Some investment firms require a minimum balance, which can make it hard to start. This article covers what to consider if you are starting with a small amount, and what "personalized advice" does and does not mean. All investing involves risk, including loss of principal.

Minimums and Digital Platforms

Minimum balances vary by firm, and some traditional firms set them high. Many digital platforms, including robo-advisers, have lower minimums. Alinea has no account minimum, but you do need to fund your account with something. You can start with as little as $1.

What Does Personalized Advice Mean?

Investment advice can take into account your individual goals, time horizon, and circumstances. Digital platforms typically collect information through a questionnaire and use it to assign or manage a portfolio. The result depends on the information you provide and on how the platform uses it [1].

Alinea’s approach is specific. Alinea asks about your risk tolerance and 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, so they are not built individually for you. Allie, Alinea’s AI assistant, provides educational information only and does not provide investment advice or recommendations. If you want advice tailored to your whole financial situation, consider speaking with a registered investment professional.

How Alinea 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.

AI tools can process a lot of information quickly, but they can be inaccurate, incomplete, or out of date. Regulators advise against relying solely on AI-generated information when making investment decisions [2].

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.

Common Mistakes to Avoid

• Relying on generic information alone. General guidance does not account for your goals, time horizon, or risk tolerance.
• Emotional decisions. Panic selling or chasing trends during volatile markets can work against a long-term plan.
• Treating a tool as an adviser. Understand what each tool does and does not do.

Frequently Asked Questions

Does Alinea require a minimum balance?

No. There is no account minimum, but you need to fund your account with something. You can start with as little as $1.

What is personalized advice?

It is investment advice that takes into account an individual’s goals, time horizon, and circumstances. Alinea assigns model portfolios from your risk tolerance answers and does not provide personalized investment advice through Allie or its support team.

How long does it take to see results?

There is no set timeline. Results depend on market conditions and your investments, and returns are not guaranteed.

What mistakes should I avoid when looking for advice?

Avoid relying solely on generic information or on AI-generated information, and make sure you understand what a platform does and does not offer.

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] 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).

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

‍