Where To Invest: 4 Amazing Ways To Maximize Your Money
If you’ve chosen to follow our advice from our last video, 3 Awesome Ways to Save Money and Increase Your Net Worth, and have made it your first priority to save and invest before you spend, the next thing you need to know is where to put your money so it has the greatest potential for growth.
This is the subject of today’s ALL-NEW episode of our ground-breaking online TV Show, Abundant You TV!
Today, we’re going to share with you four tools we use to put our money to work for us and grow our wealth. You’ll find them extremely valuable to your wealth building needs.
Watch the video above and the checkout the rest of this blog post for more details as well as links to the tools we recommend.
Acorns is a fantastic micro-investing app that automatically invests your spare change into a well diversified portfolio of low-cost market tracking index funds and ETFs (Exchange Traded Funds) for only $1 per month.
You simply connect your debit card to your Acorns account, then spend like you normally do on the things you normally buy, and Acorns will automatically round-up your spare change and invest it for you.
If you use your debit card a lot, you’ll grow your investment account with Acorns rapidly. It’s a great way to grow an investment account on autopilot while living your life as you normally do.
Round up your purchases to effortlessly Invest the Change®.
Link Unlimited Cards
Link as many debit and credit cards as you like for Round-Ups.
We’re working with brands to find you money!
Constructed with help from a Nobel Prize-winning economist.
Invest and withdraw whenever you want without any hassle.
Acorns personal finance publication grows your money knowledge.
For accounts of $5,000 or more, pay only 0.25% per year.
Free for college students with a valid .edu address for up to four years from date of registration.
Get $5 When You Invest With Acorns.
Automatically Invest Life’s Spare Change
Betterment is another one of our favorite investment services.
Betterment gives you a platform from which you can have a Smart Emergency Fund, save and invest for retirement and build your wealth.
A Smart Emergency Fund
It’s always a good idea to maintain a Smart Emergency Fund, which is an easily accessible fund that will put your money to work for you by automatically investing it into a diversified portfolio of low cost index funds and ETFs. You need a Smart Emergency Fund working to grow your money while you save it and also to have it available to handle any unexpected expenses that may come your way.
There’s no better place to keep your invest your money, than at Betterment.
There are several benefits to using Betterment. Here are just a few:
- They have an investment goal and portfolio specific to your savings and investment needs.
- There is no minimum funding amount required.
- They have a Smart Deposit feature that allows you to invest your excess cash.
- A customizable retirement guide helps you stay on track for retirement.
- Save on taxes with advance tax strategies and Tax-Loss Harvesting feature.
- No trade fees, no transaction fees, no rebalancing fees and no restrictions on withdrawals.
- Low annual fee from 0.15% to 0.35%.
Try Betterment Free for 6 Months
Thanks to the team at Betterment, we were able to get you an additional 6 months free to try Betterment!
Wealthfront, promotes themselves as the most tax-efficient, low-cost, hassle-free way to invest.
They are a great place to keep your retirement accounts and provide you with total control over your risk management and portfolio allocation.
Here are some of the benefits to Wealthfront:
- Invests in a well diversified portfolio of low-cost, market-tracking index funds that follow the market rather than time it.
- Tax aware asset allocation that compound tax-free.
- Get your first $10,000 managed for free.
- No commission fees.
- Their tax-loss harvesting feature can improve performance by as much as 1% per year.
- Low 0.25% annual management fee.
The S&P 500 Index Returns On Average 8% to 10% Per Year
We have a Roth IRA at Wealthfront, and given our experience with them, they do a decent job of providing returns that track with the S&P 500 which has provided returns of 4.06% on the year as of this writing.
If you aren’t aware, the S&P 500 is the market index indicator for which nearly all investors track their performance agains. It has provided an average rate of return of 8% to 10% per year.
Compare that to the highest paying high-yield savings account at Ally bank that currently gives you a measly 1% annual percentage rate.
You’d do better to invest with Wealthfront.
Get Your First $15,000 Managed For Free With Wealthfront
We’ve negotiated a deal through Wealthfront to get you $15,000 managed for free when you invest with Wealthfront.
If want manage your own investments, or are looking to invest in more short-term investment products, like stock options, TD Ameritrade is our preferred broker for short-term trading activities.
Unlike the other investment services listed above, TD Ameritrade is not an advisory or investment management service. They are simply a broker who is responsible for processing your trade transactions. It’s up to you to decide what investment products you want to invest in when you invest through TD Ameritrade.
When it comes to our investment portfolio, we like to have a mix of both long-term and short-term investment products. Over the last several years, we’ve been investing in stock options as part of our short-term investment strategy. Doing so has allowed us to create a consistent, ongoing investment income.
In our opinion, TD Ameritrade and their partners have the best training, tools and resources for active retail traders like us which is why we prefer them.
Thinkorswim, their options trading platform is the industry standard for options trading as well as the best options trading platform within the industry.
Why Choose TD Ameritrade
We’d Love To Hear From You
Comment below and let us know:
- What other tools do you use to save and invest your hard-earned money?
- What tips and strategies do you have that might help others improve their ability to save and invest?
Important: Share your thoughts and ideas directly in the comments. Remember to give as much detail as possible in your reply, it may help someone have a breakthrough they need.
Also, if you’ve got friends, colleagues or clients who feel overwhelmed, are struggling and feel like they just can’t get ahead financially, share this post. It could help them make the mental and emotional shift they need to improve their financial life
What’s Coming Up Next?
In our next episode of Abundant You TV and blog post, we’ll cover some fantastic tools to help you track your spending like a financial wizard.
Thanks for watching!
Sean & Tasha