Frequently Asked Questions – Opening and Funding a Personal Portfolio

What Will Happen When I Transfer Securities Into A Personal Portfolio?

Any positions that you transfer into your Personal Portfolio will be sold if they are not currently held in the strategies included in the allocation you approved. Then those funds will be invested in securities held in the strategies that make up your Personal Portfolio. These sales may be taxable events, so please consult a tax advisor for any advice or questions you have about this.

This process is very quick, usually occurring as close to instantly as exists in the financial world. After they are sold, the cash is reallocated to match the percentage allocation of each individual stock position in the strategies you approved during the Personal Portfolio sign up process.

If there are positions you wish to keep because of capital gains exposure, or for tax, sentimental, or any other purposes, DO NOT transfer those positions into your Personal Portfolio.

If you transfer a holding that is already included in your Personal Portfolio, we won't sell and then re-purchase that security — your position will be re-sized to match the allocation dictated by the investing strategy you accepted. Again, this re-sizing may result in taxable events.

A quick example: If the Large Cap Aggressive Growth Strategy makes up a portion of your Personal Portfolio, and you own a different percentage of a particular stock that the Large Cap Aggressive Growth model includes (say, Starbucks), Motley Fool Wealth Management will resize your allocation to fit the model. So if you have 10% of your portfolio in Starbucks, but the Large Cap Aggressive Growth model only recommends 3%, we'll sell some of your shares to fit that percentage.

See what we would recommend for you