Are you fortunate enough to receive a stimulus check without having lost your job? If you’re like me and found yourself discovering money in your account, now is an amazing time to dip your foot into the wonderful world of investing! There are so many avenues that you can take with investing in the stock market. When I started a few years ago, I was not privy to the plethora of brokerage choices that we all have now. If I were aware back then of the info that I have now, I would have had a way easier investing experience. In this article, I am going to talk about three beginner friendly investing platforms (that are NOT Robinhood) that can jump start your investing journey!
This is important because it doesn’t allow for excuses to why you cannot start TODAY.
With Acorns, investing is inevitable. It gained popularity based on its “automatic round – ups” which is similar to Stash. The idea is that you would spend money on a random purchase, and the left over change from that purchase would go towards your Acorns account. For example: you spend $5.43 on a caramel frappuccino at Starbucks. The leftover $0.57 would automatically be transferred to your account, based on your auto investing settings.
Other Acorns benefits are the bountiful library of articles that provide periodic stock updates and market education, and their retirement tool called Acorns later. This is where you can invest in your Roth IRA, and create recurring transfers. This platform lets you invest as little as $5 at a time!
M1 finance is my favorite beginner friendly investing app because to me, the concept is the most lucrative. It is essentially a robo-advisor that can be set to auto invest your csh once it reaches a threshold of $25. You are given one trading window per day at 9 AM. This makes it not ideal for swing or day traders. What sets M1 finance apart is their investing pie concept. It allows you to create groups, or “pies” that contain a certain sector of stocks, or however you choose to separate your pies. Then you can set M1 finance to auto-invest into those pies. The default setting will just invest the money equally into all of your stocks, so you have to be vigilant in choosing how you want your money to be allocated.
There is a bit of work up front with creating your pies and allocating where you would like your money invested. However, once your setup is complete M1 finance works as a well oiled machine that you can truly set and forget! Other benefits include M1 plus, that lets you earn cash back on debit card purchases, and allows for a second trading window in the afternoon. M1 borrow, and spend, which gives you access to an FDIC insured checking account!
Did you start out using any of these investing platforms? Which was your favorite, and how did it shape your investing strategy? Be sure to let me know in the comments. Also be sure to check out my last post on how to make money during the current crisis. stay safe out there! Wash your hands!