Frequently Asked Questions
Investment strategy
Using the MarketRiders E.Adviser
Managing My Portfolio
MarketRiders Coaching Service
Trusting MarketRiders, Inc. |
Investment strategyWhat is an ETF?ETF stands for Exchange Traded Funds -- these are funds that trade on the stock exchange just like any stock. And you follow the same procedure at your online broker to buy an ETF as you would any stock like IBM or GE. It should cost you between $4 and $10 per trade.ETFs are not a secret, but investment professionals often don't make fees from them, so they often go ignored. Each ETF is a "basket" of stocks that represent a particular index. For example if you wanted to own every stock in the S&P 500 Index, you would by one of several ETFs that follows that index - an example being "SPY" or Spiders. By owning one share of SPY, you gain diversification across 500 stocks. With ETFs you can invest in practically any market you want. Some of the most popular indexes are the S&P 500 (tracks the largest U.S. public companies), the Russell 2000 (tracks some of the smallest U.S. public companies) and the Morgan Stanley Europe Asia Far East (EAFE) index composed of companies in developed foreign countries. ETFs also allow you to invest in real estate, bonds, commodities, sectors and other markets. There are currently over 800 ETFs now available and growing. Mutual funds are 6 -10 times more expensive than ETFs because they hire pros who try to select a few stocks within the index that will "beat" it. But when you invest in an index fund, you basically get the exact returns of the index. Since computers (not humans) manage the stocks in an ETF, the fees are very low. MarketRiders portfolios employ the best ETFs based upon low fees, high trade volume and low turnover (which reduce taxes). How do you determine the right asset allocation for me?Based upon your profile, E.Adviser does what a great investment adviser does, but without the 1% yearly fee on all your money. We automatically calculate the right allocations in stocks, bonds, real estate and other asset classes, for you based upon your age, time horizon, risk tolerance and investment experience.How do you select one ETF over another?The recommended ETFs for MarketRiders portfolios have very low expense ratios and turnover. The average expense ratio is 0.17 percent per year. They are also chosen based upon how well they index a particular asset class. For example, for various reasons, we use an ETF that reflects the S&P 600 Small Cap index over the Russell 2000 for indexing small US companies.How often do I need to rebalance?It depends upon you. Rebalancing is a function of how sensitive you set your alert function and how volatile the market is. We set our defaults so that in a "normal" market, you'll be alerted around once per quarter. But E-Adviser triggers Alerts depending upon the % an ETF, asset class, or a whole portfolio is out of balance. Want to be kept apprised about the slightest movement in your portfolio? Then increase the frequency of these alerts and move the slider to send an alert with a ETF gets out of balance. Want to just focus on the big picture? Then set the slider towards to send you an alert when the whole portfolio gets out of balance.Using the MarketRiders E.AdviserI am having problems signing up for your 30 day trial. What am I doing wrong?To complete the registration process for the 30 day trial you have to:1. Select a subscription plan 2. Complete the credit card information 3. Mark that you have read the Investor's Services Agreement How do I build a MarketRiders ETF portfolio?E.Adviser has 2 "modes" to build an ETF portfolio. With the first mode, E.Adviser builds a portfolio for you after you answer some questions. Based upon your answers, our algorithms automatically fit a portfolio to your needs. Alternatively, you can use the "powertool" features to build a custom ETF portfolio using nearly every available ETF (over 800) divided into 10 asset classes.Is E. Adviser a market timing system?The MarketRiders' system is not a market timing system rather embodies a buy and hold strategy that enables one to hold to their asset allocation over time. The recommended allocations are a direct result of how the questions are answered, not a function of how the market is currently performing. Our system does not attempt to time the market yet recommends rebalancing to keep to your target asset allocation.Who holds my money if I use MarketRiders?For our Subscription and Coaching services, use any online discount broker that you wish. As long as you input your trades into our system, we'll track the portfolio for you and send you alerts if you need to make a change. For our Registered Investment Adviser service, we'll have you transfer your funds into an account with our partner Charles Schwab & Company.What if don't know about investing?In 1990, millions of people thought they needed a CPA to do their taxes. Today, they use Turbotax. Today, most investors think they need help investing, but our E.Adviser is like Turbotax for investors. It replaces the need for expensive help.If you take control of the process yourself, over time, the stress goes away, you're in control, and you find it doesn't require any genius or training. In 10 minutes and 3 steps, our E.Adviser will show you how to replace your stocks, mutual funds and your financial adviser. How often do I receive statements and reports?We email a monthly statement for each portfolio and send rebalancing alerts whenever an alert is triggered. If you do not rebalance your portfolio, you will continue getting that alert every 30 days. E.Adviser has a sophisticated report function where you can look at your portfolio's performance in a variety of ways.I already own a ETF portfolio. Can I manage it with MarketRiders?Yes, you can easily enter, track and rebalance your existing ETF portfolio with E.Adviser. Once you enter your portfolio we'll show you the implicit asset allocation with your current portfolio. If you adjust your allocations, we'll send you the trades you need to make.I have taxable and non-taxable accounts. Can I manage it all with MarketRiders?Yes, you can either build one over arching portfolio and fund it from both taxable and non-taxable accounts or you can build mirror portfolios for each account- IRA and non-IRA. Oftentimes clients will build one portfolio, allocate it proportionally to each account and then rebalance from within the larger non-taxable account. If you need guidance on this, we offer a coaching service that can work with you to evaluate your situation and build you a custom portfolio.Can I use MarketRiders E. Adviser with a company 401K plan?You can use our system as long as your company plan allows you to build a portfolio of ETFs. I would check with your company to understand your plan's limitations.What is the minimum size portfolio needed to get started?We want you to understand investment fees and learn how to keep them low. We recommend that you have a portfolio of at least $25,000 to make is worthwhile using our service. If you add the cost of our subscription service, quarterly rebalancing and ETF fund fees, you'll need $50,000 to keep your total expenses below 1.5%. If you have an amount less than this, consider buying a Target Date Fund from Vanguard.I'm busy. How much time does MarketRiders take?That's the beauty of MarketRiders - it takes as little as one hour to get your portfolio built and purchased at your online broker and another one or two hours a year to keep it rebalanced. If you are really interested in trading your portfolio actively, MarketRiders E.Advisor can accommodate the needs of professionals with its advanced features.What will my total investment fees be?ETF funds have operating costs that are expressed as an expense ratio in each fund's prospectus. A typical MarketRiders portfolio, built with low cost ETFs, averages fund fees of .17% versus on average 1.5% for a mutual fund. The monthly subscription to E.Adviser is $9.95. Add trading costs to rebalance your 6-12 ETF portfolio 4 times per year at $10 per trade.
When do you update the prices of my ETFs?They are updated daily at 9PM EST. Since we are not a trading platform, and we don't encourage active trading, we find a daily update more than sufficient to track a portfolio as well as monitor it for rebalancing. To see real time pricing of your portfolio, go to your online brokerage account.Managing My PortfolioMy portfolio does not reflect what I actually bought. How do I adjust this?You can either build a new portfolio with the price paid and the shares bought of each ETF or you can 'Make Manual Entries' within your existing portfolio. You will need to sell what it has you owning and then buy what you actually own.How does your system account for dividends?The returns from dividends are reflected in the total returns on your investment. Only when you re-invest those dividends in ETFs, in line with your asset allocation targets, will they be reflected in your portfolio.Can I use automated dividend reinvestment with MarketRiders?We don't recommend automated dividend reinvestment, rather it is best to have your dividends be in cash so you can rebalance your portfolio as needed to meet your target asset allocation.MarketRiders Coaching ServiceHow do I know if I need the coaching service?It's a personal decision. If you feel that you don't fully understand how to use E.Adviser, or just want a little help learning any aspect of The System, it might make sense. With a few hours of help, you'll see that investing is easy using MarketRiders.What if I need more coaching than the initial $395 package?That can be arranged with your coach as you get started with the service.What are the credentials of your coaches?First, all coaches have passed the Series 65 test that is legally required by the SEC to be an Investment Adviser. Second, we have trained all coaches in the MarketRiders System as well as in how to use E.Adviser. Our coaches committed to empowering you to take control of your own investing.Can MarketRiders manage my portfolio for me?Our business model is focused on providing a subscription and coaching service for MarketRiders E. Adviser. To manage your investment portfolio for you, we recommend you contact Portfolio Solutions at: www.portfoliosolutions.com. Should you decide to manage your portfolio yourself and use E. Adviser, we would be happy to help you get up and running.Trusting MarketRiders, Inc.Do you profit by recommending certain ETFs?No. We have no affiliation with any financial institution or ETF provider. We will refuse affiliation opportunities that would bias this site or our recommendations in any way.Which online discount broker do you recommend and do you profit?MarketRiders doesn't offer brokerage services, just information about brokers. Because of our philosophy, a broker is just a place to deposit your portfolio. E.Adviser directs you on what trades to make in an online brokerage account. We track and manage your portfolio outside of the broker account.We do care about price per trade and safety in case your broker goes bankrupt. The brokers we recommend are insured by the Securities Investor Protection Corp. (SIPC), which covers you for $100,000 in cash and $500,000 total. In addition, we recommend brokers that carry insurance above and beyond the SIPC insurance. All of our recommended brokers offer trades for under $10. We do not make any money from our recommended broker page and have no affiliations with online brokers. What happens to my personal and community information? Who owns it?Amounts invested in your portfolio are NEVER disclosed. If you share a portfolio with the community, only asset class allocation %s and ETFs will be displayed and it is public information. If you do not share a portfolio, it is your property, your information and MarketRiders not sell or share it with others. We will aggregate community information regarding portfolio allocations and trends for the community to see and this will be owned by MarketRiders. Please read our Privacy Policy.Why should I trust MarketRiders over any other investment website?MarketRiders is fundamentally based around the opposite of every other investment website because we're in the business of driving down your investment fees, not trying to sell you new ways to "beat the market." We do this by providing you with E.Adviser that replaces a highly paid financial adviser and an arsenal of mutual funds. MarketRiders wasn't created to mine your pocketbooks. In fact, it's to do the opposite -- to make a difference and help people grow their nest eggs quickly and safely. E.Adviser costs less than the fees invested in a $10,000 average mutual fund, or a couple hours with your CPA - no matter how much money you have invested. When an investor has the right asset mix, holds the right funds representing those asset classes, and keeps their total investment cost very low, they have a much higher probability of reaching their financial goal. That is what MarketRiders is all about. |
