Frequently asked questions
- Investment process: You answer a simple line of questioning to determine your risk profile. We design the portfolio that corresponds to your investment objectives. This portfolio is invested in diversified ETF securities and managed under a discretionary mandate by 360 Advisory LLC. You access your account and see the performance through the Interactive Brokers app. Your assets are under custody with them and under your sole ownership.
- What kind of investment account you would be offered: You are opening an investment account.
All capital gains and distributions are taxed.
You can use your money at any time.
This is different from retirement accounts such as IRA, Roth IRA, 401(k) which investment contributions are capped to a yearly maximum, funds are available from retirement onwards, and subject to a penalty if withdrawn earlier.
- Investment horizon: It is up to you, you retain full control on the direction and length of time you want to maintain the investment.
Conventional wisdom has it that a minimum of five years is recommended to allow time to match your average return expectation
- Brokerage platform:
We use Interactive Brokers (IB), a SEC-regulated company listed on NYSE. Any client would need to open an account with Interactive Brokers through an online application.
- Custody of your assets is done by IB according to the US regulator’s prudential rules.
- Discretionary account management is carried out by 360 Advisory LLC, a company incorporated and regulated as a financial advisor in Massachusetts. Each client would enter into an investment advisor agreement with 360 Advisory LLC.
- Management fee & other costs: Your 9.30am investment portfolio is managed by 360 Advisory LLC for a 0.50% annual fee calculated on your total assets under management. Annual fee decreases to 0.25% for any asset over $500,000.
- Other costs consist in trading costs and the cost of ETF (Exchange Traded Funds products). As an example, on a $100,000 portfolio, annual trading costs would be 0.08% and ETF costs 0.16%. As a result, all-in fees & costs would be between 0.45% and 0.74% per annum on a $100,000 portfolio. An adhoc simulation would be provided on your portfolio. Please refer to 360 Advisory ADV Part2 for more details.
- Account minimum: As per policy. No maximum, the sky is the limit. Note that the smaller the invested amount, the higher the flat trading fees represent as a percentage of the portfolio. Please refer to the fee simulation on your portfolio as a guide.