Make Investing Simple Whether you’re putting away your first $1,000 or have been saving for the future for years, you’re going to want to consider investing your funds at some point. Doing so will allow you to maximize returns and exponentially grow your savings. Unfortunately, the investment process can be pretty intimidating, especially if you are starting out on your own. It’s hard to know how to begin, where to invest, how to balance your portfolio and even what sort of fees you should expect to pay along the way. That’s where the convenience and ease of today’s best investment apps can come into play. [youmaylike] What are Investment Apps? Once upon a time, your only choice for investing was to pick up the phone and call your stock broker to initiate a trade. You were charged for the service, either based on commission or as a flat fee per transaction. While stock brokers are still an option, you can take investing into your own hands these days, without ever needing to talk to another human. And it’s all thanks to investment apps and platforms. Today’s apps offer a range of services and features. With them, users can: Research funds and individual stocks. View fees and expenses related to investment choices. Invest funds on the go, and even automate regular contributions. Automatically reinvest earnings on current investments. Adjust portfolio for personal risk tolerance. View performance projections. Choose funds or individual stocks that align with personal beliefs, through portfolios based on socially-responsible missions. The best part? Investing through trusted apps is usually cheaper and faster and you’ll have instant access to your portfolio/reports at any time of day. Not only that, but you’ll also be able to set your investment risk tolerance, rebalance your portfolio and even reinvest earnings automatically. Who are Investment Apps Designed For? Whether you’ve been playing the market for ages or are ready to invest your first $100, the right investment app is worth considering. For those new to the stock market, apps will simplify the process and put the power of investing at your fingertips… literally. From your phone or computer, you can easily see portfolio recommendations based on your own goals, savings plans and even risk tolerances. The right app will tell you upfront how much you can expect to spend in fees throughout the year, and can even allow you to automate many of the more confusing aspects, such as picking well-performing stocks or even rebalancing. While investment apps are ideal for beginners, newbies aren’t the only ones who will see the benefits. Even seasoned investors will find the process easy to use, and may even learn that these platforms can maximize returns (and save them money in fees) along the way. Not to mention, many investment apps offer additional insight into specific funds, so you can choose to invest in companies that align with your own passions and beliefs. Now that you know why you should consider using an investment app for your own savings, let’s take a look at some of the best ones available today. Best Investment Apps Great for Beginners: Acorns Fees and expenses: For investors with less than $1 million invested, fees are between $1-3 per month depending on the account option you choose. Acorns is also free for college students. Beginning investment requirement: At least $5 to start Types of investments available: ETFs (exchange-traded funds) Portfolio options: Conservative, Moderately Conservative, Moderate, Moderately Aggressive, Aggressive Automatic investing?: Yes Automatic reinvesting?: Yes Automatic rebalancing?: Yes If you want an easy, hands-off approach to investing that won’t leave your head spinning, Acorns is a great first choice. This app not only simplifies investing for beginners but allows investors to completely automate the process from start to finish. After connecting the app to your debit card, the app will “round up” each of your daily purchases, putting the savings into an investment holding account. Once you reach the minimum required, Acorns will invest this money on your behalf, based on your account preferences. The app will also reinvest your earnings, as well as rebalance your portfolio when necessary. Great for Truly Free Investing: Robinhood Fees and expenses: Robinhood is a free investment platform in every sense of the word, pledging to never charge company fees or commissions to customers. Beginning investment requirement: You’ll need $2,000 to get started. Types of investments available: ETFs, stocks, cryptocurrency and options. Portfolio options: Interest-based options such as Fashion ETF, Tech ETF and Energy ETF, as well as a standard S&P 500 ETF, all with personal risk tolerance settings. You’ll also find “collections,” which are individual stocks grouped according to specific interests — such as companies with female CEOs or that are in the social media sector. Automatic investing: No. Automatic reinvesting: No. Automatic rebalancing: Yes. A great option for beginners and experienced investors alike, Robinhood makes the process both easy and affordable. How affordable? Well, it’s entirely free. By offering a truly free experience, Robinhood saves investors some serious cash over time. Additionally, the platform makes it easy to choose individual stocks or ETFs based on personal interests. If you want to invest in cryptocurrency or options, you can also do so through Robinhood. One of the biggest limitations of the platform, though, is its automation. While you can set up automatic deposits into your account, you will need to manually invest those funds and then reinvest (or withdraw) your dividends. Stash Fees and expenses: $1 per month fee for those with less than $5,000 invested, or $2 per month for retirement accounts with less than $5,000. For users under 25, fees on retirement accounts are waived. If you have more than $5,000 invested, your fee will be 0.25% annually. Beginning investment requirement: You’ll need at least $5 to begin investing (fractional shares are available) Types of investments available: ETFs (exchange-traded funds) and fractional stock shares Portfolio options: Too many to name, ranging from things you Want (portfolios that are conservative to aggressive mixes), things you Believe (such as groups of companies that believe in clean energy, LGBT rights, etc.), and things you Like (tech, retail and social media companies). Automatic investing: Yes. Automatic reinvesting: No. Automatic rebalancing: No. The closest competitor to Acorns, Stash seeks to make investing easy for everyone, regardless of your goals and passions. They have three account options to choose from, allowing you to manage your investment and retirement accounts, or even a child’s education savings through custodial accounts. With Auto-Stash, you can set any number of automatic investment options and transfers. However, Stash will not rebalance your portfolio for you, nor will they reinvest dividends on your behalf. Wealthfront Fees and expenses: 0.25% annually. Beginning investment requirement: $500 minimum initial investment. Types of investments available: ETFs (exchange-traded funds), individual stocks, retirement accounts (401k, IRA), 529 savings plans and trusts. Portfolio options: 11 asset classes to choose from, including natural resources and real estate. Automatic investing: Yes. Automatic reinvesting: Yes. Automatic rebalancing: Yes. Wealthfront’s investment platform is designed to be friendly for users of all experience levels. If you’re a seasoned investor, you’ll enjoy all of the options available to you, including the ability to manage your retirement accounts, education savings and even non-profits or trusts. If you’re a newbie, their free financial expertise center is the perfect place to learn all about investing and your future. TD Ameritrade Fees and expenses: The managed, automatic portfolio investment option (called Essential Portfolios) is available with a 0.30% advisory fee. Beginning investment requirement: $5,000 minimum for managed portfolios (no minimum requirement for traditional trading). Types of investments available: Stocks, ETFs, options, mutual funds, futures, bonds/CDs, Forex and cryptocurrency. Portfolio options: Essential Portfolios (EP) offer investors a range of options from Conservative to Aggressive, based on your passions, preferences and tolerances. Automatic investing: Yes, with EP. Automatic reinvesting: Yes. Automatic rebalancing: Yes. A more traditional brokerage app, TD Ameritrade is one of the most recognizable names in the industry. You can easily educate yourself on all things financial, thanks to their free videos and posts. If you want a traditional experience, you can choose your trades and pay per transaction. Prefer a more streamlined, automated approach? Opt for their Essential Portfolios, a hands-off investment option (robo-advisor) that charges a flat monthly fee and requires little-to-no oversight from you. Plus, their app makes the investing process easier than ever with a user-friendly interface, price alerts and no minimum to get started. If you prefer a desktop experience, this is also available to you through TD Ameritrade. Bottom Line Getting started with investing can be intimidating. With all of the terminology and account options out there, it’s easy to want to run and hide. Thanks to some of today’s best investment apps, though, you can not only get started with your first portfolio but also watch your money quickly grow… no matter how much of a beginner you may be! It’s important to choose an app that offers you the portfolio options and features you want most, with fees and deposit minimums that match your financial needs. The five apps above are our favorites for beginners, making that first foray into investing easier than ever before. The hardest part will be choosing the one you love most!
From Regular Appointments to Unexpected Illnesses
Health insurance is one of the most talked-about topics in American politics, and for good reason — it is essential to one's health and financial well-being.
What Is Health Insurance and Why Do You Need It?
In America, it is important to pay attention to the costs of different medical services. These are the average costs of routine medical care procedures:
- A 10-minute doctor visit is $68
- An eye examination is $234
- An emergency room visit is $1,233
- An ambulance ride can range from $25 to $1,200
Fortunately, with the right coverage, you don’t have to pay the full amount of these medical bills out of pocket. This is where health insurance comes in handy.
Insurance is an arrangement created to spread the risk of potential costs over a larger pool of people. For health insurance, the costs include paying for the medical services required for everything from routine preventive care to major illnesses.
The organizations that manage and administer this risk include government agencies, private businesses and not-of-profit entities. These organizations will calculate the financial value of the risk and charge monthly premiums or payroll tax to their participants.
In return, participants will get peace of mind that in the event of a medical emergency they will not be responsible for paying all the expenses by themselves at once.
Different Aspects of Health Insurance
Health insurance can be an overwhelming topic due to the different types of health insurance available. In order to determine which health insurance is right for you, there are a few factors to consider:
- Your desired monthly premium
- Your deductible
- Your amount of copay and coinsurance responsibilities
- Your access to different health care providers and services
The Monthly Cost of Health Insurance
In order to finance the cost of hundreds of thousands of people's medical expenses, the administrators of health insurance charge a monthly fee, called a premium, for their coverage.
Health insurance monthly premiums will vary based on your location, age, preexisting conditions and income. You can compare different health insurance plans and their premiums using healthcare.gov.
Without any governmental support, Americans spend an average of $500 a month on health care monthly premiums. As mentioned, insurance plans can vary based on the state. California residents pay an average of $435 per month, while those residing in Wyoming pay an average of $865 per month.
Paying a Deductible
When choosing a health coverage option, you will need to pay attention to the deductible. This is the amount you are required to pay out of pocket before your health insurance will pick up the bill.
For example, a $1,000 deductible plan means you have to pay the first $1,000 of your medical expenses yourself before your insurance company will provide financial assistance. Typically, a lower deductible plan will result in higher monthly premium costs. You will need to calculate what is better for your budget: spreading out the costs monthly or paying more upfront at one time.
Health care plans can differ in how the deductible is managed. For example:
- Preventive services (e.g. routine checkups) may be covered fully by your insurance provider even before you've paid your full deductible
- Different services, such as prescription medicine and surgeries, may have different deductible levels
- Family health care plans tend to have both individual deductibles, which apply to each family member, along with a combined family deductible amount
Copayment and Coinsurance Expenses
In addition to paying a monthly health insurance premium and agreeing to an annual deductible, you may also need to copay or coinsure for each medical visit you have.
Copayments are predetermined, flat fee amounts you will need to pay yourself for every medical service. For example, every time you visit your doctor, you may be required to pay a $20 copayment fee. This is an out of pocket expense and is not normally counted toward your annual deductible.
Coinsurance is a predetermined percentage of your health care expenses that you agree to pay. An 80/20 insurance plan simply means that after you have paid your deductible and copayment, the bill is further split between your insurance company and you. 80% of the bill should be paid by them, while you are responsible for the other 20%.
Types of Health Insurance Plans
There are many different types of health insurance plans, with the most common being:
Managed Care Plans
More affordable plans that outline the specific health care providers you can use. These plans can range in the flexibility of choosing your health care provider.
- Health Maintenance Organizations (HMO): Limited number of health care providers, usually no insurance claims required.
- Preferred Provider Plans (PPOs): More flexibility to choose health care providers, however higher costs and more paperwork required when choosing an "out-of-network" provider
Fee-for-Service Plans
Least restrictive plan in terms of choosing a health care provider. It allows you to choose the doctor or hospital of your choice; however, this also means you will be required to file insurance claims after the fact.
Health Savings Account
A tax savings benefit that allows you to use tax-free earnings on qualified medical expenses.
Catastrophic Coverage
Plans that only cover serious illnesses or injuries.
Supplemental Plans
Plans that cover specific cases, such as a hospital indemnity policy that pays a fixed amount per day that you are hospitalized. These are typically used to cover expenses that your normal health care insurance plan does not.
Buying Health Insurance Outside of Work
Most Americans are covered by employer-provided health insurance plans. However, there are options outside of work to get insured.
State Health Insurance
For lower-income Americans, Medicaid is a health insurance program offering free to low-cost plans. Each state has different income thresholds, so you will need to check with your state to see if you can qualify.
Private Health Insurance
For those with a higher income or desiring additional health care benefits, there are a number of private health insurance companies.
The Marketplace, available at HealthCare.gov, is operated by both the federal and state governments and helps Americans find affordable health care options from private insurance company providers. Shopping through the Marketplace can help you identify additional health care related tax credits and savings.