Many people set an investing resolution at the start of the year, and many find it hard to keep. This article covers practical steps that can help. All investing involves risk, including loss of principal.

Define Your Financial Goals

Before you invest, think about what you want to achieve, such as saving for a down payment, retirement, or a more secure financial future. Specific goals are easier to follow. For example, instead of "I want to save more money," you might aim for "I want to save $5,000 for a down payment in the next year." This amount is an example only.

Understand Your Risk Tolerance

Think about how comfortable you are with the ups and downs of the market, or whether you prefer a more conservative approach. On Alinea, the onboarding questionnaire asks about your risk tolerance, and Alinea assigns you one of four risk-based model portfolios of ETFs by algorithm. These portfolios are the same for every investor at a given risk level and are not tailored to you individually [1].

Consider Automating

Recurring investments can help you keep contributing when life gets busy. You choose an amount and schedule, and the app invests for you, including into individual stocks. This approach is known as dollar cost averaging. Regular contributions can add up over time, but dollar cost averaging does not assure a profit or protect against loss in declining markets.

Use Education Tools

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 tell you when to buy, sell, or hold, does not provide investment advice or recommendations, and can make mistakes.

Check In Periodically

Reviewing your holdings from time to time can help you see how your portfolio is doing against your goals. Checking too often can make it harder to avoid reacting to short-term swings. In the Alinea app, you can view your holdings and performance and ask Allie to explain them. Consider your goals and time horizon before making changes.

Alinea’s Features

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.

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 an investing resolution?

A goal you set for the year, such as investing regularly or reaching a savings target.

How do I stick with an investing plan?

Some investors write down specific goals, automate contributions, and review their plan on a schedule instead of reacting to each market move. None of these assures a result.

What mistakes should I avoid?

Common pitfalls include setting unrealistic goals, not having a plan, putting everything into one investment, reacting to short-term market declines, and abandoning your plan altogether. Diversification can’t guarantee against loss [2].

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).

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