A Core Portfolios account is E*TRADE’s robo-advisory offering, also known as an automated IRA. In 2020, Morgan Stanley purchased E*TRADE and launched Core Portfolios after retiring its robo-advisor service in 2022. E*TRADE is one of the most well-known online brokerages for good reason. By offering a user-friendly interface and great portfolio customization benefits, a Core Portfolios IRA is a great option for both the beginner and hands-off investor.
E*TRADE Core Portfolios charges a 0.30% annual management fee. This is slightly higher than other automated IRA offerings such as the 0% offered by Schwab Intelligent portfolios, but E*TRADE uses funds with lower expense ratios than other competitors.
E.g. A 0.30% annual fee would amount to $30/year if $10,000 invested
You can customize your specific strategy after going through E*TRADE’s investor profile questionnaire. Options to customize your portfolio include a smart beta ETF strategy, a socially conscious strategy, or a tax-sensitive strategy.
You can select a smart beta ETF which offers more actively managed trading if you’d like to attempt to increase your returns. If you’d prefer a more socially conscious approach, you can customize your portfolio towards ESG investment options. If your goal is tax-efficient performance, E*TRADE can leverage municipal bonds or other securities with tax advantages in your asset allocation.
Specific investment options in Core Portfolios accounts include fixed income, socially responsible & ESG, ETF, and non-proprietary ETF assets.
Start your 401(k) rollover to an E*TRADE IRA in minutes.
Core Portfolios requires a $500 account minimum to manage an account. If your balance falls below that amount due to fluctuations in the market, they will continue to manage your account. However, if your balance falls below $450 due to a withdrawal, they will discontinue managing your assets until the minimum account is met. If you don’t bring your balance back to $500, they may require you to close your Core Portfolios account, but they will allow you to transfer your assets to another investment offering by E*TRADE.
An E*TRADE review wouldn’t be complete without touching on the exceptional customer service offered by the online brokerage. Available 24/7, E*TRADE sets itself apart from competitors – offering unparalleled access to customer support.
That said, interaction with E*TRADE Capital Management for financial advice is generally limited to the web-based interface for Core Portfolios customers. While no advisor is assigned to your account, users can call to consult a specialist, some of whom are Certified Financial Planners.
E*Trade also provides a highly-rated mobile app on both iOS and Android with a user-friendly interface.
Phone Number: 800-387-2331
Phone Hours: Phone support 24/7
Fax: 1-866-650-0003
Email Address: Contact through the website
Support Center: https://us.etrade.com/contact-us
If you’re interested in setting up an E*TRADE Core Portfolios account, they offer a wide range of retirement account types, along with a taxable brokerage online trading account and more.
Traditional IRAs allow you to contribute pre-tax money to your retirement funds, which reduces your taxable compensation (and thus earns you a deduction) in the year the contributions are made. Investment earnings grow tax-deferred, and retirement withdrawals are taxed as regular income.
Roth IRAs work in the opposite way to traditional IRAs: They’re funded with after-tax money, which means you won’t get a deduction in the short term, but your contributions see tax-free growth potential and, provided all the rules are followed, can be withdrawn tax-free come retirement time, as well.
SEP IRAs are specifically designed for small business owners as well as independent contractors and allow such individuals to maximize their retirement contributions (or their employees’) by increasing the total annual contribution limit.
E*TRADE also provides a rollover IRA that’s perfect for catching the funds from your old 401(k). Not sure how to do a 401(k) rollover? Capitalize is here to help!
E*TRADE does offer a unique smart beta ETF. A smart beta portfolio is a more actively traded investment portfolios that attempt to outperform market indices.
Users with a Morgan Stanley IRA or an E*TRADE online stock broker account may appreciate having their IRA assets in a familiar platform.
An E*TRADE Core Portfolios IRA is an exceptional automated robo-advisor option. E*TRADE also offers a self-managed IRA to those looking for a more active online trading experience with access to research tools like the Power E*TRADE platform. E*TRADE’s commitment to a seamless & straightforward approach to investing makes it a great choice for those looking to take a customized approach to their automated IRA portfolio management.
If you’re looking to fund your new E*TRADE Core Portfolio IRA with a 401(k) rollover, Capitalize can help. We’ve made it our mission to make this process easier for everyone. We can handle the entire process for you. Most of the process can be done online and our rollover experts will guide you through any of the manual parts. Get started with your 401(k) rollover in just a few minutes.
