What happens after I transfer securities to my new portfolio?

First, we compare the securities you transferred to the positions we would buy for you. Any positions in common will be “right-sized” to match the target allocation for your account.

Any remaining positions that you transfer into your portfolio will be sold if they are not currently held in the strategies from the allocation you approved. Those funds will then be invested in securities held in Fool Wealth SMA strategies. These sales are considered taxable events in non-retirement accounts, so please consult a tax advisor for any advice or questions you have from a tax strategy perspective.

For example: Let’s say 10% of your current portfolio is invested in Amazon*. You then decide to become a Motley Fool Wealth Management client, and a portion of your Fool Wealth portfolio is invested in a strategy that also holds Amazon—but the strategy only recommends 3%. In this case, we would resize your allocation to fit the strategy and sell the remaining 7%.

This process typically takes place over a few days (or less, depending on the type of investment being sold). We might reach out to you regarding specific account permissions that may need to be updated for uncommon securities. After those stocks are sold, the cash will be reallocated to match the percentage allocation of each individual stock position in the strategies you approved.

If there are positions you wish to keep because of capital gains exposure or any other reason, DO NOT transfer those positions into your Fool Wealth portfolio.

*This message is not a recommendation to buy or sell any securities. The securities identified and described in this article do not necessarily represent the securities purchased or sold for our portfolios. You should not assume that an investment in these securities was or will be profitable, and there is no assurance, as of the date of this message, that the securities have been or will be in any model portfolio.