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!
How to Manage Money as a Couple
You’ve finally found that special person, and you two decide to spend the rest of your lives together. Congratulations!
Unfortunately, as anyone in a marriage can attest, it is a union that requires a fair bit of work. It isn’t just enough to exist. You must continually show your spouse that they matter to you and allow them to live their own life. Even if that path might not be ideal for you.
One of the biggest things couples fight about is money. The specifics of how to manage money as a couple aren't always straightforward. Some couples don’t have enough of it. Others feature one spender and one saver, with conflict arising when deciding what to do with excess cash. One of the keys to a good relationship is avoiding fights about this sensitive topic.
This article will take a closer look at how to manage money as a couple and will present some strategies you can use to keep your relationship happy. We’ll look at what types of accounts you should use, how to make the best household budget, various investing strategies and the difference between cohabitation and being married will have on your finances.
The Ultimate Question – Joint or Individual Accounts?
Let’s start off with the question on the top of most people’s minds when they get married or move in with that special someone. Should you combine finances into a joint account? Or just stick with individual accounts?
My answer will likely disappoint many of you. The correct answer is… it depends.
I know! What a cop-out, right?
Here’s the skinny. There are a million variables to consider, and they all depend on how you and your partner view money. Generally, if you both view things approximately the same, then there won’t be as many issues if you combine finances. Two spenders will be naturally inclined to drain the account every month, just as two savers will be reluctant to spend every month. Being on the same page makes things easier.
Having separate accounts might also be a good idea even if you both view money in a similar way. If each person in the relationship is making sure financial goals are being met, then keeping money separate can give each spouse a little bit of freedom.
Ultimately, couples need honesty to make separate accounts work. You must be willing to show your spouse where your money goes, especially if you’re not contributing your share to shared household goals. Honesty is important in a joint account too, but with those, it is much easier to see what’s going on.
How to Budget as a Couple
Like many other aspects of a good relationship, setting an appropriate household budget comes down to compromising. It's much like creating a personal budget, but with a greater emphasis on splitting and sharing.
The first step is to sit down with your partner and figure out what’s important for both of you. One person might really want to live in a nice house, while the other cares about the vehicle they drive. You’ll likely have separate hobbies, too, with some costing more than others. Consider other financial aspects as well, including attitudes towards charity or helping family.
Ideally, you’ll have enough in the household budget to make each person happy without much compromising. This might be easier than you think, especially if you both make a decent income.
Things start getting a little trickier if you have two spenders who get together. I’d recommend allocating enough joint cash to pay all the bills and then make sure some gets taken right off the top into savings. After that, split up what’s left into spending accounts and spend it on whatever you want. Let your partner do this no matter how frivolous you might think it is.
Next, let’s talk about how to budget if you have separate finances. It should be simple; each member contributes 50% of household expenses and then does whatever they’d like with the rest. But that’s not always the best approach, especially if your spouse makes less than you do. Consider a more even split based on income.
Finally, you might want to have a cap on purchases one spouse can make without telling the other. It’s important to discuss big ticket purchases with each other beforehand to avoid hurt feelings.
Investing
Investing as a couple can be complicated.
Let’s start with the basics. Ideally, you’ll want to open joint investing accounts. That way the division of assets is very clear; you’re both equal owners. This isn’t just important from a legal standpoint, it’s also important from a psychological perspective as well.
After that, it gets more complicated. For instance, a higher-earning spouse can contribute to a 401(k) on behalf of their spouse and collect the tax incentives to do so. This can be an effective way to split income and get the future tax liability into the lower-earning spouse’s name.
Some couples take this even further, with the higher-earning spouse putting every spare nickel into their partner’s investment accounts. These capital gains and dividends are then taxed at a much lower rate. Learn more about tax brackets.
These are just some of the basics. You’ll want to talk to an accountant or financial advisor if you really want to maximize gains as a couple over the long-term.
The Legal Differences
The institution of marriage has been falling out of favor for years now, with many couples choosing not to bother. It’s expensive, requires a lot of paperwork and really doesn’t change much for a committed relationship.
One area where it does matter is your finances. You’ll want to take a slightly different approach depending on what path your relationship follows.
Divorce laws in the United States are straightforward, at least from an asset perspective. Community property — which includes any assets acquired while you’re both married — is split evenly upon divorce. It doesn’t matter whose name is on what account. What’ll make this tricky are assets that are brought into a marriage.
You get fewer protections if you don’t bother to get married. This means one member of the relationship could stockpile assets in their name and be in great shape once the relationship ends, while the other person is left with nothing. There are some states that have laws which help protect against this, but for the most part you’ll need to take steps to ensure this doesn’t happen to you.
Many couples sign a cohabitation agreement, a contract that outlines what assets are considered to be joint assets and what assets are excluded from this designation. These are a great idea, and I’d think twice before moving in with someone without having one.
The Bottom Line for How to Manage Money as a Couple
Ultimately, it comes down to this: the details don’t matter as much as the sentiment behind them. So, talk to your significant other about what they’d like to do, make compromises, and then be consistent and honest with each other. Having joint accounts, for example, would be a good solution for some couples, but it might not work for your relationship.
You’ll likely make changes in whatever method you choose over time, as both you and your partner change and mature. Don’t sweat this at all. Ultimately what really matters is the consideration for the other’s feelings. Get that right and the rest will fall into place.