Cash Analysis FAQ

How is idle cash calculated?

After you add all your bank accounts, we first examine the total cash available across all of these accounts and then subtract the estimated amounts needed for spending and emergencies. Then what cash remains is what we identify as idle cash.

How are spending cash and emergency cash thresholds calculated?

The default values for emergency and spending cash are based on the estimated monthly expenses.

When will the money be invested?

We will open a new Fidelity account on your behalf and invest it. Fidelity will be the custodian of the account and FutureAdvisor will serve as your advisor.

We chose Fidelity because they are one of the most trusted and popular brokerages in the country and their account set up process is completely online for you. We don't get paid by them or make commissions.

How long will this all take?

The investment process from start to end should take 5 business days.

What happens, step-by-step?

  1. You complete an electronic signature to approve the account creation and allowing FutureAdvisor to invest on your behalf.
  2. We open an account for you then fund it from your bank account.
  3. We invest the cash after it arrives in your new account and monitor it for you.

How do I get my money back if I want to use it later?

You can either go to Fidelity or through FutureAdvisor to withdraw from your portfolio on your own at any time. This takes up to 5 business days for your funds to arrive in your bank account.

What are the fees and associated costs?

There are no fees for opening an investment account. FutureAdvisor will also manage this portfolio for you for free. The funds have low fees (ranging from 0.25%–0.28%) that are the same as whether you buy them yourself anywhere or we buy them on your behalf.

What are the capital gains tax considerations?

Selling your investments that have gained value may cost you money from capital gains taxes, which we always work to minimize. We include capital gains in a cost-benefit analysis for every trade to avoid unnecessary taxes.