When people think about investing they always think about films like Wolf on Wall Street, The Big Short, or Boiler Room. It’s fast-paced, it can get dirty, there are a lot of men shouting at each other in a hot room filled with computers. The deals aren’t always legit, but there are millions to be made. And, that might be true for some people. But there is a much easier way for people to invest small amounts. Yes, the returns are more modest, but it’s something you lead to learning as you go. In general, making smart investments will help you grow your wealth, and you don’t need to be a millionaire to invest either.
Who Are You
DIY – You want to learn from the ground up, you have an idea where you would and wouldn’t like to put your money. You want to know the best combination of indicators for day trading and you’re happy to put a lot of time into it.
Half and Half – You are comfortable being hands-on but want someone or something else to help you make the final calls. You want the stocks all processed for you, and you want to manage a varied portfolio. You have a little bit more money and some clear goals. A robo-investor is going to be great for you.
Think about what it is you want to get out of it. Do you want to learn the details, and handle everything, or do you want to be hands on but have a helping hand too.
Check Account Options
If you want to invest, you’ll need an investment account to do it. If you are going down the DIY route, then a brokerage account is what you’ll need. Going half and half? You can get yours through a robo-investor.
A brokerage account is like the quickest and cheapest way to start buying stocks, funds and open up the rest of investment types for you too. You will probably need to pay a transaction fee for every trade you make, which might sound expensive, but you won’t have a robo-investor creaming the top of your investment profits. But, it is all on you to make wise decisions.
Getting some help? You can sign up to something like Betterment, which has a $0 minimum and start buying. You’ll be charged a management fee, which is typical of all investors, and it varies depending on what you have invested in and how much you have made. The robo-investor will keep checking in on your goals to make sure you are getting the best service.
If you aren’t ready to do any of those, but you still want to have some investments – Plum can help. Not only will it allow you to set up automatic savings each week, but you can also use those savings to make some investments. They have a range of options from sustained, small growth to the significant growth great gamble options like Technology. It keeps track of everything for you and gives you a breakdown of where your money is. You can withdraw it at any time too.