WHAT FEES CAN I EXPECT?
Our management fees depend on the chosen investment strategy. For the passive strategy, we charge a 1% annual management fee, while the active strategy entails a 1.5% annual management fee.
Please note that these fees exclude any additional trading or transaction costs that may arise during the investment process.
HOW CAN I GET STARTED?
To begin the account creation process, click here for step-by-step instructions. If you require assistance or have further inquiries during the application process, feel free to contact us.
WHAT IS THE MINIMUM INVESTMENT TO OPEN AN ACCOUNT?
A passive strategy account requires a minimum of $6,000, while opening an active strategy account necessitates at least $10,000.
WHAT ARE MY OPTIONS FOR FUNDING MY ACCOUNT?
You can fund your account through various methods, with wire transfers being the most common. Visit the brokerage's website for more information on initiating a wire transfer and exploring other transfer options.
WHICH SECURITIES WILL BE INCLUDED IN MY PORTFOLIO?
Your portfolio will comprise securities listed on the US stock exchange, including individual company shares and Exchange Traded Funds (ETFs).
WHAT DOES ALGORITHMIC INVESTING INVOLVE?
Algorithmic investing employs computer programs to make informed investment decisions based on factors such as asset prices, market trends, and historical data.
This approach offers faster and more efficient investment decision-making compared to traditional methods.
Algorithms can swiftly analyze vast amounts of data, making rapid decisions in fast-paced markets where timing is crucial.
HOW DOES TACTICAL ASSET ALLOCATION WORK?
Tactical asset allocation is an investment strategy that actively adjusts a portfolio's asset class mix based on the investment manager's market outlook. It aims to capitalize on short-term market opportunities and outperform benchmarks or indices.
Tactical asset allocation may involve frequent portfolio adjustments (e.g., daily or weekly) or less frequent, more significant changes. The specific approach depends on the investment manager's style and prevailing market conditions.
Ultimately, tactical asset allocation strives to maximize returns and outperform benchmarks or indices by actively deciding on asset class allocation and timing. This strategy may entail higher risk in some cases, but it can also reduce risk during unfavorable market conditions.
WHAT IS THE ALL WEATHER PORTFOLIO?
The All Weather Portfolio is a well-balanced investment strategy by Ray Dalio, founder of Bridgewater Associates. Designed to perform in various market conditions, it helps investors withstand economic turbulence. The strategy employs a highly diversified mix of asset classes, including stocks, bonds, commodities, and cash. The risk parity approach in the All Weather Portfolio balances risk across different asset classes, reducing overall risk and boosting resilience during challenging market conditions.
WHAT DOES RISK PARITY ENTAIL?
Risk parity is an investment strategy that involves allocating investments in a way that balances the level of risk across different asset classes. The goal of risk parity is to create a portfolio with a more even distribution of risk, rather than having a concentration of risk in a few specific areas.
For example, let's say that you have a portfolio that consists of stocks and bonds. If you allocate a large portion of your portfolio to stocks, which tend to be more volatile than bonds, your portfolio will have a higher overall level of risk. On the other hand, if you allocate more of your portfolio to bonds, which tend to be less risky than stocks, your portfolio will have a lower overall level of risk.
By using a risk parity approach, you can try to balance the level of risk in your portfolio across different asset classes, rather than having a concentration of risk in one area. This can help to reduce the overall risk of your portfolio and make it more resilient in difficult market conditions.
WHY SHOULD I CONSIDER RISK PARITY?
Lower Volatility: One of the main benefits of risk parity strategies is that they can help to lower the overall volatility of a portfolio. By spreading risk across different asset classes, risk parity strategies can help to reduce the impact of market fluctuations on a portfolio.
Diversification: Risk parity strategies provide diversification across different asset classes, which can help to reduce the impact of individual market or asset class fluctuations on the portfolio. By diversifying across multiple asset classes, risk parity strategies can help to lower the overall risk of the portfolio.
Consistency of returns: Risk parity strategies can help to provide more consistent returns over time. By balancing risk across different asset classes, risk parity strategies can help to ensure that a portfolio is less likely to experience large losses in any one asset class.
Long-term performance: Risk parity strategies can be effective over the long-term as they seek to balance risk rather than focusing on maximizing returns in a single asset class. This can help to ensure that a portfolio is more likely to perform well over the long-term, even in difficult market conditions.
Adaptability: Risk parity strategies can be adapted to different market environments and can be adjusted to reflect changing market conditions. This flexibility can help to ensure that a portfolio remains well-balanced and well-positioned to take advantage of market opportunities.
WHAT ARE THE KEY DIFFERENCES BETWEEN PASSIVE AND ACTIVE MANAGEMENT?
Passive management tracks a benchmark or index to match its performance, while active management seeks to outperform it by making specific investment decisions. Passive management is more hands-off, involving low fees and minimal trading, whereas active management is hands-on, with higher fees and more frequent trading.
HOW DO YOUR PASSIVE AND ACTIVE RISK PARITY STRATEGIES DIFFER?
Our passive risk parity strategy follows the All Weather Portfolio with static asset allocations. The active risk parity strategy uses dynamic asset allocations, adjusting the portfolio's risk parity based on calculated risk levels of individual assets. The dynamic approach aims to maintain a balanced and consistent risk level, even as individual asset risks fluctuate.
WHAT DO I DO AFTER MY ACCOUNT IS APPROVED?
Once approved, no further action is required. Your portfolio will automatically reflect the correct allocations, and you can monitor its performance through the brokerage's online platform or contact us with any questions or concerns.
HOW CAN I MONITOR MY PORTFOLIO HOLDINGS?
You can monitor your portfolio holdings by logging in here or by clicking the 'Client Portal' button at the top right corner of this page. This will allow you to view your portfolio in real-time and see all of your current holdings, as well as any transactions that have been made on your behalf.
ARE THERE ANY WITHDRAWAL FEES?
Clients receive one free withdrawal per month. Additional withdrawals within the same month incur a $10 fee. This fee structure resets monthly, granting clients one free withdrawal at the start of each new month.
