TD Ameritrade Holding Corporation (AMTD) is expanding its digital advice offerings with the soft launch of Essential Portfolios – an automated, low-cost advisory service for digital-first investors.
The national launch of Essential Portfolios is expected in early calendar year 2017.
Research has shown that people who have a financial plan with specific goals are 85 percent confident they will reach their retirement goals (versus 28 percent that do not). That’s where Essential Portfolios comes in - allowing investors to establish a goal, intuitively assess their risk tolerance level, and identify key dates for long-term financial goals like college savings or retirement. From there, the algorithmic platform matches them with objective portfolio recommendations based on their financial goal. Essential Portfolios offers flat-fee structure investment alternatives that include a variety of passive, index-based nonproprietary ETFs and a $5,000 minimum deposit aimed to suit investors who seek low-cost financial solutions and an intuitive digital experience from start to finish.
This launch follows the June re-release of Amerivest Managed Portfolios, which underwent a significant digital enhancement. Amerivest offers investors a self-guided digital investment guidance experience, paired with as much or as little human interaction as investors want.
“Today’s investors want more choices for investment advice. Some want that guidance to come from a human, partnered with digital platform, while others might prefer an all-human or all-digital approach. Our job is to deliver solutions that are easy-to-use, effective and allow our clients to grow with us as their needs evolve,” said Tom Bradley, president of retail distribution at TD Ameritrade. “Essential Portfolios is a great example of how we were able to leverage Amerivest’s existing technology to create an all-digital version for the more value-conscious investor.”
Essential Portfolios: The benefits of professional management at a low cost
Five diversified, model portfolio strategies with fund recommendations by the objective professionals at Morningstar® Investment Management LLC
Each portfolio consists of five ETFs and cash (weighted average expense ratio of 6 to 8 bps)
Competitive and low-cost pricing to keep the service affordable (flat-fee structure of 30 bps)
Embedded goal planning and tracking tools
Key statistics on the portfolio holdings
Additional features and upgrades will be introduced throughout the coming months, including tax loss harvesting
Getting Started
Visit https://www.tdameritrade.com/investment-products/essential-portfolios.page to open an account in 15 minutes or less via desktop, tablet or phone
Set a personalized investing goal
Select your personal risk tolerance
Receive a recommendation for a specific model portfolio
Open a TD Ameritrade Investing Account
Invest a minimum of $5,000
Ongoing Monitoring and Support
Monitoring and automatic rebalancing by Amerivest
Online dashboards for easy performance monitoring
“On the go” access to account information through Essential Portfolios mobile app
Embedded investment alerts and updates
Essential Portfolios support team available via live chat, e-mail and phone