What am I invested in?
Your Invest5 account is invested in the Gotham Enhanced S&P 500 Index Fund (GSPFX), a mutual fund that buys all 500 stocks in the S&P 500 Index but reweights them, buying more of the ones we think are cheaper and less of the ones we believe are more expensive.
In other words, your Invest5 account is invested in the stock market. The stock market can go up or down. There is no guaranteed return. Over the last 50 years, the S&P 500 Index has averaged a return of over 10% per year. There is no guarantee that this will continue.
After signing up, can I change my mind?
Yes. As an Invest5 client, you can always increase the amount of your daily investment or decrease the amount
(but not below $5/day). You can also make one-time contributions (or withdrawals) by logging into your account.
In addition, you can close your account at any time and request the entire balance in your account.
Of course, the idea behind Invest5 is to help investors maintain a disciplined investment plan over the long term. Though you can close your account at any time, choosing to open an account at Invest5 should be viewed as a long-term investment plan over a period of many years. In other words, your Invest5 account is not a place to invest money that will likely be needed to cover expenses over the next several years (other than for emergencies or unforeseen expenses).
If I have credit card debt, should I open an Invest5 account?
No. Most credit card debt involves paying interest charges of well over 10% per year. In general, this interest expense is not deductible for income tax purposes. For most people, it makes sense to pay off all credit card debt before opening an investment account with Invest5. If you can’t pay off your credit card debt, in most cases, this should be your goal before joining Invest5. Of course, we love new clients, but we want those clients to follow a plan that makes sense for them over the long term.
Is income from my Invest5 account taxable?
Yes. You must pay taxes on all distributions received from your investment in the Gotham Enhanced S&P 500 Index Fund (GSPFX) if they exceed certain limits under Federal and State income tax regulations. The fund is designed to minimize short-term gain distributions which are generally taxed at a higher rate than both long-term gains and dividend income. Although short-term gain distributions have been minimal over the life of the fund, there is no guarantee this will continue (despite the fund’s continued goal to minimize them).
Can I open a custodial account for my kids or grandkids with Invest5?
Yes! Opening a custodial account for your kids or grandkids is one way to get the power of compounding working as soon as possible. Custodial accounts at Invest5 can be set up for the benefit of minors under 18. The 30 years between birth and 30 years old are an incredible time to help those you love get a head start on investing, compounding and financial security–benefits that can last a lifetime.
This site is intended for residents of the U.S. only. The information on the website does not constitute an offer for products or services, or a solicitation of an offer to any person outside of the United States who is prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence.
The S&P 500 Index (the "Index") is a commonly followed equity index and is generally considered a barometer of the U.S. equity market. While the 50 year (1970-2019) average return for the S&P Index has been 10.6% per year (including the reinvestment of dividends), there have been periods of time when the Index returns have been higher, lower, or even negative (meaning the Index lost value). Returns for the Index include the reinvestment of income and do not include transaction fees, management fees or any other costs. The performance and volatility of the Gotham Enhanced S&P 500 Index Fund (the “Fund”) will be different than those of the Index. It is not possible to invest directly in the Index.
Mutual fund investing involves risks, including possible loss of principal. It is anticipated that the Fund will frequently adjust the size of positions and thus may experience high portfolio turnover which may increase brokerage costs. Please see the prospectus for additional information. An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. The prospectus and summary prospectus are available by clicking here or by calling 888-705-0545.The prospectuses and summary prospectuses should be read carefully before investing.
Gotham Funds, including the Fund, are distributed by Foreside Funds Distributors LLC ("FFD"). Gotham Asset Management, LLC is the investment adviser to the Gotham Funds and is not affiliated with FFD. FFD does not open, maintain or monitor customer accounts, nor does it accept any investments or handle purchase or redemption requests. Shareholder accounts invested directly with the Gotham Funds are held at the transfer agent, BNY Mellon Investment Servicing.