Take Advantage of Customization in Your Portfolio Strategy

Take Advantage of Customization in Your Portfolio Strategy

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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