Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Portfolio > Portfolio Construction

How I Use Model Portfolio Trading With My Custodian

Your article was successfully shared with the contacts you provided.

Once in a while something catches your eye and you have to write about it. I have been using TradePMR as my custodian for nearly two years now, and although there have been a few frustrations from time to time, their approval rating—at least in my mind—is at an all-time high. TradePMR is growing fast, but still provides quality service and tremendous technology tools. What I'm about to discuss is not brand new with them, but like many things, it takes a while to catch on. I have just ""caught on."

Model Trading

Let's say you have created some model portfolios. You may only have a few or you may have a different model for each portfolio. In either case, with TradePMR’s system, you can add the model to the platform, assign an account to it (or several accounts), and with a few clicks of the mouse, change the portfolio from the current into the model.

After the account is linked to the model, you click the "rebalance" button. Then it creates two baskets, one with "sells" and one with "buys." I execute the first basket one day and the second basket the day after. That's it! This is going to make my life so much easier.

Actually, you can have more than one model assigned to an account and multiple models waiting in the wings for another season if you wish. They tell me they will eventually have a tax screen which will inform you of the tax consequences of the action, in case the account is taxable. Moreover, I think it will offer an tax-efficient way to get from point A to point B.

If you are an RIA and unhappy with your custodian, you should check them out. If you're an indie broker, why not join the ranks of the RIA? You'll be glad you did.

NOTE: I am not being paid for this endorsement. I'm just happy I chose them!

Have a good week


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.