With the rise of mobile payment and investing apps, many first-time investors are choosing to enter the stock market a new way: via phone. Apps like Robinhood and Acorns are exploding in popularity, offering stock trading from mobile apps. To many young people – especially new investors – these apps seem like a quick way to begin growing their nest egg.
But robo-trading apps have a dark side. By making investment feel like a game – filled with emojis and one-click trading – many new traders have made catastrophic mistakes, costing them their credit cards, homes, and even lives.
It may feel easy to invest via app, but consulting a trusted Financial Advisor is the safest way to reach your financial goals. Here’s why:
- Financial Advisors are experts. The stock market isn’t always intuitive. Learning what blend of stocks, bonds, and ETFs to invest in to reach your goals can be extremely complicated – and time-consuming. But people who don’t do their homework can end up losing thousands of dollars. Financial Advisors spend decades studying the market so they can safely grow your money. When your toilet breaks, you don’t spend weeks on the Internet trying to teach yourself to be a plumber – you hire one. Use that same principle when deciding to consult with a Financial Advisor, and you’ll save time and money.
- Financial Advisors listen to your individual needs. Financial Advisors aren’t just experts in the stock market – they’re experts in your life, taking your goals and dreams into account to tailor a personalized investment strategy just for you. Want to save for a first home or send a child to college? Financial Advisors can help you successfully navigate those big life events.
- Financial Advisors won’t make you wait on “customer service”. Apps are fine – until they break. Robinhood has had a terrible history with app outages, costing some users up to $20,000! And what happens if you click on the wrong button? Financial Advisors don’t have a customer service line. They are there for you when you need them – whether you need immediate help or just want to chat through your financial future, you’ll never have to wait on hold.
- Financial Advisors make long-term investment decisions. Sometimes it’s easy to lose track of a long-term goal when flashy investments become popular. But day traders almost always lose money: 95% of professional day traders can’t beat the market. That’s why Financial Advisors are there to help you work towards long-term goals, rather than getting distracted by the day-to-day fluctuations of the market.
- Financial Advisors offer you flexibility. Apps like Robinhood only offer a standard individual investing account, with no opportunity to invest in other tax-efficient accounts. But Financial Advisors can help you open a Roth IRA or 529 account, helping you save for your future in the most efficient ways. Rather than having multiple accounts across different apps, you can do it all in one place with a Financial Advisor.
At Arbor, you’re not just a profile on an app. Our Financial Advisors’ number 1 goal is to get to know you, your dreams, and your goals – and then to help you make them happen. Book a consultation HERE to get started.