Personally, I’ve worked with financial advisors in which I was completely hands off (too much so) as well as subscribed to a professional momentum investment strategy where I did all the trading and rebalancing based on their monthly recommendations.
After a while of working with my commission based financial advisor, I began to get the feeling the investment choices weren’t in my best interest. After a while of conducting my own trades and rebalancing, I got lazy and didn’t manage my portfolio well.
Both of these are common problems that a new service, offered by TradeKing, seeks to solve.
Introducing TradeKing Advisors
TradeKing Advisors is an online investment management service. It was built by TradeKing to provide a solution to two key challenges investors often encounter (similar to my history):
- Many people don’t have the time or skills to manage their own investment portfolio from picking the right investments based on their timeline and risk tolerance all the way to keeping their portfolio balanced.
- Some people work with financial advisors and we all know that can be a great avenue to follow. However, there is a cost to such professional services. TradeKing advisors offers a cost solution lower than working with a traditional advisor.
TradeKing Advisors has partnered with Ibbotson Associates, Inc to provide investment services. They are an SEC registered investment advisory and wholly owned subsidiary of Morningstar, Inc. According to the TradeKing Advisors website, they currently have over $101 billion in assets under management and advisement and over 35 years of experience.
The core services they provide are asset allocation and portfolio construction and monitoring. They also offer individual, joint taxable, traditional, Roth, rollover, SEP and simple IRA accounts so all the standard long-term investment options are covered.
How does the TradeKing Advisor service work?
They offer a simple 3 step process that is kicked off by answering 8 questions related to your risk and investment timeframe. TradeKing Advisors will then create a diversified investment portfolio based on your personal needs. Advisors monitor and tweak your portfolio and you have visibility through your online account. So, you don’t do any trading or rebalancing!
What types of investments are used?
The diversified portfolios are built using low cost ETFs or Exchange Traded Funds. ETFs are low cost funds bought and sold just like stocks. Based on your situation, different asset classes across industry sectors are used to create the diversification you need to achieve your investment objectives.
What are the investment strategies and the pricing being offered?
Using Exchange Traded Funds, TradeKing Advisors can create either a Core or Momentum portfolio. The strategies differ for these two options.
The Core portfolio meets most peoples’ needs and is lower in cost than the Momentum option. Overall, it is a more stable portfolio in that there are less frequent trades conducted. The Core charges .25% of your annual balance with a $5,000 minimum initial investment.
The Momentum option seeks investment classes currently outperforming others. Essentially there are more month to month changes in this portfolio as it is trying to improve upon the market, but is still managed by the Ibbotson Associates so you’re not having to do the trading. The Momentum charges .5% of your annual balance with a$25,000 minimum investment.
How do you get started?
I do recommend you learn more about TradeKing advisors by visiting their website as well as reviewing the FAQ page (scroll to the bottom). Browse around and become more informed of their investment strategies and team.
If this service is of interest to you, you’ll want to know about the special promotion that is currently being offered – There are no advisor fees for the first year. This provides an excellent opportunity to try out TradeKing Advisors and see how your investment, and their services, perform for you.
To get started, you simply answer the eight questions about your time horizon and risk tolerance. Your answers then help TradeKing Advisors create your custom diversified portfolio.