Investing is a good way to put your money to work and build up wealth over time. However, despite the potential benefits of investing, most Brits prefer to stay outside the investment world. Why, you ask? Well, there are many reasons to explain Brits’ reluctance to invest. Whilst many people think they aren’t rich enough to start investing, others find the investment process too complicated and think they need more knowledge and experience to take the plunge. But investing isn’t as daunting as people might think. Here’s an easy way to get started.
Why not try robo investing?
Before the Internet era, people who wanted to invest had to do so through a stockbroker, either in person or by telephone. And every time their stockbroker would buy or sell investments, they’d be notified with a phone call. In other words, investing would be time-consuming and expensive as you had to pay your stockbroker for the time spent analysing markets, picking investments, trading, and ensuring constant communication with you. Luckily, times have changed, and you no longer need to hire a stockbroker to invest. You can do it all online! There are many digital investment platforms that’ll take the hassle out of the investment process by doing the investing for you. In exchange for a fee, they’ll build and manage your investment portfolio on your behalf, so you have more time to do the things you love. Commonly called robo-investing, these online services make investing easy and accessible to everybody.
Investing made easy
It’s often assumed that you need a great amount of financial knowledge to start investing. Most people imagine that you’ve got to read financial news avidly and know everything about stock markets to become an investor. However, unless you’re picking your own investments, you don’t need much knowledge to invest. With robo-investing services, like Wealthify, you can start your investment adventure without being a financial connoisseur or an investment wizard.
With digital investing platforms, the hard work is done for you by investment experts who, analyse how markets are behaving, examine reports, and actively pick investments to build your plan. They’ll also monitor what happens in the markets and adjust your Plan, if needed, to take advantage of the good times and shelter your investments from the bad ones. So, what do you have to do, you ask? All you need to do is choose how much you’d like to invest and select the risk level that suits you. It only takes a few minutes and you can sign up wherever you are, whether it’s from the comfort of your home or on your train commute.
Investing is for everybody not just the rich and wealthy
Many people find it hard to enter the investing arena because they believe they need large amounts of money to get started. But with robo-investing platforms, you don’t need a fortune to invest, you can start your journey with as little as you want. After all, investing isn’t just about how much you put in, it’s also about how long you’re willing to remain invested for and how regularly you put money in your Plan. Investing small amounts regularly over a number of years could help your money flourish. For instance, let’s say you invest £50 per month in a Wealthify Plan. After 20 years, you could get around £16,895*, and if you keep investing for another decade, you could end up with a pot worth £31,676**. By allowing people to invest small amounts, digital investing platforms are giving everybody a chance to make their money work harder.
Also, robo-investing platforms often offer a wide range of products to meet the needs of the many. At Wealthify, for example, not only do we provide General Investment Accounts, we also offer Stocks and Shares ISAs that let you invest tax-efficiently, Junior Stocks and Shares ISAs that could give your child’s money a tax-efficient boost, and Ethical Investment Plans that allow you to do your part for society and the environment whilst giving your money a chance to grow.
* This is the projected value for a Confident Plan (Medium Risk Plan). This is only a forecast and is not a reliable indicator of future performance. If markets perform worse, your return could be £12,966. If markets perform better, your return could be £22,225. Values correct as of 31/07/19.
** This is the projected value for a Confident Plan (Medium Risk Plan). This is only a forecast and is not a reliable indicator of future performance. If markets perform worse, your return could be £22,294. If markets perform better, your return could be £48,311. Values correct as of 31/07/19.
Please remember the value of your investments can go down as well as up, and you could get back less than invested.