Q

What is Multiplywealth?

Multiplywealth is an online investment adviser, which is built around the well-known model of Modern Portfolio Theory (MPT). Nearly every academic and investment professional believes MPT is the best approach to manage an individual's portfolio, but historically, rigorous MPT-based financial advice has only been available through high-end financial advisers. These advisers often require account minimums in the millions, and charge fees of 1% or higher. We’re democratizing access to the benefits of MPT with a service that is simple, free-based, financially rigorous and accessible to any investor.

Q

How to open an account on MultiplyWealth?

To open an account you will be asked to answer questions to determine your risk tolerance and then you will be redirected to fill in an online registration form.

Q

What is Modern Portfolio Theory?

Modern portfolio theory (MPT) is a theory of finance which attempts to maximize portfolio expected return for a given amount of portfolio risk, or equivalently minimize risk for a given level of expected return, by carefully choosing the proportions of various assets.

Q

What advantages do you have of other investment advisers?

Our advisery fee is absent, while traditional financial advisers charge annual fees of at least 1.0%. Over 10 years those extra fees add up to more than a 10% drag on your investments! In addition, you’ll benefit from commissions absence because we don't add a markup to our wholesale broker’s already low commissions. We also won’t advise you to invest in proprietary funds like many traditional advisers, because we receive no kickbacks or hidden fees from the investments we recommend.

Q

How do I find my account number and username?

You must be a registered user of MultiplyWealth. To access your account information, log in and click Personal information.

Q

What happens to my account if MultiplyWealth were to go out of business?

In the unlikely event that MultiplyWealth were to cease doing business, your third-party custodian (“Broker”) would give you the option to transfer your account to a new broker or liquidate your holdings.

Q

How did you create the questionnaire to determine my risk score?

MultiplyWealth designed its service to ask the minimum number of questions to accurately determine an individual’s risk tolerance. Our final list of questions was developed after a comprehensive survey of the academic research on the topic that allowed us to make some simplifying assumptions. Some online free risk assessment questionnaires only look at subjective willingness to take risk. Wealthfront’s multi-tiered approach to assessing risk evaluates: how an individual will react to bad economic news an individual’s consistency in response to different scenarios. We ask subjective risk questions to both determine the level of risk an individual is willing to take and the consistency among her answers. For example, if an individual is willing to take a lot of risk in one case and very little in another, then she is inconsistent and is therefore assigned a lower risk tolerance score than the simple weighted average of her answers. The greater the excess income, the more risk the client is able to take. We believe that our questions are far more comprehensive when it comes to identifying an individual’s true risk tolerance than a longer list of questions that other investment advisers may ask.

Q

Why do you recommend the same managed account or hedge funds to everyone?

MultiplyWealth’s investment methodology is based on Modern Portfolio Theory. It states that returns are best maximized for any level of risk through the optimal mix of asset classes, not through security selection.

Q

Why do my allocations among asset classes remain the same independent of amount invested?

MultiplyWealth’s investment methodology is based on Modern Portfolio Theory. It states that returns are best maximized for any level of risk through the optimal mix of asset classes. Your allocations are a function of your risk tolerance, not the amount you invest. One of the “objective” factors in your risk tolerance is your Liquid Net Worth. We use your Liquid Net Worth (along with your age and current income) to estimate if your income at retirement is likely to be greater than your retirement spending needs. The greater your retirement income relative to your retirement spending, the more risk you are able to take. Therefore your risk tolerance should increase as your Liquid Net Worth increases, which should increase your allocation of Stocks, but is independent of the amount invested.

Q

How does the MultiplyWealth service compare to a target date fund?

We believe the that other target date funds aren’t nearly as good (primarily due to their much higher cost) as our services. There are three ways to compare the MultiplyWealth service to target date funds: cost, expected return and risk. 1. Target date funds typically employ Index funds that have average expense ratios of approximately 0.18%. Since MultiplyWealth doesn’t charge an advisery fee on your assets invested, its total cost will be lower for your account. 2. MultiplyWealth employs more asset classes than target date funds. According to our simulations, our optimally mixed relatively uncorrelated asset classes should outperform other target date funds optimally mixed asset classes by at least 0.50% per year. 3. Target date funds do not take the buyer’s specific risk tolerance into consideration when choosing an asset mix. Therefore the return on the target date fund might be too high or too low for a particular buyer’s risk tolerance. MultiplyWealth’s approach is to customize portfolios for each client’s specific risk tolerance. While intangible, risk should be one of your most important considerations when investing your money.

Q

Does MultiplyWealth invest my funds all at once or do dollar cost averaging?

MultiplyWealth invests your money all at once. The benefit of investing in a portfolio of relatively uncorrelated asset classes is that when one asset class is up, it is likely that others are down. Therefore timing of when you invest is relatively unimportant.

Q

Will MultiplyWealth hold individual stocks in addition to my managed portfolio?

No. We offer a service to manage a Client’s portfolio that assesses your true risk tolerance, recommends an optimized portfolio of carefully selected managed accounts spanning several asset classes, and monitors and periodically rebalances the investment mix to maintain a Client’s desired risk tolerance. We do not allow our Clients to use their MultiplyWealth's brokerage account to hold securities other than the ones we manage.

Q

How often do you rebalance my portfolio?

We continuously monitor your portfolio and periodically rebalance it back to your target mix in an effort to manage your risk exposure and produce more stable returns for you. A study performed by David Swensen, Chief Investment Officer of Yale University, found that rebalanced portfolios earned an average of 0.4% more per year over 10 years than portfolios that were not rebalanced.

Q

Who may open an account on MultiplyWealth?

Any individual 18 or over, who is a legal resident of any country except the U.S. and the U.K. may open a MultiplyWealth's account.

Q

What is the minimum amount required to invest on MultiplyWealth?

The minimum to open an account is $5,000 or 4,000 EUR

Q

Where is my money held?

Client retains MultiplyWealth to issue trading instructions and to manage a securities account established and owned by Client at Broker (the “Account”). MultiplyWealth shall manage the Account by issuing trading instructions to Broker to cause such Account to purchase and sell stocks, managed accounts, mutual funds, and/or similarly traded instruments (“Securities”) pursuant to the Plan recommended by MultiplyWealth based on profile information specified by Client (“Investment Profile”) on www.multiplywealth.org (the “Site”) as provided in this Agreement.

Q

Can I hold my account at another brokerage firm and still have MultiplyWealth trade on it?

MultiplyWealth’ service is only available with a Broker account. In order to provide our service, MultiplyWealth must have the ability to electronically place trades for all its accounts which is not currently available at a reasonable price from any of the consumer focused brokerage firms.

Q

How do I decide how much I should invest on MultiplyWealth?

We believe you should set aside a “rainy day fund” in cash to handle any unforeseen emergencies that might arise in your life and if you are fortunate enough, a discretionary fund to invest in opportunities in which you have high conviction like a particular stock or angel investment. The rest of your money should be invested for the long term in a responsible, diversified strategy of the type offered by MultiplyWealth. However, we understand if you want to start with less.

Q

How do I fund my account?

You will be prompted to select a currency you want to fund with (dollar or euro), then you will be redirected to payment form that you must fill.

Q

How do I deposit additional funds into my account?

To deposit funds, log in and click the "Deposit money" button. Funding instructions are displayed after you select your funding method and enter the amount that you would like to deposit. When the funds arrive, we will send you an email confirming receipt.

Q

May I transfer funds from an account under a different name?

You may only transfer funds from an account that bears your name exactly. Transferring funds from an account under a different name will cause the funds to be rejected.

Q

May I transfer an existing securities portfolio to my account?

MultiplyWealth currently does not support transfers of existing securities portfolios (known as "ACAT") to your individual account.

Q

Who should I contact if I am having trouble funding my account?

Please contact us by email (support@multiplywealth.org), our pages at the social networks, feedback service or our phone with any account-related question, problem or suggestion.(See "Contact Us")

Q

How do I make a partial withdrawal from my account?

To withdraw some of the funds in your account, log in and click the "Get money back" button. The minimum withdrawal is $2,500. We cannot honor partial withdrawal requests which would leave your account below the required $5,000 minimum balance.

Q

How do I withdraw all the funds in my account?

To withdraw all the funds in your account, log in and click the "Get money back" button. After the withdrawal is complete, we will close your account, as we do not maintain accounts with a zero balance.

Q

How much can I withdraw?

You can withdraw a minimum of $2,500 as often as you would like as long as you maintain a minimum balance of $5,000 in your account.

Q

How much does it cost to withdraw funds?

MultiplyWealth does not charge exit fees when you withdraw funds.

Q

What happens to my asset allocation when I withdraw funds?

If you withdraw funds from your account, we will reduce any overweight asset classes to move you toward your target allocation. If you're already at your target, then we reduce the investments equally to maintain your target allocation.

Q

How much does MultiplyWealth charge for its service?

MultiplyWealth does not charge an advisery fee on assets under management. MultiplyWealth charges a fixed commission for subscription on its analytical content. или MultiplyWealth doesn't charge fee from Clients for the use of the online information services.

Q

Do I need to pay an exit fee if I stop investing?

MultiplyWealth does not charge a fee to stop investing.

Q

How do I terminate account and delete my personal information?

Please, contact us by email (support@multiplywealth.org) or by feedback service.

Q

How do I open real account if I already have demo account?

You can open real account if you already have demo account, registered on the same email. After real account registration, your old demo account becomes terminated.

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