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Nice idea, having worked in a similar problem space for a number of years, I have some questions. - How are you managing rebalancing, what might trigger a reba
by mcgin 6y ago
Nice idea, having worked in a similar problem space for a number of years, I have some questions.
- How are you managing rebalancing, what might trigger a rebalance and how do you manage the tax implications of that?
- With a rebalance/deposit/withdrawal are you always a taker in the market?
- What's the custody side of this look like? i.e where do the stocks sit, are they in my brokerage account or are you custodian.
- How are you accounting for dividends in the portfolios do they get reinvested/included in returns?
- Can you manage all types of corporate action like splits, mergers, delisting, halts etc.?
- kmckiern 6y agoThanks, would be curious to get your thoughts given your experience in this problem space. Since we lean DIY / prosumer, our thought is to provide options to the user. Around rebalancing, we're exploring a few options: calendar rebalancing, constant-proportion rebalancing, and rebalancing with only new contributions. Then, analytics to make it clear what is a short vs long-term holding. Right now we're non custodial, we link to existing brokers. We are looking to become a register broker dealer in the next few months. The fractional-heavy model makes it such that it's better for us to vertically integrate.
- mcgin 6y agoAlways happy to chat with people about this space, contact info is in my profile if you want to reach out
- late2part 6y agoVTI has an expense ratio of 0.03% or 0.00003. With free trading I can recreate the VTI portfolio for free. Do taxes and time cost more than 0.00003? At $10M it costs $300. Depends on your portfolio?
- bernardv 6y agoThat last one is when reality hits :-)