April 4, 2017
Building wealth with passive income and having enough time to do the things you love is the entrepreneurial dream. Unfortunately, running a business successfully can be a lot more stressful, time-consuming, and exhausting than having a day job. If you truly want to build wealth, you need to branch out from your business endeavors and focus on a creating a diverse portfolio.
Today, some of the popular investment options for building wealth include stocks, mutual funds, real estate, and individual retirement accounts. But since entrepreneurs already have a lot on their plate, they need a strategy that leverages automation and digital platforms to simplify their investment life:
Automating Your IRA Contributions
One of the benefits of investing in an IRA is that you have more control over your investments and risk level. To automate your monthly or annual contributions, you simply need to contact your investment provider and express your intention of automating future transactions. Alternatively, you can use services such as Fidelity Investments and Vanguard to set up your automatic transactions through an online portal.
When investing in your IRA, a rather dependable strategy is to have a more aggressive approach from ages 20-40 and then tone it down to low-risk, low-return investment products by the time you reach 50.
Although the internet is full of learning resources that can help anyone grasp the fundamentals, one must put in a lot of time to deeply understand the concepts of being a profitable investor. To quickly fill the knowledge gaps and make better investment decisions, you can use a robo-advisor – traditionally known as an automated investment service. Some of the popular choices include Betterment, AssetBuilder, and Schwab Intelligent Portfolios.
When picking a robo-advisor, some of the key factors you should consider are the costs, minimum balance required, applicable taxes, and supported account types. Other than that, most services appear similar on the surface – considering that they all do the job of making better investment decisions with the help of complex algorithms.
Investing with Online Brokers
Today, investing can be done with just a few mouse clicks. There are plenty of digital platforms and online brokers you can choose from – depending on the investment type you prefer. For example, if you’re interested in stocks, then some of the popular brokerages you can use include OptionsHouse and TD Ameritrade.
If you want to be more hands-on, then you should consider looking at MetaTrader 5 forex brokers. These are upgraded forex trading platforms that can also be used for trading stocks and other commodities. All in all, online brokers not only help you execute trades, they also come equipped with a comprehensive set of analysis tools and trading features.
Installing Investment Mobile Apps
Although being an investor doesn’t usually require as much time and effort as running a business full-time, you still need a way to constantly monitor your assets. After all, you never know when the opportunity to win or avoid losing will come. With an investment management app right in your pocket, you can always grab these opportunities and be ahead of the curve.
Additionally, investment apps like Acorns and Openfolio comes with unique features that can make your investment life a breeze. For example, Openfolio enables the sharing of portfolios and investment strategies among friends. Acorns, on the other hand, allows you to automatically invest spare change from your credit or debit card transactions.
Read more about investing here on Tech.Co
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