We live in a wonderful time where information is at our fingertips. We have the internet, apps, and the smartphone to run it all from the palm of our hands. You no longer need to call up your broker and pay huge transaction fees, just to buy a few shares. With better access to the internet, faster speeds, and better developed apps, you can now do all of that without the call or visit to the broker.
The investing world, especially to the retail investor, can be daunting. Where do I get started? Which stock do I buy? Which app is better than the others? Well, that’s what I have designed this website and these posts for. To help gain an understanding of what’s out there and what to avoid.
I have been using applications like Webull, SoFi, Public, M1, Fundrise, Coinbase, and Fidelity. I use all of these apps to manage different portfolios as well as different investing vehicles. Webull is my main trading account. I was able to get started by utilizing their Fractional Shares option, where you can actually start with as little as $5. I opened up a SoFi account because I really liked what they had to offer, giving a robo-advisor, active accounts, and crypto. I also use their credit card, because you can use their reward points to purchase shares of stock, which has been extremely useful to get some extra shares.
Public I have a smaller amount on, but run a different portfolio than Webull or SoFi, and M1 is my robo-advisor where I let them do all the buys and sells. I put money into the M1 account every week, and they initiate the buys and sells if needed. I really enjoy having the hands off, and see how well the robo-advisor does against active portfolio management. Fundrise is strictly for Real Estate and I’ve always wanted to be in real estate. It gives you the opportunity to be a real estate investor, without having to physically own or maintain a property. It’s great for getting into the real estate world with a bit less risk than doing it all yourself.
That leaves Coinbase for all of my crypto needs. Coinbase is helpful because of Staking, where you can actually earn more of that coin while you hold it, but it does restrict you from selling what is staked. That is the intention, buy and hold the coin, instead of trading often. The last application I use is Fidelity. I use fidelity because of their low cost, passively managed index funds, or ETF’s. The FZROX has a 0.00 management fee and the FZAIX for the low cost S&P 500. I also have opened up an account for my daughter, and with the DRIP program as well as the low cost to the funds, she has a huge head start into becoming financially free.
Whatever application you use or portfolio idea you have, most of these apps can help you towards your financial goals. Make sure you know what investing products you are looking for before signing up and creating an account, make sure the app has everything you are looking for. SoFi, Public, M1, all have DRIP, the Dividend Reinvestment Program. This is when you gain a dividend from a company, it automatically purchases that same amount from the company, adding to your current position. This is huge for the compounding wonder of the world!
If you are looking to get into bonds, you can use Webull, SoFi, Public, M1, or Fidelity to start investing in Bond Funds. They are ETF’s filled with bonds. They may be corporate bonds, municipals, or government bonds, but you get a basket of bonds rather than picking individually. Selecting bonds can be difficult at first without knowing what you’re looking at, and the bond funds are a bit more attractive. They can give you a piece of the market you are specifically looking for that has a basket of bonds, rather than the focus on one. You can capture emerging markets, municipalities of your choice, or corporations to get that risk and reward going.
One other option I know about if you want to select individual bonds or wanting to purchase directly from the US Government, the Treasury Direct. https://www.treasurydirect.gov/ – Once you have an account created and a bank account set up to be used, you are ready to buy directly from the US Government, and you know that US Treasury Bonds are one of the safest investment due to the government not defaulting on their bonds.
I hope this helps you when you are trying to decide on what app to use or how to use it. You can get started with as little as $5 since the Fractional Shares and no trading fees. This world has become better for us retail investors and it’s time we all take full advantage!
Thrifty Investing 