest Wealth is currently registered in Alberta, British Columbia, Manitoba and Ontario, but we do plan to roll out to other provinces shortly.

I live outside of Canada. Can I open an account?DepositsOpen an Account

In certain circumstances you might be able to open a Nest Wealth account if you live outside of Canada. Please call us or email us at support@nestwealth.com to talk with us about your individual situation.

Can I transfer a portion of an existing brokerage account to Nest Wealth?Open an AccountDeposits

Absolutely. You can email us at support@nestwealth.com and we will send you a form to complete that will allow us to transfer assets on your behalf. You can ask for a partial or full transfer on the form.

Can I open multiple accounts?DepositsOpen an AccountFees

Yes, you can open as many accounts as you'd like! Nest Wealth doesn't charge any fees for multiple accounts, and we cover the custodian fee on your first account. NBCN Inc. will charge you an annual custodian fee for any additional open accounts. See our pricing page for details. 

Can I hold my account at another brokerage firm and still have Nest Wealth trade it?DepositsOpen an Account

Currently, Nest Wealth’s service is only available with accounts opened at our brokerage partner, NBCN Inc.

Can I open a joint account?Open an AccountDeposits

Yes. However, both account holders will need to digitally sign the forms. To transfer money from a joint account, both account holders should sign the forms as well. 

How do I fund my account?DepositsOpen an Account

The easiest way to fund your account is to use a ‘Bill Payment’ from any Canadian bank’s online portal to your account at NBCN. It is free and only takes a couple of seconds complete.  Usually, the money will transfer from your bank account to your NBCN Inc. account within 48 hours. You can contact us at support@nestwealth.com for alternative methods of funding such as wire transfer or transfers from another brokerage account.

When can I expect my money to be invested?DepositsOpen an Account

Once you've had your conversation with your portfolio manager and you have any questions answered about your asset allocation, we invest your money as rapidly as we can in an responsible manner.

May I transfer funds from an account under a different name?DepositsOpen an Account

No. You may only transfer funds from an account that bears your name.

May I transfer securities to my account?Deposits

No. You can only transfer in cash. This means that prior to transferring over any positions from a different account you will need to sell all mutual funds, bonds and/or equity holdings.

Who should I contact if I have any questions about funding my account?DepositsOpen an Account

Please contact our client experience team, your portfolio manager or reach out to us by email at support@nestwealth.com with any account-related question, problem or suggestion.

How do I withdraw my money?Withdrawals

Please contact us at support@nestwealth.com. We do not charge for withdrawals; however, NBCN Inc. may charge fees for certain types of withdrawals.

How do I make a partial withdrawal from my account?Withdrawals

It's easy to withdraw some of the funds in your account and in most cases there will be no fees associated with the withdrawl. To start the process, please call us, email or email us at support@nestwealth.com.

How long does it take to withdraw my funds?Withdrawals

If you have the cash available in your account, we can send it out once you verify your withdrawal request. Otherwise, we will place the trades to raise the required cash in your account. All trades then take 3 business days to settle (this applies to all brokerage firms). Upon trade settlement, we will then return your funds to the bank account you specify, which usually takes another 2 business days, but can take a day or two longer depending on where the funds are being sent.

Does Nest Wealth charge fees to withdraw funds?FeesWithdrawals

No, Nest Wealth does not charge fees when you withdraw funds or close your account. You can receive electonic fund transfers to your bank account at no charge from NBCN while NBCN charges $25 for bank and wire transfers.

What happens to my asset allocation when I withdraw funds?WithdrawalsInvestment PoliciesAsset Allocation

We'll make sure your portfolio stays aligned with your goals and risk profile. If you withdraw funds from your account, we will reduce any overweight asset classes to move you toward your target allocation. If you’re already at your target, then we reduce the investments pro rata to maintain your target allocation.

How will I receive my tax documents?Taxes

Based on your preferences, you’ll receive all needed tax documents from NBCN either electronically or through the mail.

Does Nest Wealth help clients report taxes?

Nest Wealth does not provide individual tax advice. All needed slips for end of year tax filings will be provided by NBCN Inc. Please consult your tax advisor regarding any questions you may have specific to your personal taxes and financial situation. 

How is your data kept safe?Open an Account

We use bank-level security measures to ensure your data is collected and stored safely. We encrypt all communication between your browser and our servers, store all of your data on secure servers, and continuously test our processes and procedures to ensure your data is secure and safe.

We protect your privacy. You can read about our cookie policy and privacy policy to understand how we collect and use your private information.

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