Most people invest in individual stocks or stock mutual funds. In the past wealthy people who had upward of $500,000 could invest in separately managed accounts. A separately managed account differs from a mutual fund in that the investors own the individual securities in their own account, rather than having an interest in an investment pool like mutual funds.

The Trend 12 has a minimum initial investment of $50,000. The Trend 12 portfolio manager, Easan Katir, uses trend analysis to purchase twelve blue-chip stocks, and sell them when their uptrends end, and remain in cash until uptrends resume.

Once you invest, your money goes directly to Ameritrade Institutional Services, one of the nation's largest discount brokers. There your individual account is accessible at any time on the web and you receive statements each month. If, at any time, you need money you can simply contact Ameritrade at 866-268-3247 and the cash will quickly be in your hands.

Separately managed accounts offer some advantages over mutual funds:

Mutual funds often charge commissions to buy or sell. There is no charge to buy or sell a managed account. Like mutual funds, there is a quarterly management fee of 0.75% per quarter the first year.

The manager only invests in a few stocks (Trend 12 has only 12 stocks), so you aren't likely to be affected as much by the overall stock market. Your gains or losses are based only on those individual stocks Jim Jorgensen has had in his portfolio for many years.

Separately managed accounts can generally provide better tax benefits than mutual funds. Since you individually own the stocks inside your investment portfolio you are not subject to ‘phantom’ capital gains as is possible in mutual funds.

 

For more information on Portfolio Investing, or to arrange a call with Easan Katir, please call 1-800-558-4558, or email info@financialsavvy.com.