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Myth: You need lots of money to start investing.
Micro-investing apps are giving everyday people access to the stock market for as little as $5.
Micro-investing allows you to start small reallysmall.
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Apps likeAcorns andStash work by transferring small sums of money from your bank account to a diversified portfolio.
Research shows that these tiny money moves can really add up.
Is a micro-investment app right for you?
The answer depends on your financial goals and income.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
What Is Micro-Investing?
This fintech term applies to a handful of mobile-based platforms that make investing easy and painless.
Did you know?
Investing is complex, and the best way to learn about it is to actually invest.
you might use a micro-investing app like training wheels to support you as you begin your investing journey.
They arent intended to replace your emergency fund or make you a millionaire.
Youre going to need to do more than round-up your Uber Eats orders to save enough money for retirement.
How Micro-Investing Platforms Work
Heres what to expect once you dive into micro-investing.
Where Is My Money Invested?
Youll also be prompted to complete a survey designed to determine yourrisk toleranceand financial goals.
From there, many apps select a pre-made portfolio where your money gets invested.
Portfolios most often compriseexchange-traded funds, or ETFs.
Exchange-traded funds provide instant diversification, and are considered less risky than investing in individual stocks.
Theyre similar to mutual funds in that respect, but at a lower cost.
From there, you could customize how much money you want to invest and how often.
How Does Rounding Up Work in a Micro-Investing App?
Round-ups are an attractive option for new investors because theyre simple, easy and automatic.
If youre new to investing, $360 in the stock market is a step in the right direction.
For example, you might set your account to automatically withdraw $20 a week from your savings account.
You end up buying more when the price is low and less when the price is high.
you’re able to make some green while supporting green companies.
Retirement accounts come with special perks from the federal government, like a deduction on your yearly tax bill.
But its important to learn about IRSearly withdrawal penaltiesand other restrictions before opening an IRA.
Micro-investing apps make the process less intimidating and stressful for beginners.
Pros of Micro-Investing
You do everything else on your phone why not start investing?
Micro-investing platforms feature easy-to-use interfaces that make it super simple to round up your purchases and manage your account.
Buying individual stocks as a newbie can be risky.
ETFs can cost hundreds of dollars per share.
But these apps get you started with an initial investment of $5 or less.
By purchasingfractional sharesof ETFs, which isnt possible at many traditional brokerage firms.
These apps provide lots of educational resources.
They hammer home the importance of investing for the long haul.
Micro-investing platforms are a great place to start, but most financial advisors agree that you shouldnt stop there.
Paying $36 a year to access an IRA is a pretty lousy deal.
Account fees for micro-investing platforms vary widely.
A micro-investing app may feature free trades until your account reaches a certain amount, such as $5,000.
Most will offer additional services, like access to a checking account, for a higher monthly fee.
This may not seem like much, but it adds up.
Meanwhile, most brokerage services, like Robinhood, offer free trades and no monthly fees.
As you learn more about investing, you might want to DIY your portfolio or add specific assets.
Unfortunately, micro-apps dont provide much wiggle room as your investment strategy evolves.
Some apps wont let you invest incryptocurrency, and you may not be able to pick individual stocks.
Many micro-investing platforms also lack access to professional investment advisory services.
Micro-investments often lead to micro results.
But heres a quick rundown of a few of thebest micro-investing appson the market.
If youre new to investing, SoFi has automated investing tools to help simplify things.
Plus, they wont charge you any SoFi management fees.
It only takes a minute toopen an account.
This investing app works as a robo-advisor by creating a portfolio tailored to your goals and risk tolerance.
Accounts cost $3 to $5 a month.
Monthly fees range from $3 to $9.
Its not a great option for more experienced investors seeking customization or for crafting a long-term retirement strategy.
And investment advice on an app isnt the same as investment advice from a financial professional.
Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
She focuses on investing, retirement, life insurance and taxes.
Probability of customer receiving $1,000 is 0.028%.
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?
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