This is How We Fly
Complexity has always been a tool for the financial services industry to obscure its high fees. But we are not like them. We are determined to simplify, increase transparency, and offer the lowest fees, wherever and whenever possible.
We think about the risk and reward of your investments as if they were our own, which is easy for us. Our savings are invested in the same AlphaGlider strategies in which your savings are invested.
Our only source of revenue is our advisory fee. We don't receive revenue under the table from the funds and brokerage houses we use, nor do we pay or receive referral fees. We value transparency in everything we do.
Meet your custodian.
We will help you set up your investment accounts and to transfer your funds into them. AlphaGlider supports taxable, traditional IRA, Roth IRA, SEP-IRA, SIMPLE IRA, Individual 401(k), health savings account (HSA), trust, guardian, and limited partnership accounts at TD Ameritrade Institutional. If you maintain at least one of the aforementioned accounts, we can also manage 529 education savings plans that are custodied at the highly rated my529. We have a $100,000 household minimum.
It's your account at TD Ameritrade Institutional, held in your name, but we have the ability to trade this account, and to deduct our investment advisory fee from it.
TD Ameritrade, Inc. is a member of the Securities Investor Protection Corporation (SIPC). Securities in your account are protected up to $500,000. For details, please see www.sipc.org. TD Ameritrade also provides $149.5 million worth of protection for each client through supplemental coverage provided by London insurers. The $149.5 million of coverage includes a sub-limit of $900,000 on cash. Each client is limited to a combined return of $150 million from SIPC or London insurers. The TD Ameritrade supplemental insurance policy has an aggregate limit of $500 million for claims from all TD Ameritrade clients. This supplemental insurance provides coverage following brokerage insolvency and does not protect against loss in market value of the securities.
TD Ameritrade Institutional provides you with monthly statements, tax forms, and online access to your accounts.
For illustrative purposes only. TD Ameritrade, Inc. is the firm that we use to custody our clients' non-529 plan assets. TD Ameritrade and AlphaGlider are separate and unaffiliated firms, and are not responsible for each other’s services or policies. TD Ameritrade does not endorse or recommend any advisor and the use of the TD Ameritrade logo does not represent the endorsement or recommendation of any advisor. Brokerage services provided by TD Ameritrade Institutional, Division of TD Ameritrade, Inc., member FINRA/SIPC/NFA. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. Used with permission.
We choose our investments carefully, with our clients' best interests in mind.
AlphaGlider predominately uses exchange-traded funds (ETFs)1 to provide exposure to our desired mix of investments, due to their general advantage in costs, tax efficiency, and ease of trading. However, there are certain circumstances where we use low cost, no load mutual funds, such as when a particular fund is only available in mutual fund form, or in 529 Education Savings Plan accounts where we have access to extremely low cost institutional class mutual funds. Below are some of the criteria that we use in our fund selection process:
fund management fee (i.e. expense ratio)
tracking error to index
premium/discount to NAV
tax efficiency/portfolio turnover
Sit back while we do the heavy lifting.
When your funds arrive, we put them to work in your chosen strategy. If you have both taxable and tax-advantaged (e.g. IRA) accounts with us, we are careful to place securities with higher expected dividends and capital gains in your tax-advantaged accounts first — a process we call tax sensitive asset location.
The market is dynamic, and so are our strategies. We continuously monitor changes in asset class fundamentals and valuations, and adjust our investment strategies accordingly in an attempt to deliver you strong risk-adjusted returns. Since we have discretion to trade our account, we immediately adjust the positions in your portfolio when we change the composition of our strategies.
We continuously monitor your portfolio and rebalance2 it whenever its mix of assets strays too far from its target. Vanguard research (pg. 13) has shown that annual rebalancing can add up to 35bps (0.35%) of additional return each year to a 60% equity/40% bond portfolio versus the same portfolio that is allowed to drift (i.e. not rebalanced).
Always know what your investments are doing.
Find detailed and timely analytics and performance data for your portfolio on AlphaGlider's secure Portfolio Dashboard website and mobile apps (below). You can also follow your portfolio on TD Ameritrade Institutional's client portal and mobile apps (below).
We send you a detailed and personalized investment statement every quarter.