Wednesday, July 28, 2010

Re Re-Confirmation of Pledged Investments

Hopefully for the last time, I am looking for reconfirmation of pledges for those over $20K now that a firm timetable is in place.  I am trying to send emails individually but it's a lot of people and a handful I don't have an email address for since the pledge came in the form of a comment on the website.  Please do not add a comment to this post, but email me with confirmation. 

Since I need capital to trade with it is quite important these monies be ready upon launch (Oct-Nov 2010) and does not come in January 2011 or "whenever", so simply send email confirming amount pledged, name, state and I am asking you let me know if you will be investing directly with the fund or through an electronic brokerage (if so which one)

If a brokerage, please send me the brokerage name so we can confirm the fund will be available there and I can lay the groundwork in September for the fund to be 'available' on that specific platform / brokerage.  To repeat on this subject, the fund will NOT be available at Fidelity and Schwab.  Long story short, they have mutual fund supermarkets where a ton of investor money sits but they have incredibly onerous fees (both up front and ongoing) to partake in those networks.  Certainly I don't think it is affordable for a fund under $50M in assets to partake, especially as an "independent".  So if your money is in those 2 brokerages you will need to either (a) open a stand alone account directly with fund or (b) open an account with another well known brokerage like Etrade, TDAmeritrade, or Scottrade and transfer money there.


I get this question almost every week so let me state again that retirement funds are fine (IRA, rollovers, whatever) - anything any other fund can do, this fund will do - it's standard fare to have retirement accounts available. There is nothing special or unique to this fund than any other, other than hopefully performance and strategy.  Everything else... standard fare.

If you do a rollover from one institution to another in a retirement account it is simple - you never touch the funds.  You simply will mark on the application for the receiving institution you want to do a rollover out of the old institution (Fidelity or Schwab) and provide the new institution with your account information.  They handle the rest when they create your new account.

Also let me reiterate I will never see your money; so when I say you open a direct account with the mutual fund that simply means you will get paperwork (statements) directly from the fund rather than Etrade or Ameritrade, etc.  That was the typical way people invested in mutual funds before the advent of e-brokerages in late 90s.  If you choose that route - your money will be sitting in a financial institution in San Francisco... I will be doing nothing with the back office (that will be outsourced to a firm whose only jobs is to be the backoffice for mutual funds and hedge funds), only managing a portfolio.

Most other questions have been answered here [May 2008: Frequently Asked Questions] or here [November 2009: General Updates, Questions]


I will have an update on pledges up tomorrow, and also an update on specific states which will be available on launch since I've received an influx of investors from a few states that were either not on the radar or below the threshold of $40-45K.  More details tomorrow.

Again, for today please only send confirmation emails in the $20K+ category since I don't want to be overwhelmed with emails (I have about 350 "pledges").  Thank you.


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