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!
What Is a Balance Transfer Credit Card?
Credit card debt is one of the worst types of debts you can have. It’s hard to get ahead when you’re paying some unsecured creditor 1 to 2% each month on your unpaid balance.
Getting yourself out of a mountain of credit card debt is no easy feat. Something always seems to come up, temptations that threaten to keep you in debt forever. But the journey is worth it. There’s no better feeling than finally paying off those pesky cards. The additional cash flow freed up by finally ending those payments sure helps too.
One under-utilized trick many Americans use to pay off their credit card debt is to use a balance transfer to their advantage. Many folks ignore this powerful strategy because they’re worried about having another credit card. But when used right, a balance transfer credit card can take months off your debt repayment journey.
Let’s take a closer look at balance transfer credit cards, including how they work, the pros and cons of using one, how to get the best interest rates, and how they will impact your credit.
The Basics
A balance transfer credit card is a special kind of card that appeals directly to folks who already have a credit card balance.
These cards come with special advantages that are designed to entice people who are looking to pay off their credit card debt. Usually a balance transfer credit card will come with a low introductory interest rate — often as low as 0% — but for a short period of time. After six months or a year, the interest rate shoots back up to a regular rate. In fact, many balance transfer credit cards offer a worse rate than normal credit cards, since the issuer has to make back some of the interest they lost during the intro period.
The strategy to use such a card is simple. You transfer your debt from a regular credit card to a balance transfer one, locking in a period with an ultra-low interest rate. You then throw every nickel you can at that debt over the introductory period. It’s the perfect time to be aggressive, since every payment is going directly towards principal. Even if you don’t get the loan paid off in full, such a strategy should still be enough to save you some substantial interest costs. Especially if you’re sitting on a lot of debt.
The Pros and Cons of Using a Balance Transfer Credit Card
Let’s start with the advantages of using a balance transfer credit card, since they’re quite simple. The big reason why you’ll want to get one is because the strategy can allow you to pay off your debt much faster.
Depending on how much you owe, this simple debt busting strategy could easily save you hundreds (or even thousands) of dollars.
Many balance transfer credit cards also offer competitive interest rates once the special introductory period is over and offer various rewards for purchases. In other words, the card used to save a little money on interest could easily become your next credit card.
The biggest reason many folks don’t bother using balance transfer credit cards is the information factor. Every card has different rules. Some offer only a short introductory period. Others are much longer. Some offer a competitive interest rate when the introductory period comes to an end. Others don’t. And so on. Every card is unique, and there are dozens of different ones on the market today. Put it all together and it translates into an intimidating experience.
There’s also the time factor. It takes time to research a new credit card, apply for it and then take care of other minor details. It’s worth it if your credit card balance is approaching five figures, but many choose not to bother. Especially when the total interest savings might only be a couple hundred dollars.
Finally, you’ll want to make sure the card has a competitive rate once the introductory period expires. Just in case you don’t make quite as much progress as you hope. In fact, you may be better off sticking to your current card.
How to Find 0% Interest Offers on Balance Transfer Credit Cards
It doesn’t have to be complicated. Spend a little time with a credit card comparison tool and see what the various companies are offering. There will be 0% interest offers out there but be warned; not every company will offer such generous terms to try and get you as a customer.
Some balance transfer credit cards throw a bit of a curve ball designed to trick people. Many offer a 0% interest rate but will also charge you 3 to 5% of the total balance as a transfer fee. That’s a much better deal than paying 18 to 24% per year, but it’s still not ideal.
What About Your Credit Score?
Opening and closing credit cards are both actions that will impact your credit score. And not in a good way, either.
When you apply for a new credit card, the issuer will do a credit check. A “soft” credit check won’t impact your credit, but a “hard” check will. A credit card application will likely result in a hard credit check, which will push your score lower. Therefore, it’s important to pick a balance transfer credit card before you even apply. You just want one hard credit check on your credit report.
You’ll also experience a hit to your credit once you’ve paid off your debt and closed this new credit card down. This isn’t something to worry about; it’ll just be a temporary hit since the credit card was only held for a short amount of time. I’d think twice before closing any long-term credit cards, however.
The Bottom Line
They don’t get a lot of attention, but they should. When used properly, balance transfer credit cards can save you a bunch of cash and help you conquer that debt months sooner than simply paying off your existing card.
Just make sure to be careful before signing up for a balance transfer credit card. No two cards are created equal. Do a little research, crunch the numbers and make an informed decision. Take care to ensure you use this financial tool properly, or you may unnecessarily keep yourself in debt longer than anticipated. And if you haven't yet figured out how long it may take you to pay off your credit card debt, you can use our credit card debt calculator.