2001 Press Releases

FOLIOfn Introduces Unique New Pricing Plan; Fee Will Be Waived if the Stock Market Declines


VIENNA, Virginia – FOLIOfn, the financial services company that pioneered stock basket investing and other innovations, has introduced a unique new pricing plan for its FOLIO Investing℠ service in which investors pay fees only for the months following those in which the stock market rises.

Investors who choose the new plan pay a flat fee of $39.95 at the beginning of each month—but only if the Standard & Poor’s 500 has risen over the course of the prior month. If the S&P 500 declines during a given calendar month, FOLIOfn will waive its fee for the following month.

“We want to encourage Americans to invest in the stock market, which history shows offers the best returns over time,” said FOLIOfn Founder and CEO Steven Wallman. “We think our new membership plan will ease any short-term concerns while providing a sensible and affordable way to invest for the long-term.”

Investors who choose the new plan get all the benefits of FOLIO Investing, including the ability to select from more than 100 Ready-to-Go FOLIOs℠—baskets of as many as 50 stocks, closed-end bonds funds, ETFs, and REITs—based on risk level, sector, and other popular investing criteria. Investors can buy or sell entire FOLIOs or individual securities commission-free in window trades, which are trades that can be placed at any time and are executed at two designated times each day. FOLIOfn customers are entitled to 500 commission-free window trades per month (with additional window trades priced at only $1.00 per security) and there is no minimum investing or trading amount, making it affordable for investors to add to diversified portfolios on a regular basis.

“Rather than attempting to pick the ‘right’ one or two stocks, investors at FOLIOfn can lower their risk by purchasing entire portfolios of securities,” said Wallman. “And now risk-averse investors can rest assured that if the S&P 500 declines, they won’t have to pay an investing fee the next month—all without taking the chance of sitting on the sidelines.”

FOLIOfn’s fee lets investors purchase up to three FOLIOs, which can be held in up to three separate accounts. Investors can get help in selecting Ready-to-Go FOLIOs by using the FOLIO Wizard, a questionnaire that generates an investor’s profile and selection of FOLIOs that meet that profile. They can change any FOLIO before or after purchase, or build their own FOLIOs from scratch. They can also take advantage of the company’s stock selector and its stock-screening tool, which can automatically exclude individual stocks or entire industries.

In addition, FOLIOfn members can potentially improve their returns by using the company’s automated tax planning system to lower the taxes on their investments. When a customer decides to sell a stock, the system identifies the shares that meet the customer’s chosen tax planning objective. Investors may choose from eight tax objectives and also use the system to manage tax paperwork.

FOLIOfn also offers traditional brokerage services, such as real-time trades for $14.95 per security. This fee is not waived when the market declines.

The company’s standard membership plan for individual investors—$29.95 per month or $295 per year—remains available. If existing customers wish, they may switch to the new pricing plan, which will be available through the end of 2002.

About Folio Investing

Folio Investing, a division of FOLIOfn Investments, Inc., is an online brokerage that enables investors to manage stocks, ETFs, and mutual funds as integrated investment portfolios called “Folios” that deliver better control, greater transparency, and lower cost. Investors can create their own Folios, much like creating personalized ETFs or mutual funds, or invest in over 100 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more. The Folio Unlimited Plan features unlimited commission-free trading in twice-daily windows for only $29 a month or $290 a year. Ready-to-Go Folios can be managed or unmanaged, are not registered investment companies, and are offered by FOLIOfn Investments, Inc., a registered broker-dealer. FOLIOfn Investments, Inc. does not provide investment, tax, or legal advice. FOLIOfn Investments, Inc., is a member of FINRA/SIPC.