SMA stands for Separately Managed Account. An SMA is a brokerage account that you own, but that an investment advisor (in this case Motley Fool Wealth Management) manages for you on a discretionary basis. An SMA is a private portfolio composed of actively managed, individual securities.
SMAs were created in the 1970s and offer three primary benefits over other investment account types:
Please note that whatever portion of your portfolio you dedicate to an SMA will be managed only by the Motley Fool Wealth Management team -- you will not be able to make trades in this specific account.
Motley Fool Wealth Management charges an industry-standard, assets under management (AUM) fee. 1/12th of your annual fee is debited from the account we manage for you on a monthly basis.
Our AUM fee follows the typical tiered structure common in the money management industry. We charge 0.95% on the first $1,000,000 under management, and 0.75% on amounts above that.
Fees for index-based portfolios are as follows:
|Asset Level||Standard AUM Fee for Index-Based Portfolios|
|First $100,000||0.50% of assets|
|Next $900,000||0.40% of assets|
|Next $4,000,000||0.35% of assets|
|Next $10,000,000||0.30% of assets|
|Amounts over $15,000,000||0.25% of assets|
In addition to the management fee, certain of MFWM strategies may utilize exchange traded funds (ETF) 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 custodial fees and commissions charged by Interactive Brokers for operating the account. The most common custodial fees are trading costs. There is a transaction fee assessed on each share traded, but a large part of why we chose Interactive Brokers as our partner and custodian is because they offer the least expensive trading fees.
It is tough for us to think about our costs in fractions of a penny. So, consider that if you were trading 100 shares of a stock that costs $100, or about $10,000 worth of stock, the commission might be about $0.35 for that trade.
For more information about current Interactive Brokers' fees, please see their website. The commission schedule as of 9/1/2016 is copied below for your reference. The monthly volume tiers will be measured by the collective volume of all the SMAs combined. This is one of the ways you can benefit from the scale of the Motley Fool Wealth Management's SMA program.
|Share Volume (per month)||Commission per share: US Stocks, ETFs, and Warrants||Maximum per Order|
0.5% of trade value
300,001 - 3,000,000
0.5% of trade value
3,000,001 - 20,000,000
0.5% of trade value
20,000,001 - 100,000,000
0.5% of trade value
0.5% of trade value
In addition to the management fee you will pay to Motley Fool Wealth Management, you will be responsible for the trading and account level fees that are charged by Interactive Brokers (IB). Typically, those account fees include:
You may also choose to participate in the Stock Yield Enhancement Program (SYEP) which allows Interactive Brokers to lend your shares to other IB clients on a short term basis to allow them to short. You would be paid a portion of the fee that IB charges to that other client to short. This program may offset some of the cost of maintaining an account if you choose to participate.
Please read the account opening disclosures from IB carefully for a complete description of their fee structure and how the SYEP program works.
Other Interactive Brokers fees may apply. Please familiarize yourself with them.
Each and every holding, as well as its allocation, will show up directly in your brokerage account, and you can review these holdings at any time. These are holdings that you personally own - Motley Fool Wealth Management is merely investing and managing those holdings on your behalf. Mutual funds, on the other hand, only make lists of their holdings (i.e., securities that you indirectly own) available periodically, and you can't view these individual securities in your account.
In addition, Foolish SMAs allow you to exclude specific stocks from your portfolio, in case there are certain equities you are not allowed to own for compliance purposes, or simply do not wish to own. For instance, say you aren't allowed to invest in Coca-Cola because you work at Pepsi. You can restrict Coke and know that Motley Fool Wealth Management will not buy or sell any Coca-Cola stock in your account.
Not to mention that mutual funds frequently come loaded with obscure, often unnecessary trading fees layered in throughout your portfolio. With Foolish SMAs, you'll also have complete transparency into all of your account's trades and trading fees (estimated at roughly 1/3 of a cent per share and a minimum of $0.35 per trade).
Finally, mutual fund holders are responsible for taxes based on the total activity within the fund, regardless of their own personal account activity. That means that investing in a mutual fund can result in unexpected tax consequences, such as recognizing income from capital gains that are distributed across the entire investor base. But with Foolish SMAs, you're solely taxed on your personal holdings and your corresponding account activity.
If you reside in the U.S. (regardless of citizenship) and can provide Motley Fool Wealth Management with a Social Security number, or Individual Taxpayer Identification Number (ITIN), and a U.S. address (a P.O. Box does not count as valid), you can take advantage of Motley Fool Wealth Management's services, including SMAs and financial planning.
If you are a U.S. citizen currently residing abroad, you must still have a valid U.S. address in order to use Motley Fool Wealth Management's services.
Unfortunately, foreign citizens residing abroad do not have access to the services provided by Motley Fool Wealth Management.
The absolute minimum amount you’d need to invest with Motley Fool Wealth Management is $25,000. However, as the amount to invest increases, the portfolio that Motley Fool Wealth Management recommends for you might change. Our recommendation will always be based on your time horizon, and risk tolerance - but at larger dollar amounts, more robust portfolios may be available.
Motley Fool Wealth Management can manage as many accounts for one individual as they would like us to manage. If multiple individuals in the same household would like us to manage their accounts, they will need to create separate profiles with us, but they may be eligible to have those accounts combined for the purposes of billing.
Motley Fool Wealth Management understands that many family members look at their accounts as working towards the same goals, and potentially having the same risk tolerance.
However, at this time, we only support one person per profile. As a result, every account you open under a profile should be specific to one person, unless it is a joint account, in which case it may be opened under either owner's profile.
After completing both the Motley Fool Wealth Management and the Interactive Brokers portions of the application for all of your accounts, you can then go to https://foolwealth.com/register/, and create a new profile for each subsequent family member. When you are finished, please contact us at [email protected] to make sure your accounts get the benefits of household billing.
Household billing allows you and members of your immediate family (as defined in our Investing Advisory Agreement) to benefit from the total relationship that you have with Motley Fool Wealth Management. Rather than assessing our pricing structure on each individual account, we will view the relationship as a whole, and provide the most favorable pricing tier according to each account that is part of the billing group.
Once your account is under our management, Motley Fool Wealth Management, in discretionary capacity, would be managing your money for you. That means Fool Wealth would make all the trades - you cannot transact in the account, nor can you tell us what securities to buy and sell. You will still be able to add funds, withdraw funds, restrict a few specific stocks, and disconnect your account from Motley Fool Wealth Management's authority.
Put simply, Motley Fool Wealth Management would have sole investment discretion over the course of our advisory relationship. So please note that we do not take investment instructions from our clients (aside from placing or removing trading restrictions on specific securities at your request).
Interactive Brokers will be the custodian of your account, which means that they are responsible for the safekeeping of your assets - Motley Fool Wealth Management only directs the trading activity within your account, and doesn't hold your assets directly.
Foolish SMAs are set up exclusively through Interactive Brokers. After meeting extensively with multiple other brokerages, Motley Fool Wealth Management partnered with Interactive Brokers as the custodian and broker for our SMAs based on a combination of their low-cost trading fees and their ability to quickly and efficiently execute trades.
No - FDIC insurance applies specifically to banks and bank deposits. Your SMA is an investment brokerage account that will be subject to market fluctuations.
Customer securities accounts at Interactive Brokers LLC are protected by the Securities Investor Protection Corporation ("SIPC"), which protects consumers against the failure of a broker dealer.
For more information about SIPC and answers to frequently asked questions (such as how SIPC works, what is protected, how to file a claim, etc.), please refer to the following websites:
Foolish SMAs can only be held at Interactive Brokers. You will need to transfer your account to IB before we can start managing it for you. However, in most cases, you can simply transfer your current securities into the Fool Wealth managed account without liquidating them first. If you have questions about which securities can and can’t be transferred, give us a call at 844-408-4391 and our team of experts can guide you through the process.
Once you have approved an allocation for your SMA, you will be directed to open a new account with our custodian brokerage, Interactive Brokers. It is important that you do this through our portal, not simply by visiting Interactive Brokers as a regular retail customer. In most cases, assets within a brokerage account can be transferred very simply using what is called the Automated Customer Account Transfer System (ACATS).
This is just a fancy way of letting Interactive Brokers know that you have an existing account at another institution. IB will then facilitate moving the assets from your former broker to your new SMA. Once your account is fully funded, the Motley Fool Wealth Management team will then do all of the trading and balancing required to deploy our recommendations across your account.
Depending upon where your current account is held, the Automated Customer Account Transfer System (ACATS) allows you to transfer assets from eligible brokerage accounts without liquidating your current positions. For non-ACATS-eligible accounts, you may need to sell your current investments and simply transfer cash. Most common brokers are available on the ACATS system (Fidelity, TD Ameritrade, E-Trade, Charles Schwab, Morgan Stanley, Merrill Lynch and more). However, companies like Vanguard and Capital One are typically not ACATS eligible and will need to be transferred using a different method. If you are unsure whether your current broker is eligible for ACATS transfers, the team at Interactive Brokers can help during the account opening process to determine the best transfer method.
In rare cases, even if your account is ACATS eligible, your current holdings won't be able to be transferred, and would need to be sold so you can transfer cash. As part of the ACATs process, you can perform a position eligibility check to verify whether a position will be accepted, or if it will need to be liquidated to cash first. For instructions on performing that check, please click here.
Alternatively, your SMA can be funded with cash directly from a bank account using an ACH transfer or wire transfer.
Keep in mind that if you are moving a taxable brokerage account there will be tax implications associated with moving your portfolio to Fool Wealth. We recommend consulting with your tax advisor or CPA prior to moving the account if you are concerned about tax implications.
Interactive Brokers does require a residential U.S. address in order to start your application and open an account. You will be able to designate separate residential and mailing addresses on your Interactive Brokers account, but you cannot use your P.O. Box as your residential address.
To start the application process, you'll need to sign up and log in to the Motley Fool Wealth Management site.
We'll ask you to answer a few questions about your financial goals and needs, after which we'll build a custom blended portfolio allocation that is specifically tailored to your risk tolerance and investing objectives. Or, if you'd like, you may also choose from one of our four signature portfolio models (Supernova, Pro, Million Dollar Portfolio, Everlasting) on an a la carte basis. After you accept an allocation, you'll need to open and fund your account using the Interactive Brokers application process. Don't worry - we'll walk you through the whole thing!
Once you open and fund your account, Motley Fool Wealth Management will actively trade securities on your behalf based on the strategy you accept. And remember, you can log in to your Interactive Brokers account at any time to see your holdings, transactions, and returns.
Before opening a Motley Fool Wealth Management SMA, we'll ask you a series of questions to judge your wealth-building goals, investment interests, and unique situation in life.
Based on the answers in the questionnaire, we’ll present a diverse, risk-adjusted portfolio made up of Motley Fool Wealth Management’s strategic models (Supernova, Pro, Million Dollar Portfolio, Everlasting, International, U.S. Small and Mid-Cap, Dividend, Small and Mid-Cap Dividend and Fixed Income) — personalized to you. We know that the nuances of your financial situation cannot be captured in a questionnaire. That’s why we allow you to adjust our proposed portfolio by making it more or less risky, or opt to invest in certain strategies on their own. Every client is encouraged to utilize the option to speak with a member of our financial planning team, in order to discuss circumstances that are outside the scope of our questionnaire, but nonetheless relevant to your portfolio selection.
Once you decide to open and fund that account, the Motley Fool Wealth Management team will manage every aspect of it (e.g. buying, selling, rebalancing, etc.) on your behalf.
What's so special here is that you're harnessing the investing power of professional portfolio managers (all of whom came up through the ranks of The Motley Fool, LLC) to fuel your personalized portfolio, and you don't even have to lift a finger.
You can see a more detailed explanation of our various model portfolios that could make up your Foolish SMA.
You will open your Interactive Brokers account after you create your profile and accept your allocation at foolwealth.com. You will be directed to instructions as part of the account creation process, but you can view a complete video walk-through of the Interactive Brokers online application at any time.
Immediately after joining us as a client here in Motley Fool Wealth Management, you'll be given the opportunity to schedule a complimentary one-on-one onboarding phone session with one of our highly experienced financial planners. Our team will work together with you to get your SMA up and running with a minimum amount of time and effort required on your part.
While it should take less than ten minutes to fill out your Motley Fool Wealth Management profile information, view our recommended portfolio allocation, and accept your strategy, we find that most people need about 45 minutes, per account, to complete Interactive Brokers' account application and set-up process.
Once your account is open, there may be additional time required to initiate transfers from your existing financial institutions in order to fund your account. Timing for transfers varies by the initiating institution, type of account, and the types of holdings within the account.
But, rest assured, our planners are available throughout the entire process to serve as your personal "SMA concierge." We will walk you through the entire setup, step-by-step, and are always happy to answer any questions you might have.
Both individual and joint taxable brokerage accounts, Traditional IRAs, Roth IRAs, SEP IRAs, LLCs, LPs, UGMAs, UTMAs and irrevocable and revocable trusts are currently supported by Motley Fool Wealth Management in our SMA program. However, if you plan on opening an LLC, LP, UGMA, UTMA or irrevocable trust, please contact us at 844-408-4391 so we can assist you with the intricacies of setting up these accounts.
Foolish SMAs cannot support 401(k)'s, 403(b)'s, 529s, or profit sharing plans at this time. However, 401(k)'s or 403(b)'s from former employers typically allow you to roll those funds into a Traditional IRA without tax consequences, which we can then of course manage for you. We recommend that you consult with your tax advisor prior to attempting to roll these over.
Please note, if you open an IRA Separately Managed Account, you will not be able to incorporate the Pro model strategy in that account, since Pro requires the ability to use shorting and options trades, which is not available in IRAs.
In some cases, it might be possible to transfer an account that isn’t supported to an account type that is supported by our platform.
For example, investments that have been held in a SIMPLE IRA (not supported) for more than two years can be transferred to a Traditional IRA (supported) without tax consequences.
Additionally, 401(k)'s or 403(b)'s from former employers typically allow you to roll those funds into a Traditional IRA without tax consequences. However, we recommend that you consult with your tax advisor prior to doing so.
If you need to consolidate accounts, it is best to contact the financial institutions where your accounts are currently held and have their representatives help you consolidate accounts into an SMA-supported account type, to be moved over to Interactive Brokers after consolidation. Once consolidated into an account type that Motley Fool Wealth Management supports, you can then initiate the transfer process.
Any positions that you transfer into your SMA will be sold if they are not currently included in the personalized portfolio allocation you approved. Then those funds will be invested in securities that fit the model portfolios that make up the SMA. 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 model(s) you elected to follow during the SMA sign up process.
If there are positions you wish to keep because of capital gains exposure, or for tax, sentimental, or any other purpose, DO NOT transfer those positions into your SMA.
If you transfer a holding that is already included in your portfolio model, 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 accept. Again, this re-sizing may result in taxable events.
A quick example: If the Supernova investing model makes up a portion of your personalized SMA allocation, and you own a different percentage of a particular stock that the Supernova 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 Supernova model only recommends 3%, we'll sell some of your shares to fit that percentage.
Yes, you are allowed to restrict trading in specific securities that you do not wish to own or trade.
Please be aware that if you block a security that is included in the strategy recommended to you, this can affect Motley Fool Wealth Management's ability to achieve your desired investing outcome. If a significant portion of your account is restricted, we may cease managing it until you remove the restrictions on those securities.
If you transfer stocks into your SMA that are not included in your allocation, those stocks will be sold, and you will owe any capital gains taxes that are generated from those sales, unless your SMA is held in a tax-deferred account (such as an IRA).
SMAs are brokerage accounts in which stocks are bought and sold, and, as in other brokerage accounts, you will owe taxes on the gains realized in your SMA.
Motley Fool Wealth Management believes in investing for the long term, and our goal is to hold each of our positions for an average of five years or more. Our management team aims for portfolio "turnover" of approximately 20% annually, but this is just an estimate and can vary.
Stock-focused mutual funds, on the other hand, generally turnover an average of 60% of their holdings annually. On top of the reduced returns that frequent trading causes due to increased commissions and spreads, mutual funds that have large turnover ratios end up distributing yearly capital gains to their shareholders. Shareholders then have to pay taxes, and paying these taxes significantly reduces returns.
With an SMA, you personally own each and every holding - and they'll show up directly in your Interactive Brokers account. You only pay taxes on your own holdings, as opposed to having to pay taxes when a mutual fund's capital gains are distributed among all of its investors.
If you are further concerned about the tax implications that are specific to your personal situation, we recommend consulting with a tax advisor.
There are several components of “tax efficiency,” so let’s address them one by one.
Tax loss harvesting: Tax loss harvesting typically consists of selling investment positions that have a loss, usually at the end of the year, in order to offset investment gains that have been realized throughout the year. The tax code restricts the time that someone can sell a position at a loss, and buy it back again. In many cases, this would leave a portion of your account uninvested for a period of time since MFWM portfolios consist of individual stocks that cannot be easily interchanged. For this and other reasons, MFWM does not implement tax loss harvesting on your behalf.
Municipal bond income: Municipal bond income can reduce your tax liability since federal income tax excludes municipal bond interest from your income. Municipal bond interest also receives this treatment in certain states. Because of this tax treatment, the yield on municipal investments is generally lower than the yield on other fixed income investments. The benefit of municipal bonds is highly dependent upon your other income and tax rates. While it is difficult to know whether municipal bonds would benefit your specific situation, we generally find that the lower yield of municipal investments does not make up for the potential tax benefits. MFWM’s fixed income strategy does not include municipal bonds.
Tax location strategy: Tax location simply refers to the placement of different asset types in different accounts based on tax treatment. If we find a way to automate this as part of the SMA program, you will be the first to know. Currently, we offer tax location as part of our personalized financial planning services, which you may purchase by calling a planner at 844-408-4391.
|Type||Transfer Time||Withdrawal Hold||Extra Notes|
Immediate to 4 Business days
3 Business days
4 to 5 Business Days
4 Business days
If funds are withdrawn to a bank other than the originating bank via ACH, a 40-business-day withdrawal hold period will be applied. Customers who do not have a security device from IB are limited to a single ACH deposit of $20,000 or less.
Depends on mail, then 7 business days
Funds can be withdrawn as soon as the funds are credited with the exception of Bank Checks which may be withdrawn three business days after arrival.
4 to 8 business days
10 business days
No options transfers during expiration week. Long and Short (Short Against the Box) of same position will be netted upon receipt through an ACAT.
First in First Out is the method used to transfer during ACAT, therefore you cannot transfer via specific lot identification of securities.
Yes. As part of the ACAT funding process, you will be able to choose full or partial transfer of your positions or funds. Please contact Interactive Brokers directly at 866-694-2757, and select option 2 if you have questions specific about transfer of positions or funds.
Interactive Brokers currently pays interest on cash balances in excess of $10,000.
The Secure Login Device provides an extra layer of security to your Interactive Brokers account through the use of a free physical security device, a credit card-size device that provides randomly generated security codes used for two-factor authentication. Although it requires an extra step when logging into your account, entering the security code along with your username and password goes a long way toward protecting your account. When you open your account, you will receive a temporary, printable page of codes for this purpose. After your account has been approved, Interactive Brokers will mail you the permanent device.
Motley Fool Wealth Management will make every effort to begin trading your account as soon as possible. However, unless we are instructed otherwise, we generally refrain from trading securities in your account until you transfer or deposit into your account the full amount that you initially indicated you would contribute to your SMA when you filled out your profile. If you transfer in substantially more than the anticipated balance, there may be a hold placed on your account to confirm you meant to transfer those funds in, or there may be additional strategies available at a higher funding level. Usually, your account will be trading within three business days of being fully funded.
Motley Fool Wealth Management has enlisted a team of top-notch, experienced, and Foolishly trained investors - most of whom you've likely grown to know if you're a long-time Motley Fool member.
They'll be using their decades of combined investing expertise to manage the various model portfolios that will make up your customized Foolish Separately Managed Account. These are Fools you already know and trust, researching stocks and making trading decisions on your behalf for each of the model portfolios that will make up your Foolish Separately Managed Accounts.
Each Strategy has set Portfolio Managers who determine what stocks/positions are included in that strategy as well as the weightings of those positions. These are their HIGHEST conviction ideas in their given strategy, and they are listening to company conference calls, reading quarterly reports and staying on top of new developments within the business's day in and day out. When the rationale for buying a company no longer exists, the portfolio manager has full discretion to sell that position and look for an alternative (if they do not already have one in mind from their “watch list”) that presents a better opportunity to appreciate in value.
So, while the process is entirely online, the brainpower behind the process is 100% human.
Motley Fool Wealth Management will diversify your blended portfolio to align with your risk tolerance, and rebalance when needed to reflect changes in your personal situation. However, we still recommend that any money that will be needed in the next three to five years be positioned in cash, CDs, or alternative safe and liquid investments, and should not be transferred into your SMA.
Each of our strategies includes 20-30 positions. Depending on the allocation strategy you choose, you may see a larger number of positions in your portfolio than you would expect. That's because each of our strategies is designed and run as an individual "sleeve" of a portfolio. As a result, each strategy (e.g., Dividend, Small/Mid-Cap, Fixed Income, etc.) is managed as its own unique component. Our portfolio managers aim to diversify the holdings in each separate strategy as completely as their investment approach will allow. When one or more of these sleeves are combined in a blended SMA, the number of overall holdings will, of necessity, increase to allow more complete global market exposure.
The idea that an investor can capture all the benefits of diversification with just a small handful of stocks is a common one and has had numerous proponents over the years (e.g., Ben Graham in The Intelligent Investor; Burton Malkiel in A Random Walk Down Wall Street, etc.). However, most academic studies have focused on volatility, or how far the portfolio's actual returns vary from the average return as a measure of risk. The greater the portfolio volatility, the higher the risk.
However, Motley Fool Wealth Management believes volitility is an incomplete measure of portfolio risk, since it is possible to have a portfolio with a low volatility that still produces sub-par returns or fails to meet your investment goals. Newer studies ("Equity Portfolio Diversification: How Many Stocks are Enough? Evidence from Five Developed Markets," by Alexeev and Tapon, November 2014) indicate that the ideal number of stocks needed to reduce the vast majority of diversifiable risk is upwards of 50, and perhaps even higher during times of market distress. There is still healthy debate surrounding this subject, but evidence from more recent market environments seems to point toward a larger number of holdings as optimal for diversification purposes.
So while we can create a fairly well-diversified stand-alone SMA for you (e.g., Dividend, Everlasting, MDP, Supernova, or Pro), to reap the full benefits of a complete portfolio that includes exposure to all of the major asset classes (large-cap, small/mid-cap, international, fixed income), we recommend incorporating a blended SMA into your financial plan. However, if you prefer to make the asset allocation decision on your own, one of our signature large-cap strategies can be an important part of your overall asset mix.
Yes, Motley Fool Wealth Management will sell a portion of each position in your account to generate the amount of cash you request. If you need to request a withdrawal, please call our team at 877-629-8542, and we’d be happy to help you arrange that.
You will need to log in to your account at Interactive Brokers and may make additions to your accounts following these instructions. Please note that if you request a withdrawal in excess of the current cash balance available in your account, we will make the trades necessary to raise the cash, but must allow time for settlement before distributing the funds. For certain account types, that may take up to three days. If you have questions about a specific withdrawal request, please contact our team at 877-629-8542.
You can make withdrawals from your account following these instructions.
Motley Fool Wealth Management does a check on all SMA accounts for excess cash contributions regularly. If your cash lands in between these review times, your cash may sit idle for a short time – usually no longer than two weeks. However, each of our strategies does contain a cash allocation that the portfolio manager chooses, and they can utilize that cash when an attractive opportunity presents itself.
One of the many benefits of having a Foolish Separately Managed Account with Motley Fool Wealth Management is that there is no charge from Interactive Brokers (our brokerage partner) to add or remove money from your account (although, if positions need to be bought or sold, typical trading fees would be applied). You should of course check with your originating bank or brokerage to see if they charge any transfer fees.
This is a program offered by Motley Fool Wealth Management's custodian Interactive Brokers.
This shows up on your statement as Securities Lent or Securities Lending Program.
On your behalf, Interactive Brokers lends out securities you own to other investors looking to short them. The investor doing the shorting pays interest for the securities he or she borrows. Our arrangement with Interactive Brokers means you receive 65% of the proceeds of those interest payments and Interactive Brokers receives the remaining 35%. For context, nearly every other broker keeps 100% of these proceeds themselves. The interest rates you receive for each security lent are dictated by supply and demand in the market, and thus vary for each security and each day.
Because it can add to the returns of your SMA, Motley Fool Wealth Management makes the Stock Yield Enhancement Program available to all clients.
You have to "Opt In" to this feature during the application process.
Those that do are agreeing to lend out their securities to short sellers in the market to collect a small amount of extra income.
There are pros and cons to this strategy, so please familiarize yourself with the program intricacies. If you'd like to talk to a member of our team about whether it is right for you, don't hesitate to call us at 877-629-8542.
Motley Fool Wealth Management can make no guarantees that we will not trade in your account after funding occurs. If you would like to stop trading at any time, please call our team at 877-629-8542 or submit an email request to [email protected], including your Interactive Brokers account number, and ask us not to trade in your account until further notice.
If you decide this program isn't right for you and you no longer want Motley Fool Wealth Management to manage your money for you, simply contact the Wealth Management team any time at 877-629-8542 or [email protected].
Ending our management of your account is called detachment, and currently Interactive Brokers processes these requests once per week, on Fridays. Please note that it may take up to 10 days for your account to be disassociated from Motley Fool Wealth Management, and during this interval, Motley Fool Wealth Management may make trades in your account. Once your account has been detached, you will be given access to trade in that account.
Detachment does not affect the holdings in your account - the allocations will stay the same as they were, and all of your current positions will remain in your brokerage account at Interactive Brokers. We will simply disconnect our stewardship of the account.
There are no exit fees whatsoever - Motley Fool Wealth Management would simply stop trading on your behalf, and you would take full control of your brokerage account. If you paid a flat-fee for Motley Fool Wealth Management's services, or have access to Motley Fool Wealth Management through your Motley Fool One subscription, and you cancel that subscription prior to the expiration of your membership for any reason, your accounts will be detached, and you will receive a pro rata refund of your membership fee.
After logging in to your account directly at Interactive Brokers website, follow the below steps.
These steps will allow you to download statements in a variety of formats, including Quicken%27s QFX format. Interactive Brokers does not support real time syncing, but you can import these QFX files into your Quicken tool.