Pinterest Stumbleupon Whatsapp
Advertisement

Entering the world of investing isn’t easy—there’s a huge amount of information out there, and taking your first steps into the market without knowing what you’re doing is very dangerous. Fortunately, there are quite a few tools that will help you get started investing and saving money IFTTT Recipes That Help You Save Money IFTTT Recipes That Help You Save Money IFTTT can be used to do nearly anything, and saving money is no exception. Here are some of the best recipes to help you live more frugally. Read More , even if you’re a total beginner and don’t follow the financial news The 6 Best Sites for Keeping Up-To-Date with Financial News The 6 Best Sites for Keeping Up-To-Date with Financial News Keeping on top of financial news is a necessary chore for almost everyone. We take a look at six of the best sites to keep you abreast of breaking stories. Read More religiously. Here are six of the best.

Betterment

After getting some information about you, including your income and goals, Betterment suggests priorities and an investment plan to help you get there. You set up a monthly contribution to your Betterment account, and it’s automatically invested in a variety of places—some low-risk and some moderate-risk—to help you create a diversified portfolio.

betterment-goal-setting

The algorithms used to make recommendations take into account your goals and recommend certain mixes of conservative and more risky investments to increase the likelihood of reaching your goals in your timeframe. It also performs automatic rebalancing to keep an optimal distribution of assets, helps you consolidate and manage your retirement accounts, and take advantage of any losses by claiming them on your taxes.

With fees between 0.15% and 0.35% (depending on your account balance), Betterment is a much more affordable option than many traditional investment methods. There’s no minimum deposit, and no minimum balance.

Advertisement

SigFig

SigFig aims to put your money in low-risk, low-cost funds so that you can make the most of your money. After you’ve made the minimum deposit of $2000 and answered a few questions about your risk preference, SigFig will calculate an optimal distribution of investments and make them for you (you can also manually adjust your risk preference).

sigfig-plan

The advisors at SigFig can also help you get your current portfolio in order so that it best helps you meet your goals. And while your account balance is under $10,000, you pay no administration fee. After that, it’s 0.25%, making it a lot cheaper than traditional invesment managers.

Your investments will be guided by Modern Portfolio Theory, a Nobel-Prize-winning theory of investment, which the company believes will minimize risk and maximize return on your investments. According to Wikipedia, the theory has lately come under fire, but the fact that it won a Nobel Prize speaks highly of its return potential.

FutureAdvisor

Another service that makes an effort to point out its reliance on Modern Portfolio Theory, FutureAdvisor is strongly focused on retirement planning Now Is The Time: Tips To Go Online & Plan For Your Retirement Now Is The Time: Tips To Go Online & Plan For Your Retirement Now is the time to start planning for your retirement. Now is the time to take control of it, and put the responsibility back into your hands. Work at it with some web tools. Read More and saving for your kids’ college tuition. By emphasizing transparency and full-portfolio management, FutureAdvisor aims to help you get to retirement age with enough money to see you through.

futureadvisor-calc

And when it comes to college savings, the site puts your money in the best type of account, no matter where it is—which means they go through each state-specific account and see if it will work for you. Based on the expected return over 20 years, FutureAdvisor will net you an additional $65,000 in college savings over a 0.5% interest rate savings account.

The fee for retirement planning is 0.5% per year, making it one of the more expensive online options, but college savings planning is free, with no limit on time.

WealthFront

With a team of highly regarded investors and entrepreneurs behind it, WealthFront brings to bear a lot of expertise in handling your money. Their team has collectively written 16 different books on the topic, which should give you an idea of how much thought they’ve put into it.

wealthfront-diversification

By investing in diversified markets and handling both retirement and non-retirement accounts, WealthFront aims to help you get a solid return on your investment. And by closely monitoring how your investments perform and taking into account the tax implications of that performance, they also minimize the amount of taxes you pay, increasing your earnings over time.

WealthFront has the highest minimum investment of the services here, with an initial deposit of $5,000 required. They won’t charge you a fee on an account balance of less than $10,000, but once you break that threshold, you’ll pay 0.25% annually.

Tip’d Off

If you’re looking for something really different from traditional investing methods, Tip’d Off might be for you. Instead of using algorithms to guide your investing, this site lets you watch and learn from other investors. By crowdsourcing What Is Crowdsourcing & How It's Used [INFOGRAPHIC] What Is Crowdsourcing & How It's Used [INFOGRAPHIC] Have you ever wondered what crowdsourcing is, what sites on the Internet take advantage of it and its influence online? Well now all your questions will hopefully be answered with this infographic, designed and produced... Read More investment data, Tip’d Off gives you more than just advice: it gives you hard data, too.

tipd-off

By watching what other users are doing and sharing tips and advice on trading, Tip’d Off helps you trade at the same time that it helps you learn. If you’re looking for an investing solution that will not only help you invest effectively, but also help you learn enough to manage your own stocks in the future, this is a good way to go.

Tip’d Off also offers paper trading, which allows you to practice trading with fake stocks 3 Virtual Stock Market Games That Help You Learn How To Invest 3 Virtual Stock Market Games That Help You Learn How To Invest Read More to get the hang of the investment game.

Professional Advice

If you aren’t comfortable leaving your money in the hands of an equation, and the rather informal nature of Tip’d Off doesn’t appeal to you, there are a number of online investing resources 10 Financial Websites That Help You Stay On Top Of The Market 10 Financial Websites That Help You Stay On Top Of The Market If you want to make the most of your money, you're going to need to stay on top of financial news. Here are 10 sites that make it easy. Read More that can help you learn your way around the stock market yourself. This takes a lot of work, but it can be very rewarding.

motley-fool-how-to-invest

Read investing blogs; The Motley Fool’s How to Invest and About.com’s Investing for Beginners are great places to start, and InvestorPlace and Forbes’ Investing section are good ones to graduate go. Read magazines like the Financial Times, Barron’s, and Kiplinger’s. There’s also a great list of books for beginning investors at InvestorPlace.

And, of course, you can always talk to a financial advisor. If you start investing without knowing what you’re doing, you’re taking on a huge amount of risk that could result in a large loss of money. Talking to a financial advisor MyFinancialAdvice: Find Financial Advisors For Your Specific Needs MyFinancialAdvice: Find Financial Advisors For Your Specific Needs Read More can help you mitigate some of that risk by taking advantage of years of experience (though it will cost you more money than the options above).

Start Today!

By managing your investments well, you can save a lot of money for the future, whether you hope to use it for retirement, buying a new home, sending your kids to college, or just having some savings put away. These six different ways of getting into the market without a lot of knowledge will help you get started.

Have you used any of these investment tools? What resources have you found to be the most useful? Share your thoughts and favorite links below!

Image credit: Businessman checking stock market on tablet (edited) via Shutterstock.

Leave a Reply

Your email address will not be published. Required fields are marked *