So you know nothing about investing and are looking for apps that invest for you. It’s a good thing that we live in the era of information and artificial intelligence. Thank’s to this, we can confidently invest our extra cash without having to learn how to invest or pay expensive fees to a financial advisor that would eat up all our earnings.
In this post, I am going to show you 4 apps that invest for you. As well as the factors I took into consideration to select the app that invest for me.
Ready? let’s dive right in.
What are the apps that invest for you?
The apps that invest for you are called Robo-advisors. These apps are digital platforms that automatically invest your money with little human intervention.
These convenient robots are software based on artificial intelligence algorithms along with theory and investing knowledge. This technology has been evolving and improving since they first started operating with investors’ money back in 2010.
Apps that invest for you are pretty intelligent technology. Some are managing a large number of assets, as much as $161 billion, which is the case of Vanguard Personal Advisor Service.
How do the apps that invest for you work?
Once you have decided what app to use, the first thing that your Robo Advisor will do is make you fill an online survey to assess your risk levels and desired outcome, meaning your long-term goals.
Afterward, they invest your money using passive investing strategies.
It is a good idea to keep an eye on what your money is being invested on. To make sure you are comfortable with how they manage your money. Even if you have little to no investing knowledge.
As you get involved with your portfolio, you will start getting seasoned with all the terms and will be able to clearly see the bigger picture.
Can an app that invests for you make you money.?
Yes, A Robot Advisor can make you money similar to a flesh-and-blood financial advisor.
In the same way, they can make you lose money. There is always that risk involved too.
Benefits of the apps that invest for you.
One of the benefits of automatic investment apps is their low fees. They can cost anything from cero to 0.25% to manage your assets.
Contrary to financial advisors, whose average fee for their service is 1.02% of assets under management on an annual basis of a million.
I am not against financial advisors at all. But I tasted first hand how their fees could eat up your gains and more.
Likewise, the apps that invest for you use advanced top-notch investing theory to get the best returns with the slightest risk possible.
These apps also require low minimum balances ideal for small investors.
You will require little to no knowledge of investing in registering and using the app. All the work is done for you. It is a hand-free carefree situation.
Best Apps that invest for you
The best app that invests for you will be the one that offers:
- Accessible account setup and interface.
- Takes your goal into account.
- Offers portafolio management.
- It is secure.
- Will educate you.
- Low fees
- Great customer service
So let’s go over my list.
Fees: 0.4% to 0.5%
Minimun deposit: None
Wealthsimple makes honored of its name. It is simple to use and to find your way around the app.
I have listed it first because is the one I use. I fell in love with the app because of its versatility and it gives access to a lot of capabilities like cryptocurrency and stock trading for free.
Also, their investing masterclasses are an excellent way for new investors to learn in a refreshing and interactive way the ins and out of wealth-creating through investing.
In terms of Robo Advisor, Wealthsimple Invest offers automatic rebalancing and dividend investing.
Its management fees are low as it is expected from Robot Advisor just 0.5%.
Wealthsimple will invest your money on popular ETF’s(E#xchange-traded funds)
They offer three portfolios to adjust to your risk comfort level. They also have a socially responsible portfolio, low carbon, and Halal portfolio just to mention a few.
In case you need to manage a lot of money you can always have access to a human advisor too.
Fees: 0.25% to 0.5%
Minimun deposit: $500
Wealthfront offers more than you can bargain for. It has banking, planning goal setting, and more on top of automatic investing.
Their digital interface is as simple as it can get. They also have socially responsible portfolios and funds in clean energy, tech, and crypto in case you feel like customizing your portfolio.
But even if you go solo they would alert you if you are exceeding your risk limit. Which gives you a sense of confidence when you are a beginner investor.
Wealthfront offers Tax-Loss Harvesting which can reduce the taxes you pay considerably.
The main drawback of Wealthfront is that it doesn’t have online chat, making it difficult to access customer service.
Fees: 0.25% for a digital plan or 0.40% for the premium plan annually.
Minimum deposit: $10
Betterment is best for beginners because of its user-friendly interface and its invaluable learning resources.
This app is easy to set up an account with and they don’t ask you many questions. Instead, they suggest where to allocate your money and the risk associate with each choice.
Betterment offers five portfolio types you can choose or switch from. They will even lay out the tax implications of your investment decision.
Fees: 0.08-1.5% annually depending on advisor and portfolio selected
Minimum deposit: $100- $5,000-50,000 or $5,000-20,000 depending on your portfolio.premium plan annually.
InteractiveAdvisors will invest your money in socially responsible products. If that’s your investing approach this app is great for you.
They offer a wide range of portfolios that include a mixture of stocks and ETFs. However, there is a prevalence of stock on their portfolio over ETFs.
A significant advantage of InteractiveAdvisors is that you can borrow against their non-managed accounts at considerably low-interest rates.
One thing to consider is their fee can be high considering the low managing fees of other apps that will invest for you.
Their minimum account deposit is also rather high compared with similar Robo advisors.
Final thoughts on apps that invest for you
There you have 4 apps that invest for you. Now you have the material to decide which app is best for your investing approach and knowledge level.
And as I always say, knowledge alone won’t take far, but what you do with the knowledge will make the difference.
Good luck in your investing journey!! see you next time around.