INVESTMENT

Frequently Asked Questions: Custom portfolio for advisors


What is a custom portfolio for advisors?

Custom Portfolio for Advisors is an in-app stream that allows advisors to create model portfolios in real time with 10 risk levels from a wide suite of ETFs. Improved use of the Automated Features Advisor suite:

  • Automatic rearrangement
  • Tax-loss harvesting
  • Asset Location / Tax Inclusive Portfolio
  • Tax-friendly sales for withdrawals

More information about this program is available Here.

How do I create a custom portfolio for my firm?

Firm admins can choose by logging in to the Advisor Dashboard Portfolio> Create a Portfolio> Custom Portfolio.

Only strong admins are able to create custom model portfolios. Once the firm admin has created a custom portfolio, it will be available to all advisors to the firm.

How do I edit or delete an existing model portfolio?

Currently, there is no option to edit once a custom portfolio is created, but advisors can always create a new portfolio. Advisors can save any model as a draft so that it comes back later.

To delete a portfolio model, please first ensure that there is no client account assigned to the model. Then, contact our support team at supportbettermentforadvisors.com.

How do I update the portfolio model in my client account?

From the Advisory Dashboard, select Client> Preferred Client> Edit. It is located next to each account’s portfolio strategy and asset allocation / risk level.

How does a transfer to a custom model portfolio work?

Advisors can specify trading migration strategies to convert their clients portfolio or investment allocation into a custom portfolio.

More information is available Here.

Security selection:

What is a “security group”?

A security group (or asset class) is a building block of custom portfolios.

A protection group can consist of up to 3 ETFs: primary, secondary and secondary IRA tickers. Adding secondary tickers allows tax-loss harvesting (TLH +).

What are “secondary tickers” and what do they need?

Secondary tickers are used for tax-loss crops. When a primary ticker is sold for “crop” loss, the secondary ticker is bought in its place.

When TLH + is selected, the secondary taxable and IRA ticker ensures that the TLH + platform works effectively for clients with both taxable and IRA accounts. Providing low secondary and secondary IRA tickers can reduce the chances of reducing tax losses.

What is a “risk level” and how many can each portfolio have?

A risk level determines how each security group is assigned to your client’s portfolio. Advisors can use risk levels for different client needs, such as different time horizons, investment goals and risk tolerance.

The custom portfolio supports 10 different risk levels within one model. If you would like to include more than 10 risk levels, please contact our support team at supportbettermentforadvisors.com.

Advanced Auto Features:

How does Improving project future portfolio performance?

Details about the projection method of betterment are available Here.

What can I do if the ETF I want to use in my portfolio model is unavailable?

Supports over 1500 ETF selections for inclusion in a custom portfolio for advisors. If an ETF does not appear in the in-app search, it may not be supported.

If you would like to include an ETF in your custom portfolio that is not currently available, please contact our support team at supportbettermentforadvisors.com.

Can advisors include mutual funds or single stocks in a custom model portfolio?

The custom portfolio only supports ETFs at this time. Mutual funds, single stocks and other securities are not available.

What is Tax Loss Harvesting (TLH +)? How does this feature work with custom model portfolios?

Tax-loss harvesting is the practice of selling a security that has suffered a loss এবং and then buying similar assets instead. The switch does two things: it lets the investor realize, or allows the portfolio to “harvest” valuable losses while balancing the desired allocation.

Capital loss can reduce your clients’ tax bills by offsetting profits and reducing general taxable income by up to $ 3000 per year. Custom portfolio programs allow companies to use primary, secondary, and secondary IRA ETF tickers for TLH +.

More information about Betterment’s TLH + is available TLH info page And TLH White Paper.

How does a Tax Coordinated Portfolio (TCP) work?

The tax-inclusive portfolio is designed for investors who are saving for retirement. Multiple types of accounts, including taxable accounts, traditional themed IRA or Roth IRA, are usually on the horizon at the same time.

Once you’ve set it up, look across all accounts grouped under Betterment Retirement and automatically restructure any assets that are kept in any account.

Each of these three types of accounts is taxed separately: (1) taxable account, (2) traditional thematic IRAs or 401 (k) s, and (3) Roth IRAs or 401 (k) s. Through tax-adjustment, assets are sorted across all integrated accounts (unevenly) to maximize the overall portfolio’s after-tax performance. We do this in a way that keeps the overall allocation the same when raising post-tax returns.

How does Betterment maintain client portfolio balance? How does automatic rearrangement work?

More information on the automatic rearrangement feature of Betterment is available Here.

I have other questions – where can I learn?

If you have further questions, please contact our support team. You can reach our support team at 1-888-646-2581, Monday through Friday from 10am to 6pm (ET), or email supportbettermentforadvisors.com.



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