Divvy Investments can help you implement your responsibility as a fiduciary. We have sat in your seat. We understand what it is like to try to juggle a variety of portfolios. We also understand that your value is in the relationships and planning piece with your clients, that's where you need to be spending your time. We are sort of the square peg for the round hole in the industry. We try to help investors minimize fees. We aggregate the research from places like Morningstar, Vanguard, Bloomberg and others to come up with broad based index fund/ETF models so you don't have to do it yourself. We take a very simple approach by aligning risk to low cost index funds that fit into a diversified, balanced portfolio. Then we advise you when to rebalance so the portfolios stay in line with target allocations. We are not trying to come up with ways to beat the benchmarks. We are advising you to go with a mix of benchmarks. Our goal is to help simplifiy investing decisions to maximize long term returns (in part by minimizing fees) and minimize risk.
The ONLY revenue streams we have are from the subscriptions and consulting. We do NOT make money from selecting certain funds. And we do NOT take a percentage of your AUM.
Our subscription service is an annual agreement that is either $349.99/quarter ($1399.96/year) if you choose quarterly billing or $1199.99/year if you choose annual billing. You should check with your custodian to determine what (if any) transaction fees you will be charged when you rebalance. Depending on what type of account you're rebalancing (401k, IRA, individual account...) there may be tax considerations to address. You may want to check with a CPA to see if there are any tax implications to your investment strategy. Consulting fees are $1500/month (up to 10 hours focusing on niche identification, targeting, and the RIGHT activities to help you achieve your goals).
You will be the one managing your money. We will just recommend what you should do with it. You can hold the investments at whichever custodian you'd like, ideally at a reputable firm with low fees.
That is up to you to determine the most effective tax strategies for each individual client. We are just focused on the models and the target allocations.
In short, it is diversification across a variety of asset classes (i.e...stocks, bonds) that aligns with one's risk tolerance. This allows one to maximize returns and minimize risk for one's appetite for risk. It was introduced by Harry Markowitz in 1952, who was later awarded the Nobel Prize in Economics for "pioneering work in the theory of financial economics". Several high profile universities use the theory to manage endowments.
That is up to you since you know what is best for your clients. We use a pretty standard risk questionnaire when dealing with individual investors.
A lot of research...(Morningstar, Vanguard, Bloomberg...). We analyze low cost, low turnover, broad based benchmarks that a lot of mutual funds try to beat. We don't pay much attention to the obscure ones.
As often as necessary. The alerts are sent when a portfolio gets out of balance by +/- 5% in any one asset class.
Yes. The data that we collect sits behind a SSL certificate and in a Level 1 PCI compliant vault.
No. We don't directly manage any client investments. If we did, it would take time and resources away from our core business, which is monitoring the portfolio models we've created. We set out to just be really good at that.
We focus all of our time and energy in helping you grow your business. In an effort to keep costs and fees low we decided to just to be really good at a couple of things. In addition to the asset allocation models, we offer marketing consulting services to help you identify a niche and guide you on the specific actions needed to achieve your goals. We provide up to 10 hours of consulting time for $1500/month. Contact us via phone/email if interested in consulting services. Of course, we are always here for support as well (see bottom left corner of the site).
Good question. When you log into your account profile, you'll have access to detailed descriptions of each model. The PDF files containing the descriptions are located right under the videos.