Below are some questions we get regularly. If you need additional information, please email us at info@investforless.com or call (888) LESS250.
InvestForLess Questions
Opening Investment Accounts
Managing Investment Accounts
FinanceLogix
Advice Questions
Investment Questions
Who is InvestForLess?
InvestForLess is a Investment Adviser registered with the Securities and Exchange Commission and was established to provide an avenue for the public to purchase investments and advice at wholesale prices.
Why did you create this model?
As a group, we decided it was time to make investing and advice affordable for everyone. It no longer seemed logical that the small investor had to pay higher fees/commissions to invest than someone with a larger portfolio. Our objectives are twofold: first, to make it more affordable to invest, and secondly to promote the idea of advice by providing people a way to obtain advice on their terms. We foresee a great deal of change coming in the financial services industry, and we want to lead the way.
Why pay $250?
Maybe a better question is why not? If you want access to mutual funds without commissions or wrap fees and transparent advice pricing you will likely save money by investing with us. We might make sense for you if: you have more than $25,000 of investable assets in a fee-based account, or you are investing $5,000 a year or more in loaded mutual fuds. We offer mutual funds, most ETF’s, stocks, bonds, planning tools, account aggregation, and financial education for an annual $250 charge per member. Transactions fees may be charged by the custodian on certain transactions, but InvestForLess does not receive ANY revenue from these fees. Transaction fees are charged by the custodian, not InvestForLess.
How do I convert funds to lower cost share classes?
Once you are an InvestForLess Member and have opened your investment account, you may sell any funds you like and can repurchase a lower cost share class of the same fund. Keep in mind that this may cause a subsequent taxable event, and we advise you to speak with an advisor or tax professional to discuss this prior to the sale of any investment. For B and C-shares, you will not be able to exchange those without penalty until the surrender period has elapsed on the funds. We never recommend that you sell an investment that still has contingent deferred sales charges pending.
How do I get started?
Once you have made the decision to Join the Investment Revolution, click on one of the Join Now buttons. After joining you will have access to all the services InvestForLess offers. You may open an investment account, upload information into FinanceLogix (our online planning software), view the available investment choices, conduct investment research, utilize our advisory services, watch educational videos, or participate in one of our weekly webinars.
My wife and I have a joint account; who is the member?
A joint account’s membership is associated with the primary owner’s social security number. For example: John and Mary Doe may enroll and, through one of our custodians open a joint account, a single account for John, and multiple IRA accounts for John. InvestForLess charges one fee of $250 in this case. If Mary wants to have an individual investment account, she will have to become a member of InvestForLess, paying her $250 membership fee, and opening her own at the custodian account.
Can I get the same thing somewhere else?
No. Some companies offer reduced cost funds and other companies offer low cost trades. However, ONLY InvestForLess offers professionally managed funds without commissions to all investors regardless of account size for $250. Access to the least expensive mutual fund share classes, free planning tools, and “Pay-As-You-Go advice” makes InvestForLess a unique opportunity for investors.
What’s the catch?
There is no catch. What you see is what you get. Access information and tools on the InvestForLess website and an investment platform for a yearly $250 fee per social security number. You may have an IRA, Roth IRA, brokerage account, money market, and a joint account all for a total of $250 a year. The custodian does charge fees for certain transactions such as stock trades, transaction fee mutual funds, etc. If you want to purchase a product that has a fee, the fee will be disclosed to you before you purchase the product.
In addition, many investments, such as mutual funds, ETFs, UITs, and variable insurance products charge management fees, transaction costs, mortality fees, and/or a possible distribution or service fees. These fees are paid by all shareholders and are reflected in the price of the security. InvestForLess does not receive any of these fees. If a particular mutual fund pays a distribution or service fee (“12b-1 fee), InvestForLess will not accept it.
Is there any fine print?
InvestForLess does not add on any fees and will direct you to the least expensive alternative as often as possible. All fees that may be charged by our custodians are disclosed by the respective custodian on its website. In addition, some investments have embedded fees. These are disclosed in that company’s prospectus, on the Fund Facts & Expenses area of the custodians website which you are urged to read carefully before making an investment.
Do you have custody or discretion over my assets?
No, we do not take custody of your assets or exercise any discretion on any client accounts. This means we do not have access to your money. Ever.
How can you offer this?
We are embracing a unique approach to the financial planning industry. We believe that by reducing fees so substantially, investments and advice become more affordable to everyone. By doing so, we hope we will be rewarded with referrals to millions of Americans who believe in investing and advice at wholesale prices. Unlike traditional business practices that focus on a small number of clients with the maximum amount of revenue per client, our model is built on the maximum number of investors with a minimum amount of revenue. We need many investors of all types to be successful. We hope you will teach others about InvestForLess and that they to will Join the Investment Revolution!
Why are your funds less expensive than the same fund somewhere else?
As a Registered Investment Adviser (“RIA”) we are able to offer our members mutual funds in one of the lowest cost fund classes offered by each mutual fund. Often planners “wrap” these investments with a fee based on a client’s assets. We choose not to, and the savings are passed on to you.
I have a financial professional that I am happy with, should I have an account with InvestForLess?
We encourage you to maintain the relationship. If you desire a second opinion, then you should seek one out. We suggest that you share our value added approach with your financial professional and discuss what is best for you. Your financial professional may even be interested in joining the IFL Network (professionals who agree to offer advice pursuant to certain guidelines).
I have a financial advisor; can I move my money to InvestForLess and still get advice from my advisor?
It depends on the planner. Some financial professionals are structured so that they only receive commissions on what you purchase, others may charge an asset-based fee (1-2% on average), and still others do both. All of these individuals can give you advice on your InvestForLess account if they choose do to so. The compensation to your planner should be arranged between you and your planner before your relationship begins. Please remember, we strongly encourage advice, regardless of where you find it.
Why would I want an account with InvestForLess if I already have a discount brokerage account?
There are several reasons: First, at InvestForLess you are able to purchase low cost investments and unbiased advice in one place. Second, if you would like to purchase funds which typically charge a load (or sales charge), you will find that InvestForLess enables you to purchase the share-class of the fund without the sales charges you might pay with most other companies. Finally, we may offer more funds than the company you are currently with. Nothing says you can’t have an account with both companies. You might choose to purchase mutual funds with your InvestForLess investment account and stocks with a discount brokerage firm. While we think our stock trading prices are low, you may be able to find a lower trading cost at your discount broker.
What products do you offer?
Through various arrangements, we offer:
• Mutual funds
• Exchange traded funds (ETF’s)
• Exchange-listed or over-the-counter common, preferred, or convertible stocks
• Corporate, municipal, government agencies, US Treasuries, sovereign, and foreign government bonds
• Unit investment trusts (UIT’s)
• Fixed and variable annuities.
If we don’t have the specific product you want, tell us and we will do our best to make it available for you.
What services do you offer?
Membership in InvestForLess gives you the ability to purchase Pay-As-You-Go advice, conduct research, utilize FinanceLogix’s goal planning software, access educational resources, open an investment account, and participate in weekly webinars.
I am concerned about giving out my personal information over the internet.
We completely understand your concern, however we have instituted security measures in order to protect your information. We limit the identifying information required to include only the last 4 digits of your social security number and maintain no permanent client records in our offices. All client information is maintained on third party servers with companies that adhere to the highest industry standards for client confidentiality and information security. Note: we will never send you emails asking for your passwords, social security, or pin information.
Where does my money go?
InvestForLess is not a custodian and does not take possession of your money. Any checks that you write will be to the specific investment company or custodian. Fill out the appropriate forms to open your investment account, then wait to receive confirmation of your account’s opening. Once received, send the check directly to the custodian where it is kept in a separate account for you. Some special products such as annuities or Non-Traded Real Estate Investment Trusts (“Non-Traded REITs”) will be held in a separate account at the company offering the product or an approved custodian. These other companies, like other custodians, are required by the Securities and Exchange Commission (“SEC”) to maintain the highest standard for asset security.
Where is your home office located?
Our home office is located in the beautiful rural community of White Stone, Virginia. Being headquartered in this area allows us to minimize expenses and support a fabulous group of hard working Americans. We worked really hard to find a town that only had one traffic light.
Once I have a membership, how do I open an investment account?
Once you have filled out your information and the credit card is approved your membership will be activated. At this point you are an InvestForLess member and can take full advantage of our extensive resources. You can now access all of the tools on our site.
When you are ready to open an investment account, you will need to open an account with one of our custodians. This will require some paperwork, but don’t worry it won’t be that painful. It is worth the effort to begin saving up to 66% on investment fees.
The custodian account MUST be opened through the InvestForLess web site. To do so, go to the Forms section of the website and fill out the short survey. InvestForLess will email you the correct paperwork. If an account is opened directly with the custodian, you will NOT have access to the low cost InvestForLess platform. Paperwork will need to be completed via the online account application process or printed and faxed or mailed to us.
Once paperwork is received, we will review and forward it to the custodian. Your account should be open within 72 hours.
Who do I write my check out to?
The specific financial institution or custodian that offers the product you choose.
I have an account somewhere else, how do I move it to InvestForLess?
Simply follow the account opening process and you will be taken through the entire process.
After I submit forms, what’s the next step?
That's it! We will follow up with you to keep you abreast of the process. If you are opening a new account you will be free to trade once the account is funded.
Where do I go to trade?
InvestForLess members may go to the custodian's website to access their investment accounts, trade, and conduct research.
How often can I trade in my account?
It’s your account; trade as little or as much as you want! However, keep in mind that certain trades do come with fees (stocks, bonds, some mutual funds), and if you trade mutual funds too often you will incur a Short Redemption Fee or a Contingent Redemption Fee (charged by the custodian or the fund company NOT InvestForLess). InvestForLess encourages you to review the prospectus of any investment you purchase for more detail. You will be alerted before you process a transaction whether these conditions exist. We will try to direct you to mutual funds that do not come with a trading fee, but again it’s up to you what you buy.
Why can't I find the institutional share classes on the custodian's website?
The backbone of our custodian's site is based upon the retail investor's site. You shouldn't have trouble, but if you do feel free to call us and we will be happy to help. You can always access the fund list as well.
I want to transfer money from an outside firm into my investment account, how do I do this?
Once you become a member, go to the Forms Tab and click on open an account. All of the forms will also be available through the links on our custodian's site.
I forgot my password, how do I get it back?
As an InvestForLess member, there are three passwords you must know. A password to InvestForLess.com, the custodian's website, and FinanceLogix. Each firm has their own policy for retrieving forgotten passwords. The best option is to go to the website and click on the Forgot Password link. You will be directed how to retrieve your password.
What type of Research is available to me?
Once you become a member and fill out the paperwork to open an investment account, you will have complete access to all of the available research on our custodian's site.
How do I use FinanceLogix?
We provide InvestForLess Members this tool as a benefit to help you both keep track of your accounts and plan for the future. If you upload all of your financial data, the tool will keep track of your progress on a daily basis and provide you a dynamic plan. It will also give you the ability to create different scenarios and identify your probability of financial success. You may use the tool as much or as little as you want and as you see fit. As will all planning programs, it is only as good as the information you enter and will have its limitations.
What is data aggregation?
This is the process of consolidating all your financial information in one place so you may view everything from your credit card balances, to your investment accounts, to remaining mortgage balance.
What accounts does FinanceLogix aggregate?
Most brokerage, bank, credit union, credit cards, insurance, and other investment accounts. If you find an institution that is not included, please contact us and we will try and make it available for you.
What do I have to input into FinanceLogix for it to aggregate my accounts?
FinanceLogix needs the user ID and password you use to access your financial institution online. If the financial institution requires additional verification such as security questions or activation codes you will need to input these as well. Do not worry, your information is protected, FinanceLogix does not store your user name and password.
Does FinanceLogix automatically update my account values?
Yes, FinanceLogix will automatically update the values each time you log in.
I am having trouble with FinanceLogix, where do I go with questions?
Your first resource is the Help section with FinanceLogix, they have videos to help you input specific information. Secondly, feel free to call InvestForLess at (888) LESS250 or (888) 537-7250 or email us at info@investforless.com and we will walk you through the process.
I am trying to upload an account into FinanceLogix, but it's not working! What is going on?
First place you need to look is the question mark next to the field you are entering. There could be several issues: One of which is that some companies require you to authenticate a computer. You will need to go into the website of that company and get the authentication key and input it in the FinanceLogix system. Second, often times due to the nature of the internet some connections might time out. The application may give you an error, but if you get an error you can log out and log back in and the system will have captured your information.
Alright, I signed up what do I do next?
Go through the Client Interview, also known as the Worksheet.
I've entered my data, what's my next step?
Review your information from the Dashboard, use the Dynamic Plan section by changing various settings and assumptions for your plan.
I've made changes to the Dynamic Plan, can I save these changes?
No, the Dynamic Plan information is only for viewing on the webpage. If you are interested in exploring the possibilities or for formal financial planning visit the Advice section of www.investforless.com.
What can I print?
Your portal with FinanceLogix allows you to print the data you have entered, the account information as it is updated, and a few brief analyses based on the data you have entered.
Do I need financial advice?
It depends on your financial situation. InvestForLess strongly recommends working with a financial advisor to ensure you take advantage of every planning opportunity possible. For example, not every American is aware they can convert a Traditional IRA to a Roth IRA and enjoy tax-free income (as long as they meet certain criteria). A financial professional can steer a client to these types of planning opportunities.
Can I get advice?
Yes. We offer access two ways. The first is through advisers employed at InvestForLess. Secondly, in order to be completely unbiased we have put together a network of advisors who adhere to a Pay-As-You-Go advice pricing model in which you only pay for the amount of advice you need. The network consists of advisors who have either a Certified Financial Planner Designation (CFP®) or 10 + years experience in the industry. All network advisors have agreed to charge only hourly or flat fees and cannot charge commissions. For details about how to obtain personalized advice refer to the advice section of www.investforless.com or call (888) LESS250, (888) 537-7250.
How much does advice cost?
Hourly and flat fees may vary by financial professional. Their fees are clearly noted in the directory.
I have been an InvestForLess client for some time, I would like to get personalized advice. What do I do?
There are several options available to you:
- Go to the Advice section of our website and fill out the short survey. We will respond to you with an advisor's who meets the criteria set by you.
- Send an email to advice@investforless.com requesting the Advice Survey. Fill out the survey and fax back to 703-373-4992, ATTN: Advisory Services. We will respond to you with an advisor's who meets the criteria set by you.
- Research and find your own advisor, meeting your criteria, who will charge you on a per plan or hourly basis.
How do I convert my fund share classes to a lower expense share class?
Once you are an InvestForLess Member and have opened your investment account, you may sell any funds you like and can repurchase a lower cost share class of the same fund. Keep in mind that this may cause a subsequent taxable event, and we advise you to speak with an advisor or tax professional to discuss this prior to the sale of any investment. For B and C-shares, you will not be able to exchange those without penalty until the surrender period has elapsed on the funds. We never recommend that you sell an investment that still has contingent deferred sales charges pending.
I transferred in mutual funds. Can I reduce my cost further?
Quite possibly. Most (but not all) fund companies do offer lower cost share classes than A, B, and C shares. The first step is to make sure there is a lower expense share class available. Look for a Load Waived A share, Advisor, or an Institutional share class or feel free to call us and we will help you identify a lower cost class. It's that simple!
Am I guaranteed to save money?
No, each client’s situation is different. We advise you to check how much you are paying in “wrap” fees and management fees. Many times we will be able to reduce your fees by converting your shares to the institutional share class.
What are fund classes?
Mutual funds have operating expenses that include what the fund pays its investment manager/adviser, recordkeeping, custodial services, taxes, legal expenses, and accounting and auditing fees. Funds also pay for buying and selling securities in its portfolio. Other costs paid directly by investors include loads and redemption fees. Last but not least, funds may pay a service fee and/or distribution fee, commonly referred to as a 12(b)-1 fee, generally between 0.25-1% per year of a fund’s net assets.
Fund classes generally determine if the investor pays a load (sales charge), redemption fee and/or 12B-1 fees. A-shares include a sales charge up front when you purchase the shares. B-shares have a redemption fee deducted if you sell that share within the deferral period. C-shares generally include a 1% redemption fee if sold within the first year. Clients of Registered Investment Advisers, retirement plans, and other institutional investors may purchase shares in other classes with lower fees.
InvestForLess members are able to purchase shares in the advisor class, which are generally the lowest cost share classes available.
How does a fund class with lower fees benefit me?
Mutual Funds have separate classes of which different fees are assessed. The main fees associated with all classes of mutual funds are management fees, 12(b)-1 fees, sales charges, and contingent defferred sales charges (defined in the Glossary). These fees will vary by fund. - Institutional Share:
- Description: Typically these share classes are associated with low management and 12(b)-1 fees, no sales charges, and no contingent deffered sales charges. Normally these can only be purchased through "wrap" and fee-based accounts, by institutions, 401k's, or through Registered Investment Advisers. These shares may have a Short Term Redemption Fee (usually 90 days holding period) or Contingent Redemption Fee (can be up to 1 year) assessed if the fund is sold within a specific term period.
- Pros: No up-front/back-end sales charges and usually has the lowest annual operating expenses.
- Cons: Possible Short Term Redemption or Contingent Redemption Fee if sold too quickly.
- A-share:
- Description: Share class with an upfront sales charge by the firm offering the fund. The majority of the sales charge translates to the commission for the financial professional. There is normally a "breakpoint" schedule that reduces the sales charge on a percentage basis with a larger investment.
- Pros: Low annual operating expenses.
- Cons: Up-front sales charge.
- Example Breakpoint Schedule:
-
Less than $25,000
| 5.75%
| $250,000 to $500,000
| 2.50%
|
$25,000 to $50,000
| 5.00%
| $500,000 to $750,000
| 2.00% |
$50,000 to $100,000
| 4.50% | $750,000 to $1 million
| 1.50%
|
$100,000 to $250,000
| 3.50%
| $1 million +
| 0.00%
|
- B-share:
- Description: Share class with a back-end sales charge that is only charged if the investor sells the fund within a specific time period (usually 7 years). These fund typically convert to A -shares after 7 years, which will then reduce the annual operating expenses.
- Pros: No up front sales charge.
- Cons: Higher annual operating expenses, sales charge assessed if sold within a specific time period (usually 7 years).
- C-share:
- Description: This type of share class has no up front sales charge, however does typically charge a 1% fee if sold within a specific time period (typically one year).
- Pros: Short term holding period (if held for one year, usually no sales charge is assessed afterwards).
- Cons: High annual operating expenses, 1% fee is usually charged if sold within one year.
All fund’s expense ratios are disclosed in the fund’s prospectus, on the fund’s web-site, or are available within your account access via the custodian's website.
For additional information click here to view the Mutual Fund Analyzer tool provided by FINRA.
Why do the fees vary so widely between share classes?
The amount of the sales charge (including in some cases the 12b-1 fees) paid to agents and representatives who sell mutual funds is the only fee that InvestForLess can control by declining to accept such payments wherever possible. All other expenses are controlled by the fund and will vary by the size of the fund and the types of investments the fund makes (as disclosed in the fund’s investment objectives).
A passive fund, like an index fund, has a lower expense ratio than most other funds because the fund does not buy and sell securities in its portfolio very often. These types of funds will generally track an index and buy shares of companies selling them when the makeup of the index changes or they need to raise money to cover redemptions. Fewer trades mean fewer transaction fees, or lower costs.
An actively managed fund may frequently buy and sell securities in its portfolio. More transactions mean more transaction fees and thus higher costs. The type of fund makes a difference also. A small cap fund may trade more actively than a large cap fund. A smaller fund or a sector fund may pay higher transaction fees because it may not realize economies of scale that a fund with more assets can negotiate. Funds that trade foreign securities may have additional expenses related to currency exchanges and executions on foreign exchanges.
Investors should compare the expense ratios, among other things, between funds of a similar size, investment objective, sector, and/or investment style.
I want to purchase international stocks; can I do it through your platform?
Depending on the country we make available the ability to purchase a tremendous number of stocks. If we don’t currently, just let us know and we will do our best to help you. You can buy/sell American Depository Receipts (ADRs); you can also buy/sell ordinary shares. However, the limitations are ordinary shares cannot be denominated in the underlying country’s currency. The securities are denominated in US Dollar. On a similar note, we cannot accommodate foreign currency future transactions.
Can I lose money?
Yes. The value of any investment can go up or down due to a variety of factors, including market, currency, economic, political, inflationary, interest rate, and business risks. Anytime you invest, you have the risk of loss and these risks should be considered very carefully.
Is my money guaranteed?
Investments are subject to risks and performance is not guaranteed. You may make or lose money based on the performance of the securities you purchase. Money invested through the custodian is protected by the Securities Investor Protection Corporation (“SIPC”) in the event the custodian fails and you are owed stock or money. More information about SIPC protection is available on the custodian’s website. SIPC does not protect against market losses.
Where can I find a list of all the funds I have to choose from?
Contact InvestForLess for more details on specific funds.
How do I choose from the funds you have available?
There are many ways to choose a mutual fund. You may choose by expense, investment objective, etc. InvestForLess members may also watch videos and sign up for Webinars discussing mutual fund choices on the Education section of our website.
How do I know the difference between the Transaction Fee Funds and the No Transaction Fee Funds?
A Transaction Fee Fund will be denoted by TF and highlighted in yellow to signal caution. No Transaction Fee Funds will be highlighted in green and denoted by NTF.
I transferred Class A, B, C share mutual funds. Can I reduce my cost further?
You may be able to reduce your cost further depending on certain factors, some of which are listed below:
- If you have any surrender penalties associated with your funds you will not be able to convert to the institutional share class until those penalties are reduced to 0. We would never want you to pay unnecessary fees.
- Most funds have institutional share classes with lower fees than A shares. Even if the fees are the same, a conversion will result in the elimination of commissions for future purchases.
For more details on mutual fund conversions, request the Mutual Fund Conversion Form. Keep in mind not all funds or share classes allow conversions.
How can I find out what fees are charged for specific transactions?
There are three ways to determine what fees you may pay:
- Visit the Fees section of InvestForLess.com.
- Each time you submit an Order on the custodian's website, you will be required to Verify the Order before it is placed on the Acknowledgement screen. On this screen all fees will be disclosed to you.
- In the Research Tab on the custodian's website, you may view Mutual Fund fees on specific funds.
What is a Contingent Redemption Fee?
This is a fee charged by the specific mutual fund if a client decides to sell the fund within a specific amount of time (usually up to one year). This fee will be disclosed to you within your account access on the custodian's website on the Order Verification screen before the Order is Acknowledged and placed. It is used to discourage excessive trading of mutual funds.
What is a Short Term Redemption Fee?
A fee charged by the custodian ONLY for selling a fund within a short amount of time, typically 90 days. This fee will be disclosed to you within your account access on the custodian's website on the Order Verification screen before the Order is Acknowledged and Placed. This is a way to discourage excessive trading of mutual funds. 