Built by BayRock & Charles Schwab
AI-Powered Roth IRA Strategies. Built by BayRock, utilizing the Charles Schwab Intelligent Portfolio platform.
AI Powered Roth IRA Strategies are designed to simplify the investment process. At BayRock, we tailor the AI Powered Roth IRA Strategies it to meet your individual financial goals and risk tolerances, thereby optimizing wealth growth over time.
AI Powered Roth IRA Benefits
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Tax-Free Growth: Contributions are made with after-tax dollars, allowing your investments to grow tax-free, with withdrawals in retirement also being tax-free.
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No Required Minimum Distributions (RMDs): Unlike other retirement accounts, Roth IRAs do not require you to withdraw at a certain age, letting your wealth grow throughout your lifetime.
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Withdrawal Flexibility: Contributions (but not earnings) can be withdrawn at any time without penalty, offering financial flexibility.
AI-Powered Roth IRA Steps to Get Started
Qualify for a Roth IRA
First and foremost, verify your eligibility to contribute to a Roth IRA, based on your income level. The IRS sets specific income limits for Roth IRA contributions, which are updated annually. Importantly, you also have the opportunity to contribute to a spousal Roth IRA, allowing a non-earning spouse to benefit from IRA contributions based on the earning spouse’s income.
Click here to download our
Open and Fund a Regular Roth IRA Account
The next step is to establish a Roth IRA account for each investor at Charles Schwab, which can be accomplished online at Schwab.com. Ensure you fully fund your Roth IRA annually before Tax Day (April 15) for the previous tax year. This maximizes your investment’s potential to compound over time.
Set Up Your Charles Schwab Intelligent Portfolio
After funding your regular Roth IRA, you’ll transition to setting it up on the Charles Schwab Intelligent Portfolio platform. This can be easily done via the provided link, https://institutionalintelligent.schwab.com/, with the use of Program Key: XZY1. The process is designed to be quick and straightforward, ensuring your Roth IRA is ready to be managed with AI-driven precision.
AI-Powered Roth IRA Funding
Once your account is set up, funding can be transferred directly from your bank or another brokerage account. BayRock assists in this process, ensuring a smooth transition to your new AI-Powered Roth IRA setup.
AI-Powered Roth IRA for Wealth Building
Managing your Roth IRAs with AI is a big step forward in personalized investment planning. By setting up an AI-Powered Roth IRA with BayRock on the Charles Schwab Intelligent Portfolio platform, you’re not just saving for retirement; you’re optimizing your investments with the precision and adaptability that only AI can offer. Whether you’re a seasoned investor or just beginning, now is the time to leverage this advanced technology to secure and grow your financial future. Visit https://institutionalintelligent.schwab.com/ and use Program Code XZY1 to embark on your journey towards financial empowerment today.
Built by BayRock on the Charles Schwab Intelligent Portfolio Platform
Charles Schwab’s Intelligent Portfolios are a form of automated investment service, often referred to as a robo-advisor. These portfolios are designed to make investing simpler and more accessible to a wide range of investors, from beginners to those with more experience but who may lack the time or desire to manage their investments actively.
Here’s an overview of how Schwab Intelligent Portfolios work:
Automated Investing
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Algorithm-Driven: The core of Schwab Intelligent Portfolios is an algorithm that selects a diversified mix of exchange-traded funds (ETFs) based on the investor’s risk tolerance, time horizon, and investment goals.
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Diversification: Investments are spread across various asset classes, such as stocks, bonds, and commodities, to help manage risk and pursue growth.
Customization and Risk Management
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Risk Assessment: Investors complete a questionnaire that assesses their investment goals, risk tolerance, and time horizon. The service uses this information to recommend a portfolio.
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Tailored Portfolios: Based on your risk assessment, BayRock offers a portfolio that ranges from conservative to aggressive, aligning with your and objectives.
Fees and Minimums
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About Advisory Fees: One of the notable features of Schwab Intelligent Portfolios is that they do not charge advisory fees, commissions, or account service fees for DIY Investors. However, the ETFs within the portfolio do have their own operating expenses.
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BayRock Advisory Fees: One of the features of working with an Independent Fiduciary Advisor is that you are charged an advisory fee. If you’re currently a BayRock client, your Robo Advisory Fee will be the same as the fees you’re being charged in your “regular” accounts as outlined on your agreement (usually 1% of Assets Under Management).
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Account Minimum: There is a $5,000 minimum investment requirement to start using the Robo Platform. This amount has varied over time.
Features and Benefits
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Automatic Rebalancing: The portfolios are automatically rebalanced as necessary to maintain the target asset allocation, helping to keep the investment strategy on track.
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Tax-Efficient Strategies: For taxable accounts, the service includes features like tax-loss harvesting, which can help to minimize taxes on investment gains.
Certainly! Including Dollar-Cost Averaging (DCA) and expanding on the benefits:
Dollar-Cost Averaging (DCA)
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DCA Explained: Dollar-Cost Averaging is an investment strategy where an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset’s price and at regular intervals.
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Benefit for Monthly Deposits: For investors who contribute to their Schwab Intelligent Portfolios on a monthly basis, DCA naturally occurs. This method can be particularly effective in volatile markets, as it allows investors to buy more shares when prices are low and fewer shares when prices are high, potentially lowering the average cost per share over time.
Additional Benefits and Features
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Adaptive Technology: Schwab Intelligent Portfolios continuously monitors and automatically adjusts the investor’s portfolio to keep it aligned with their chosen risk profile, ensuring that the investment strategy adapts to changes in the market and the investor’s goals.
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Access to a Broad Range of ETFs: The portfolios are constructed using a wide range of ETFs, which can include domestic and international stocks, bonds, real estate, and commodities, offering broad market exposure and diversification.
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Cash Allocation: Schwab Intelligent Portfolios includes a cash allocation, managed through the Schwab Intelligent Portfolios Sweep Program, which aims to provide a buffer against market volatility and liquidity for the portfolio. The amount of cash held is based on the investor’s risk profile and investment strategy.
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Transparency and Control: Investors have access to detailed information about their portfolio’s composition, performance, and transaction history through Schwab’s online platform, allowing for a high degree of transparency and control over their investment.
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Professional Support: In addition to the benefits of using the Schwab Intelligent Portfolio Platform, BayRock clients get professional investment advice and customer service, providing you with the opportunity to ask questions and get help when needed.
By combining strategies like Dollar-Cost Averaging with the automated management and rebalancing of portfolios, BayRobo aims to offer a convenient and efficient way for investors to grow their wealth over time. These features, alongside the potential tax efficiencies and the ability to invest in a diversified portfolio with a low entry barrier, make Schwab Intelligent Portfolios – built by BayRock – an excellent option for many investors.
Disclaimer
While Schwab Intelligent Portfolios offer several benefits, such as low costs and automated investment management, it’s important for investors to consider their own financial situation, investment goals, and the potential limitations of algorithm-based investing. For example, personalized financial advice from a human advisor might be more suitable for individuals with complex financial situations.
BayRobo Investment Strategies for Volatile Markets
In this older video, I introduced the BayRobo Strategy and invited clients to consider joining me in putting BayRobo in place in their investment portfolio.
Exchange-Traded Fund?
An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other assets, but unlike , ETFs can be purchased or sold on a stock exchange the same way that a regular stock can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies.
The first ETF was the SPDR S&P 500 ETF (), which tracks the , and which remains an actively traded ETF today.
Key Takeaways
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An exchange-traded fund (ETF) is a basket of securities that trades on an exchange just like a stock does.
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ETF share prices fluctuate all day as the ETF is bought and sold; this is different from mutual funds, which only trade once a day after the market closes.
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ETFs can contain all types of investments, including stocks, commodities, or bonds; some offer U.S.-only holdings, while others are international.
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ETFs offer low expense ratios and fewer broker commissions than buying the stocks individually.
The Inflation Planning Blueprint
Inflation will continue to push prices up and the FED is committed to keeping inflation at bay by raising interest rates. This will continue to create market volatility. Check out our before you make changes to your investment portfolio.
Financial Planning – Not Investment Management – is What Matters Most
If you are currently a BayRock client with at least $500,000 invested, you are entitled to complimentary financial planning. Its already a part of your service agreement with BayRock. If you’re still building wealth, we offer a low-cost, high touch financial planning service for any budget.
Fee Based Financial Planning services are offered at three pricing levels designed to address three different levels of financial planning needs from simple to more complex. Each Fee Based Financial Planning level provides additional services.
to learn more about by .
, 7 Considerations
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Market volatility is unnerving, but normal, it is a feature of long-term investing.
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Market volatility is not fun, but you can expect to see market declines periodically throughout your investing career.
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Yet it’s hard to sit still when the market is sliding. You can’t help but think: “Shouldn’t I be doing something?”
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Every investor is different, but here are 7 things you should consider when investing in volatile markets:
1. Resist the urge to sell based solely on recent market movements.
Selling stocks when markets drop can make temporary losses permanent. Staying the course, while difficult emotionally, for your portfolio. This doesn’t mean you should hold on blindly, but we suggest taking into account an investment’s future prospects and the role it plays in your portfolio, rather than being guided by noise and fear.
2. Take the long view.
Markets typically go up and down, and you’re likely to experience several significant declines during a long investing career. But even bear markets—that is, periods when the market fell by more than 20%—historically have been relatively short when compared to bull markets. Because timing the market’s ups and downs is nearly impossible, but all investors would do well to ignore the noise and stay focused on their plans.
3. and your risk capacity
Risk tolerance is your ability to emotionally handle big price swings; risk capacity is your financial ability to take a loss. Market downturns can be a wake-up call to reconsider your risk tolerance, although we recommend waiting until you’re calm. Risk capacity, however, can—and should—be considered at any time. Do you have enough cash to handle near-term goals? Money that you’ll need soon or that you can’t afford to lose shouldn’t be in the stock market—it’s best invested in relatively stable assets, such as money market funds, certificates of deposit (CDs), or Treasury bills. If you’re retired, having your next 12 months of living expenses in a bank account or money market fund—and a few more years’ worth in bonds that mature when you need the money—can help you stay calm when stock markets are not.
4. Make sure you have a diversified portfolio
Volatile markets also can reveal that portfolios their owners thought were appropriately diversified in fact aren’t. If you haven’t looked at your portfolio recently to make sure you understand and that the mix matches your target asset allocation, now is a good time to become reacquainted with it. Schwab’s investor profile questionnaire can help you determine your profile and match it to an appropriate target asset allocation.
5. Consider including defensive assets for more stability
Defensive assets, such as cash and cash equivalents, Treasury securities and other U.S. government bonds, can when stocks are slipping. Also, if you expect to spend from your portfolio within the next few years, it’s a good idea to keep that money in assets that historically have been relatively liquid and less volatile than stocks, such as cash and short-term bonds. This can help you avoid having to sell in a down market.
6. Rebalance your portfolio as needed
Market changes can skew your allocation from its original target. Over time, assets that have gained in value will account for more of your portfolio, while those that have declined will account for less. Rebalancing means selling positions that have become overweight in relation to the rest of your portfolio, and moving the proceeds to positions that have become underweight. It’s a good idea to do this at regular intervals.
7. Adapt your trading to fast-moving markets
If you must trade during volatile markets, take current conditions into account when entering orders. Be careful when trading during the first and last hours of the trading session, which tend to be the most volatile. Trade smaller positions, and consider “scaling” in or out of positions by buying or selling stock in increments as the price fluctuates.
There are defensive steps you can take to protect an unrealized gain or limit potential losses on an existing position, such as stop orders and stop-limit orders.1These can help make your decision-making more automatic and less reliant on doing the right thing in the heat of the moment.
Get AI Powered Roth IRA Strategies Today!
AI Powered Roth IRA Strategies are built by BayRock on the Charles Schwab Intelligent Portfolio platform designed to leverage the power of AI in the investment process. Get started with a Roth IRA
