For most of the history of investing, there were two ways to get involved in the stock market. The first option was to brush up on investing strategy and manage all of your investments yourself. The second option was to hire a financial investment advisor, who was traditionally only accessible if your assets were upward of $500,000.
But advances in modern technology have streamlined the investment process and given investors a third option: automated investing services.
Digital advisors like Dvdendo can be a great option for individuals just starting out, or with lower net worths than the typical threshold. Here are a few questions to think about if you’re considering using an automated investing service:
#1. How much do I already know about investing? How much am I willing to learn?
There’s certainly no shortage of books, blogs, speakers, conferences, and newsletters to help you learn more about investing. But with all of that content out there, you can quickly get overwhelmed by information overload—not to mention the time it would take to read everything and make sense of it.
Having a knowledgeable team that you can trust, and that have your best interests in mind, is an important consideration when selecting an automated investing service. Dvdendo was created by a group of financial and technology professionals with multiple decades of experience managing portfolios at some of the world’s largest financial institutions.
#2. How much time do I want to spend on my investments?
There’s really no limit to how much time you could spend researching investing, making trades, and keeping up with market trends. Investing is a full-time job—literally—and the workweek for many investment professionals often extends well beyond the typical 40 hours.
But most of us outside of the investment world lead busy lives, and we’re already exhausted just trying to balance work, family, friends, and hobbies with a good night’s sleep. One of the advantages of automated investing services is that you can be involved in the stock market without having to micro-manage every step. With Dvdendo, you can simply live your life with the added knowledge that you’re automatically adding to your investments every time you spend.
#3. How long do I want to stay invested?
Vacations, education, retirement, emergency funds—we all have different goals for our money. And each of those goals has its own timeframe. Knowing your time horizon is an important consideration. Essentially, the longer you plan to stay invested, the more likely you are to withstand occasional bumps in the markets.
That’s why one of the first thing Dvdendo asks you is how long you’re willing to stay invested. We’ll recommend different portfolios, optimize around your time horizon and your risk tolerance.
If you think the benefits of an automated investment service are right for you, you can create a free, customized investment plan with Dvdendo to help get you started saving more.