Below are some answers to questions about RecipeInvesting.com from VizMetrics. The Tactical Portfolio Descriptions page contains details about each of the dynamic Portfolio Recipes.
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How it works
Portfolio Recipe concepts and ideas
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How it Works
What is a Portfolio Recipe and how does it help me?
A Portfolio Recipe is a method you can use create an investment portfolio. We use the term "Portfolio Recipe" but others may call this a "model portfolio" or an "asset allocation model." A Portfolio Recipe is analogous to using a recipe for a cooking, but instead of creating a meal with various food ingredients, you are creating a portfolio with various investment ingredients. We call each different method of combining ingredients into a portfolio a "Portfolio Recipe."
The ingredients for each Portfolio Recipe are exchange-traded funds (ETFs) or mutual funds. Each Portfolio specifies what ingredients to buy (for example, certain exchange-traded funds) and what percentage of each ingredient to include in your investment portfolio. Each Portfolio Recipe is different and may include various asset classes such as stocks, bonds, or real estate.
For example, here's a simple Portfolio Recipe for a Balanced Portfolio:
Subscribers to the Investor Subscription would see a more compact version like this: VTI=60%, BND=40%
Is there a limit to the number of portfolios I can create using RecipeInvesting.com?
No. Because you invest at your own broker using a Portfolio Recipe, there is no limit to the number of accounts or individual portfolios that you can create. Investors may wish to create multiple portfolios or sub-accounts, each using a different Portfolio Recipe.
What is a robo-adviser?
A robo-adviser is an online investing service that charges a fee, usually based on a percentage of your assets. For this fee, the online service helps you 1) choose a static asset allocation, 2) purchase exchange-traded funds on your behalf to match that allocation, and then 3) periodically rebalance your portfolio to that static allocation by buying and selling the underlying ingredients. The robo-adviser uses automated software (hence the prefix "robo-" meaning "robotic") to provide this periodic rebalancing service.