When planning for your retirement, you’ve got to have more than just a savings account. While the bank often has stable savings accounts options, the growth of your money may be slow. It can only safely be considered as a secure place to put in your hard-earned money.
This is where investing in the stock market becomes a viable option. If you know how to play the stock market, then this is one very good way to secure your future – for a stable retirement.
Today, technology is on your side. If you’re still a beginner yet serious about investing right for your retirement, there are stock market investing apps you can can learn about like the SoFi Investing App, and many others you can utilize for your benefit.
What are these apps and how can they help you plan your retirement today? Let’s break it down:
Requires Low Minimum Deposit
Many would like to start investing, to keep their assets diversified and strong, but not everyone has a lot of cash to spare.
The good thing about stock investing apps is that they require a low minimum deposit. Hence, even if you’re one who just started working or still has a lot of financial obligations to date, this doesn’t mean that you shouldn’t start with planning your retirement through stocks. You can still do so with the low minimum deposit required from investment apps.
Depending on which stock investing app you choose, there are those that only require you to put in, at least, a dollar a day. That’s the equivalent of giving up one cup of store-bought coffee, in exchange for investing for your future. It’s a worth-it exchange, especially for one who is new to investing.
Easy To Use
This advantage is for newbies in stock investing and also those who aren’t that well-versed yet and confident with using technology. Stock investment apps are very easy to use, giving you no reason at all not to use it to start planning your retirement.
Take a look at the stock market records, and you’ll only lose yourself in a sea of graphs and figures! This can be very intimidating. This is where stock investment apps come in – they simplify the whole process for you.
When you use a stock market app, even an average person with very little know-how on these figures and what they mean can understand what these figures mean and what they’re for. This is very handy in planning for your retirement, as you’ll only be surprised with how fast you can grow your wealth when you absolutely understand what you’re doing.
Apart from giving you insights on the best principles to apply with stock markets, these also have a very useful navigational tool so that you can find all the necessary tools needed to help you in your retirement planning journey through growing stocks.
Makes Diversification Easier
When your purpose for investing in stocks is to save for retirement, it’s very important to diversify your portfolio. While stocks are a very good investment form, these are also volatile. The high returns come with accompanying high risks.
So, to have a hedge against this, it’s necessary to diversify your stock portfolio. This means putting your investments in different baskets – not just in one asset form. That way, if one crashes today, then you’ve got other high-earning ones to protect your potential profit from fluctuating even more.
That said, here are some of the most common types of stocks you can invest in, that bring with it many different benefits:
- Common shares. With this kind of shares, you can enjoy capital growth, better tax treatment, and dividend income.
- Preferred shares. This kind of asset investment can give benefits like a more reliable income stream, higher potential income, and more variety in your investments.
- Dividends. This stock investment kind can give stability, better returns, and better investment income.
Low Or Reasonable Fees
As discussed above, there are some stock investment apps or platforms that only require a minimal investment amount. With these smaller accounts, the fees are also lower or more reasonable.
The key here is for you to compare how much you’re taxed for the interest and service charge with the banks for that same small amount versus the amount in the stock investment apps. Generally, you’ll find that these fees are still lower in the latter.
This is an advantage when you’re saving long-term for your retirement, as it can help you maximize your finances intended for this. You’re losing less to the fees and charges.
Using stock investing apps make it more convenient to trade because you can use it even when you’re on the go. Think of your idle time during your morning commute, while waiting in line in the grocery or even during your lunch break at work. Rather than spend all this time on social media sites, you can dedicate even just a few minutes through checking your stocks through these apps.
In the past, you would’ve had to rely on a broker to help you out with your investments. But, you can’t just phone them multiple times a day to check. Then came the computers. These were pretty convenient, too, until you may have had to spend a few days away from your computer when you’re out-of-town.
These are made better through stock investing apps that you can access conveniently through your mobile phone.
Helps You Make Better Decisions
Lastly, using stock market apps can also help you make better decisions simply because these can show you which are the best companies to invest in at the time-being. You don’t have to rely on the confusing graphs and metrics you might see on television about stock options.
Through the apps, you’ll have a background on the company history and values every single day to help beef up your decision. As these numbers are collated, an analytical report can also be given to show rise and fall.
Moreover, stock investment apps will also show you a list of the companies, their stock prices, and the corresponding board lots that you can buy. The apps simplify what would’ve otherwise been a very confusing process.
All these considered, this list of benefits above should be convincing enough that investing in stocks is a very good way to plan your retirement. Fortunately, it’s easier now to monitor your investments, as there are apps that can help out with this. Even when you’re on the go, you can browse through your app and play with your stocks. That way, you’ve got more hands-on control over them. Plus, if you’re a beginner, these apps make stock investing easier and more simplified as well. Now, all that’s left to do is to get started.