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:

Go to the Email Page to request an Email Information Package, or call 800-448-3550.
After reviewing the Email Information Package, please phone us to talk about your situation and how our services may work for you.
Complete a questionnaire that is sent as part of the Email 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 legal concerns, a portfolio cannot include securities that are not part of our investment strategy. Any security that an investor places in a managed account will be liquidated and the proceeds will be reinvested in securities that are part of the strategy. If for any reason you do not want specific securities sold, we will arrange for those securities to be moved to a non-managed account opened in the same name as the managed account.

An investor with non-managed assets may want to consider the value those assets when selecting their asset account in the managed account. For example, an investor with a large non-managed equity position may want balance that risk with a less aggressive managed strategy.

Investors holding securities in a non-managed account are solely responsible for those assets. Portfolio Solutions does not track non-managed assets nor considers those assets when making investment decisions in a managed account.

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.