Steps to become a client

How to Become Client

Reading this website is the first step to becoming a client of Portfolio Solutions. The second step is contacting us for more information. That puts the process in motion:

Email info@PortfolioSolutions.com or call 800-448-3550 to request an email Information Package.
We would like to talk with you by phone about your situation and how our services may work for you. The interview can be done at the time you contact us for a package or shortly thereafter.
Complete a questionnaire that is sent as part of the Information Package, and submit that document with other information as requested to receive a Portfolio Proposal. There is no cost or obligation for a proposal.
After discussing the proposal with us and deciding to hire our firm, we will prepare all Charles Schwab Institutional new account paperwork including transfer forms. Those documents will be sent to you for signature. Established Schwab accounts may also be used.
A Portfolio Solutions representative will track account opening documents and asset transfers. We will contact you when everything is in place and we are ready to begin management. You may monitor all these activities over the Internet if you desire.

Asset Transfer Policy

Most mutual funds, stocks and bonds will transfer into Charles Schwab. There may be some securities that will not transfer, such as proprietary mutual funds sold through brokerage firms and investments with embedded back-end commissions. You will be notified by our operations team of non-transferable securities. Those securities must be sold through your current custodian. You may also choose to sell all securities through your current custodian, although that may be more costly than transferring the securities to Charles Schwab and liquidating at that firm.

The asset transfer process can take several weeks. It depends on the type of securities to be transferred and type of account being transferred, as well as the efficiency of your current custodian. Please be patient.

Low-cost Basis Securities

Many clients have securities in taxable accounts that are at a low cost basis. Selling those securities may create a realized capital gain and possibly a taxable event. We understand this issue and our clients' concern about taxes.

Unfortunately, due to liability issues, we cannot hold transferred securities that are not part of our investment strategy. Any security that an investor places with our firm will be liquidated and invested in the securities we want you to own. The exception is a security already held that is also part of the allocation in the Investment Proposal.

If you does not wish to sell securities due to a tax consequence or other reasons, then we need to be notified of your decision before we begin managing the account. We can arrange for a non-managed account to be opened in your name. The securities you do not want to be sold will go into the non-managed account.

We do not consider securities in non-managed accounts as part of an asset allocation when we are managing a portfolio. Investors holding low-cost basis securities may want to consider that in their overall asset allocation when selecting an allocation for the managed account. For example, an investor with a large position in a low-cost basis stock may want us to manage a less aggressive portfolio to offset the risk of that large single position. We will not recognize the low-cost basis position when managing a portfolio. An investor may, however, want to consider it when selecting a risk target for their entire net worth.

Cash Policy

Cash and securities that are transferred into a managed account will be automatically invested in the asset class where needed. If, for a special reason, a client does not want the money invested, contact Portfolio Solutions at least one working day prior to the anticipation of a deposit or transfer.

Clients withdraw money from accounts in two ways: automatic cash transfers and on-demand cash transfers. Both transfers can be set up to move money from one Schwab account to another or directly to a bank checking account. The bank transfer is done through the Schwab MoneyLink system at no cost. There is a one time setup for regularly scheduled transfers. On-demand transfers require five business days notice to Portfolio Solutions. Traditional paper checks sent in the mail are also on option.

Schwab MoneyLink Transfers

MoneyLink is the preferred method for moving money from your Schwab account to your bank checking account. It is a free service that only needs to be set up once. Clients may have automatic monthly or quarterly distributions sent over the MoneyLink system. Or when special funds are needed, contact Portfolio Solutions, and those funds will be sent directly to your bank checking account in a lump-sum. There is a few days delay in transferring on-demand money because we may have to raise the cash in the account. On-demand MoneyLinks occur approximately five business days after we are notified.