Online Investing FAQs

December 11, 2019
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Choosing Your Account Type

What are the differences between an individual, traditional IRA, and Roth IRA account?

The information below is meant to help guide your account opening decision. However, there are many times where you will need to contact a tax or investment professional to determine which account is best for you. Visit www.irs.gov and look over the unique characteristics between the different investment accounts available. If you need help, give us a call at 877.851.8847.

Individual Account

  • This is a standard investment account — one you can use to accomplish just about any goal for any time frame (within reason, of course — it’s very unlikely we’d be able to help you save a million dollars in a year!).
  • You may pay capital gains tax based on any capital gains realized and your income tax bracket.
  • There are no penalties for withdrawals, but there may be taxes on the account appreciation or the capital gain.

Traditional IRA (Individual Retirement Account)

  • A traditional IRA is primarily used to save for retirement.
  • There are limits on how much can be invested each year based on:
    • Your earned income, what other IRAs you’re contributing to, and your age.
    • Visit www.irs.gov to see the limitations that may be applied to your situation.
  • If you’re close to 70 ½, make sure you talk to an advisor about taking your Required Minimum Distribution (RMD) — this is required the year you turn 70 ½ and every year after.
  • If you have a 401(k) from a previous employer, it will likely roll over into a traditional IRA, although your employer may offer a Roth 401(k), which would roll over to a Roth IRA.
  • If you’re under age 59 ½ and need to make a withdrawal, there may be an IRS penalty and taxation depending on your circumstances. Visit www.irs.gov for more information.

Roth IRA (Individual Retirement Account)

  • A Roth IRA is primarily used to save for retirement.
  • There are limits on how much can be invested each year based on:
    • Your earned income and what other IRAs you’re contributing to.
    • Visit www.irs.gov to see the limitations that may be applied to your situation.
  • Visit our IRA and Rollover page to see your contribution eligibility, withdrawal taxation, and other benefits of Roth IRA accounts.
  • Certain IRS withdrawal penalties and other restrictions apply to Roth IRAs — please refer to www.irs.gov for more information.
  • If you have a Roth 401(k) or similar employer plan that is funded with after-tax dollars, you will likely be eligible to roll that plan into a Roth IRA.

I have another retirement or investment account that you haven’t mentioned yet. What do I do?

Most account types are supported by our platform. Send us an email at investonline@ubt.com or call us at 877.851.8847 and we will be happy to help.

When opening my account, you ask for my tax bracket information. What if I don’t know that information?

Right now, our system automatically defaults to 39.5%, and it has no bearing on your investment account(s). Visit www.irs.gov to see what tax bracket you fall into, or simply provide your best estimate.

Opening Your Account

What are the steps to open an account?

  1. Walk through the questions until you get to the page congratulating you on opening your account.
  2. You will receive an email asking you to verify your email address.
  3. Once you verify your email address, log in to your account at https://invest.ubtgo.com/portal.
  4. You may receive an email asking for additional documentation for your identity before your account can be opened. No need to worry — we simply need a little more information to verify your identity. You’ll receive an email; follow the prompts to provide the requested information. In some cases, it’s as easy as uploading a picture of your driver’s license.
  5. If you were required to provide additional documentation, an investment professional will need to review and approve your documentation. Upon final approval, you will receive an email letting you know that you are now ready to log in. Log in to your account at https://invest.ubtgo.com/portal.

Funding Your Account

There are two ways to fund your investment account: through ACH electronic transfer from a bank account or through a retirement account rollover.

How do I deposit funds into my Online Investing account from my bank account?

You can deposit funds into your Online Investing account via ACH electronic transfer. There are no wire or transfer fees on our end, but you should check to see if your financial institution charges fees for your transaction. Note: We do not accept cash or checks.

How do I link my Online Investing account to my UBT checking or savings account?

  • Simply log in to your account and click Transfer Money.
  • Then, select Link New Bank Account.
  • Search for Union Bank & Trust (NE) – Personal.
  • Enter your UBT credentials when prompted.
  • Select your checking or savings account and click Confirm.

How do I link my Online Investing account to my non-UBT checking or savings account?

  • Simply log in to your account and click Transfer Money on the right side of the dashboard.
  • Select Add Bank Account and then click Continue.
  • Search for your bank.
  • Enter your login credentials for your bank.
  • Select your checking/savings account.
  • Review the information and when ready, click Confirm.
  • If your bank isn’t listed, you will select “Link with account numbers” and enter your routing number, bank account number, and the amount you want deposited. Please call us at 877.851.8847 or email investonline@ubt.com if you have any questions.

How do I set a recurring deposit?

  • Log in to your account and click Transfer Money.
  • If you haven’t already, link your bank account to your portal.
  • Select the account you wish to withdraw from and the account you wish to deposit into.
  • Set the amount you want to transfer, the date, and the frequency and click Continue.
    • Please note: With IRAs, you will have to select the contribution year.
  • Review the information and when ready, click Confirm.
  • You will receive an email confirmation once the money has been transferred.

How do I see my established recurring deposit?

Personalizing Your Account

Your investment account has three tiers of service that help tailor your investment account(s) to your goal(s). Please visit our landing page for more information on our tiered services.

What is the risk tolerance questionnaire?

The risk tolerance questionnaire is a series of questions that help us understand your comfort level with market risk as it relates to long-term return potential.

Can I change my risk tolerance later?

Yes, you can change your risk tolerance by answering the questions again. We understand that life circumstances may have a significant impact on your ability to take on market risk. Please contact us if you are having trouble retaking the risk tolerance questionnaire. You can also request that we send you a link to a new risk tolerance questionnaire by calling 877.851.8847 or emailing investonline@ubt.com.

What if I don’t think my risk tolerance score is right?

  • If you feel that your risk score is not a true representation of your risk tolerance, it can be changed. To change your risk tolerance, please retake the risk tolerance questionnaire or call us at 877.851.8847 or email investonline@ubt.com.

What does my risk tolerance score affect?

  • When you retake your risk tolerance questionnaire, it will change the risk tolerance across all your accounts.

How does the risk tolerance questionnaire and the resulting risk score affect my goals? 

  • Each goal has a defined upper and lower range for risk assets (stock-based assets). The higher your risk tolerance score, the higher your stock exposure will be, and vice versa. A change in your risk score will impact all your goals and asset allocation.

What is a target date?

  • The target date is the date you will need to use your money. We use the target date to build a glide path for your investments, gradually reducing the risk level of your portfolio as the date draws near. For example, the year you plan to retire would be your target date for an IRA. Maybe it’s a down payment on your first house 10 years from now. We understand that you might not know the exact date you want to retire, or when you might buy that first house. That’s why we made it possible for you to change your target date. Simply click on the goal with the target date you want to change and select the Target Date box to make your changes.

Can I have a goal without a target date?

  • No. Currently, every goal must have a target date, which you enter as you are building the goal. If you don’t have a specific date in mind, you might be interested in the General Investing goal; although it asks for a target date, it doesn’t actually factor that date into its asset allocation calculations.

Can you explain the goals?

You can choose from six different goals. Each goal tells us something unique about how you want to invest your funds. Some of the goals have guard rails on them to help protect your money based on needs and time frames. The guard rails are used to calculate your proper asset allocation. For example, we would suggest not being 100% invested in stock if your need for the money is less than one year from the start of your goal. Our guard rails would prevent that from happening. Of course, you can reach out to us at 877.851.8847 or investonline@ubt.com to talk about any possible manual overrides to your goal.

  • General Investing: As the “jack of all trades” option, this goal is perfect for when you want to invest additional funds but don’t have a specific purpose in mind. While you must enter a target date for this goal, it doesn’t impact the goal’s asset allocation over time, which is one reason this goal doesn’t have built-in guard rails. Your score from your risk tolerance questionnaire will be the percentage of your portfolio invested in stocks. For example, a risk score of 68 will result in a portfolio that is 68% stocks and 32% bonds.

 

  • Safety Net: Think of this goal as an emergency fund. Similar to General Investing, you must enter a target date for this goal, but it won’t impact the goal’s asset allocation over time. The Safety Net goal differs from General Investing in that you may need the funds sooner rather than later. As such, there is a safeguard in place to reduce the risk in your asset allocation. The Safety Net goal allows for equity exposure in the range of 20% to 50% equity. Your allocation will not change unless your risk score is changed.

 

  • Retirement Prep: This goal is designed to help you save for retirement and can be used in an individual account or any IRA. The slick thing about this goal is that your risk level will automatically shift to a more conservative portfolio as you get closer to the target date, which should align with your retirement date. Your asset allocation will not continue to change once you meet your target date. At this time, you can consider the In Retirement goal.

 

  • In Retirement: Use this goal if you’ve moved into retirement. Retirement is a great time to reassess your financial plan, and maybe moving your Retirement Prep goal into the In Retirement goal makes sense for your plan. Your target date in this goal should align with your life expectancy. As with retirement planning, your asset allocation will automatically shift to a more conservative portfolio as you get closer to the target date. Don’t worry about the asset allocation, as we have built in safety nets in this goal to help protect your investments. This goal can be used with an individual account or in any type of retirement account.

 

  • Major Purchase: Use this goal to plan for a major purchase down the road — a wedding, a new car, a house down payment, or anything else you can dream up. The target date is when you expect the purchase to happen, and we assume that you’ll be spending the funds on your target date — you earned it! We want to help with the asset allocation on this one as well, so we built in some guard rails to keep this goal from getting too aggressive. Your asset allocation will automatically shift to a more conservative portfolio as you get closer to the target date. The equity allocation will go all the way down to 0% once you hit the target date.

 

  • Travel: Use this goal to plan for a bucket list trip or smaller vacations along the way. The target date is when you expect to pay for that dream vacation, and we assume that you’ll be spending the funds on your goal — you earned it! We want to help with the asset allocation on this one as well, so we built in some guard rails to keep this goal from getting too aggressive. Your asset allocation will automatically shift to a more conservative portfolio as you get closer to the target date. The equity allocation will go all the way down to 0% once you hit the target date.

If I have more than one goal, what do I do?

  • To set up more than one goal, simply open another account. To do this, click Accounts and select Open Account. You can set up a different goal within that account. Since you’ve already set up an account, many of the fields will be filled out for you, making the process seamless and quick.

What if I want a specific allocation of stocks and bonds? Like 60% stock, 40% bonds?

  • That’s an easy one. Our advisors can make this change for you at 877.851.8847 or investonline@ubt.com. We can make specific allocation changes in increments of 10%.

When are my accounts rebalanced?

  • Your accounts are rebalanced when needed. For example: If the market value of a certain security increases significantly and grows above the upper limit, your account will automatically sell the amount above the upper limit and reallocate those funds to other securities to ensure your account is in line with your allocation. Your account will also rebalance as money moves in and out of the account.

How do I get a financial plan?

  • To receive a personalized financial plan, you’ll need to have your account elevated to the Platinum tier. Call us at 877.851.8847 or email us to request an upgrade. Click here to see what’s offered at each tier level.

WITHDRAWING FROM YOUR ACCOUNT

We understand that life happens, and you may need some cash to cover an emergency or unplanned expense. Or, perhaps it’s time to withdraw the money you’ve saved for a planned vacation or purchase. It’s important to note that the IRS may assess taxes and/or penalties on your withdrawal depending on the account type, your age, your tax bracket, and how long the account has been open.

How do I withdraw money from my individual account?

  • Simply log in to your account and click on Transfer Money, then select Withdraw.
  • Select the Online Investing account you wish to withdraw from and the bank account you wish to deposit to.
  • Enter the amount you wish to transfer, the date of the transfer, and the frequency.
  • The transfer date must be scheduled out at least four business days to allow for processing.
  • After review, click Continue to finalize the transfer.
  • UBT does not charge trading fees or assess penalties for requested withdrawals or account closures.

How do I get money from my IRA or Roth IRA?

  • Simply log in to your account and click Transfer Money, then click Withdraw.
  • Select the Online Investing account you wish to withdraw from and the bank account you wish to deposit to.
  • Enter the amount you wish to transfer, the date of the transfer, and the frequency.
    • Note: Traditional and Roth IRA withdrawals may require Federal and/or State tax withholding.
  • The transfer date must be scheduled out at least four business days to allow for processing.
  • After review, click Continue to finalize the transfer.
  • UBT does not charge trading fees or assess penalties for requested withdrawals or account closures.

Why does it take 4-5 days to receive my funds?

  • Securities trade on one business day (before 9 a.m. CT) and settle two business days later. There is an additional day or two for the ACH transfer.

How do I close my account?

  • Please call us at 877.851.8847 or email investonline@ubt.com and we will be happy to assist you.

 

INVESTMENT PHILOSOPHY

What is the general investment theory used in determining the allocation of my account? 

  • The investment professionals at Union Bank & Trust build portfolios using Modern Portfolio Theory (MPT). MPT was pioneered in 1952, earning its creator a Nobel prize. MPT is a theory on how risk-averse investors can construct portfolios to maximize expected return based on a given level of market risk. The theory emphasizes that risk is an inherent part of a higher return. Diversification of assets plays a major part, and our portfolios have broad style and geographic diversification.

 

What are the credentials of the people building my portfolio? 

  • Portfolios used in Online Investing are built by the investment professionals of Union Investment Management Group (UIMG), the investment division of Union Bank & Trust. UIMG’s investment professionals include 11 officers who have attained the Chartered Financial Analyst® designation (CFA®), the highest distinction in the investment management profession, showing a commitment to independent critical thinking, rigorous analysis, and a commitment to the highest standard of ethics and professional conduct. Note: Chartered Financial Analyst® and CFA® are registered trademarks owned by CFA Institute.

 

What is passive investing, and why is it important?

  • Passive investing uses index-based investment vehicles to gain asset-class exposure. In active investing, a portfolio manager or managers try to outperform a benchmark index. Passive investing tends to be much less expensive than active investing, as there aren’t portfolio managers and a team of analysts to support. Over time, passive investing has tended to outperform active investing about two-thirds of the time. Most of the reason for the outperformance can be explained by the lower fees, although behavioral finance emotional errors may explain some, as well. We believe using passive investment vehicles passes more of the return on to the investor, rather than going to the investment manager. We are strong believers that passive investing is an appropriate and valid approach to goals-based investing.

 

What is an ETF?

  • An exchange-traded fund (ETF) is a basket of securities that are traded on a stock exchange. They offer diversification benefits of mutual funds while trading intraday like stocks.

What is a dividend?

  • Dividends are distributions of a portion of company earnings to shareholders.

 

What are capital gains?

  • Capital gains occur when a security’s current value rises above the amount it was purchased for. They are not realized until that asset is sold.
  • The capital gain may be short-term (one year or less) or long-term (more than a year) and must be reported on income taxes.
  • ETFs can sometimes pass through accumulated realized capital gains to shareholders. You must report these on your income taxes if you receive a capital gain distribution.

 

What is a short-term capital gain? And how does it affect my account?

  • A short-term capital gain is the result of selling off a security owned for less than one year. Short-term capital gains are taxed at a higher rate than long-term capital gains. Short-term capital gains are taxed at your ordinary income tax rate, while long-term capital gains are taxed at 0%, 15%, or 20% depending on your taxable income. Our trading platform is set to avoid short-term capital gains during regular rebalancing of the account. These same trading rules could create a short delay for any cash disbursements out of your account.

 

What is a wash sale? And how does it affect my account?

  • A wash sale is the sale of a security at a loss and the repurchase of that security or a substantially identical security 30 days before or after the sale. Our trading platform is set to avoid most wash sales. These same trading rules could create a delay of getting new money invested into your account. The wash sale rule applies to all accounts in your portfolio.

 

GENERAL QUESTIONS   

What browser should I use?

  • Google Chrome is recommended for the best user experience.

 

How do I close an account? Or close an account I accidentally opened?

Please call us at 877.851.8847 or email investonline@ubt.com and we will be happy to assist you

 

How do I sign up for the Premier or Platinum tiers? 

 

Once I’ve opened my account, how do I log in? 

    • Go to www.ubt.com/onlineinvesting and click the “Log In” button. The username and password will be the credentials you created during the account opening process.
    • You may want to bookmark the page for future reference.

 

What are the password requirements?

  • 8-20 characters long
  • At least one number (0-9)
  • At least one uppercase letter (A-Z)
  • At least one lowercase letter (a-z)
  • At least one special character (!@#$%^&*)

 

How do I change my username and password?

  • Your username will always be you email you verified at the beginning of the account setup process.
  • You can change your password by selecting your profile and clicking on Security Settings.

 

How do I update my beneficiaries?

  • You can change your beneficiaries by selecting your profile and clicking on Account Settings. Select the account you would like to change the beneficiaries for. If you have multiple accounts with beneficiaries, each account must be updated separately.

 

What is a Required Minimum Distribution, and how do I figure it out?

  • The Required Minimum Distribution (RMD) is the minimum amount you need to withdraw from your traditional IRAs each year starting the year you turn 70 ½. Please consult https://www.irs.gov for more information on calculating your RMD. You can always call us at 877.851.8847 or email investonline@ubt.com and we will be happy to assist you with your RMD.

 

How do I move funds between my accounts?

  • We are looking to add this functionality online soon. For now, please call us at 877.851.8847 or email investonline@ubt.com and we will be happy to assist you.

 

Will my Retirement Prep goal automatically switch over to the In Retirement goal once my target date is achieved?

  • No, you will have to change the goal to In Retirement. To do this, follow these steps:

    • Select Add Goal and click In Retirement.
    • Once In Retirement is selected, select the Attach Account button and select the account you wish to attach to In Retirement.
    • Please call us at 877.851.8847 or email investonline@ubt.com and we’ll help you get your account assigned to your new goal.

 

What is a prospectus? 

  • A prospectus is a formal document that is required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering for sale to the public. You will periodically receive updated prospectuses via email notification.

 

What is a trade confirmation? 

  • A trade confirmation is an electronic document you receive from your broker-dealer showing the details of buy or sell trade orders placed in your account.

 

Will a phone app be available?

  • Yes, we expect an app soon. A web-enabled version is currently available on your mobile device through your browser.

 

How do I update my personal information?

  • You can update your personal information by clicking your Profile.

 

How do I change my legal name?

  • Please call us at 877.851.8847 or email investonline@ubt.com and we will be happy to assist you.

 

Can I get paper statements?

  • You can print paper copies of your statement(s) by downloading them from your portal.

 

What amount should I invest when I’m starting out?

  • First, don’t worry about minimum account balances, because we don’t have any. How much you choose to invest depends on your goal, budget, and what planning you have done so far to reach that goal.

 

What are catch-up contributions for IRAs?

  • Catch-up contributions are contributions that allow individuals who are 50 or older to make additional contributions to their IRA above their normal maxed-out contribution.

 

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