Author: Kathyrn Vercillo

Pros and Cons of Investing Apps

investing apps

There are many different investing apps available now. It’s possible to easily start investing through your phone with minimal money and minimal hassle. However, there are drawbacks to these apps as compared to other investment options. It’s important to understand the pros and cons of investment apps so that you can make the best use of them.

What Are Investing Apps?

Any app that you use specifically to invest your money is an investing app. For example, if you use Acorns to “round up” your payments and invest your small change then you’re already using one of these tools. Some of the most popular investment apps today include Robinhood, WealthFront, Stash, and Betterment. Investing apps may or may not include robo-advisors. They each have different features and limitations.

Benefits of Investing Apps

Each app is different, so you have to look at your options carefully to figure out the benefits and drawbacks. Generally speaking, though, the biggest benefit of investing apps is that they make investing easy. You download an app, follow the online advice, and before you know it, you’re investing your money. If you are brand new to investing, then this is a great way to get a toe in the water. It starts you on the path.

Another huge benefit of investing apps, as compared to other investment options, is that you don’t pay a lot to use them. If you get into more serious investing, then you’re going to have to understand fees for financial advice, making trades, etc. Many of the investing apps do have fees, however they are low.

Moreover, you can start investing with just a small amount of money with many of the apps. In contrast, other types of investments might require you to have a high minimum just to begin. So, if you don’t have a lot of money and/or you don’t want to spend a lot of money, then investing apps can help you out.

Drawbacks of Investing Apps

Investing apps are easy to use, but that doesn’t mean it’s easy to make money with them. If you don’t know what you’re doing, then you can make a lot of bad decisions. You might not even realize the consequences at first, because you’re just swiping on your phone. It doesn’t feel as serious as “real investing,” therefore you might not take it as seriously. You can end up losing money. Even if you make a bit of money or stay even, you don’t gain the experience of truly understanding your investments. Therefore, you don’t learn how to make bigger money and play the investment game to its true benefit.

The thing that you pay for when you work with a financial advisor is the advice and knowledge of a person with experience in the field. When you use an app, you don’t get that. Some apps are better than others at automating good options and offering personalized advice. However, none are as good as working with someone one-on-one. Therefore, if you really want to get serious about investing, then you have to go beyond the apps.

What do you think are the biggest pros and cons of investment apps?

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Parents of Millennials Likely Help Pay For These 6 Things

parents of millennials

The parents of millennials help their adult children pay for many different things. They foot the bill for everything from rent to vacations. In most cases, parents of millennials just offer some support. However, sometimes they pay the full cost of their adult children’s lives. Here are the six most common things that parents of millennials help pay for, according to a CNBC report.

1. Cell Phone

It’s no surprise that parents of millennials often help them pay their phone bills. Most likely, this is due to the ease, availability, and affordability of family cell phone plans. Kids are often already on the family plan when they enter adulthood, leave for college, or move out of the house. Parents may find it easy enough just to keep the kids on that plan. They’re used to paying that bill so it doesn’t feel like an added expense.

2. Rent/ Mortgage

13% of millennials report that their parents pay the full cost of their rent or mortgage bill each month. Many other parents help pay a portion of that housing cost. This is a big chunk of money. It’s certainly helpful to the adult kids not to have to pay the bill themselves. However, it can put a big strain on their parents.

3. Groceries

A large percentage of these parents pay for their adult children’s food including all of their groceries. Some of these kids might still live at home, in which case the parents are used to paying for all of the household food. In other instances, parents might pick up some groceries for their kids whenever they do their own shopping. But in other cases millennials buy their groceries on credit cards and their parents pay that bill when it arrives.

4. Automobile Costs

Millennials often get help from their parents when it comes to their cars. Parents might pay for some or all of the car loan. Alternatively, they may help out with car repairs when their kids can’t cover those emergency costs. Sometimes parents buy themselves a new car and pass the old one on to their adult children.

5. Vacations

It might be surprising that parents help their adult children pay for travel, but it’s a very common practice. In fact, it’s the third most common expense that parents pay a portion of behind groceries and the cell phone bill. In many cases, parents of millennials pay their vacation costs in order to spend time together as a family. Adult kids that have moved away may not be able to afford to travel back home without their parents’ help. The family might vacation together elsewhere each year. Whatever the reason, when millennials can’t afford a trip, they are generally comfortable asking their parents for financial help.

6. School and Student Loans

Many parents of millennials consider it their responsibility to pay for some or all of their children’s education. They pay the costs of tuition. They also help pay for books and other necessary supplies. Additionally, parents of millennials who have already graduated often help them pay back their student loans.

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Can You Imagine If You Never Retire? 1 in 4 Think That’s That Their Fate.

never retire

Many people are planning ahead for early retirement. However, that’s not the full picture of the American public. Despite the fact that lots of us think about retiring in our thirties, forties, or fifties, there are also plenty of people who don’t plan to retire early. In fact, according to one survey, one in four people think they may never retire.

People Who Think They’ll Never Retire

Twenty-three percent of those surveyed believe that they will never retire. 80% of those people were under the age of 50 at the time of the survey. That leaves 20% that were age 50 or older and couldn’t see retirement in their future.

The main reason that people assume that they’ll never retire is that they don’t think that they’ll be able to afford to stop working. They don’t have enough money set aside in savings or retirement funds. They still have bills to pay. Many don’t even own the home that they live in.

Plus, as people get older, they need more medical care. If they don’t trust that Medicare will cover their needs, then they may feel like they have to keep working. They figure they’ll just work until they die.

People Who Plan To Work Longer

There are plenty of people who think it’s unreasonable to assume they’ll never retire. However, they believe that they’ll keep working into their older years. Twenty-three percent of those surveyed believed that they would keep working past the age of 65, which is often considered “normal” retirement age.

Therefore, nearly half of those surveyed believed that they will never retire or that, if they do, it’ll be after age 65. Another 19% say they’ll retire at 65. Many people are are living longer and longer, which means a lot of years after age 65 during which they have to support themselves. If they don’t have enough money in savings then it may make more sense to keep working than to retire at or before 65. Approximately 20% of people age 65 and older in America are currently working or looking for a job.

Elderly People Are Often Forced to Stop Working

Unfortunately, the reality is that a lot of elderly people do stop working, even if they don’t wish to do so. They may think that they’ll never retire but then life happens. Circumstances conspire against them. They get injured or ill and can’t keep working. They get laid off and have trouble finding new work in a market that’s biased towards hiring younger people. Or perhaps they find themselves having to do caregiving for an elderly spouse. Whatever the reason, they end up retiring, even if they aren’t financially prepared to do so.

People Don’t Feel Ready for Retirement

Regardless of when they expect to retire, most people don’t seem to feel prepared for it. 45% of those surveyed said that they are not at all prepared for retirement. Another 33% said that they are only somewhat prepared. The good news is that younger people recognize that they aren’t prepared and people who are getting closer to retirement age feel a little bit more ready for that reality. Still, nearly one third of people over age 50 said that they are not at all prepared for retirement.

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