Motley Fool One continues to release more information related to their newest Wealth Management feature: Separately Managed Accounts (SMA’s). Recently they revealed minimum portfolio sizes for their SMA counts, as follows:
- Motley Fool One Everlasting Portfolio: $35,000
- Supernova Odyssey: $25,000
- Supernova Phoenix: $35,000
- Million Dollar Portfolio: $45,000
- Motley Fool Pro: $300,000
As I’ve stated in the past, given the prices of Motley Fool One, you’d need a portfolio of at least $100,000 for the membership to be worth the cost. So the above are really bare minimums to participate and not practical portfolio sizes. The much larger $300,000 limit for Pro is due to the complexity of the strategies they employ.
You are also able to set up more than one SMA, so you could also allocate some of your account to multiples of the above, subject to the minimums of each.
Members are able to transfer over existing taxable accounts or IRA’s (including Roth IRAs), but not any employer sponsored accounts such as 401k’s. If any of these accounts hold existing stocks that are not part of the portfolio SMA that you will be following, those stocks will automatically be sold. So if you are considering participating in an SMA, make sure you keep this in mind.
And finally, although IRA’s can be accepted, the Motley Fool suggests using taxable accounts, because IRA’s often have contribution limits which could prevent you from following all the trades.
Let me know if you have any additional questions, and I’ll see if I can answer them.
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