Morning coffee, on this July 4th,
A unique investing format exists with MOTIF.
This method of building your own "fund" or using one of the several hundred combinations created by Motif or individuals has been discussed previously here.
I admit that I have been, and am too darn busy to have given time to this "idea"; but I would not hesitate to suggest a full review; for at least a portion, of one's investment portfolio.
The below link is directed towards the "existing portfolios" choices. The "explore" function allows one to set some parameters for searching. Also, just below the word Explore, are the two choices for either Motif or individual built portfolios.
Motif siteAt the very least, one is able to look inside of these portfolio mixes to discover what others are investing to attain a particular goal for a given economic circumstance or investing style. Perhaps, this will help with ideas; in particular, for those here who also hold individual stocks as part of the mix.
Lastly, are you or do you know someone using Motif? If so, is there a "satisfied with" report that may be shared here; or perhaps a warning?
Take care,
Catch
Comments
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I have looked at it off and on for the past few years more for my grandchildren donations rather than my own account. It's actually simple and credible. If nothing else one can get a great number of potential ideas from looking at the portfolio's that the site and others have created.
You mentioned, "rather than for your own account". I was thinking along the same lines regarding "minor" accounts that could be set with this site.
There could be the value of understanding investments into particular areas, that would provide an ongoing learning tool for young investors. Or at least another method for an investment learning tool.
One finds that these investments may be used for taxable, as well as IRA's and trust accounts.
Thank you for your thoughts with this.
Either way, aren't dividends (reinvested or not) taxable in a taxable account? Might the dividend be a distribution in a tax deferred or qualified account which would be a problem were you younger than 59.5 ?
Does it matter who reinvests dividends, you or the administrator?
I have never had a situation where I didn't have the option to reinvest dividends, but if I did; I would assume I could do this myself as part of adding contributions to this account.
You noted: " Might the dividend be a distribution in a tax deferred or qualified account which would be a problem where you are younger than 59.5 ?"
Are you asking that if a dividend is taken from the sheltered account (IRA), then it becomes a distribution?
I can't think of a reason for not maintaining the dividend/distribution within the IRA or related sheltered account.
Looking around the MOTIF, I don't find an FAQ or similar about what happens to distributions from one's stocks or etfs held in an account with them.
Lastly, a wonderful summer evening in Michigan. Mid-70's (8:30pm), low humidity and a slight breeze.......and lots of local folks shoot'in them rockets.
Regards,
Catch
Maybe a future Mandle:
Yes, and a lot of folks prefer to do it this way but......
-Many like to take all their dividends/distributions in cash and then reinvest them in shares of whichever company they hold presents the most compelling value to them at that time. This strategy almost always entails a transaction/trading fee unless one gets free trades for some reason.
-Others (me) like the option whereby dividends are reinvested free of trading fees and, in the case of some companies, at a discount to market value. EPD is one holding of mine that reinvests at a 5% discount.
My dividends/distributions in my Roth IRA accounts are not taxable. Those in my regular brokerage account are. Those in my SEP IRA one day may be.
Scottrade will not reinvest your cash distributions in additional shares. You get cash only. Fidelity will let you choose whether to reinvest or not on a security by security basis.
One note on the Fidelity reinvestment process - your cash is NOT reinvested at the share price on the day the distributions are paid. Fidelity buys sufficient shares up to 14 days ahead of the distribution date and reinvests your distribution at the average price they paid for those shares. Sometimes you win a bit, sometimes you lose a bit.
Also of note, if you use M* to track your portfolio their portfolio tracker program reinvests your cash at the share price listed/posted on the dividend declaration date. This is rarely, if ever, the same as the share price on the day the dividend is actually paid and almost surely is not the reinvestment price Fidelity uses. I cannot speak for the reinvestment process at other brokerages.