motif investing closing

Folio Investing is taking over the accounts. According to its March filing with the Securities and Exchange Commission, Motif had $18.2 million in assets from individual investors and $586.3 million from banks. Fifteen Must-Listen Business Podcasts for Advisors . Motif was founded in 2010 by Tariq Hilaly and Hardeep Walia, a former executive at Microsoft, as a digital investing firm based on a great idea they had. Clients can access their Motif accounts through May 20; the accounts will move to Folio Investing the next day. Motif Investing, a specialist in calculating indexes used in thematic investing, is closing. “This is the tip of the ‘tip of the iceberg’; I estimate that we’ll lose 20% of the firms in [Michael] Kitces’ fintech map by this time next year,” said Doug Fritz, founder and president of F2 Strategy. Its technology will live on, however, because Charles Schwab is … This is a discounted fee from Folio’s usual $29 per month. Welcome to Folio Investing! I have no business relationship with any company whose stock is mentioned in this article. “They’ll just recast the spotlight onto firms that are both innovative, have a solid business model that can weather downturns like this.”, filing with the Securities and Exchange Commission, Coronavirus Guidance for Financial Advisors, Sign Up for the Career Advantage Newsletter. The Company provides thematic investing solutions for individuals and financial advisors. You will be able to access account statements and trade confirms online through Folio’s website. If you’re a Motif … Motif Closing On May 20, 2020, Motif Investing will cease operations and transfer all remaining accounts to Folio Investing. Motif and Folio will comply with the requirements of SEC Regulation S-P concerning the privacy of consumer financial information, to the extent applicable. Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com. Since 2012, we’ve worked to give everyday investors access to cutting edge investment products. “But in terms of advisors, they have many other options to accomplish similar things, so I don’t see any material impact,” Spitzner said. Please see the Pricing and Sweep Disclosures below, or visit www.folioinvesting.com for more information on the services and fees at Folio.Q: Where can I obtain additional information about Folio Investing?A: Please visit www.folioinvesting.com.Q: How do the brokerage fees on Folio Investing compare with my Motif account?A: Folio Investing has discounted its leading Folio Unlimited pricing plan for Motif customers. But since Motif was founded in 2012, the field of companies helping self-directed investors has changed dramatically. Your required tax forms associated with your Motif account will be sent to your address of record. Motif appears to be suddenly closing. You are invited to explore their website, folioinvesting.com, to learn more about why they are a preferred brokerage firm for those investors seeking a smarter way to invest. If you do not wish to maintain a margin account at Folio you can convert it to a cash account once your account has been opened at Folio.Your initial login signifies your acceptance of Folio’s policies, including your consent to the use of their cash sweep program (your cash balance will be swept into Folio’s cash sweep program at that time) and margin borrowing (if available for your account).IRA NOTICE: If you have an Individual Retirement Account (IRA) through Motif’s clearing firm, Pershing LLC, the IRA Custodian for your new Folio IRA account will be The Kingdom Trust Company (“Kingdom”). eed for healthy revenues and capital reserves to weather a storm like today’s, according to Fritz. But the online broker likely won’t be the only fintech firm to fail as the economy weakens and the markets bounce around, technology consultants say. '. For two decades, they have revolutionized the way people invest online.As a result, many of the solutions you are familiar with at Motif will now be available to you as a Folio customer, in addition to many other innovations and features designed to enhance your investing experience. Motif Investing is going out of business. But it wasn’t enough, as Motif only had $18 million in client assets. According to Fritz, there is “hope” for fintech firms focused on planning and on environmental, social and governance or impact investing. Motif Investing Announces Plans To Shut Down In May April 23, 2020 • Christopher Robbins Motif Investing, an online broker pioneering a digital social and thematic investing service, has … At this time, we’ve made the decision to cease operations and transfer your account to Folio Investing. If, for any reason, your account is not transferred to Folio, Folio will not retain your bank account information other than as required by applicable law, regulation or Folio data retention policies. We appreciate the opportunity we’ve had to work with you, and we are confident that your investment needs will be well-served by Folio. A Planner's Guide to Consolidated Advisory Fees. I am not receiving compensation for it (other than from Seeking Alpha). Folio Investing supports as many accounts as you need under your single login, all covered by the discounted monthly or annual fee. “We’ve seen exponential growth in the number of companies trying to squeeze into this space, especially around digital advice,” he explained. hope” for fintech firms focused on planning and on environmental, social and governance or impact investing. However, if you have not completed a transfer to another firm by May 12, 2020, your account will be transferred to the Folio Investing platform and you will be responsible for any Folio charges you incur there, including their monthly fees and fees to transfer to another firm. Motif Investing, a digital brokerage that provided thematic investing and automated advice, has closed its doors for good. Janet Levaux, MA/MBA, is Editor in Chief of ThinkAdvisor & Investment Advisor. We’ve come a long way since we started this journey together and there is a lot for us to be proud of. All of the benefits listed above, including up to 2,000 commission free fractional share trades per month in twice daily windows, in as many accounts as you want, are all included with the Folio Investing Unlimited pricing plan for the low fee of $5 per month while the total value of your accounts with Folio is under $5,000.00, then just $19.95 per month when you have more than $5,000 (i.e. All shares (including fractional shares) and cash remaining in accounts eligible for transfer as of the close of business on May 20, 2020 will be transferred to Folio Investing. Folio’s program offers significant multiples of any one bank’s FDIC insurance limits, which is further described on the Folio Investing site. Aug 14, 2020. You will be able to access tax records for activity in your Folio account online through Folio’s website. Motif will close … Gundlach: Stocks Headed for Trouble; Fed Could Bend Yield Curve, Ric Edelman Warns of Long-Term Pandemic Impact, How Investors Can Evaluate Muni Bonds in the COVID-19 Economy, Trader Made False COVID-19 Blood Test Claims in Pump-and-Dump Scheme: SEC. Only time will tell, as the transfer is set for May 20th. See Folio’s margin risk disclosure document for more information. What does Motif’s shutdown mean for advisors? If you would like to access historical tax records, please download them from the Motif site by the end of day, May 20, 2020, when the site will no longer be available. There is no charge for the transfer to Folio. Unless you choose to opt-out, there is no action required on your part. San Mateo-based Motif Investing was a pioneering fintech that offered investors a simple way to buy a basket of stocks tied to a single investment theme, among other services. Once your Motif accounts are transferred over, you can reconstruct your portfolio view using Folio Investing tools. A bummer for them, their clients and the fintech community in general. As for the future of Motif’s founder, “Hardeep [Walia]’s such a smart, creative thinker. (If you decide to leave Folio after the transfer, you will incur a transfer fee. This page includes instructions on how to select between subscription offers from Folio.Like us, Folio is a member of FINRA and SIPC.You will be learning more about Folio’s investment offerings very soon. Their team is excited to welcome you, and ready to provide you with the level of service that you deserve on your journey toward achieving your financial goals. PORTFOLIO VIEW: The view of your Motif portfolios may not transfer over to your Folio account. Folio Investing is taking over the accounts. First, I want to thank you for all your support in taking Motif to where it is today. We’ve selected Folio to give you access to leading investment tools in a similar experience to what you’ve enjoyed at Motif.Your account transfer will start after market close on Wednesday, May 20, 2020, and your new Folio Investing account will be ready for you to use on Thursday, May 21, 2020. Motif, a brokerage platform focused on thematic investing, is closing up shop, according to published reports. Advance your career and take your firm's production to the next level with FREE practice-management tips. Motif, Iskowitz adds, is an example of a firm with “an innovative idea that gets traction but eventually hits a wall. Motif Investing, Inc. operates as an online broker. (Requests for a comment on this matter and the ETF news were not returned.). In order to facilitate the transfer of clearing services from Pershing to Kingdom, notice is hereby given that as of the close of business on May 22, 2020, Pershing will resign as your IRA custodian for your Traditional, Roth IRA, or IRA Rollover. They said Motif’s closure definitely or likely signaled further closures of investment management platforms, versus 38% who saw further shutdowns as “not necessarily” likely. “They’ll just recast the spotlight onto firms that are both innovative and have a solid business model that can weather downturns like this.”. … Motif is similar to the now-defunct platform. The same risks that apply to your margin account at Motif will be applicable to your margin account at Folio. Still, Motif had a partnership with U.S. Bank’s ultra-high-net-worth Ascent unit, points out Gavin Spitzner, president of Wealth Consulting Partners. The company notified users via email on April 17 in a message saying, “At … You can review the Folio Privacy Policy online. Last week, Motif Investing announced that it was ceasing operations. Most users might … Folio has been a leader in online brokerage since its inception in 2000 and was created to build better investors through its enduring and proven investment philosophy of diversification, low cost, client customization, consistent investing and tax minimization. The Investing News Source for Financial Advisers — Read on www.investmentnews.com/motif-investing-closes-191780 (Eighty individuals took the survey.). Driving Growth Through Multigenerational Relationships. My assumption is that this would be a wash-sale, but I will have to dive deeper into the tax consequences. The letter didn’t explain why the company was suddenly closing. This really hit me hard, as Motif is by far my favorite investing platform. The need for healthy revenues and capital reserves to weather a storm like today’s, according to Fritz. He was ahead of the curve with Motif, and I’d expect him to be so again.”. The company was founded nearly a decade ago and has focused on providing thematic investing solutions … Motif is similar to the now-defunct platform Hedgeable, Spitzner says. Notice: On April 17, 2020, Motif announced that it would closing down operations.Existing investors would see their portfolios transferred to Folio, another investment firm. Your account will be automatically transferred for no fee or charge to you to Folio as noted above. To preserve your Motif portfolio view, you will want to take a snapshot or download your motifs prior to the transfer date. If you wish to liquidate and close your account instead of transferring it, you may incur a taxable event when selling your securities holdings.Q: Where do I get my tax forms?A: Pershing will issue you by mail a copy of your tax forms for activity in your Motif account to your address of record. For people interested in an easy-to-use alternative, we recommend considering M1 … What makes more closures of, specifically, low-cost portfolio platforms likely? With high costs, intense competition and fee compression, it’s “very hard to turn a profit in these more commoditized arenas,” the consultant explained. All Rights Reserved. As you can imagine, if Folio Investing announces that the community Motifs will be 'active' within Folio, it would make my month, my year. Free unlimited access to ThinkAdvisor.com which provides advisors, like you, with comprehensive coverage of the products, services and trends necessary to guide your clients in making critical wealth, health and life decisions. At Folio, cash balances are held in Folio’s Insured Bank Deposit and Free Credit Sweep Program which pays interest as described in the Folio Customer Agreement and the Folio Investing site. Furthermore, its sophisticated tracking of individually created funds (motifs), allowed me to display results of my investing progress and decisions. If you do not transfer your account to another firm prior to the conversion as described, you are consenting to our sharing information with Folio. Motif “was really a micro-player in the custodian world and relied on Folio anyway, so no real disruption there,” he explained, referring to the movement of accounts after it closes. Not much, says Welsh. “I’d bet it will be significant. “What we’re seeing is firms that have multiple revenue levers to pull (e.g., asset management, securities lending, cash, etc.) Hardeep Walia, founder and CEO of Motif Investing (Photo: Patrick T. Fallon/Bloomberg) Online broker Motif Investing is closing its doors about 10 years after it opened them in Silicon Valley. This allowed me to create something of a compounding machine whereas I think that Folio Investing has the more standard 'dividend reinvestment program.' Depending on the services you were using at Motif and the services you use at Folio Investing, your fees at Folio Investing may be higher or lower than you have been paying at Motif.Q: Do I have to move my account to Folio Investing?A: No, you are free to liquidate your account or move your account to another broker-dealer of your choosing. Folio understands the importance of online privacy and maintains physical, electronic, and procedural safeguards in keeping with securities industry standards and practices to protect your personal and financial information. “Scale means everything now, so you have to be big to make a go of it.”, There’s also the “problem” of raising too much capital, according to Welsh: “Eventually, it does run out as you operate in the red for years and years.”. Motif Investing is a unique offering: Part broker, part portfolio manager and part idea-generation tool. Plus, there’s “a growing number of robust B2B [digital] solutions,” which more advisors are using … to free themselves up to focus on advice and planning rather than investment management and trading,” Spitzner said. And as the industry is shifting towards providing more planning services to clients, don’t get left behind! Say It Ain't So! In connection with the move to Kingdom, Pershing has agreed (and this letter will serve as notice of the appointment) to appoint Kingdom as the successor custodian for your IRA. The other evening, I received some disconcerting news that Motif Investing is closing. Others will close.”, Some 62% of those taking ThinkAdvisor’s recent Twitter poll agreed. Motif Investing allows investors to select a particular motif, or theme-based portfolio, which typically includes about 20 to 30 stocks or ETFs, for a fee of $9.95 per trade. More broadly, Motif’s closure and expected shutdown of more fintech players this year doesn’t “spell disaster for innovation,” Fritz explains. You can change this setting on the Folio site at any time.Q: Will my bank link and recurring deposits or withdrawals carry over to Folio?A: If your account is transferred to Folio Investing, then your electronic funds transfer (EFT) bank link will be carried over and setup at Folio but you will need to setup your automated recurring deposits and or withdrawals, as well as automatic recurring purchases and sales on the Folio site. Gets traction but eventually hits a wall you need under your single login, covered. One monthly fee ), part portfolio manager and part idea-generation tool this is discounted... Founded in 2010, this fintech startup received backing from Goldman Sachs, JPMorgan, and ’! An IRA and a joint account will be purchased or consumed by their equity backers operations and all. 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