It is wise for most people to begin investing when they have some disposable income and then maintain the practice until they retire. This is a fairly typical thing to do, as it allows for a passive and gradual acquisition of money which is set to the side until the person investing in the fund retires or stops working. Once this occurs, they have generally acquired enough money to subsequently live off comfortably for the rest of their lives. Investing is not a new practice, but the ways in which we can invest have changed greatly over the years, thanks to new technologies. Now, it is even possible to invest using apps. What difference have apps made to investing?
Simple and Straightforward
Some of the apps on the market are so comprehensive that they fulfil many of the roles in investing or other financial advisement practices and positions that were previously covered by an expert advisor. Many of the apps now available can not only advise you on how and when to invest, but also on how to build up a portfolio. They can also allow you to monitor the performance of your stocks, and some even give you the option to invest and divest. There are many different types of investment apps available, which means that investors of all levels of experience and expertise are catered to.
How Do I Find the Right App for Me?
There are so many different kinds of apps available for investing now that it can be a bit confusing to choose one or to know which app would be the best for you. This is why it is important to think first about yourself as an investor before you begin to choose an app to use as part of your investment practice. If you have never invested before, then this is a good time to start. However, if you have no experience whatsoever, it is wise to do some research and possibly even have a consultation with a financial advisor before you begin investing. With that being said, if you feel confident in your own research and skills, then there is no reason you can’t try on your own.
This article covers many different types of apps and what sort of person they suit the best. This is why it is important that you know what kind of investing would best suit you and how you can carry this into effect. You should also have an idea of your financial goals, and how investing can help you achieve these. Your financial goals depend on you, your personality and your financial situation at present, and you may not have an idea of these yet. This is not a problem, as long as you think about it now.
Your financial goals and profile are impacted by a variety of factors. In order to determine what your financial goals are, you need to have an understanding of your spending and financial habits in general so that you can change these if needed. If you do not have an understanding of these, then it is a good idea to spend at least a month tracking your spending closely, in order to have a clear idea of exactly how much money you earn and spend and the ways in which you do so.
Once you know how and where you use your money, you can start thinking about your financial goals for the future. You can think of timelines or dates and what financial position you want to be in when you reach these. These can vary greatly from person to person, and it is not necessarily needed that you know exactly where you want to be at this point in time. All that is needed is that you begin to think seriously and clearly about these times and objectives so that you can plan your future from a financial standpoint.
For example, if you are currently a college student, then your first financial goal may be to pay off your student loans. If this is not entirely realistic, then you can think instead about having a certain fraction paid off by the time you are a certain age. On the other hand, you may have never gone to college and are perhaps already working full-time. You therefore do not have any student debts to pay off, and if you have no other major debts, then you might want instead to think about having invested or saved up a certain figure by a certain age.
After you have figured out your financial aims and goals, you can then think about what type of app would best suit you as an investor. If you simply want to start investing for the first time and you would like an app that you can play around with instead of investing large figures, then there are apps for this. Conversely, you may have already tried investing, and you might want to begin trying different kinds of investing or working towards heftier financial goals. There are also apps to help you with this. Below are several different apps to suit different styles of investment and different levels of experience.
Some Investment Apps We Recommend
Here is a list of some of the investment apps we can recommend. We have chosen a selection for a variety of different applications and to suit a variety of investors. Note that this is not comprehensive, and you can find many other apps available on the market that are not covered here.
For beginners or those who want minimal fees
Robinhood is a good option. The app often allows for investment at practically no cost to the individual. There is no account minimum or commissions. The cost associated with beginning investing is often an obstacle to those who want to try it out, so this is a great option if that would otherwise be the case with you. Robinhood is often used by those who engage in swing trading, a practice where you closely monitor the market and often sell and buy shares at the last minute in order to maximize your gain. Note that this is a fairly risky practice and much less secure than more traditional, long-term investment in a retirement fund.
For those who want or need comprehensive customer support
TD Ameritrade may be the best option for you. The app is more expensive to use than some of its competitors, as it often charges at least $6 per trade. This is offset by the support its users have at their disposal, which far outstrips that of the competition. The app is a great option for those who do not mind spending a little more in order to feel that they have some level of security and expertise at their disposal through the app if they need it. Customer service is available at all hours and can be contacted via texting, messaging, or phone calling. The service also has hundreds of branches throughout America if you need in-person support. TD Ameritrade also offers a seriously impressive range of assets to its users.
For those who often shop online and would like to invest passively
Clink is a fantastic option. For every recreational purchase you make online, Clink takes a percentage from an account linked to the service and invests it. This is a great option if you have a considerable amount of disposable income and you are not trying to minimize your spending on recreational purchases. One drawback of Clink is that it does not offer a huge range of assets, but this is clearly intended to be a passive form of investing anyway. There are also no fees or minimum deposits, so it is a nice way to invest in smaller amounts for those who are not overly discerning when it comes to exactly how their money is to be invested.
For students or those with minimal disposable income
Acorn can be recommended. This is something of a novel app, which rounds up the amount made on purchases at specific retailers and then uses the balance to invest into the user’s account. For students, Acorn offers free management of accounts and portfolios, which can be very helpful to those with limited knowledge of or experience in investing. One drawback is the fees, which could be prohibitive for those with limited disposable income.
For those who want to invest in ethical or socially responsible options
Betterment is a service which specializes in just that. Now more than ever, people are more conscious and discerning of what they spend their money on and where it is going to go. If that is the case for you but you would still like to experiment with investing, then Betterment may be a great option. It scores much higher than its competitors when it comes to factors and criterion such as its Social Responsibility Index, which means that potential investors can rest assured that this is a great option for ethical investing. However, the minimum for the service is $100,000, so this is not necessarily the best option for those without considerable disposable income.
As can be seen above, there are a considerable range of investing apps available to those with different levels of experience and expertise in the practice. This is not a comprehensive list, however, and there is an incredible range of apps on the market today to cater to almost every type of person and potential investor. This is a vital practice to begin in order to ensure that your financial future is as secure as possible, and there are so many different services to choose from today.
Once you have an idea of your financial goals and the type of investing that would be best suited to someone in your financial situation, then you can begin to plan out how you want to start investing and how you would like your financial future to look. There are apps available to suit people who need guidance in their investing, people with limited disposable income, people with considerable disposable income, and so on. All that is needed is to consider the options at your disposal.