Investment

All the definitions to help you understand your Wealthup investment options.

Getting Started

Everything you need to get you up and running on Wealthup.

Plans

Detailed descriptions on what the different plans we offer.

Security

All the techy details on how we keep your information secure.

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Investment

All the definitions to help you understand your Wealthup investment options.

Money

How to get money in and out of your Wealthup account and your bank.

Tax

Questions related to tax and your investment account.

A stock is a share of a company held by an individual or group. Corporations raise money by selling stocks, giving stock owners (also known as shareholders) partial ownership of the corporation so that they fund their future projects that can bring more revenue to them. Stocks are typically bought and sold on stock exchange (marketplace).

Exchange-Traded Funds (ETFs) and mutual funds are similar in that both are a basket of anywhere from a handful of securities to thousands of securities, but they differ in investment minimums and expenses. Also, while ETFs can trade throughout the day, mutual funds trade once per day after the market closes.

Rebalancing is when we sell some of the stocks or ETFs that have gone up in value and buy more of the ones that went down, in order to keep your portfolio close to its original mix of investments. It’s important to review the periodically and our AI does this at least annually. Our AI might rebalance more often if there is a big move in one asset class or if we decide to change the mix of the funds in the portfolio. The end goal is to automatically keep your portfolio on track for your stated goals.

Yes indeed! You can personalize every aspect of your investment including the investment strategy. When you onboard through our app you can choose your investment strategy ranging from conservative to aggressive. Our AI tailors the portfolio specifically for you based on your financial goals, such as retirement versus child’s education. You can change your strategy at any time.

We understand that life happens and situations change. If you need to adjust your answers to the questions we asked when you signed up, you can do this in the app.

1. Go to the Account section 2. Tap Investment Profile 3. Tap Select the question From there, you’ll be able to change your answers as needed.

Not yet, we are working on it. Please send us an email if you want to be notified when it is available at support@wealthup.io.

Yes. One of the benefits of having an account, especially a taxable investment account, is that it’s a liquid asset. If you need to access your money, you can initiate a withdrawal at any time by selecting Transfer Money once you select Money tab if cash is available it will transfer the available funds if not it will prompt you to approve the sale of partial or full sale of your current investment once you give “ok” that transactions will settle two business days after the trades occur. Once trades settle, we’ll automatically send the money to your specified account. It can take a few days for the funds to reach your bank account after your trades settle.

No, we do all the work for you including buying and selling of stocks/ETfs because we know your time is valuable which you would rather spend doing things you love the most than managing investments.

ETF stands for exchange traded fund. An ETF is a collection of investments that trades as a single security. They are similar to mutual funds, but whereas mutual funds can only be bought and sold at the end of the day for one price, ETFs trade continuously throughout the day and investors can buy or sell them at prevailing market prices. ETFs are generally also lower cost than mutual funds.

Yes, you may have voting rights for some of the companies you invest in on Wealthup. You need to own at least one whole share of the stock to be able to vote. Since we trade fractional shares for our customers, some of our users can hold less than one full share. As a shareholder, your voting power is proportional to the amount of stock you own. As a general rule, the more you own, the more voting power you have. This means that individual investors usually don’t own enough shares to have a personal influence on a company. Note that the issues that shareholders can vote on can vary significantly from company to company.

A regular stock split is when the issuer increases the number of shares and reduces the corresponding value of each post-split share. Neither generally impact the total value of the security being split. These are involuntary events and it may take a few days for an account to reflect updates to the shares held and corresponding market value. A reverse stock split occurs when the issuer of a security reduces the number of outstanding shares and increases the corresponding value of each post-split share.

You don’t need to do anything for dividend reinvestment. Wealthup automatically reinvestment the security or holding that paid the dividend in your account for you. The price at which the reinvestment is made is determined by the market at the time the reinvestment is made, typically within three business days of the dividend pay date. Currently we do not offer opting of dividend reinvestment.

Currently we do not offer opting of dividend reinvestment.

While the specific list of eligible securities is subject to change, the following general criteria applies when determining whether a holding is eligible for reinvestment: -All marginable securities prices greater than $4.00 -Most U.S. Equities and U.S.-traded foreign equities - All closed-end mutual funds not listed on the MSDI “H” EXCHANGE, OTC, PINK SHEET, or Bulletin Board -Unit Trusts with mandatory reinvestment CUSIP

All Active Invest brokerage and Active IRA accounts at Wealthup are eligible to participate in dividend reinvestment. For retirements accounts, this includes Traditional, Roth, Rollover, and SEP.

By visiting the “Profile” section of your account then press on “History” and then under “Trades” you will be able to see if a dividend was reinvested. Dividends credited to an account will be labeled with the ticker symbol of the company paying the dividend followed by “Dividend”. Dividends that are subsequently reinvested will be displayed as an additional line item with the ticker symbol followed by “Dividend Reinvestment”. Certain dividend payments such as one time dividends, special dividends, cash in lieu of dividends, or corporate actions may not be eligible for reinvestment.

Dividends are generally taxable and are reported on Form 1099-DIV. Dividends are classified as qualified and non-qualified and may be taxed at different rates depending on your tax situation. Dividend reinvestment itself is not taxable. However, when a reinvestment occurs it triggers a purchase or buy transaction similar to buying a stock. Reinvesting dividends will alter an investors cost basis in a particular holding and those additional purchases may need to be reported to the Internal Revenue Service. Depending on how long the shares are held the gain or loss will be considered long term or short term for tax reporting purposes.

We place trades for you when you need cash all you have to is tell us how much you need. If you need more than “available for withdrawal “amount, we liquidate shares in your investment portfolio and the funds will be available to transfer when the trade settles which is typically two business days after. You can schedule transfer of cash 24/7, but stock purchases can only be executed Monday-Friday 9:30 a.m. to 4 p.m. ET, with the exception of holidays and when a certain asset is halted or suspended. If you place an order outside of that time, your request will be placed when the market opens.

You can view it under your Profile>History.

An ACH transfer is an electronic money transfer between banks that allows money to be pulled from an account or to be ‘pushed’ online to accounts at other banks.

You can withdraw cash into either your external linked bank account. Here’s our withdrawal timing: Deposits Deposits can be withdrawn 5 business days after we receive them. This is important for fraud prevention. Keep in mind that it may also take a day or two for us to receive your deposits after they are submitted. Stock, ETF After a sale, the cash proceeds can be withdrawn 2 business days later, as long as the original deposit for the purchase has settled (see above). Pending orders Fractional, limit, and market on open orders reduce your withdrawable cash as we’re holding that money to place your order. If you would like to withdraw this cash, please cancel your scheduled order(s). Withdrawals from your brokerage account may take 1-3 business days to fully reach your linked bank account.

Share-based orders are executed during market hours. However, fractional share (Stock Bits) orders are executed once a day on trading days. Your order won’t appear as a completed transaction until we’ve made our purchases for the day. Since there’s a delay between placing your order and Wealthup completing the buy, the price of the stock might change, meaning the size of your share could also change.

While Wealthup will accept the majority of publicly traded investment instruments there are a few exceptions, such as Mutual Funds, Options, and Bonds. These holdings will need to be liquidated prior to moving your account to Wealthup. If liquidating a specific holding is not optimal for your situation, we can assist you in completing a partial transfer, and only transfer what is needed.

Yes, through the ACAT transfer process we can assist you when completing a partial account transfer.

No, orders are entered real time. Market orders can’t be accepted outside of market hours or when trading a certain stock is halted or suspended.

Absolutely! Wealthup can accommodate a range of retirement accounts and rollover options. We offer Traditional, Roth, Rollover and SEP IRAs. If you have an old 401K with a former employer, we can help you find out how much you’re paying in management fees to see what impact rolling over will have on your retirement funds, too. If you’d like to do that, set up some time with a client service advisor and they can help you get started calendaring.

Creating an account and scheduling a deposit takes just a few minutes. Once the account and bank information is approved, it takes 1-2 business days for funds to post to the account. Once the deposit is received, the funds will be invested in your personalized portfolio as quickly as possible.

We currently offer individual investment accounts, owned by one person. You can also have tax-advantaged retirement accounts, such as traditional IRAs, Roth IRA and Simplified Employee Pensions (SEP-IRA). We also allow you to rollover your 401k from previous employer into an IRA.

A SEP IRA (Simplified Employee Pension) is a retirement plan that is popular with many small business owners and self-employed individuals because it’s low-cost, flexible, and offers potential tax savings. Contributions are made by you as the “employer.” They may be tax-deductible from your business income and grow tax-deferred. Note that withdrawals in retirement are taxed as ordinary income and penalties for early withdrawals may apply.

Any employer–sole proprietorship, partnership, corporation, and nonprofit organization – with one or more employees can establish a SEP plan. Contributions an employer can make to an employee’s SEP-IRA cannot exceed the lesser of $57,000 or 25% ($56,000 for 2019) of the employee’s compensation. Compensation is limited to $285,000 in 2020 ($280,000 for 2019). There are no Roth versions of SEP IRAs. A SEP won’t prevent you from contributing to either a Roth IRA or a Traditional IRA. However, your ability to deduct the Traditional IRA contributions may be reduced depending on your income (MAGI) if you open a SEP IRA.

Contributions an employer can make to an employee’s SEP-IRA cannot exceed the lesser of $57,000 or 25% of the employee’s compensation. Compensation is limited to $285,000 in 2020.

It won’t prevent you from contributing to either a Roth IRA or a Traditional IRA. However, your ability to deduct the Traditional IRA contributions may be reduced depending on your income (MAGI) if you open a SEP IRA.

No, Wealthup(Personal Adviser Inc.) is not a broker. Your investment advice relationship is with Wealthup(Personal Adviser Inc.), a Registered Investment Advisor that is registered with the Securities and Exchange Commission. Transactions in your account are introduced (as “agent for custody”) to an independent custodian, DriveWealth LLC Clearing, that is a FINRA registered Broker Dealer. Your securities and money are held by a third-party clearing firm (or “custodian”), DriveWealth, who is also a FINRA registered Broker Dealer.

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