Compound Onboarding Process

By Charlie Bilello

01 Jan 2020


1) Fill out Compound onboarding form.

This is a secure form received via e-mail. We use this information for identity verification purposes and to start the account opening process at our custodian (TD Ameritrade).

2) Fill out Compound risk tolerance questionnaire.

This is a short form to assess your timeframe (expected holding period for your investments) and tolerance for risk (how much of a decline in the portfolio you can withstand and remain invested).

We don’t believe in a formulaic approach to risk tolerance. We use this information as a helpful starting point in determining a portfolio that you can stick with over time to allow for the magic of compounding. Risk tolerance should not be viewed as static. As your life and the markets change, the amount of risk you want/need to take may change as well, and we’re here to help guide you through that.

3) Sign discretionary management agreement.

This agreement defines the service we will be providing, managing your assets on a discretionary basis. We use docusign to execute the agreement.

4) Open new account at TD Ameritrade.

We will use the information in step #1 to open accounts on your behalf. If we require additional information, we will contact you via e-mail.

If you already have an account at TD Ameritrade, we will send you a form via docusign to convert this account into an advisory account and to assign Compound as your advisor.

5) Transfer assets to your new account at TD Ameritrade

If you don’t have an account with TD Ameritrade, we will assist you in transferring the assets you wish Compound to manage into your new account(s).

6) Account access.

You have full transparency over the accounts we manage. For access, setup a login/password at advisorclient.com. If you have multiple accounts, you can link them to view under one login.

7) Initial allocation call.

Once the accounts have been funded, we will set up a call to determine the appropriate starting portfolio allocation. Our goal is to make sure you know what you own and why you own it (see here).

8) Ongoing education and management.

The onboarding process is just the beginning.

When there’s been a major change in your life, we want to know about. When you don’t understand something in your portfolio, we want to know about it. If you can’t sleep at night because of the fluctuations in your portfolio, we want to know about. The more we know about you, the more effectively we can find the right portfolio for you.

As asset prices go up and down, their risk/reward changes, and we will adjust the weights of the holdings accordingly or rebalance back to target weights. If there’s been a major change in the market that warrants a more significant change in your portfolio, we’ll reach out to have that conversation.

We’re lifelong learners and we love to teach. We believe education is an edge, in investing and in life. We take the time to create thoughtful content that simplifies the complex, gives context to market movements, and helps mitigate harmful investor behavior.

You can find our latest thoughts on twitter, our blog, or our e-mail newsletter.

About the author

Charlie Bilello

Charlie is the founder and CEO of Compound Capital Advisors.

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