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FAQs

Have a question about Velocity Digital Portfolios? Check out our FAQs. If you need further information, feel free to contact customer service and receive real support from a real person.

Maintaining Your Velocity Account

  • Why is there a suggested minimum of $150,000 minimum on the Velocity Select Managers (Institutional shares) portfolios or a $75,000 minimum on the Velocity Income Select portfolios?
  • What support can I receive through customer service?
  • How can I close my Velocity Portfolios account?

Investing Funds

  • How soon can I start investing once I open my account?
  • How do I move money to and from my Velocity Portfolio?
  • Can I switch portfolios once I’ve invested?
  • How often does Velocity rebalance my portfolios?

Understanding Fees

  • Why do I have transaction fees with Velocity Income Select and Velocity Select Managers (Institutional shares) portfolios?
  • Does Velocity Digital Portfolios receive a portion of the mutual fund management fees that I pay?

Maintaining Your Account

Q: Why is there a suggested $150,000 minimum on the Velocity Select Managers (Institutional shares) portfolios or a $75,000 minimum on the Velocity Income Select portfolios?

We wanted to offer different high-quality portfolios for different types of investors. No matter which option you choose, our goal is to help all investors improve their current financial path. Efficiently managing fees is part of that process. The percentage ratio of the transaction fees in the Velocity Income Select and Velocity Premium portfolios correlate to the amount of money you invest. The $75,000/$150,000 suggested minimums keep the fee’s ratio against the money invested low, so more of your money goes toward your investments.

For investors that want actively managed funds, but have less than $150,000 to invest, we offer the Velocity Select Managers (Investor shares) portfolios.  These are available with no transaction fees, and may be a more cost effective option than Institutional shares for account balances less than $150,000. (see "understanding fee's" below)

Q: What support can I receive through customer service?

At Velocity Digital Portfolios, every account owner receives real support from a real person at (801) 656-6516. If you have a question not included in our FAQs, you can find the answers and info you need—without chat bots and 24-hour waiting periods.

You can call customer support to help you with:

  • General market questions
  • General portfolio questions
  • General questions about your account

If you need deeper personal attention for managing your financial life and meeting your goals, then you may want to consider a traditional wealth manager over an online investment provider. This type of relationship would have a higher fee structure for robust planning and advice.

Q: How can I close my account with Velocity Digital Portfolios?

While we hope to never see a client go, we understand that sometimes this happens. You have complete control over when you close your account.

To close your account, you just need to notify us via email of your desire, and as soon as we receive your request, we stop managing your assets. Once you close your account, you will still own your TD Ameritrade account. You can either choose to liquidate your account or transfer the funds to another brokerage firm. We are always here to help you understand your options and pursue the account-closure solution that best fits your needs.

Investing Funds

Q: How soon can I start investing once I open my account?

You’ll finish the process for creating your account with Velocity Digital Portfolios within one to two days. As soon as you open and fund your account, we’ll allocate your investments according to your unique profile and investing needs.

The processing time for allocating your funds depends on how you funded your account.

Funded With Cash From Your Bank

When you fund your account using cash from a bank account, the funding process will usually take one to two days after you open your account.

Funded By Transferring Money From Another Brokerage Account

When you fund your account using assets from another brokerage account, the funding process will usually take up to 10 days after you open your account.

You’re always free to log into your account and track the progress of your account opening and funding, as well as any transfers and investments you've made.

Q: How do I move money to and from my Velocity portfolio?

When you sign up for your account, you also have the option to create an electronic transfer authorization. This authorization allows you to move money to and from your bank account into your Velocity account.

The process is a secure, convenient way to move your money easily and safely, as you need it. You can also use this authorization to set up an automatic investment plan that moves money from your bank account into your investment account with the frequency that you choose, in the amount that you select. This approach makes automatic investing easy.

Q: Can I switch portfolios once I’ve invested?

Yes, you can. To do so, you need to go through your investment profile questionnaire again and reassess your criteria. If the model comes out the same, and you still want to invest in a different portfolio, then you are free to choose another option. When you make this choice, you’ll sign a disclosure stating that you are asking to invest in options outside of your risk-profile parameters. You do not need to sign this disclosure if you move to a more conservative portfolio or one that is a completely different structure.

Q: How often does Velocity rebalance my portfolios?

Rebalancing portfolios from time to time is helpful in keeping your investments consistent with your selected model, as well as continuing to support tax efficiency. We typically rebalance all portfolios at least at year’s end. This will be an asset-allocation rebalance that also harvests gains and losses in taxable accounts. Some market circumstances may cause us to rebalance more or less frequently, such as:

1. Substantial Volatility

Sometimes, the market experiences substantial volatility. When this environment occurs and causes portfolio allocations to drift too far away from their targets, we’ll rebalance your portfolio to bring it back on course.

2. Minimal Volatility

We may choose to not rebalance your portfolio if very little volatility occurred in a given year and your portfolio is still on track with your selected model. We may also choose to not rebalance your allocation if your portfolio is performing as needed in relationship to your risk/return profile.

Understanding Fees

Q: Why do I have transaction fees with Velocity Income Select and Velocity Select Managers (Institutional shares) portfolios?

We created Velocity Digital Portfolios to give investors real choice in how they invest. You have two investment strategies that will include transaction fees:  The Velocity Income portfolios, and the Velocity Select Managers Institutional class portfolios. These fee's are paid to TD Ameritrade (our custodian), Velocity Digital Portfolios does not receive any portion of these fee's. Here's how it works:

Mutual Funds

Professionally managed mutual funds earn their money from the fees they charge to invest into their funds, referred to as the Mutual Fund Expense Ratio. These fee's are not billed to you directly, but rather taken from the funds overall return. The performance information they then report is the total return net of the funds annual expenses.

Believe it or not, mutual funds charge different fees depending on who is buying their fund. For example, if someone buys shares of a particular fund on their own through their brokerage account, they would buy “Investor/Retail Class” shares. To own that fund for example, these shares might charge an annual fee of .74% per year, which they deduct from your return. However, Velocity Digital Portfolios is a Registered Investment Advisor (RIA). As a result, we're able to offer the exact same fund for our clients for a lower fee of .54% per year using Institutional shares.*

For investors with less than $150,000 to invest, we offer clients retail shares, which have NO transaction fee. Why do we do this?  Brokerage firms contract with fund companies to receive part of the management fee. However, brokerage firms don't offer institutional class shares without a transaction fee. As noted earlier, these Investor class shares have a higher management fee built in to them. Investor shares may be more cost effective than Institutional shares because the transaction fee's on Institutional shares might exceed the difference in fund expenses.

For balances over $150,000, the difference in Institutional fund management fee's is large enough to more than offset the transaction fee's that they carry.

Why offer both Institutional and Investor shares classes? Because we want to give investors more choice in how they invest, and how they manage their investment expenses.

For example*:

Investor (A ) has $50,000 to invest. She could invest in Investor shares with a fund expense of .74%, which would be $370 on the $50,000 balance.  If Investor (A) used Institutional shares, she would pay .54%, which is $270.00, plus $202.00 in transaction fees, for a total of $640.00 in fees the first year.  In this example, Investor (A) would be better off with Investor shares where she would avoid transactions fees, but pay a little more in fund expenses.

Investor (B) has $200,000 to invest. He could buy Investor shares and pay fund fee's of .74% for a total of $1,480 in fund expenses the first year. However, if Investor (B) used Institutional shares with a fund expense of .54%, the total amount in mutual fund expenses the first year would be $1,080.00, adding in $202.00 for transaction  fees, the total fee would be $1,282.00,still less than the management fee of the Investor shares ($1,480.)

Investor (C) has $50,000 to invest, and invests in the Velocity Index Advantage portfolio (Moderate risk). They would pay no transaction fee's, and fund expense fee's of .16%.  This would be equal to $80.00 in fund expense fees in the first year.

Exchange-Traded Funds (ETFs)

Some ETFs in the Velocity Income Advantage portfolios may also charge transaction fees. We decided to give you the ability to make your own choices about whether or not to include these investments in your portfolio. If you prefer a low-cost alternative to investing with no transaction fees on index ETFs, then a good choice would be the Velocity Index Advantage portfolios.

Any transaction fee that you pay for making a mutual fund purchase in your Velocity Digital Portfolios account goes directly to TD Ameritrade—our custodian (brokerage firm)—not to Velocity Digital Portfolios.

Q: Does Velocity Digital Portfolios receive a portion of the mutual fund management fees that I pay?

Absolutely not. In fact, we receive no fees or incentives from any third party or vendor to offer or invest in their funds. We believe this type of arrangement creates a conflict of interest for acting in our clients’ behalf. The only fee we ever receive is the management fee that goes toward our service to professionally manage our client’s investments.

Not all online providers approach this detail equally. Many require you to invest in their proprietary mutual funds, meaning funds that their company owns. By doing so, they can keep the fees that these funds generate—and make more money. Because they’re offering their own funds that can pay them fees, you may get a very limited selection of funds, some of which have existed for only a short time—meaning, there’s not a strong track record of performance. These firms may even market their service as “free.” In these scenarios, the provider often requires you to keep a certain amount of your investments in cash, which they then use to generate returns for themselves—all while not charging you an upfront “fee.” Instead, they simply hide their profit in the mutual fund fees they keep.

We believe you deserve transparency in every area of your relationship with us. Velocity Digital Portfolios is committed to keeping fees low, transparent, and focused on what creates the best investment opportunities for you.

*All fee data is as of 12/12/2017 and is used for illustrative purposes only. The fee's any investor pays may be more or less than those listed in the examples.