We are sort of the square peg for the round hole in the industry. We try to help you minimize fees. We are different in that we not asking you to hand over your hard earned money for us to manage. We are not asking you to link all of your accounts to us. We take a very simple approach by aligning your risk profile to low cost index funds that fit into a diversified, balanced portfolio. Then we advise you on when to rebalance so you stay in line with your target portfolio. We are not trying to come up with ways to beat the benchmarks. We are advising you to go with a mix of benchmarks. Our goal is to help you make the right investing decisions to maximize long term returns (in part by minimizing fees) and minimize risk.
The ONLY revenue stream we have is from the monthly/annual subscriptions. We do NOT make money from selecting certain funds (or get to go on trips for pushing certain investments). We do NOT make money by recommending certain brokerages for you. And we do NOT take a percentage of your investments. We act as a fiduciary, which means we're looking out for you.
Our subscription service is $35/month on a month to month basis or $30/month (billed annually $360/year) if you sign up for a year. You should check with your brokerage firm to determine what (if any) transaction fees you will be charged when you rebalance. Depending on what type of account you're invested in (401k, IRA, individual account...) there may be tax considerations to address. You may want to check with a CPA to see if there are any tax implications to your investment strategy. We strive to keep overhead low so we can keep fees low (we purposely don't operate out of an office for that reason).
You will be the one managing your money. We will just recommend what you should do with it. You can hold the investments at whichever brokerage firm you'd like, ideally at a reputable firm with low fees.
Sure. Depending on what investments your employer chose for you to have access to, you may/may not be able to find the exact funds we recommend. However, the most important factor is the asset allocation.
In short, it is diversification across a variety of asset classes (i.e...stocks, bonds) that aligns with one's risk tolerance. This allows one to maximize returns and minimize risk for one's appetite for risk. It was introduced by Harry Markowitz in 1952, who was later awarded the Nobel Prize in Economics for "pioneering work in the theory of financial economics". Several high profile universities use the theory to manage endowments.
We help you with that. We have a questionnaire with a handful of questions that we use to guide us to a recommendation.
We analyze low cost, low turnover, broad based benchmarks that a lot of mutual funds try to beat. We don't pay much attention to the obscure ones.
As often as necessary. The alerts are sent when the recommended portfolio gets out of balance by +/- 5% in any one asset class.
Yes. The data that we collect sits behind a SSL certificate and in a Level 1 PCI compliant vault.
No. We don't directly manage any client investments. If we did, it would take time and resources away from our core business, which is monitoring the portfolio models we've created for do-it-yourself investors. We set out to just be really good at that.
That's it. We focus all of our time and energy in creating and monitoring index fund based asset allocation models for our clients. In an effort to keep costs and fees low we decided to just to be really good at the one thing we do. We do, however, recommend meeting with a fee based financial planner (ideally that charges by the hour) to help out with other areas such as budgeting, emergency fund, life insurance, kids college, long term care, and mapping out an overall plan for your future.
Good question. When you log into your account profile, you'll have access to detailed descriptions of each model. The PDF files containing the descriptions are located right under the videos.