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Topics: Impact Account
A Trading Account allows you to choose from our catalog of professional and community-built motif portfolios, build your own custom 30-stock portfolios, trade individual stocks, and participate in IPOs or Market-Linked CDs.
A Direct Index account allows you to invest in a single portfolio that tracks a broad market index. A direct index portfolio may have more than 500 stocks (e.g. Motif 500) that you can customize and automate.
With an Impact Account, you get a fully-automated portfolio that aligns to your financial goals with your values. The Impact Portfolio has stocks and ETFs in seven asset classes providing exposure to US and international equity and bond markets.
When placing a trade in Direct Index and Impact accounts, our platform converts the investment dollar amount into an exact share count to be sent for trade execution. To ensure that the amount invested does not exceed your available funds, we require a 2% cash reserve to account for market price fluctuations when the trades are executed at market open.
For Trading accounts, we reserve 2% for real-time trades placed and executed during market hours and 5% if the trades are pending execution at the next market open.
Impact Portfolios values data provided by MSCI, a leading provider of research-based indexes and analytics, with a specialization in impact ratings.
The default allocation for your account is determined by your investment plan, including your risk tolerance and time horizon. As your goal year gets closer, the allocation to growth assets (e.g. stocks) is gradually reduced in favor of low-risk and conservative assets (e.g. bonds). This is called your investment plan’s glide path.
The fee structure for a Motif Impact account, that provides a fully automated portfolio aligning your financial goals with your values, is 0.25%, expressed as an annual fee rate. This fee is based on the total amount of invested assets and will be deducted from your account balance on a monthly basis.
Yes. To enter your own asset class weightings, click the link ‘Set Your own Allocation Targets’ below Your Target Asset Allocation. When you set your own asset class weightings, we will automatically rebalance your portfolio to your custom allocations over your investment time horizon.
Nope! One of the benefits of an Impact account is that your deposited funds and dividends will be automatically invested when your cash balance exceeds $250. We will also notify you when trades or changes will occur so that you’re always in control.
Yes! You can change all aspects of your plan on the Investment Plan & Target Allocations page and directly see how these changes could impact your chances to reach your goal.
When you fund your Impact Portfolio, your funds are invested across seven asset classes, optimized for your selected asset allocation.
You can click here to learn more about our investment methodology.
Using our default risk settings, your target asset allocation will be automatically adjusted over the time horizon of your investment. This is called your investment plan’s glide path.
In the early years, growth-oriented assets such as stocks, real estate and commodities make up as much as 80% of the portfolio with the balance allocated to conservative, fixed-income assets.
As you move toward the end of your investment time horizon, the allocation to growth assets is gradually reduced in favor of low-risk and conservative assets such as bond ETFs. At the end, growth-oriented assets can make up around 35% of the portfolio while fixed-income assets represent 65%.
You will always be informed of the changing allocations as part of an annual rebalance and can opt-out at any time.
No, but recurring deposits can help keep you on track towards your investment goals. Each deposit will be invested towards your target allocation according to your investment plan. Our projection tool can help you determine whether a one-time or recurring deposit amount is appropriate for you.
If the dividend is in cash, we will credit the money to your account and it will be reflected in your cash balance. When your cash balance exceeds $250, it will be automatically invested towards your target allocation.
We use your time horizon and risk tolerance values to determine the mix of stocks and bonds in your investment plan. A higher risk tolerance and longer time horizon will result in a higher weighting of stocks, while a lower risk tolerance and shorter time horizon will result in a high weighting in bonds.
You will not be able to place trades from your Impact account. For placing trades, please open a Trading account with Motif.
Absolutely! Our plan is to release additional value options based on customer feedback. If you do not see your personal value reflected please contact customer service at firstname.lastname@example.org or 1-855-586-6843 call 9am-6pm ET, Monday through Friday.
The value of your underlying investments may change over time, which may cause the weight of the asset class to drift away from its target weight. Portfolio drift is the total absolute drift of all asset classes divided by two.
When your portfolio drifts more than your drift threshold (default 5%), it will be automatically rebalanced back to your target allocation. You can always edit your drift settings as any time.
Diversification, spreading your investment over multiple different asset classes, is generally expected to help you decrease your investment risk. Learn more about Motif’s asset allocation methodology.
You may withdraw funds from your Impact account from “Transfer Money” under the “Account” menu, and it may take 7 to 10 business days for the money to settle into your account.
Withdrawals from your investment plan may initiate several buy and sell trades at the next market open to keep you aligned to your target allocation. Some of your investments may be sold at a gain and incur a tax liability.