Why wouldn’t I just download any other financial app and make these investments myself for free?
You could, and if you’ve done your own research and due diligence on what investments you should be making, go for it! In addition to creating and managing the portfolio for you we also let you know when we are adding or removing investments to your portfolio based on changes in the market or our investment thesis, rebalance your portfolio for you when necessary all without you having to do anything besides make sure the funds are available for us to invest on your behalf.
Who is investing my money?
Investment advisory services are offered through Capitalwize, LLC. Your money will be custodied by our partners at Altruist.
What is the difference in the three subscription options?
Each tier is based on how many investment goals you have. For example if you want to invest for retirement, buying a house and starting a business, these are three different goals. These goals may have different time horizons, different risk associated with them and we want to be able to separate those into different accounts. You could however, have the same type of portfolio for multiple goals, they would just be in different accounts. This helps you keep things nice and organized.
- Tier I = 1 Account, 1 Investing Goal, Ex: Brokerage Account: Financial Independence ($9.99/month)
- Tier II = Up to 3 Accounts and 3 Investing Goals, Ex: Roth IRA, Retirement, Joint Account, New House Fund, Brokerage Account, New Business Fund ($19.99/month)
- Tier III = Unlimited Accounts for Unlimited Goals ($29.99/month)
How will my money be invested and how do I know that my money is managed properly?
Capitalwize, LLC has proven strategies that have been around for decades and use technology to make them more efficient. Our goals are aligned: to increase your long-term returns. Our investment philosophy is backed by decades of research. We have different portfolio options, and we can help choose which is right for you. For a deeper understanding, you can check out our fact sheet.
What type of portfolios are available?
Choose from our Core Capitalwize Pick’s – Hand-Crafted Portfolios built by Capitalwize Advisors. Simply Select the portfolio(s) and we pick all the investments for you. Here are the options:
- ESG – The Capitalwize EGS (Socially Responsible) Portfolio is a hand-crafted portfolio designed to align your investments with your beliefs, without sacrificing returns. We carefully select companies that we believe have demonstrated how they have worked to remain socially responsible and ethical in their business practices. financial independence and have a higher risk profile, we recommend this portfolio.
- Income – The Capitalwize Income Portfolio is a hand-crafted portfolio designed to purchase high-yielding dividend stocks designed to produce maximum income from your investment holdings. If you are nearing retirement or financial independence and are looking to start receiving income from your investment portfolio, we recommend this portfolio.
- Moderate Growth – The Capitalwize Moderate Growth Portfolio is a hand-crafted portfolio designed to capture more upside of high-growth companies while still effectively managing risk with a base of broad diversity. We aim to have returns that outpace the broader market, but with a slightly more moderate approach than our aggressive growth portfolio. If you are at least 5 years away from retirement or financial independence and have a more moderate risk profile, we recommend this portfolio.
- Aggressive Growth – The Capitalwize Aggressive Growth Portfolio is a hand-crafted portfolio designed to capture more upside of high-growth companies while still effectively managing risk with a base of broad diversity. We aim to have outsized returns in comparison to the broader market. If you are at least 5 years away from retirement or financial independence and have a higher risk profile, we recommend this portfolio.
What type of account(s) will my money be invested in?
This will be contingent upon your goal for the money and the time horizon associated with that goal. Whether it’s for a future major purchase, retirement or general wealth building, we have account options that will work best for your goals. Here are the options:
- Roth IRA – An individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59½ are tax-free. For 2021 the contribution limits. For more information view here.
- Traditional IRA – A traditional IRA (individual retirement account) allows individuals to direct pre-tax income toward investments that can grow tax-deferred. The IRS assesses no capital gains or dividend income taxes until the beneficiary makes a withdrawal. for details on contribution limits go here.
- Brokerage Account – A brokerage account is an investment account that allows you to buy and sell a variety of investments, such as stocks, bonds, mutual funds, and ETFs. Whether you’re setting aside money for the future or saving up for a big purchase, you can use your funds whenever and however you want.
- Joint (JTWROS) – You can own this account Jointly with a spouse or business partner.
- SEP IRA – A simplified employee pension (SEP) IRA is a retirement savings plan established by employers—including self-employed people—for the benefit of their employees and themselves. For contribution limits go here.
- Rollover IRA – Have an account from a previous employer or another institution? Simply establish to correct account type with us first (Roth or Traditional) then we will be able to help you initiate the transfer process.
What if I need to access the money I invested?
You will have full access to your account(s) 24/7. Should you decide you ever want to make additional deposits or withdrawals, you can do that directly from your mobile app or online. You may want to consult with your advisor or a tax professional to understand if any tax implications or withdrawal penalties apply based on the nature of your account type.
Can I move over accounts from a different place or a previous employer retirement plan?
Yes. If you have an account that you would like our firm to manage such as a 401(k) from a previous employer, we can help you roll that over into a new account with our firm.
Do you have options for people who want to invest in a socially responsible way?
Yes! We have an entire portfolio designed just for socially responsible investing (ESG).
How do I open up an account?
Opening up an account is simple, upon completing the form that will notify our team to initiate the account opening process for you. In just two easy steps your account will be open and ready to go.
Will my account be opened and my money invested after I complete the intake form?
No. Once you complete the form we get a notification of what you would like to invest in. Once we’ve had time to review your information, you will receive an invitation shortly to create and fund your investment account in Altruist.
What if a stock price inside of the portfolio is more than I can afford to invest?
That’s one of the core benefits of the platform, we have the ability to design model portfolios that include holdings that you can purchase on a fractional basis. Simply put, you do not have to purchase the entire share, you can purchase what you can afford.