Mobile investing lets you open an account, fund it, and invest from your phone. This article covers potential benefits, risks, and how Alinea’s app works. All investing involves risk, including loss of principal.

What Is Mobile Investing?

Mobile investing means buying and selling investments, or using an investing service, through an app on your smartphone. It can make getting started easier. It does not make investing less risky.

Potential Benefits

Convenience. You can check your portfolio, make deposits, and follow market news from your phone.

Costs. Some apps charge no trading commissions, but other costs can still apply, such as subscriptions, regulatory fees, or fees built into fund holdings. Compare what each app charges, because fees can reduce your returns.

Market information. Apps can provide prices, charts, and news. Information can be delayed or incomplete, so check it before you rely on it.

Education. Many apps offer articles, lessons, and explanations to help you learn.

Risks to Understand

• Easy trading. Convenience can make it easy to act on short-term moves, which does not always help a long-term plan.
• Concentration. Putting everything into a few investments increases the risk of a large loss. Spreading your money across different investments can reduce the impact of any one falling, but diversification can’t guarantee against loss [2].
• Trendy stocks. Investing in popular names without researching them can lead to losses.

How Alinea’s App Works

Alinea Invest, Inc. offers a mobile investing app. Investment advisory services are provided by Alinea Advisory Services LLC, an SEC-registered investment adviser and a wholly owned subsidiary of Alinea Invest, Inc. SEC registration does not imply a certain level of skill or training.

• Model portfolios. Alinea asks about your risk tolerance and assigns you one of four risk-based model portfolios of ETFs by algorithm. Alinea rebalances it monthly. The portfolios are the same for every investor at a given risk level.
• Investing Playlists. Playlists are collections of stocks and ETFs organized around themes or interests. Some Playlists have their weights set by AI on a schedule, with no human review of the changes, and themed portfolios may be less diversified and more volatile.
• Recurring investing. You can set a fixed amount to invest on a schedule, including into individual stocks, an approach known as dollar cost averaging. It does not assure a profit or protect against loss in declining markets.
• Allie. Allie, Alinea’s AI assistant, is available in the Alinea app. It can explain your holdings, market news, and financial terms in plain language. At your request, Allie can also start a deposit, withdrawal, buy, or sell, and you confirm every transaction before it runs. Allie provides educational research and feedback only, does not provide investment advice or recommendations, and can make mistakes.

In the Alinea app, you can check your portfolio, make deposits, and chat with Allie. Portfolio access and Allie are in the app only. Regulators advise against relying solely on AI-generated information when making investment decisions [4].

Getting Started

1. Download the app and create an account. Verify your identity and link your bank account.

2. Answer the questionnaire. Alinea asks about your risk tolerance.

3. Choose how to invest. You can be assigned a model portfolio, explore Playlists, or both.

4. Consider recurring investing. Choose an amount and schedule you are comfortable with.

5. Review periodically. Revisit your goals and holdings from time to time.

Brokerage accounts are held at DriveWealth LLC, member FINRA/SIPC, which is not affiliated with Alinea. SIPC protects securities customers of its members up to $500,000 (including $250,000 for claims for cash) if the brokerage firm fails financially. It does not protect against a decline in the market value of your securities [3]. Bank accounts are linked through Plaid, Inc., a third party not affiliated with Alinea, and we do not store your online banking credentials. SSL and 256-bit encryption help protect your data.

Frequently Asked Questions

What is mobile investing?

Buying and selling investments, or using an investing service, through a smartphone or tablet app.

How does Allie help beginners?

Allie explains your holdings, market news, and financial terms in plain language. Allie provides educational research and feedback only, does not provide investment advice or recommendations, and can make mistakes.

How long does it take to see results?

There is no set timeline. Returns are not guaranteed and can be negative.

Disclosure

Advisory services are provided by Alinea Advisory Services LLC, an SEC-registered investment adviser and a wholly owned subsidiary of Alinea Invest, Inc. SEC registration does not imply a certain level of skill or training. Brokerage and custody services are provided by DriveWealth LLC, an unaffiliated registered broker-dealer and member of FINRA/SIPC.

This content is for informational purposes only and is not an offer, solicitation, or recommendation to buy or sell any security. All investing involves risk, including loss of principal. Past performance does not guarantee future results. Allie is educational only, does not provide investment advice, and can make mistakes. Some Playlists have their weights set by AI on a schedule, with no human review of the changes, and can be wrong. Alinea oversees the algorithm and monitors it for anomalies. Themed portfolios may be less diversified and more volatile. Alinea is not affiliated with the sources listed below, and their inclusion is not an endorsement. Alinea charges a subscription fee for its advisory services; see Item 5 of Form ADV Part 2A. Alinea’s support team handles questions about using the service only and does not provide investment advice.

See our Form ADV Part 2A, Wrap Program Brochure, and Form CRS at www.alinea-invest.com/legal/home. For more on Allie, see AI Allie – Disclosures & Terms of Use at www.alinea-invest.com/legal/ai-allie-disclosures-terms-of-use.

Sources

[1] U.S. Securities and Exchange Commission, Office of Investor Education and Advocacy, Investor Bulletin: Robo-Advisers, February 23, 2017 (investor.gov).

[2] U.S. Securities and Exchange Commission, Investor.gov, “Diversify Your Investments.”

[3] Securities Investor Protection Corporation (SIPC), What SIPC Protects (sipc.org).

[4] SEC Office of Investor Education and Advocacy, NASAA, and FINRA, “Artificial Intelligence (AI) and Investment Fraud,” investor alert, January 25, 2024 (finra.org, investor.gov).

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