What Beginners Should Look for When Choosing a Robo-Advisor to Save for a Home

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When you’re saving to buy a new home, sometimes you have to get creative. Saving is just as important as finding a reliable mortgage company in Plantation, FL to help you choose a loan that fits your budgetary needs. 

If you have already cut down on unnecessary expenses, created a budget (and you are sticking to it), began paying off your debt to improve your credit, and also minimized your credit use, you may be wondering what else can be done? 

If you are looking to increase your revenue, asking for a raise at your job and getting a freelance job are two ways of doing this. You can also find additional supplemental revenue in the form of Robo-advising.  

As may now know, Robo-advising is an automated form of investing. It is an affordable way to invest in traditional assets without incurring a large fee, as you would when turning to an investment portfolio manager. If you are interested in investing to increase your revenue to buy a home, Robo-adviser apps may be the way to go for individuals who lack the cash and experience to invest through more traditional means.

As a newbie in automated investing, you may be wondering where to begin. In this article, we will give you an overview of the characteristics to look for when choosing Robo-investing applications for beginners, and how you can use it to save to put a down payment on your first home.

Free Apps

When you are just starting out, the best applications are the ones that are completely free. This will be hard to find, but not impossible. It’s important to note that when looking for a free app, you must do your research and make sure that it offers a good investment platform.

Low Minimum Balance

If you can find a reliable app that has an extremely low minimum balance to start investing, this is the best option. After all, you are trying to save for a new home and likely have little wiggle room in terms of spending. Some accounts require as little as $100, while others demand $5,000 and upwards. Much like finding a mortgage lender in Plantation, you will need to do your due diligence and determine the best fit for your financial needs.

Good Customer Support

If you think you are going to have a lot of questions and will need to speak to an actual human at some point, look for an app with good customer support. You may be surprised, but a lot of these apps have such poor customer support, you wonder if they offer any at all. Robo-advisers are very much a DIY form of investment, with the guidance of algorithms (another reason you should choose an application with an extremely good platform). As you know, apps will not state on their website that their customer service is limited, so you will have to do extensive third-party research.

Incredible Features

Some apps offer amazing features, such as providing portfolios that are tax-coordinated, 24/7 customer service, in-depth guidance, and more. Some can even offer advice on how to make big money decisions, like saving for a new house. As a beginner at investing, Robo-advisors, or both, this can make a huge difference in how well you perform.

No Prior Experience, No Problem

If you have zero experience investing and can’t differentiate stocks from bonds, then it may be wise to choose a platform that requires no prior investment experience. The stock market can be complex and volatile, forcing beginners to hide in the shadows. As a result, we recommend selecting a platform that plays a significant role in the decision-making process. Therefore, you won’t have to choose between stocks or bonds – the algorithm does it for you. Even though this can reduce the risk of losing money, it does not guarantee you won’t experience a loss. It is, however, an effective safety net.

Final Thoughts

It may be a challenge to find an app that offers all the above, especially at no cost. It is not impossible, but if time isn’t on your side, decide on what characteristics matter most. With time, Robo-advisors can become an integral part of helping you save for a down payment. When you’re ready to work with a mortgage company in Plantation, contact Ace Mortgage at (954) 371-2165.

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