What Is A Personal Portfolio? Three Major Benefits

We rather like Personal Portfolios, but you could say we are biased in that seeing as they’re our primary product, bread and butter, and pride and joy.

Personal Portfolios bring you (our client) and us (the stock pros) together as a team.

You own the positions and decide how much to allocate to each strategy. We recommend the allocation and our team of Motley Fool Wealth Management (“MFWM”) Portfolio Managers do the research and make the buys and sells for you.

A Personal Portfolio is a brokerage account that you own, but as your discretionary investment manager, we manage it for you. MFWM’s Personal Portfolios are primarily composed of actively managed, individual securities held in a brokerage account at an approved custodian (currently Interactive Brokers or Schwab). Depending on the strategy, client accounts may also hold exchanged traded funds (ETFs) and options.

Personal Portfolios offer three primary benefits over other investment account types:

• Transparency – your Personal Portfolio allows you to log in to your foolwealth.com client dashboard at any time and see each and every holding in your account and its value (value is based on prior close of business day).
• Customization – your allocation will be personalized, based on what you tell us about your specific financial situation. If you’d like to adjust the allocation to be more aggressive or more conservative than we suggest, you have the ability to modify the mix and/or weightings of strategies we’ll deploy in your account. You also have the ability to restrict specific securities, if you’re prohibited from holding or trading certain stocks.
• Ownership – our stock-based Personal Portfolios (save for Fixed Income) are primarily comprised of actual shares of stock, not a share of a mutual fund. This means you participate directly in the capital gains/losses of the stocks you own and are not held responsible for gains you may not have participated in. When we believe that it is most efficient and appropriate to obtain exposure to an asset class using an exchange traded fund (“ETF”), we seek to utilize low-cost ETFs.* Clients may elect an account comprised exclusively of ETFs, which we refer to in our Brochure as “Index-Based” Personal Portfolios.

Please note that whatever portion of your portfolio you dedicate to a Personal Portfolio will be managed only by the Motley Fool Wealth Management team -- you will not be able to make trades in this specific account.

*In addition to the management fee, certain Motley Fool Wealth Management strategies may utilize ETFs that are subject to fees and expenses that are passed along to clients. Depending on the strategy, these underlying fund fees and expenses may be significant. Index-based strategies that exclusively utilize ETFs will have higher fund-related fees and expenses. You will also be responsible for the trading and account level fees that are charged by our custodians. These fees are detailed in the Custodian FAQ page.