What’s a Motif Anyway?Traditionally, if you wanted to invest a sum of money, you would probably meet face-to-face with a financial advisor who would select a portfolio of stocks and bonds to match your risk tolerance level. This is still an excellent way to invest, but what if you’re the DIY-type and want to learn a bit about the investment process yourself? Well, you’d have a lot to learn. How much should you invest in emerging markets? How are large cap stocks doing? What’s an outrageous amount to pay in mutual fund fees? What are the best places to open a brokerage account? These are just a small fraction of the number of questions you might have to answer in order to construct a solid portfolio. If you don’t know much about that stuff, you’re not alone. It’s very, very difficult to create a comprehensive portfolio that’s tailored to your needs and risk tolerance level. That’s where Motif saves the day. Motif Investing allows you to invest online in things you already know and care about. For example, let’s say you study electric vehicles and think they are the way of the future. You can invest in a “Battery Charged” motif. Or, if you want to invest $5,000 into Apple, you can do that – you aren’t forced into buying a certain whole number of shares. You see, motifs are groupings of stocks that are based on a single idea or value. You could invest in a “Robotic Revolution” motif or a “Medical Devices” motif. Simply visit the Motif Investing website and search for what you want to invest in – you’re almost sure to find a motif related to your interests. This is cool. Really cool. Why? It gives the masses a way to invest in what they care about without having to understand the complexities of investing.
How Motifs Are ConstructedAs stated earlier, motifs are a basket of stocks based on a single idea. When you select a motif, you can read the full details about the motif. The stocks are grouped together into segments. For example, the “Robotic Revolution” motif is split into the following segments:
- Military & Defense
- Medical Applications
- Industrial Solutions
- Maritime Exploration
- Consumer Products
Under each segment are the stocks. You’ll know the exact companies you’re investing in and what percentage of the portfolio each stock represents.
Who Builds These Motifs?There are more than 150 professionally-built motifs. That might be an overwhelming number to sort through, but Motif makes it easy to quickly find what you’re looking for by separating these professionally-built motifs into categories:
- Income Strategies
- Trading Strategies
- Global Opportunities
- Asset Allocation
Yes, that means you can create your own motif and share it with your friends, family or fans. In fact, that’s exactly what I did. I chose a few stocks and created the Good Financial Cents motif. I have a whole bunch of goodies in this motif, including AT&T Inc. and Cincinnati Financial Corp., just to name a few.
Motif is closing May 20th. I invested in some MLCDs with them which are supposed to be Buy and Hold to maturity. I can’t find a brokerage that I can transfer them, too. So I may have to sell them which at this time could be for a loss. So much for protecting my retirement assets while having a chance for a return.
Does anybody know of a brokerage that would accept these CDs? They were issued by Goldman Sachs Banks USA and are held by Pershing.
Beware of borrowing from Lenders Club. There is a fraudulent company using their name. They are scamming people. Just make sure you are dealing with the authentic company!!!!
NO FOR EU CUSTOMERS
Avoid Motif! They have been nothing but a pain. They create new fees after you sign up, and you will not notice until it’s too late. For example, a $10 semi-annual inactivity fee. Also, their website is horrible and makes analyzing/researching your past activity very difficult. When problems are pointed out to Motif, they do nothing.
Go with a serious, well known company like Schwab, eTrade, etc.
I would like to invest my saving account but i dont know what the best way of investment is.
I have heard about Roth IRA but i am confused about it.
Hi Maryam – The Roth IRA is a retirement plan primarily. The contributions aren’t tax deductible, but the income can be taken tax-free when you’re 59.5 years old, and have been in the plan for at least five years. But the Roth IRA has one major advantage over other retirement plans, and that’s that you can always withdraw your contributions without having to pay tax on them. You can set up a Roth IRA with a robo-advisor like Motif.