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Top 3 Investing Accounts For Beginners! 馃捀 (STOCK BROKERS FOR BEGINNERS) - YouTube
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how's it going today guys I hope you're
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having a fantastic day so in this video
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here we're gonna be talking about the
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best investing accounts to open in 2018
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so if you're somebody who's looking to
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start investing but you don't really
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know where to start and you're looking
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at the different options out there this
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video should give you a good idea as far
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as what investing account is going to
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make the most sense for you I'm gonna be
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listing out my top three picks for
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investing accounts available out there
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right now for a complete beginner to get
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started with now the one thing I do want
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to stress is this if you are thinking
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about investing and you're on the fence
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start taking action with a lot of these
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accounts you can open an account with as
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little as $0 in some cases it's not
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going to be a lot of money to get
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started but if you put this off for
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another six months or a year you're
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gonna look back and wish you started
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today and so if you are thinking about
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investing I highly encourage you to take
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action and get started today and maybe
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one of these accounts will make sense
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for you and if not continue to do your
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research and find an investing account
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that's gonna offer to you what it is
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that you are looking for now first of
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all I am doing my weekly stock radar
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giveaway again that is my weekly stock
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analysis membership site it's gonna be
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closed up until August first and then it
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will be back open for enrollment but
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this week's winner is Zaki pointer he
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sent me a message on my facebook page
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that says hashtag stock radar and so I
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selected you as the winner for my stock
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radar weekly giveaway so you get a
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lifetime membership to my private
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investing membership sites so
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congratulations Zaki we'll see you over
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there now I do have a link to all of
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these investing accounts down in the
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description below some of these are
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affiliate links but you do not have to
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use them however if you do understand
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its helping support my channel and my
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work and it allows me to make videos
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like this that help people when it comes
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to investing but the first account I
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want to recommend is for somebody who's
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looking for a very passive approach to
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investing you don't want to think about
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it you don't want to worry about it you
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want to automate the entire process and
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just know that every single month or
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maybe every single week you have money
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going into some kind of investing
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account and my recommendation is going
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to be betterment so first of all let's
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go ahead and talk about the requirements
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for opening a betterment
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count the account minimum is absolutely
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nothing you can open an account with
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zero dollars and they charge a 0.25
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percent expense ratio for betterment
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digital or if you're looking for more
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guidance and you have at least $100,000
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if you have a $100,000 balance with
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betterment and you are paying a 0.4%
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expense ratio you'll get access to
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betterment premium which will give you
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unlimited phone access to a financial
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adviser so if you're somebody out there
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who is looking for guidance when it
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comes to your investments or you just
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want somebody that you would be able to
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call and ask questions to our betterment
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premium might be a good option for you
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however I'm assuming most people
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watching this video especially young
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people do not have $100,000 to invest
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and so if that is the case you will fall
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under betterment digital and just pay
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that 0.25 percent expense ratio so what
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exactly is betterment betterment is what
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you call a Robo advisor and when you
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create an account with betterment you're
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going to be doing a risk tolerance
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assessment where they're gonna ask you
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questions about whether you are all
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comfortable with risk or if is scary to
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you and based on that they're going to
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determine an asset allocation they're
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also going to look at your goals and
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your objectives and so betterment is
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really good for people who are
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goal-oriented or objective oriented so
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let's say for example you're 25 years
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old and you want to be investing for
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your retirement by age 65 so you open a
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retirement account with betterment and
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you say I want to have $500,000 in my
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retirement account by the time I'm 65
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well you can put those goals and
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objectives in there and betterment will
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tailor a portfolio for you so the main
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thing that I like about betterment is
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the fact that they do automated
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rebalancing and that is something that a
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lot of people forget about especially
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passive investors and what that means is
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at least once a year and if not twice a
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year you should be going into your
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investing account and making sure that
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all these assets are carrying the
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correct weight in your portfolio because
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they're going to be moving in different
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directions at different times and at
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some point you may be up on a particular
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asset but down in another so let's say
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for example you wanted to have 25% of
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your portfolio in international stocks
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and 75% in domestic well you could check
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back a year later and find that your
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3070
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or 3565 and you'd want to rebalance and
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get those levels back to normal but a
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lot of people fail to do this and they
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miss out on having a balanced portfolio
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and they end up being overweight in
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certain areas because they're forgetful
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so if you are somebody who's going to
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likely be forgetful you're going to want
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to take advantage of a service that's
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going to offer rebalancing for you and
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betterment is going to automate that
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rebalancing and keep your portfolio at
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the correct weight based on your risk
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tolerance and your investment objectives
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now if you are somebody who's looking to
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invest in individual stocks betterment
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is not going to be for you because you
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cannot buy individual stocks through
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betterment you're going to be investing
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in low fee ETFs or exchange-traded funds
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and betterment is going to build an
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asset pool for you based on your goals
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and based on your risk tolerance so it
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is for the most passive investors out
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there and you can automate contributions
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every single week or every single month
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so you know that your money is going
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into your investing account and you have
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to do absolutely nothing
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so betterment is for the most passive
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investors out there now the second
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account I would recommend is for people
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who want to be picking some individual
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stocks maybe you do want to be investing
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in some ETFs to form a foundation of
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your portfolio but you also want to be
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more active with your investments and
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invest in some individual stocks now
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traditionally I would have recommended
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Robin Hood here but I've recently
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learned about a new investing account
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out there called m1 finance and having
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looked into this investing account
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myself I feel this is a much more
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superior product than what Robin Hood
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has to offer and the only difference
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between these two accounts is that Robin
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Hood has a zero dollar minimum account
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balance while m1 finance has a $100
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minimum account balance or $500 for
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retirement accounts and most of us have
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at least $100 to get started with
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investing otherwise I would just wait
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and save up some more money the general
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rule of thumb that I have is about five
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hundred to a thousand dollars is a good
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amount to fund your account with and get
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started just so you have enough to you
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know have some skin in the game here but
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m1 Finance has some very interesting
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perks or features that they offer that
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go above and beyond what Robin Hood has
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to offer so I think we are all familiar
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with Robin Hood at this point they offer
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Commission free training with no men
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account balance and so it's completely
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free invested completely free trading
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for people in the United States and the
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one thing I will mention is all of these
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brokerage accounts are us only I do
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apologize I know a lot of people are
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interested in European brokerages that's
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an area that I do not know a single
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thing about but if I get enough requests
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for that maybe I can do some research
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and do a video like this for non-us
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investors but the main thing here that
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they're offering is automated investing
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so what you can do with m1 finance is
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build out your portfolio in design your
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portfolio and say okay I want to put 20%
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of my money into Alibaba stock and I
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want to put 50% into you know vo oh the
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Vanguard 500 fund and then maybe you
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want to put some more money into some
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kind of international fund or you have
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another individual stock you want to own
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well with m1 finance you can design your
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portfolio set up your portfolio how you
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want it and set up those pieces of that
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pie and then it's going to automatically
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be investing in what is underweight in
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your portfolio so what m1 Finance does
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is automate that whole process of
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rebalancing your portfolio so all you're
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gonna be doing is adding money to m1
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finance and when you do that they're
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going to be buying what is underweight
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and what you need to load up on and if
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you are redeeming or pulling money out
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of your m1 finance account they're gonna
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start by pulling money out of what
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you're overweight in and so they're
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automatically going to be buying low and
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selling high for you on your behalf and
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that's going to take care of that whole
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rebalancing aspect that like I said a
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lot of investors fail to do and if
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that's not good enough there is still
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one big feature that m1 finance offers
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that we haven't talked about yet and
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that is fractional shares so there are a
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lot of shares out there or stocks that
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trade at massively high prices per share
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for example Amazon stock is over $1700
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per share and we know Berkshire Hathaway
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is over two hundred eighty thousand
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dollars per share and I don't know about
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you guys but I don't have you know a
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quarter a million dollars to put into
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one share of Berkshire Hathaway stock so
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if you're trying to invest in these
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stocks through an account like Robin
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Hood you have to buy a single share of
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that stock and you'd have to have you
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know seventeen hundred dollars or so to
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buy a share of Amazon but with m1
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you can buy fractional shares of a stock
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and you can buy you know a ten dollar
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position in Amazon stock or a small
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position and Brooks your Hathaway and so
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you don't have to have all this money to
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buy a whole share of these stocks that
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are trading at such a high price with
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them on Finance you can buy fractional
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shares of some of these very high priced
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stocks that have not split up into
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smaller pieces
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and so that is another key advantage I
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see to m1 Finance and for those two
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reasons that is why I prefer m1 finance
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to Robin Hood for a beginner it's going
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to allow you to set up your portfolio
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the way you want to automate your
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contributions and the other thing I like
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about m1 finance is it takes the human
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error out of the equation whereas you're
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going to be automatically rebuy ensures
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of what is low and so while most people
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would be afraid to do that it's going to
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do that automatically on your behalf and
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so that is another big plus I have for
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m1 fine is it takes that human error out
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of the equation because you set up your
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ideal portfolio and then you just
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automate the entire process so for
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people looking to have a more active
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approach to investing you're looking to
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invest in some ETFs and also individual
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stocks and you're not looking to pay
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Commission to a broker m1 Finance is
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going to be my number one pick and then
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my third favorite investing account for
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2018 has nothing to do with the stock
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market and the reason that I included
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this is because a lot of people should
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consider diversifying their assets a lot
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of people out there are only invested in
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stocks and they don't have any bonds and
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it alone any real estate and you really
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have to be investing in different assets
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because they're going to move in
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different ways at different times and so
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I'm looking at investing in real estate
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I'm actually looking at investing in
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some physical real estate but I've also
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started investing in a platform called
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fund rise that allows you to be
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investing in real estate and kind of
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take advantage of those private real
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estate investment opportunities that are
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not traditionally available to the
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general public so the only way that
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people can invest in real estate in a
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stock market like form is by investing
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in a real estate investment trust and
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that's going to be a pool or collection
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of different commercial real estate and
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it's going to be managed and you're
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going to
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earning dividends on that REIT but the
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main problem with that is because it
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trades on the major stock exchanges it's
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going to correlate very closely with the
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stock market and so what you would look
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to do is invest in real estate that has
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nothing to do with the stock market it's
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not trading on a stock exchange now
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traditionally this was reserved for the
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very high ticket investors who had
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hundreds of thousands if not millions of
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dollars to invest in real estate
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projects but basically what fundrise has
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done is allowed investors to pool their
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money together and invest in real estate
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projects with as little as five hundred
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dollars so I just got started with
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fundrise I put a thousand dollars in the
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account I'm gonna see how it goes and
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I'm gonna plan on building up you know a
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good chunk of money in my fund rise
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account just because it's an asset that
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is completely different than stocks and
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it's not going to be as correlated to
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the stock market because it doesn't
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trade on the stock exchange
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so fund rise offers you what is called
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an elite it's a little bit different
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than a real estate investment trust and
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I'm gonna do a whole video talking about
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fund rise and going into more detail
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about this but understand that with an e
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reet
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they're basically cutting out the
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middleman entirely and they're able to
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offer this product with less fees and
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expenses like I said I'm gonna go into
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more depth about this in a different
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video but let's go ahead and take a look
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at the returns from fund rise so far and
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the one thing I do have to say is that
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while these numbers are very high and
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they are very exciting we only have you
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know four years of operating history
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here so we can't go by that and assume
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that all the future returns for the
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years going forward are going to be like
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this we certainly hope they are but with
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only four years of operating history
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they don't have a seriously long track
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record to go off of
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so do understand that these returns of
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course are never guaranteed and they
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certainly do not have as long of an
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operating history as some of these real
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estate investment trusts out there but
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but the returns from fund rise so far
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have been excellent in 2014 the average
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annualized return was a twelve point two
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five percent twelve point four two
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percent in 2015 eight point seven six
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percent in 2016 and eleven point four
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four percent in 2017 so these are very
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good returns typically we see an eight
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to ten
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returned from the stock market so based
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on these four years they're a little bit
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higher than it returns you typically see
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from the stock market now again that's
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not why I'm investing in fundrise I'm
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investing in fund rise to diversify
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assets and have more exposure to real
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estate in a way that is not directly
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correlated with the stock market but
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anyways guys that's going to wrap up
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this video I hope you enjoyed it if you
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want me to do a more in-depth review or
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overview of some of these investment
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accounts drop me a comment down below
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and like I said all of these investment
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accounts are linked up down in the
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description below thank you guys so much
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for watching this video and I'll see you
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in the next one if you are interested in
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learning more about investing in the
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stock market I've created a free course
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just for you the link is in the
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description below here are a few other
[841]
videos you might enjoy as well
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