How to Invest using a Portfolio Recipe

 

After you have chosen a Portfolio Recipe, you are now ready to invest. If you have not yet selected a Portfolio Recipe, refer to "How to Choose a Portfolio Recipe." Please contact us if you have any questions.

 

Investing using a VizMetrics Portfolio Recipe

 

1. Get the Portfolio Recipe ingredients

  • Go to https://go.recipeinvesting.com/login
  • Enter your email address that you used to sign up, enter your password, and click "Sign In"
  • Under "Portfolio Recipes" click "View Content," then choose "Portfolio Recipes & Results" and then choose a link such as "All Portfolio Recipes"
  • Once you see the list of all the Portfolio Recipes, you can click on the column headings to sort, or click on a recipe's name to see the details for that recipe. 

2. Find the portfolio ingredients and percentages

  • Scroll down on the Recipe Detail Page and find the section labeled "How to Invest"
  • If the ID for your chosen Portfolio Recipe starts with "t." (such as t.aaae or t.mva3) or "s." (such as s.plus or s.brow) then you will locate the portfolio ingredients and percentages, which will look similar to this: 
    • EEM=2.08%, EFA=5.89%, GLD=40.59%, IWM=8.64%, IYR=10.16%, QQQ=2.79%, SPY=5.61%, TLT=24.24%. 
    • The number of ingredients and percentages will vary based on the Portfolio Recipe you have chosen. 
  • If the ID for your chosen Portfolio Recipe is a mutual fund (e.g., VWIAX or VBIAX) or an exchange-traded fund (e.g., AOA, DVY), then the only ingredient in your recipe will be the fund itself. 
  • If you are investing at FolioInvesting.com, look for "Recipe ingredients (for FolioInvesting.com)" which will have a slightly different format, as follows:
    • EEM,2.08,EFA,5.89,GLD,40.59,IWM,8.64,IYR,10.16,QQQ,2.79,SPY,5.61,TLT,24.24

3. Pick a brokerage account

Use your existing broker or you may wish to consider a "portfolio brokerage" that permits buying and selling using portfolio percentages. We recommend FolioInvesting.com, since they provide the following:

  • Automatic calculation of all the trades needed based on the ingredient percentages
  • Simplified, one-click trading
  • Flat annual fee for up to 2,000 trades per month

4. Submit your trades

You can buy the portfolio ingredients at your brokerage, by entering a buy order for each portfolio ingredient.

 

If you are investing at FolioInvesting.com, you can enter target percentages and the trades will be number of shares will be calculated for you. Instruction for investing in a Portfolio Recipe at FolioInvesting.com are as follows:

  • Log in to your FolioInvesting.com account. If you need an account, you can open one at FolioInvesting.com. You will need to have ready-to-invest cash available in your account.
  • Click on "Folios (Add New Folio)" under the name of the account that you wish to use.
  • Under "Build-your-own Folio" in the middle of the page, click on "Security-by-Security"
  • You should now see a pop-up window titled "Folio Loader - Add Securities"
    • On the VizMetrics detail page for your portfolio recipe, copy the comma-separated list of tickers and numbers which looks similar to this example:
      • EEM,2.08,EFA,5.89,GLD,40.59,IWM,8.64,IYR,10.16,QQQ,2.79,SPY,5.61,TLT,24.24
    • Switch back to the "Folio Loader - Add Securities" window and paste the tickers and numbers into the white box at the right side of the window.
    • Click the [Add] button at the bottom of the window
  • You should now see a page titled "Create a Folio: Allocate Weights" 
    • Make sure the total at the bottom of the list adds up to 100.00%
    • Make sure you are satisfied with the tickers in the list
    • Click  [ Continue ]
  • You should now see a page titled "Create a Folio: Prepare Order"
    • Enter a name for your new Folio
    • Choose how you would like to handle distributions
    • Enter the amount to invest
    • Click [ Preview Order ]
  • You should now see a page titled "Create a Folio: Preview and Place and Order"
    • After you have reviewed the order, click "Place Order"
  • After your order is placed, click "Return to Accounts"

If you are investing at a discount brokerage without a rebalancing tool, follow these steps.

  • Determine the total amount you want to invest using a particular Portfolio Recipe
  • Based on the percentage allocation from Step 2 (above), find the dollar amount to invest in each ingredient. Do this by multiplying the percentage allocation for each ingredient by the total amount you wish to invest. This will give you the dollar amount to buy for each ingredient.
  • Get share price for each ingredient from your broker's website.
  • Calculate the number of shares to buy of each ingredient by dividing each dollar amount to invest in each ingredient by the share price of each ingredient.
  • Make a list of trades with tickers and share quantities.
  • Enter the trades with your broker.

If you are a financial advisor, you can use the client rebalancing tool provided by your custodian, your prime brokerage, or a third-party software company. Examples include iRebal at TDAmeritrade (built into Veo), Portfolio Rebalancer at Charles Schwab (integrated with schwabadvisorcenter.com Trading Tools), Morningstar tRx, RedBlack, and TradeWarrior.

 

4. Track your progress and rebalance monthly

After you receive confirmation of your buy orders, you can track your portfolio's progress in your brokerage account. If you are using a tactical (t.) Portfolio Recipe, you will need to rebalance your portfolio at the beginning of the next month. The list of new ingredients and allocations is published for each Portfolio Recipe on the first trading day of each calendar month. Access these by logging in at go.recipeinvesting.com/login