Youve done a great job at saving.
You have a401(k)thats inching its way toward respectability.
To do that, youll need a brokerage account.
Make your money work for you:Sign up for our investing bootcampand learn everything you need to know to get started with investing.
While that may sound daunting if youre abeginning investor, dont be intimidated.
you might have one up and running in no time, and guess what?
You wont even have to leave that comfy couch to do it.
What Is a Brokerage Account?
A brokerage account is an account where you might put money that you want to invest.
you’re free to open atraditional or Roth IRAif youre investing for retirement or a taxable investment account.
you’ve got the option to choose to invest your money instocks,bonds,mutual fundsand more.
From there, you work with the licensed brokerage firm that actually invests your money for you.
The firm acts as a middleman between investors and sellers.
Decide How Much Investment Help You Need
Not all brokerage accounts are equal.
Some come with all the bells and whistles including a personal financial adviser.
Others follow a more DIY approach.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
Here are two basic types.
A managed account is a bang out of brokerage account that comes with some investment management.
That means that either a human financial adviser or arobo-adviserwill help to manage your accounts.
Like it or not, they probably know more about the market than you do.
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Cons
Those advisers are not free.
The average fee for a human financial adviser is about 1% of the managed assets, i.e.
your money, up to the first $1 million dollars invested.
It may not seem like much, but that eats into your profits a bit.
you might still invest in the same products.
You just need to be prepared to make your own choices, though some discount brokerages offer robo-advisers.
You keep that percentage.
The online competition is stiff, so you really want to shop around.
Youll have to learn how to navigate the website, which in some cases can be a bit daunting.
Youre also on your own in choosing your investments.
As you shop around, here are a few things to consider:
3.
Apply for Your Brokerage Account
Youve done your due diligence.
Youve figured out how to open a brokerage account.
Youve found the account that is going to be perfect for how you want to operate.
Its time to hit the gas.
press that Apply now button and get started!
Heres what information you could expect to provide to get your account set up.
Deposit Money and Start Investing
Thats it.
That makes it easy to move money back and forth.
Investing can be a great way to grow your money.
It is never foolproof, though.
Youve paid down debt and saved up money.
Now its time to take the next step.
Luckily for you, you wont actually need to step away from the couch to do it.
Tyler Omoth is a freelance writer covering topics from personal finance to career advice and even lawn care.
His work has been featured on TopResume.com, Writersweekly.com and more.
He is also the author of over 70 educational books for children and a proud parent of twin toddlers.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
