Dollabuzz Shows You How to Invest Through Robinhood
Welcome, Dollabuzzers! As many of you know Dollabuzz is all about investing in the market for the long-term. Historically, investing in the stock market has been a great way to Dollabuzz. Most people invest through their employer (401k), but you can also invest through sites like Betterment and Wealthfront. But today, Dollabuzz shows you how to invest through Robinhood.
I like Robinhood for three specific reasons. Robinhood is easy to understand and use, numerous investment options, and Robinhood is commission-free. Now let’s break down each one of these and take a closer look at what makes Robinhood so special.
How to Invest Through Robinhood: Reason #1: Easy to Understand and Use
Opening a Robinhood account is really simple, and unlike other brokerage accounts, there is no minimum account deposit. This is especially great for new investors who are ambitious to learn, but hesitant in putting up a lotta Benjamin’s.
Anyone who has opened a brokerage account in the past knows that it takes awhile to learn all the different functions that your account is capable of. The advantage that I believe Robinhood has is its simplicity and user experience.
Visibly, their interface only uses a handful of colors which makes navigating the site easy. They also cleaned up the “home page” reducing the numbers that are displayed. Percent change, Last Price, and Equity are readily available which is all you need. A quick glance will show you how your investments are performing.
How to Invest Through Robinhood: Reason #2: Investment Options
Currently, stocks, bonds and Exchange Traded Funds (ETFs) are the main investment options on Robinhood which is all you need to D’Buzz hard. Some of the more complicated trading vehicles like options and futures are not yet available but I am sure they will be in the years to come. For the new investor that is A-OK and will help you Get.Your.Money.Right. As Robinhood continues to grow they expand their services so new investors can grow right alongside them.
So Mr. Dollabuzz what Do I Invest In?
If you are under the age of 30, ideally you should be 100% in stocks. Straight up. Bonds won’t get you where you need to go. I know that sounds crazy but you have time on your side and a long-term time horizon for the stock market will help you Dollabuzz. Now, if are more conservative that is fine. Everybody is different. I would recommend keeping 10-20% in cash so you can capitalize on any buying opportunities.
How to Invest Through Robinhood: Reason #3: Commission-Free…Yay Yay!
My favorite part about Robinhood is there not being any commission costs. If that sounds too good to be true, I applaud your skepticism. You would be correct though. There are exchange fees that you will be charged, but the costs are insignificant; especially with a small account.
If you are new to trading/investing Robinhood makes it is easy to take a small amount of money, $100, plan it out, and then execute your strategy. Imagine if you had to pay $10 for each trade. Commissions would eat you alive. CHOMP! If you aren’t trading with a large amount of money commissions will take a big chunk out of your investment returns and can have a significant impact on how soon you retire. Zoinks!
Investing in the stock market for the long-term can be a great way to build wealth and is part of the money plan. Whether it be a 401k through work or an IRA/investment account through Betterment/Wealthfront the key is to invest and invest early. The sooner you begin, the longer your money will be able to work for you, so get started today! Oh, and as an added bonus, if you refer your friends to Robinhood you can each get a free stock! Cha-Ching!