This blog post was originally published on the MoneyGeek.ca blog by Jin Choi. The website no longer exists, but Jin has graciously allowed us to re-publish his research for the benefit of future investors forever.
We've decided to leverage our expertise in stock selection, and marry it with our technologically advanced portfolio allocation algorithms, to create the Premium Portfolio - a mix of individual stocks and ETFs that aims to return higher rates than the market.
How might the Premium Portfoliodo this?
With the regular portfolio, we offer a portfolio full of ETFs. When you invest in the regular portfolio, you invest in thousands of different companies all at once. This makes sure that your risks are kept as low as possible, but it eliminates any chance of doing better than the market. However, because ETFs charge very low fees, and because most mutual funds are just not that great, ETFs have outperformed most mutual funds in the past, making it an excellent way of investing your money.
The Premium Portfolio takes the opposite approach. Members who choose to invest in the Premium Portfolio will be making concentrated bets on specific stocks. To a large extent, they'd be relying on the skills of Dr. Choi, who makes the selections.
We believe that the vast majority of people should subscribe to the regular membership, as opposed to the premium membership. For those who have less than $50,000, the premium fees (~$1,000/year) will be high enough that we don't recommend they try. Novice investors should also buy the regular membership regardless of their financial situation, as they haven't yet understood what it feels like to be invested. If you're the type of person who doesn't like to take much risk, you should also stick to the regular membership.
But for those who are experienced in investing, have enough money, and can tolerate risk, we invite you to try the premium portfolio. We can't guarantee any specific future returns - as an experienced investor, you know that's impossible. However, we think there's a good chance you can significantly outperform the market with our premium portfolios.
Some might ask, what's the difference between a mutual fund and the premium membership? There are several. First, we charge a flat fee, and for most people in our target group, those fees are much smaller than mutual fund fees. To someone with $200,000, paying $1,000/year amounts to just 0.5%/year. Second, Dr. Jin Won Choi has a history (so far at least) of beating the market consistently. Third, we don't take your money. Instead, we only pick out stocks and ETFs you should buy, and it's up to the member to buy it using a brokerage account him/herself. This also means that it's much easier to pull your money out, if you choose to.
The premium membership isn't ready yet, but will be in the next week or two. Click on this link to sign up for a special mailing list, to receive updates on the premium membership. For more information, please visit our membership site here. Please leave us a comment or contact us at info@moneygeek.ca if you have any questions.
This blog post was originally published on the MoneyGeek.ca blog by Jin Choi. The website no longer exists, but Jin has graciously allowed us to re-publish his research for the benefit of future investors forever.
