Hey everyone, thanks for joining me for this week’s Monday Money. Last week, I may have ruffled a few feathers, but I think that’s all blowing over now. Anyway, today, I’m going to jump back into the personal finance realm and talk a little bit about investing. Investing is important, we all know we should do it, and many of us already do. However, if you don’t invest, or want to change platforms, you may find all of the different options available to you to be a bit confusing. So, how do you go about choosing one? Well, here are the steps…
Step #1: Figure Out What Type Of Investor You Are – There are several different types of investments out there. Some people have a great understanding of what these are and how to work with them while others don’t. That being said, you may be the type of investor that is very savvy and you may know how to pick your own stocks. You may also enjoy the process of creating an incredibly customized portfolio. However, if you’d rather have your investment broker choose your investments for you, then hand you the basket, you’re going to want to go with a platform like Betterment or Motif Investing. All of that being said, the first step is to figure out what type of investments you want to make.
Step #2: Finding Good Options – Once you know weather you’re looking for a basket based investment broker or a broker that will allow you to completely customize your profile, you’re going to want to find a few options that will be able to fit your needs to compare. To do so, just look back to the home page of Modest Money. I’ve written several reviews on the top investment platforms online. They’re available in the slide show you see at the top of the home page. Make a list of the different options that you feel will fit your needs.
Step #3: Compare Your Options – Now, you’ve got a list. Go back and read the reviews I’ve written on these options. Also, scour the internet for other reviews on each one. After all, anyone can write online so you really shouldn’t trust just one opinion. As you read the reviews, get a good idea of what the broker offers that’s unique and what types of fees you will be paying to use their services. After a bit of research, you’ll be able to make a decision based on your unique needs.
These steps should get you started. However, you should also remember investing is a process that require you to be an artist and a scientist. You are going to need to strategically decide how much risk you are willing to take and how much reward you should gain from that risk. That being said, if you know absolutely nothing about investing, you’re not ready to start just yet. Before investing, take some time to talk to your family about the options they take advantage of, the principles behind their profiles and what you can do to start off on solid ground!
Thanks for reading everyone! Now, I’ve got a question for you! Would you rather use basket based investing models like those offered by Motif Investing and Betterment or would you rather use highly customizable options?