Completed account application forms need to be mailed or faxed to ALPS, the DGIFUND’s Transfer Agency. Return instructions can be found on the first page of each application form. Once your account is established you will receive a welcome letter, which will include your account number. You can then use your account number to establish online account access.
FYI—By law, all mutual funds are required to have an independent transfer agency. The Fund’s Transfer Agency is responsible for maintaining records and making sure shareholders receive required documents. So, while our investment team at DGI makes the investment decisions, we pay ALPS to handle the accounting, compliance and other logistics.
Will I be able to access my account online?
After your account is open, you can set up online access by clicking “Client Login” and then “Establish User ID”. You will need your Social Security number and your DGIFUND account number. You can obtain your account number by referencing the welcome letter you will receive or by contacting the Investor Services Team at 855‑DGI‑Fund (855‑344‑3863).
FYI—You only need to set up online access once. All accounts associated with the same primary social security number will utilize the same login information.
How do I add money to, or withdraw money from, my account?
Once you’ve set up online account access you will be able to login to the client portal and view your transaction history, buy or sell shares, setup recurring investments/distributions and manage your bank information.
FYI—Online redemptions (i.e. selling shares) are not available for IRA accounts types (IRAs, SEP IRAs, Roth IRAs, etc.). This is because the IRS requires tax withholding on IRA distributions, which is a function the client portal currently doesn’t supports. If you have an IRA account, you will need to call the Investor Services Team at 855‑DGI‑Fund (855‑344‑3863) to arrange redemptions. Online redemptions for all account types are limited to a maximum of $50,000 per transaction.
How do I sign up for eDelivery?
Electronic delivery is fast, efficient and secure. Once you’ve set up online account access you will be able to login to the client portal and click “Electronic Delivery Consent” under “Account Options”. By selecting “Yes” in the first two columns and “No” in the third you are agreeing to receive all your account-related documents electronically and none by physical mail.
FYI—You can receive some documents electronically and other via the mail if you choose. However, everyone investing via the Savings Plan—monthly contributions and an initial investment of less than $10,000—is required to utilize eDelivery.
What types of accounts can I use to invest in the DGIFUND?
If you are interested in a less commonly used account types, like an UTMA or CESA, you can find them in the Geeks + Lawyers section.
What’s the difference between an IRA and a Roth IRA?
The primary difference between a traditional IRA and a Roth IRA is when/how you get taxed. Generally, with a traditional IRA your contribution can be deducted from your income on your tax return for the year of the contribution. Down the road, when you take a distribution from the IRA, the money is taxed as income. The Roth IRA works in the opposite direction. Your contribution cannot be deducted from your income on your tax return for the year of the contribution. But down the road, when you take distributions, you pay no income taxes.
FYI—These are general guidelines. There are other rules governing IRAs and Roth IRAs, like when you are eligible to take distributions, and there are other nuanced differences between them. To learn more about these specifics, we encourage you to talk with a tax professional and/or read the IRS’s publication 590: https://www.irs.gov/pub/irs-pdf/p590a.pdf.
Can I transfer my old 401k account to the DGIFUND?
Yes. There are two steps when transferring a 401(k) from a previous employer. (1) If you don’t already have an account (IRA, SEP IRA or ROTH IRA) with the DGIFUND, you’ll need to open one. (2) Once the receiving account with the DGIFUND is opened, you will need to contact your current plan administrator (their phone number is likely on your plan statement) and ask what they require in order to transfer your account.
FYI—You can have both “Roth” and “Traditional” contributions in your 401(k) account. You will want to make sure any Roth 401(k) money you’re transferring ends up in a Roth IRA at DGI. If you are unsure, ask your 401(k) provided if any of your balance is from Roth contributions. And if you have questions about the rules governing account types or which account type is the best fit given your circumstances, we recommend consulting a tax professional.
Can I transfer an IRA or Roth IRA from another institution to the DGIFUND?
You will also need to complete an IRA Transfer/Rollover Form. If you are opening a new account and transferring a balance from another IRA at the same time, you can complete both forms and submit them together.
FYI—It’s generally a good idea to make IRA-to-IRA or Roth-to-Roth transfers. While you can do transactions called Roth Conversions or IRA Recharacterizations, these are technical transactions with significant tax consequences that people typically want to avoid when moving an account from one company to another.
Does the type of account I open have any effect on what I’ll be invested in?
No. There is no relationship between account types and the investments they hold. The type of account you open is primarily a tax consideration. Based on federal and state tax codes, different account types have different rules concerning taxation (obviously), contribution amounts, eligibility, redemption requirements and penalties. These rules and regulations have nothing to do with the investment itself. The DGIFUND is a “portfolio” of stocks and bonds. Every investor, regardless of the account type, is invested in the exact same set of stocks and bonds.
FYI—If you have questions about the rules governing account types or which account type is the best fit given your circumstances, we recommend consulting a tax professional.
Why does the DGIFUND have bonds in it?
Mutual funds that contain both stocks and bonds are called “balanced” funds. The stocks are the primary growth engine. The bonds help moderate the effects of market volatility. We chose a balanced approach for the DGIFUND to create a single investment vehicle that would be appropriate for all or most of our clients’ investable assets.
How do you choose the stocks that go into the DGIFUND?
We focus on a select and manageable group of medium-sized companies we believe have growth potential. Our investment team is constantly evaluating the companies in the Fund, as well as looking for other companies that might meet our hurdle rate—a function of what we believe the company is worth today, what its stock is currently selling for, and what we can reasonably expect the company will be worth seven years from now. Because we think in years, not weeks or months, we tend to have long relationships with the companies we own. When a company doesn’t live up to our original thesis, or gets acquired by another company (which happens frequently), we sell some or all of its shares, making room for one or more of the other companies the investment team has been researching.
What fees does the DGIFUND charge?
Because we avoid middlemen, the DGIFUND can charge a single fee of 0.78%; no advisor fees, 12‑b‑1 charges, sales loads or other nonsense. Which means, if you sign up for the $100/month savings plan, you’d end up paying $5.07 in fees your first year (assuming no impact from market fluctuation), or about the cost of a fast food burger.
Can I invest in the DGIFUND through my financial planner?
The short answer is no. Few others have attempted the direct distribution of a mutual fund without the benefits of a sales force (financial planners). We chose the direct approach because removing the middlemen (i.e. financial planners and the companies they work for) reduces costs to you, the investor. Multiple layers of fees weigh down on performance and limit the growth potential of your investments. And knowing who’s invested in the DGIFUND by name (which is rare in our industry) allows us to be more transparent about the fund’s performance and the companies we all own.
Do you offer financial planning or personal financial advice?
We do not offer formal financial planning or advice, at least not the way that is typical for our industry—like yearly meetings or calls to discuss your risk tolerance. That said, if you have questions concerning your investment in the DGIFUND or your personal financial situation, please feel free to contact Evan Almeroth at email@example.com or 612‑317‑4114.