Are you ready to find out about one of the best tools to use to invest your money?
First, a quick story…
I love to go out and have fun. I’m always trying to be the life of the party. I just believe that life’s too amazing to feel sorry for yourself. Yet despite my positive attitude, I always run into the occasional bitter person. I once offered an acquaintance to join us after class for drinks. He then responded with:
“My parents don’t give me money to go out, like yours do.”
That caught me off guard. For starters, my parents don’t give me money to go out. Also because this guy took less courses because there were only morning classes offered that semester and he didn’t want to wake up early. I believe in working hard and playing harder. As corny as that sounds, I’ve always enjoyed working for my freedom because I never wanted to be a miserable prick that brought others down. I just brushed this guy off and had a great time.
What’s the point of all of this?
I’m always doing my best to research new tools to help you invest your money. I want us to conquer our money in our 20s so that we can afford to have a few beers on Wednesday night instead of bashing others because we can’t afford it.
I know that you work hard for your money. At some point, you want your money to work for you. I also know that you want to have a damn good time. Studenomics isn’t about being lame and missing out on our 20s. I want us to be on top of the world, saving money, and having a blast the whole time. The good news is that once you get your money right, you can go back to my material on how to be a travel agent for your next epic adventure.
When I wrote about how the stock market works, I mentioned that you needed to find the right service to get involved in the stock market. I was introduced to an interesting tool a few months ago. I was told that Betterment would be perfect for new investors and even the more seasoned investors that want a passively managed and automated account in addition to their more active trading accounts.
Before we even get into investing tools, let’s look at a much more important question…
Wait! Is investing my money even worth it in my 20s Martin?
You don’t have to take any risks with your finances. You can keep simple. I’m not the biggest fan of the stock market, but I believe in optimizing your spending/cutting back so that you can put your money away wherever you want it to be. You can then turn around and invest these saving as you wish. You can always play it safe and open up a savings account for your money.
What if you’re debating investing your money in the stock market? I’ve included a calculator below that will show you the benefit of investing your money with real numbers.
Try the following numbers: $250 per month (easily saved by going out less or getting a little creative), 8% return, and 30 years (since you have plenty of time in your 20s).
Is it worth investing money in your 20s? Absolutely. As you can see the number don’t lie. Imagine the savings! Actually, don’t imagine and play around with the actual numbers for a few seconds.
The numbers that I suggested above lead to $357,520.31 in savings in the future!!!
Now let’s look at the tool that makes it possible to invest your money…
Is Betterment an ideal option to learn how to start investing?
[Quick note: If you're ready to start investing, I urge you to sign up with Betterment. You get $25 for free, a 30 day trial period, and a hands-off money management tool to help you make more money than ever before. Sure beats doing nothing.]
The good news is that Betterment is indeed great for active investors who appreciate the automation and diversification Betterment provides, but Betterment itself is a passive account. You can’t be an active trader within Betterment. Active traders can use Betterment as a passive account to supplement their more active accounts.
Betterment is a registered broker and an adviser. This means that you’ll get the service features that a broker offers, along with the help that an adviser would give you. You get the best of both worlds.
Investing for beginners is great with Betterment because you get a 30-day free trial. You also get a $25 bonus just to get started.
What are some of the other benefits of using Betterment to invest your money?
- It’s a flexible tool.
- Hands-off money management.
- Your money is invested in indexes.
- Easy to get started.
Betterment is already shaping up to be a solid investment tool.
How does this investing for beginners tool work?
You start off by signing up with Betterment by filling out the easy forms. Then you can link your checking account to your Betterment account so that you can transfer over money to start making some moves. The next few steps are pretty interesting:
- You setup specific goals. You put in a goal deadline, starting amount, goal amount to see where you stand and what’s best for your money.
- You pick your asset allocation. You decide how you want your money divided between stocks and bonds. You don’t have to worry about putting all of your eggs into one basket.
- You get recommendations for monthly savings and asset allocation. Betterment helps you decide how to invest your money in the role that a paid adviser usually would.
As you can see, this is an excellent investing tool for beginners. You can essentially let someone else do your investing for you while you worry about what matters to you in life (traveling or spending time with friends).
What else makes Betterment one of the best ways to invest money?
I found another helpful tool inside of Betterment. This is the demographics option that they have. What this means is that you can input your age range, income range, and sex to see what others in your demographic are doing with their money.
You’ll also see how your asset allocation compares to that of your peers. It’s always fun to see where you stand as an investor. On top of this, you can also see your returns compared to your peers.
What are the fees?
When we went over stock market basics, we made it clear that you’re going to have pay fees on each trade that you make and maintenance fees depending on your type of account. Betterment doesn’t charge trade fees. You only pay the annual management fee.
Your pricing depends on how much money you have in your account to invest.
If you carry a balance of $0 to $10,000, you’ll have an annual fee of 0.35% and you’ll get the Betterment portfolio (now offered to all tiers). You can still enjoy the benefit of next day deposits. Instead of paying an annual fee, you can be charged a low monthly fee.
If your balance is at $10,000 to $100,000 you’ll be charged an annual rate of 0.25%. You’ll get a Betterment portfolio with this and the ability to have next day deposits.
In more good news. I browsed around and couldn’t find any hidden charges or fees that could possibly surprise you. The annual management fee is the only one you pay.
Are you ready to start investing?
I was going to promote this tool a while ago. Then I was informed by the company that there would be a price reduction along with further incentives coming up. This is why I was excited to finally inform you guys about this investing tool today.
[Final shameless plug: If you're ready to start investing, I urge you to sign up with Betterment. You get $25 for free, a 30 day trial period, and a hands-off money management tool to help you make more money than ever before.]