Financial security is a must for most people. Whether it is to prepare for their retirement or secure funds to start their very own business, one of the most common routes people choose is investing, yet it remains the option that people approach with the most trepidation. Over 47 percent of Americans are not investing their money in the stock market, real estate or even individual retirement accounts, according to a recent GoBankingRates poll of over 1,000 adults. A common reason behind their choice to opt-out? The unpredictability and intricate nature of investing their hard-earned money. Even those that do choose to invest are erring on the side of caution – only 10 percent of them invest in stocks, and 7 percent go for mutual funds. However, for any investor in today’s market, there is now a magnitude of tools to make the process easier, thanks to technology and the digital era. With the use of various tech tools, investors can now better filter their choices and make more informed decisions about when to cash out.
Getting Started: Budgeting And Saving Investment Capital
One of the most common issues for any investor is getting started. With the host of budgeting and saving tech out there currently, it is now simpler than ever to set aside money to begin or expand your investment portfolio. Automatic savings apps including Chime, Empower Finance and Tip Yourself allow purchases to be rounded up to the nearest dollar and the difference automatically added to a preset savings pot (in this case, investment funds). Others, such as Digits, go further and operate using an algorithm to analyze your spending and calculate the ideal amount of savings suited to your spending patterns and budget. Users also benefit from an annual bonus, and according to the company website, its average savings transfer is $18 per week for its users. This takes much of the planning and grunt work out of the saving of capital for investors.
Building Your Portfolio: Investment Risk And Criteria Screening
Thanks to technology, the market is littered with screening software that can help investors weed out their investment options according to their risk appetite, preferred industry or desired return on investment. This is particularly useful for those that choose to invest themselves, unaided by an investment broker. Charting software and stock simulators are other stock research tools that can greatly benefit investors. Alternatively, there has also been the rise of automated financial advisors (roboadvisors) that help with both investment screening and asset allocation in exchange for a small annual fee of 0.25 to 0.50 percent. With the help of an upfront questionnaire, investors can have their investment options filtered according to their preference, such as money market and other high yield savings accounts, retirement funds or mutual funds. For those investors seeking high yield investments who have already studied the best money market accounts at Crediful.com, screening tools can help them narrow that list down. Best of all, the final decision is left up to the investor, so they have control over their investment timeline.
Monitoring Your Funds: Investment And Market Alerts
Many investors may have heard about Google Alerts to keep an eye on their portfolio, but there are also other handy mobile apps and tools that can help them stay updated at all times. The world of investing is fast-paced, and therefore requires continuous monitoring – something that can prove to be quite difficult for those that opt to take on investing themselves. Here is where investment alerts can come in quite useful. You can set a target price alert, which helps you as an investor beat the rush to secure stock you may have been considering for your portfolio. Additionally, there are other alerts, such as percentage change or exponential moving average. Most of these features come attached to mobile investment account platforms like Fidelity’s Mobile App or TD Ameritrade. These tools also come equipped with an in-app chat, which is a great tool for novice investors.
Thanks to technology, the world of investments is now simple and pain-free for investors of any level. Gone are the days of mountains of paperwork and calculations. With the right set of tech tools in their pocket, any investor can grow their wealth.