PortfolioBuilder

Why do I need to provide this information?

In order to pick out an investment mix that correlates to your investing profile, PortfolioBuilder must take all three attributes (income, net worth, and tax rate) into consideration. Although we have attempted to make this tool available to a wide range of investor profiles, you may not see your attributes listed.

Tip: We do not share this information with anyone. If you would like more detail, please review our Privacy Policy.

What is net worth?

Your net worth is the total value of your assets (cars, houses, yachts, airplanes, bank accounts, etc.) minus any outstanding debts (credit cards, mortgage, etc.) you may have.

In short, Assets - Debts = Net Worth

Example: John owns an apple farm worth $100,000, an electric car worth $20,000 and has a
Capital One 360 Savings Account with a $5,000 balance; his total assets equal $125,000.

On the debt side, John also has $20,000 in student loans and owes $50,000 on his farm house. His total debt (liability) would be $70,000.

To calculate his net worth, John would subtract his liabilities ($70,000) from his total assets ($125,000), to reach his net worth of $55,000.

What is your tax rate?

Your tax rate is the percentage of federal income tax you pay to the IRS (10%, 15%, 25%, etc). This rate is determined by a variety of factors, including your annual income, marital status and the number of dependants you support.

As tax rates and laws change over time, you should review the IRS website or contact a tax advisor.

How does PortfolioBuilder work?

PortfolioBuilder is a nifty tool used to identify your investing goals, gauge your investing style and figure out risk tolerance. By computing your answers to a series of basic questions, PortfolioBuilder presents you with a model portfolio of exchange-traded funds (ETFs) that correlates to your investor profile.

For investors who want to start investing with a smaller amount of money, your model portfolio includes a smaller number of ETFs to minimize the commissions associated with each trade.

For larger investments, PortfolioBuilder recommends a larger portfolio that may include more targeted ETFs, which allows you to focus on more narrowly defined stock or bond indices.

Tip: As a service for self-directed investors, we kindly as you to fully research every investment that PortfolioBuilder spits out at you.

How do you use my information?

The financial information you put in is used for the sole purpose of determining if PortfolioBuilder is right for you. We don't share this information with anyone, and we won't use this information for any other purpose

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If you would like more details about our use of your information, please review our Privacy Policy.