First, we compare the securities you transferred to the positions we would buy for you. Any positions in common will be “right-sized” to match the target allocation for your account.
Any remaining 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. Those funds will then be invested in securities held in the strategies that make up your Personal Portfolio. These sales are considered taxable events in non-retirement accounts, 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.
A quick hypothetical 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, Amazon)*, MFWM will resize your allocation to fit the model. So if you have 10% of your portfolio in Amazon, but the Large Cap Aggressive Growth model only recommends 3%, we'll sell some of your shares to fit that percentage.
*This message is not a recommendation to buy or sell any securities. The securities identified and described in this article do not necessarily represent the securities purchased or sold for our portfolios. You should not assume that an investment in these securities was or will be profitable, and there is no assurance, as of the date of this message, that the securities have been or will be in any model portfolio.
Let's see what we'd recommend for you
It all starts by filling out this form. It’s secure, and completely free. You’ll answer a few questions about your income level, time horizon, risk tolerance, and financial goals. Then we’ll provide a personalized asset allocation recommendation specifically for you.