WealthBuilder FAQs


About WealthBuilder


WealthBuilder is an online portfolio management solution. Simply answer a few questions about what you’re investing for, your risk tolerance and time horizon, and we’ll recommend smart investment choices tailored to your goals. In keeping with your suitability requirements, our portfolios are globally diversified and consist of mutual funds and / or exchange-traded funds (ETFs). When selecting funds, we will make recommendations that help to control costs and taxes. We’ll pick the allocations and investments that will best meet your goals and put your money to work for you. Also, we will automatically rebalance your portfolio and reinvest dividends.

WealthBuilder could be a good fit for individuals who might not have experience in managing their own assets or individuals who would like someone to manage them on their behalf. Typically, WealthBuilder clients are comfortable with online experiences. In addition to online access, clients also have access to our team of professionals by phone or email. Another investor benefit is that an individual can have access to a globally diversified portfolio of investments with a minimum account balance. Investors who choose WealthBuilder have access to the best thinking of an industry-leading investment firm.

WealthBuilder is available for all United States residents who are at least 18-years-old and have a valid social security number.

People’s United Advisors utilizes TD Ameritrade to custody your assets. As of February 2019, TD Ameritrade provides investing and trading services for 11 million client accounts that total more than $1 trillion in assets, and custodial services for more than 6,000 independent registered investment advisors.

WealthBuilder’s online financial advice is available for 0.50% per year. This is our Digital Only plan because you receive our advice online only. For 0.75% per year, you can opt for our Remote Advisor plan which in addition to the services provided in the Digital Only plan, also provides over-the-phone access to our Advice Center and licensed financial experts.


Investing


WealthBuilder’s investment strategies are built around research concepts that have been shown to have a meaningful impact on real-world investor returns: global diversification, smart portfolio structure, investor behavior, and risk management.

We see the world of investment opportunities through a lens of risk and behavioral factors and see to outperform the market by tilting client portfolios toward the factors that drive returns.

We ask a few questions to determine each client’s risk tolerance and their investment time horizon. Your answers then help us to create a diversified portfolio, with exposure across asset classes (i.e. equity, fixed income and cash equivalents through the use of ETFs and / or Mutual Funds. Prudent risk management is central to our approach to preserve and grow assets.

WealthBuilder does not time the market. The idea of timing markets may sound seductive but can be a treacherous strategy for investors. Although past performance is not necessarily indicative of future returns, those with the discipline to buy, hold and sit tight (and rebalance as necessary, assuming these ETFs and Mutual Funds are part of a diversified portfolio) have historically been rewarded with respectable compounding of wealth over long periods of time.

Diversifying a portfolio by creating exposures to a mix of different investments (such as stocks, bonds, and alternative assets) is a core component of risk management in an investment strategy. Through reducing the concentrated exposure an investor might otherwise have in a single company, industry, country, or asset class, a diversified portfolio reduces the possibility that any individual portfolio component will expose that investor to significant losses. While diversification does not eliminate the risk of a portfolio experiencing negative returns, it does help to control the risks of a given portfolio strategy, and may benefit the investor in volatile markets as asset classes respond differently to market conditions.

As your situation changes, you can update your information and strategy to be more conservative or aggressive.

All dividends are automatically reinvested in your account. This means that any dividends (cash) you receive as an investor are automatically put to work for you.

On an asset allocation level, we use a threshold-based rebalancing approach. We will monitor your portfolio and when markets fluctuate and an asset class is out of its respective, pre-determined “tolerance band”, we will look to rebalance in a tax-efficient manner.

All investments carry some degree of risk. Stocks, bonds, mutual funds and exchange-traded funds can lose value, even all their value, if market conditions sour.


Money Movement


You can fund your account through a transfer from your checking or savings account, by transferring your existing investments, an IRA Transfer, or the rollover of a retirement plan (i.e. 401k).

Once you have established an account, you can login and add funds at any time. Simply click on Transfers to initiate a cash transfer and select your bank account or add a new bank account. You can also select the frequency of your transfers if you wish for them to reoccurring. Once you complete the information, you can electronically sign the form and submit. It will take 24-48 for your request to be processed.

Yes, once you have established an account, you can login and add funds at any time. Simply click on Transfers to initiate a cash transfer and select your bank account or add a new bank account. You can also select the frequency of your transfers if you wish for them to reoccurring. Once you complete the information, you can electronically sign the form and submit. It will take 24-48 for your request to be processed.

Typically, funds are invested within 24-48 hours when the funds are coming from a checking or savings account. Transfers from other investment accounts may take longer.

There is a minimum for the initial account opening, but there is no minimum for additional contributions. The maximum amount that can be transferred from a checking or savings account at one time is $250,000. IRA and ROTH IRA contrition limits should be considered when making a contribution to those types of accounts.

Yes, when you are going through the account opening process you will be given the opportunity to transfer other investment accounts to your new WealthBuilder account.

You can transfer brokerage accounts including stocks, bonds, mutual funds and ETFs, mutual funds direct at the mutual fund company, 401(k) rollovers and annuity assets.

Once you have established an account, you can login and withdraw funds at any time. Simply click on Transfers to initiate a withdrawal. You can also select the frequency of your withdrawal if you wish for them to reoccurring. Once you complete the information, you can electronically sign the form and submit. It will take 4-5 days for your request to be processed.

Yes, once you have established an account, you can login and withdraw funds at any time. Simply click on Transfers to initiate a withdrawal. You can also select the frequency of your withdrawal if you wish for them to reoccurring. Once you complete the information, you can electronically sign the form and submit. It will take 4-5 days for your request to be processed.

It typically takes 4-5 days to liquidate assets and deposit funds to your account.


Retirement Accounts


An Individual Retirement Account (IRA) is a tax-advantaged account that is designed to help you save for retirement. However, unlike a 401(k), it’s not tied to your employer. An IRA belongs to you individually, which means you get more control and flexibility. There are typically two types, Traditional IRAs and ROTH IRAs. (link to Traditional and Roth)

You deduct your IRA contributions from your taxes in the year you made the contributions, which lowers your taxable income for that year. You then pay taxes on the money when you withdraw it in retirement (based on your income at the time of withdrawal).

You contribute using after-tax money (taxed based on your income at the time of contribution), without deducting those IRA contributions from your taxes. You then withdraw your money tax free. Your account must be open for 5 years and you must be over age 59 ½ to be eligible for qualified tax-free withdrawals. You can withdraw your contributions (but not earnings) at any time—not just in retirement.

Generally, it takes 7-10 business days after the funds have left your old provider for the funds to appear into your WealthBuilder account. This includes mail time, processing, and time for the funds to settle. You will be notified via email as soon as the funds appear in your WealthBuilder account.


Non-Qualified Accounts


One of the most basic types of investment accounts is a taxable brokerage account. These types of accounts can be opened individually or jointly. Unlike IRAs or employer sponsored plans, they offer no tax benefits, but they are free of the restrictions and rules that affect IRAs and employer sponsored plans.

When you are going through the account opening process you will be given the opportunity to transfer other investment accounts to your new WealthBuilder account.


Education


Exchange-traded funds (ETFs) combine aspects of mutual funds and conventional stocks. Like a mutual fund, an ETF is a pooled investment fund that offers an investor an interest in a professionally managed, diversified portfolio of investments. But unlike mutual funds, ETF shares trade like stocks on stock exchanges and can be bought or sold throughout the trading day at fluctuating prices.

Mutual funds are a popular way to invest in securities. Because mutual funds can offer built-in diversification and professional management, they offer certain advantages over purchasing individual stocks and bonds. But, like investing in any security, investing in a mutual fund involves certain risks, including the possibility that you may lose money.

A bond is a loan an investor makes to a corporation, government, federal agency or other organization in exchange for interest payments over a specified term plus repayment of principal at the bond’s maturity date. There are a wide variety of bonds including Treasuries, agency bonds, corporate bonds, municipal bonds and more. Likewise, there are many types of bond mutual funds.


Tax Information


You may need to pay taxes on realized capital gains, dividends received, and other transactions occurring in your non-retirement accounts. By February 15, we will email you with the status of your 1099 tax form and details on next steps.

Please consult your CPA or tax professional for advice on filing your personal taxes, or visit the IRS website.

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Experience a simple and scientific online investment and portfolio management solution to help you build for your future.

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