Frequently Asked Questions

Fees

What does CYStein charge to manage a portfolio?

We have one flat annual fee of 0.45% of the total value of the portfolio, billed monthly, no matter the size or the diversification.

Are there any other fees?

From CYStein, no. We have one flat annual fee of 0.45% of the total value of the portfolio, billed monthly. There are fees from the brokerage firm we use for holding and operating your portfolio (e.g., buy/sell stocks, forex, etc.). For more information, click here.

Last, some investment instruments, such as ETFs, have their own fees charged by discounting the return rate of the index they follow.

We, at CYStein, DO NOT receive any profit from the fees generated by the brokerage firm nor the instruments we use for investment.

Accounts

How do I open an account?

Once you have decided on the portfolio and investing strategy you would like to move forward with, we will send an invitation with the application form from our brokerage house to open your personal account. To start the process, click here

Is CYStein the account owner?

No, you are. The brokerage account for your investments will be open in your name. CYStein can only manage and monitor the funds and underlying securities in the account.

How do I close my account?

Click here for instructions

Funding

Where is my money held?

Your assets are held in a brokerage account in your name with Interactive Brokers LLC.

Who has access to my money and my investments?

Only you have access to your funds and investments. You will provide instructions of where and when you would like to deposit or withdraw funds into your account. CYStein can only manage and monitor the funds and underlying securities in the account.

What happens to my money if CYStein goes public, is acquired, or closes?

If CYStein goes public or is acquired, you would maintain complete control of your brokerage account. All the underlying securities in your portfolio are owned by you; you would be free to add, withdraw, or transfer your funds at any time.

In the unlikely event that CYStein were to close, your money would remain safe, and you would simply choose a new home for it. CYStein’s corporate funds are separate from your customer-owned money, and CYStein may not use your money to pay for its operations or take any actions other than investing for you. You own all the underlying securities in your CYStein portfolio, and if you close your account, your money will be transferred back to your linked checking account. If we were to close, the funds would then be transferred to the broker of your choosing.

Investing

What is the difference between investing vs saving?

Saving money is the process of putting cold, hard cash aside and parking it in extremely safe accounts such as checking and/or savings accounts.

Investing money is the process of using your money, or capital, to buy an asset that you think has a good probability of generating a safe and acceptable rate of return over time. Another way to put it is: using your money or capital to buy a piece or pieces of a business or business (you can also buy its debt).

Saving	Investing
Short-term: Ready to go Saving is typically for smaller, shorter-term goals (usually three years or less), like going on vacation or having money for an emergency.	Long-term: Achieve major goals Investing can help you reach bigger, long-term goals (at least four to five years away), like saving for a child’s college education.
Ready access to cash A savings account gives you access to ready cash when you need it. But many savings accounts limit how often you can take out your money. Ask your bank.	Harder to access cash When you invest your money, it’s typically not as easy to get your hands on it quickly as compared to a savings account.
Minimal risk If your money is in an FDIC-insured savings account, it’s at minimal or no risk, because your funds are insured by the Federal Deposit Insurance Corporation (FDIC). That means, if anything ever happened to the bank, the FDIC insures each person’s money to at least $250,000.	Always involves risk You may lose some or all of the money you invest.
Earn interest You can earn interest by putting money in a savings account, but savings accounts earn a lower return than investments. But be aware of inflation, it can dilute your interest earnings and capital.	Potential for profit Investments have the potential for higher return than a regular savings account. Your investments may appreciate (go up in value) over time. This increases your net worth, which is the value of your assets (what you own) minus your liabilities (what you owe). If you sell for a higher price than you invested initially, you make a profit.

When and how much should I invest?

Start investing when have enough savings to cover your short-term needs and potential emergencies. Invest as much as you are comfortable after you have enough savings.

Saving money should almost always come before investing money. Think of it as the foundation upon which your financial house is built. The reason is simple; your savings provide you with the capital to feed your investments.

In what should I invest?

We believe you should invest in passive and diversified strategies that yield success over time. This is a key pillar of our philosophy.

Passive strategy: A strategy that aims to maximize returns over the long run by keeping the amount of buying and selling to a minimum. The idea is to avoid the fees and drag on performance that potentially occur from frequent trading.

Diversified strategy: A strategy that includes multiple investments to reduce risk.

What does a passive and diversified portfolio look like?

Our portfolios are mainly built with equity and bonds ETFs. We define the mix of these based on your needs and tolerance of risk.

Equity, in the context of investing, equity is stock or any other security representing an ownership interest.

Bond is a debt investment in which an investor loans money to an entity (typically corporate or governmental), which borrows the funds for a defined period of time at a variable or fixed interest rate, also commonly referred to as fixed-income securities.

ETF: An ETF is a fund that owns the underlying assets (shares of stock, bonds, oil futures, gold bars, foreign currency etc.) and divides ownership of those assets into shares. An ETF trades like a common stock on a stock exchange.

What is risk and why is it important?

Risk is the possibility of losing some or all of the original investment. Therefore, investors must be compensated for taking additional risk. A U.S. Treasury bond is one of the safest, or risk-free, investments and, when compared to a corporate bond, provides a lower rate of return.

What returns can I expect?

Our portfolios comprise two parts: equity and bonds. Your expected returns depend on your asset allocation.

Can my investment lose value?

Like all market investments, the securities you own in your account are subject to market risk. If the markets are up, your balance will grow. When markets are down, your account can lose money. Fluctuations are especially hard to predict over the short-term, but historic data shows, over the long-term, your investment is likely to increase.

Taxes

How do taxes work with CYStein?

With investment accounts, you owe taxes each year on the dividends and other distributions paid to you that year. You may also owe taxes when you sell shares, depending on whether you’ve realized capital gains on the investment.

When will my tax forms be available?

By February 15, your consolidated Forms 1099 will be available for the immediately preceding year. We often need to amend and re-issue 1099 Forms as additional information becomes available to us. We strongly recommend you periodically check back for revisions as you prepare and finalize your tax filing.

Non-US and non-Canadian individuals, primary joint account holders, and trusts will receive Forms 1042S and a Dividend Report.

Where do I find my tax forms?

You can view and print annual tax forms for the last five years on the Tax Forms page.

1. Click the tab to open the Account Selector.

2. Click the Include Closed Accounts check box to see your closed account.

3. Click the account in the Account Selector.

The tax forms for that account will now appear on the page.If you do not see the Account Selector, then you only have one set of tax forms.

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This website is operated and maintained by CYStein Management LLC, an SEC Registered Investment Advisor (CRD# 290365 / SEC# 801-112087).

DISCLAIMER: By accepting this material, you acknowledge, understand and accept the following: This material has been prepared at the discretion of CYStein Management LLC (“CYSTEIN”). This material is subject to change without notice. This material is for information and illustrative purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action, including without limitation as those terms are used in any applicable law or regulation. This material is provided with the understanding that with respect to the material provided herein (i) CYSTEIN is not acting in a fiduciary or advisory capacity under any contract with you, or any applicable law or regulation, (ii) that you will make your own independent decision with respect to any course of action in connection therewith, as to whether such course of action is appropriate or proper based on your own judgment and your specific circumstances and objectives, and (iii) that you are capable of understanding and assessing the merits of a course of action and evaluating investment risks independently. CYSTEIN does not purport to and does not, in any fashion, provide tax, accounting, actuarial, recordkeeping, legal, broker/dealer or any related services. You should consult your advisors with respect to these areas and the material presented herein. You may not rely on the material contained herein. CYSTEIN shall not have any liability for any damages of any kind whatsoever relating to this material. No part of these documents may be reproduced in any manner, in whole or in part, without the written permission of CYSTEIN except for your internal use. All of the foregoing statements apply regardless of (i) whether you now currently or may in the future become a client of CYSTEIN and (ii) the terms contained in any applicable investment management agreement or similar contract between you and CYSTEIN.