The best time to start investing was 20 years ago. The second best time is right now.
The beauty of investing of your money over a long period of time is that you let compound interest do its thing. Put away a little bit every month and you’ll be amazed at how much you’ll have at the end.
We know what you’re thinking.
I just don’t have the money right now
Yeah, that sounds great. I’m definitely going to start investing…eventually.
You’re going to start investing today, because fractional investing makes it a no-brainer.
What in the world is fractional investing?
Imagine having only $50 and wanting to buy shares in Apple. It would be difficult because it’s typically not possible to buy part of a share. Apple stock is worth roughly $160 (as of April 24, 2018) and for a long time you either had to pony up the entire amount or take a hike.
That is, until fractional investing; companies like Stash and Stockpile have now made it possible to start investing with as little as $5.
That’s right. You can either buy a latte at Starbucks or start your journey towards financial freedom.
Stash was founded in 2015 by a couple of Wall Street veterans. Since then they’ve added more than a million users and are still growing strong. Stash is an SEC-registered investment advisor and they’re focused on helping their customers become financially literate. How to create a budget, how to think about long-term financial goals – these are all areas Stash wants to help their users in.
Another player in this space is Stockpile.
They have an incredible assortment of investment choices. Open an account with just $5 and you have more than 1000 financial assets to choose from, including stocks and ETFs. Where Stash has a monthly minimum fee ($1-$2 depending on the type of account), Stockpile has no monthly fee, just a 99 cent fee per trade. Stockpile also focuses on education and their app comes fully loaded with engaging and informative content.
Stockpile also has a fun option where you can buy gift cards of specific stock and give them to friends or loved ones.
How do they do it?
These firms buy whole shares, facilitating the transaction between their customers and the market. They let everyone put their stock orders in and then they go ahead and buy whole shares to cover all the orders. Then the fractional shares are doled out to respective client accounts. This idea of fractional investing has been around for a while, but brokerages typically opted not to explore this side of the market.
Companies like Stash and Stockpile are democratizing the investment industry, allowing millions of people to participate in the financial markets who otherwise might never have been able to.
Sign up for a Stockpile account with just $5 and get ready for a wealth of investment options at your fingertips.