Take Advantage of Customization in Your Portfolio Strategy

Investors have several choices as they look to create a customized portfolio to help them pursue their investment goals.

https://tickertapecdn.tdameritrade.com/assets/images/pages/md/Personalized: Portfolio customization for investors
5 min read
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Key Takeaways

  • Consider a managed portfolio that fits your investment goals
  • With managed portfolios, choose an investment strategy that matches your risk tolerance and unique situation 
  • Factor in your financial goals and time horizon when choosing the portfolio that fits your needs

Each investor has a unique situation. Everyone has different financial goals, risk tolerance levels, and time horizons. So there’s really no one investing strategy that’s ideal for every investor. Instead, investing strategies vary widely.

A portfolio that stems from your unique situation can bring a number of benefits to investors by catering to their differences. One way to establish an environment best suited for your situation is through managed portfolios such as those offered by TD Ameritrade Investment Management, LLC (TDAIM).

In a managed portfolio, investment professionals use a number of different strategies to address their clients’ unique financial needs. After starting with a specific mix of investments, portfolio managers adjust portfolio holdings designed to take advantage of market opportunities or avoid market risk. Portfolios can be rebalanced as needed to help keep allocations on track as they monitor the markets.

The managed portfolios from TDAIM—Essential Portfolios, Selective Portfolios, and Personalized Portfolios—employ different investment strategies for a range of client needs. They also offer varying levels of service to fit your needs.

How to Find Your Investment Fit With Essential Portfolios

Although Essential Portfolios offer a more general investment strategy than other TDAIM managed portfolio products, these investments are matched to individual needs. In addition, these portfolios have a minimum investment requirement of $5,000 and an advisory fee of 0.3%, so they are the most accessible to a wide range of investors.

Investors have a number of model portfolio choices from Essential Portfolios based on their financial goals, whether it is saving for retirement or putting away money for a new home. Essential Portfolios hold diversified exchange-traded funds (ETFs), which are allocated for varying risk tolerances. Clients have access to Portfolios Specialists who can answer questions about selecting an Essential Portfolio based on the client’s financial goals and risk tolerance. 

Essential Portfolios also give investors a way to invest according to their values. Five “socially aware portfolios” focus on environmental, social, and governance (ESG) investment principles, so investors can support companies with practices that they prioritize. For example, they may want to invest in companies that pose less of an environmental risk than their peers, that keep strong relations with their employees, or that exercise moral corporate governance with transparency and diverse management.

If your Essential Portfolio gets off track, you receive personalized recommendations for how to get back on course. Suggestions may include raising your monthly contribution rate, delaying your target date, or lowering your target amount. These recommendations include specific amounts for your unique portfolio.

Selective Portfolios Offer a Mix of Technology and Human Touch

Selective Portfolios combine the human experience with the online experience to invest in a model portfolio matched to your goals, risk tolerance, and investment time horizon.

Investors can often find personalization through the digital experience, such as through Selective Portfolios’ online or mobile dashboard, which provides a window into your unique investments. Investors can access their accounts, track performance, and receive recommendations for staying on track with investment goals.

Investing through Selective Portfolios requires a minimum deposit of $25,000 plus advisory fees that vary depending on the portfolio and investment amount.

Develop a Tailored Investment Mix

Personalized Portfolios provide the greatest level of customization among all of the TDAIM managed portfolio products. 

Each Personalized Portfolio investor receives tailored, specific guidance to his or her specific situation guidance from a dedicated portfolio consultant who creates a customized portfolio to address that investor’s financial goals. With this level of personalized guidance, your portfolio can be adjusted as your investment goals change.

As with other managed portfolios, investors can track their progress through a digital dashboard, which can sync other accounts for a comprehensive financial picture.

Personalized Portfolios require a minimum deposit of $250,000. Advisory fees vary by the amount invested in the portfolio.

The Bottom Line 

Investment strategies aren’t one-size-fits-all, and managed portfolios may not be right for everyone. But managed portfolios may be worth considering if you don’t have the time to constantly monitor market changes, or you don’t have the financial experience or confidence to make decisions to help you pursue your investment goals. Or, you may want a managed portfolio for a portion of your assets, while you continue to manage a portion on your own.

Many investors find that a managed portfolio saves them significant time and provides important resources. And, with TDAIM managed portfolio products, investors can choose from varying levels of customization to help them more closely match their unique situations.

To determine which type of managed portfolio may be right for you, you can answer a few questions about your goals, risk tolerance, and time horizon. Your answers will be used to recommend a portfolio. Visit one of TD Ameritrade's more than 360 branches or schedule a complimentary consultation with one of our Financial Consultants.

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Key Takeaways

  • Consider a managed portfolio that fits your investment goals
  • With managed portfolios, choose an investment strategy that matches your risk tolerance and unique situation 
  • Factor in your financial goals and time horizon when choosing the portfolio that fits your needs
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Before investing carefully consider the underlying funds’ objectives, risks, charges, and expenses. For a prospectus containing this and other important information about each fund, contact us at 888-310-7921. Please read the prospectus carefully before investing.

All investments involve risk, including loss of principal. Past performance does not guarantee future results. There is no assurance that the investment process will consistently lead to successful investing. Asset allocation and diversification do not eliminate the risk of experiencing investment losses.

Mutual funds are subject to market, exchange rate, political, credit, interest rate and prepayment risks, which vary depending on the type of mutual fund.

ETFs can entail risks similar to direct stock ownership, including market, sector, or industry risks. Some ETFs may involve international risk, currency risk, commodity risk, and interest rate risk. Trading prices may not reflect the net asset value of the underlying securities.

For Essential Portfolios, TD Ameritrade Investment Management, LLC, will assess an annual advisory fee of 0.30% based on the value of assets in your TD Ameritrade Investing Account. The fee will be assessed at the beginning of each quarter in advance for that quarter and will be prorated for accounts opened and closed during that quarter. TD Ameritrade, Inc. will not charge commissions for eligible securities trades placed in your TD Ameritrade Investing Account. All fees are subject to change.

With the Selective Core Mutual Fund and Exchange-Traded Fund Portfolios, the first $125,000 in account value will have an annual advisory fee of 0.90%. The next $125,000 (or portion thereof) in account value will have an annual advisory fee of 0.80%. The next $250,000 (or portion thereof) in account values will have an annual advisory fee of 0.70%. The annual advisory fee for all additional assets in the account above $500,000 will be 0.55%. With the Selective Supplemental Income Portfolios, the first $100,000 in account value will have an annual advisory fee of 0.75%. The next $150,000 (or portion thereof) in account value will have an annual advisory fee of 0.60%. The next $250,000 (or portion thereof) will have an annual advisory fee of 0.45%. The annual advisory fee for all additional assets in the account above $500,000 will be 0.30%. With the Selective Managed Risk Portfolio, the first $125,000 in account value will have an annual advisory fee of 0.90%. The next $125,000 (or portion thereof) in account value will have an annual advisory fee of 0.80%. The next $250,000 (or portion thereof) in account values will have an annual advisory fee of 0.70%. The annual advisory fee for all additional assets in the account above $500,000 will be 0.55%. With the Selective Opportunistic Portfolios, the annual fee for the first $125,000 in account value will be 0.90%. The next $125,000 (or portion thereof) in account value will have an annual advisory fee of 0.80%. The next $250,000 (or portion thereof) in account values will have an annual advisory fee of 0.70%. The annual fee for all additional assets in the account above $500,000 will be 0.55%.

The construction of your Personalized Portfolio(s) is based solely on the information provided by you to TD Ameritrade Investment Management and is assembled in consideration of the suitability and risk tolerance presented specific to this account or these accounts. A Personalized Portfolio is not intended to provide a complete financial plan. Assets held at other financial institutions, while used in the assessment of your overall investment and risk profile, are a snapshot in time and are not monitored, reviewed, or in any way evaluated in the ongoing management of the advisory accounts by TD Ameritrade Investment Management. You are responsible to contact your Financial Consultant if you have changes to your assets not managed by TD Ameritrade Investment Management or if there is a change to your financial circumstances that would necessitate the need for an updated assessment of your Personalized Portfolio.

Advisory services are provided by TD Ameritrade Investment Management, LLC (“TD Ameritrade Investment Management”), a registered investment advisor. Brokerage services provided by TD Ameritrade, Inc. TD Ameritrade Investment Management provides discretionary advisory services for a fee. Risks applicable to any portfolio are those associated with its underlying securities. For more information, please see the Disclosure Brochure (Form ADV Part 2A) http://www.tdameritrade.com/forms/TDA4855.pdf




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