FAQs

An Exchange Traded Fund or ETF is a pooled investment vehicle – meaning millions of people can invest in each ETF. ETFs often track popular stock indexes, like the S&P 500, or specific sectors like technology. Like individual stocks, ETFs trade throughout the day, offering a multitude of trading options and liquidity. ETFs serve as a low-cost method to access to a large basket of companies, without having to purchase each individual stock, allowing investors small and large to take advantage of well diversified portfolios.Exchange Traded Funds.

Asset allocation is the process of deciding where to put money to work in the market. It aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance, and investment horizon. The three main asset classes—equities, fixed-income, and cash and equivalents—have different levels of risk and return, so each will behave differently over time.

Morningstar is an investment research and financial services firm that provides investment analysis, fund ratings, and other professional and investment services.

Money Pools leverage broadly diversified ETFs (exchange traded funds) as a means to gain exposure to desired asset classes. For specific ETFs in each pool, download the app and create one. We’ll give a recommendation but if you don’t like it, or just want to explore them all, swipe or click left or right in the portfolio selection part.

We chose ETFs as our means to gain exposure to desired asset classes for their diversification, low cost and liquidity.

Money Pools are recommended based on the date selected for utilizing your invested funds. For example, if you choose a goal date in 2027, the appropriately vintaged Money Pool is presented. As your timeline extends, the amount of risk assumed in the portfolio increases.

Marygold leverages Modern Portfolio Theory, which is simply selecting the optimal mix of investment instruments, some higher risk (generally equities) and some lower risk (generally fixed income) so that the portfolio maximizes its overall risk-return portfolio. In other words, generating the most amount of return for the level of risk that is acceptable for an investor.

Yes. Although the portfolio that best fits your time horizon is presented first, by swiping left (more conservative) or right (more aggressive) you can select an alternative portfolio.

Under normal market conditions, the portfolio is designed to be rebalanced no more than 1-2x a year.

The management fee is 30 bps. This means that for every $1,000 invested, a $3.00 annual fee will be assessed. Fees accrue daily but are charged quarterly. Using $1,000.00 as an example, every quarter your Money Pool will be assessed a fee of approximately $0.75, depending on the number of days in the quarter. In addition to the management fee, there are fees associated with the ETFs.

Downside risk often refers to the likelihood that the price of an investment or the overall value of the market will fall. Both equities and fixed income have downside risk – the amount is usually correlated to the expected return. Equities typically have more downside risk as their return is also expected to outpace that of fixed income, though certain sectors like high yield bonds can come with significant downside risk. It is important to recognize that the shorter your time horizon for investing, the more important downside risk becomes. In any given day, there is a 46% chance the S&P 500 falls. But extend out to a year, and that chance more than falls in half to 21%.

Investing for the long term means you will endure down periods in the market. However, its important to stay invested – missing even the best 10 days over the last 30 years in the S&P 500 nearly halves a portfolios return. Missing the best 30 days reduces returns down to almost zero. Because precisely timing such events is highly unlikely, staying the course is paramount.

Yes, you can sell your Money Pool at any time (excluding the day of purchase) without penalty.

Unlimited! There is no additional cost associated with multiple Money Pools.

Potentially. Money Pools, like all investments, are subject to taxes on any gains in the portfolio. Selling for a gain less than a year after purchase will result in short term taxable gains (taxed at your ordinary income rate) Selling for a gain more than a year after purchase will result in long term capital gains, which are generally taxed at a lower rate. Selling at a loss will not result in a taxable event but you may be able to offset gains elsewhere. Please consult with a tax advisor.

As the timeline until your goal date extends, the amount risk in the portfolio increases along with the expected return. Market participants are usually rewarded over the long term for staying invested in equities. For example, over 5 year rolling periods from 1950 – 2022, the S&P 500 experienced annualized returns ranging from 26% to -3%. However, over shorter time horizons, such as 1 year rolling returns, annualized returns ranged from 47% to -39%. This is why you will find more near-term Money Pools favor fixed income and more conservative investments.

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Yes! After your Money Pool is established, simply click on the appropriate icon within Money Pools and use the Add (+) button just below your current value.

No 😢 This is high on our to-do list.

At this time we cannot provide advice except through the app in the form of recommended Money Pools.

Month- end account statements detail a user’s activity during a month and is uploaded to the user’s accounts on the first weekend of every month: no later than the 10th of the month. Account statements are typically available first weekend monthly.