Getting a job and working hard isn’t the only pathway to building wealth, and most wise fortune seekers know that it’s often the path not taken we should heed the most. Sadly, too many people, especially in today’s busy and stressful world, don’t take the time plan for their financial futures as they should. This includes building wealth through investments. This is one of a few, of the best-kept secrets of the rich. Sadly it stays a secret because too many of us don’t even bother digging to discover the wonders of online investment apps ourselves.
It’s understandable why more people don’t invest in stocks. It’s often daunting and downright confusing, but luckily there’s an app for that. If you’re a beginner or you’ve never even thought about investing, Stash might be the online investing App for you.
I, like most millennials by stereotype, spend a lot of my time looking at a screen. This applies whether I’m working on a laptop as a freelancer, playing mindless games in front of the latest system, or endless scrolling through the information overload that is social media. Like most millennials, I am also always on the go and living a very busy lifestyle, but I don’t have a lot of money. These factors often stand in the way of making financial investments in our futures, but unfortunately, life often moves too fast. If you want to build a secure online future I would suggest you start with this online investing app. I had very limited investing experience when I signed up with Stash Invest. Before that, I had dabbled in E*Trade but only very rarely for several reasons.
Two major barriers seem to stand in the way of millennials investing in the stock market. First, we never have the money to sink into shares and stockbroker fees. Secondly, we know nothing about the market and we’re too busy to do the research. Yet every great teacher and adviser on finance seems to say the same thing. If you want to build wealth for the future you have to take the leap and invest. We have barriers but we shouldn’t let them keep us from building a better future. That is where this amazing online investing app comes in handy, especially for the busy and poor millennial.
Granted Stash is one of a few online investing apps that are out right now, but from a user-friendly interface to a range of professional services this one has so far stuck out to me as one of the best, depending of course on your needs and preferences. This online investing app is ideal for beginners and especially for people who want to start small. I am not going to say that Stash Invest is for everyone but it is an ideal online investing app for the young, the poor, and of course struggling millennials like myself. There are, as with anything life many pros and cons. Let’s Discuss them
Pro: Low-Cost Investments with Fractional Shares
One of the toughest things about investing when you are young and struggling is finding the money to sink into a share. Berkshire Hathaway is a popular investment choice, for instance, owned by the king of stocks himself Warren Buffet. One share of the company as I type these words may cost as much $220. I own less than a ¼ of a share with about $50 on Mr. Buffet (I just haven’t gotten around to that one lately.) With fractional shares, you don’t have to save up a nest egg for a one-time investment but can build your investments over time. I started with $5 (the stash minimum) and through time and tribulation, I’ve built a portfolio of almost $1,000 worth of investments.
In using investment apps online like Etrade I remember despising having to pay brokerage fees every time I made a purchase. Etrade has only recently done away with the practice, but we have online investment apps like Stash to thank for that. Too often I was charged broker fees, often investing in smaller companies and paying more for the fee than the investment itself, and far more than the return I would expect in the end. Imagine how pleased I was to hear that Stash had helped to pioneer the “Fee-free” execution.
Con: Limited Choices
Don’t get me wrong, Stash has many impressive choices as far as online investment apps go, and the company has said as recently as this year that they may be adding more. However, the Stash system doesn’t always allow you a lot of choice, at least on the face. Rather than individual companies like Amazon, Walmart, or Proctor and Gamble (all companies you may choose invest in through this quaint little online stock broker) you don’t always get them individually as a choice. More often than not you are presented with handpicked, well-researched portfolios. For example, I have invested in legal cannabis companies like the Canopy Corporation and Aura Cannabis, all in my “corporate cannabis” portfolio.
Though you can choose these portfolios that offer diverse and set to successful companies, this online investing app doesn’t make it easy to invest in individual companies you choose yourself. This is an attracting aspect for many of us Millenials who don’t have time to research our online investments, but it may be a setback for investors in the know who prefer to choose for themselves.
Pro: Other Great Services
Stash is a great online investing app and ideal for beginners who want to test the waters in the market, but it also provides access to other great services as well. For Up to $9 a month Stash invest offers a full package that includes a debit card and online virtual checking account, a retirement savings account, two custodial accounts for children, and of course all the investment services Stash has to offer. Not only that but for small additional fees you may find access to other low-cost and convenient services. I pay $11 for renter’s insurance, and they offer life insurance plans as well.
Buyers should beware: with the debit account, as some sources have indicated Stash’s debit service is provided by a private online bank and the funds are not federally insured. That means the government does not insure the money as they would at your local bank. In other words, if God forbid, you experience a system crash or data breach that causes you to lose your money, you may or may not get it back.
Con: The Fees Aren’t Worth It…At First
As an online investment app Stash is not half bad for what it charges and what it offers, but the fees will seem steep when you’re first starting. $9 a month is a lot if you’re starting with only a $5 investment, and until your investments grow pretty substantially it’s still going to be a large percentage of your portfolio compared to the average online investing app.
If you stick to it, however, over time you’ll find that the fees are worth it for what you’re doing, especially if you wouldn’t have taken on the daunting task of buying stocks in the first place. This online investing app is easy to use and makes it easy to succeed, and one could argue you’re getting what you pay for.
Pro: Perfect For Beginners
As I stressed this online investing app is ideal for someone who’s just starting. By investing in specialized and customized portfolios you can know that you’re not shooting in the dark. As a registered financial advisor, Stash is required by law to act in your best interest. They are not what is known as a “Robo-investor” and do not invest the money for you, but they make it super-easy to do it right. While this may feel like you’re having your handheld and aren’t learning anything there are plenty of opportunities there as well. Stash regularly posts articles offering new investment information based on your goals and where you’re at.
They even offer an option for professional coaching to help you learn everything you need to know. As an online investing app they go all out to help you succeed and even take you to the next level as you navigate the marketplace.
As an online investing app I would give Stash 4 out of 5 stars. It’s not perfect and some things are lacking, and in some cases, you do pay for the convenience. Even so, it’s ideal for beginner and poor millennials alike and if you’ve never used an online investing app or online brokerage before, I would suggest that Stash is the perfect place to start.