Financial security and independence aren’t just for the wealthy.
Neither are they just for the young.
Whether you’re in your 20s or your 60s, you still have time to tweak your portfolio, reassess your saving habits, change your timeframes, and make sure your money lasts as long as you need it to!
If you’ve never invested before, it can be intimidating, especially as a senior. But the truth is that you can start now and be pro within no time.
Here are some of the best finance apps for seniors to manage their investments, as well as tips to keep you on track.
Best Investment Apps for Retirement
It’s your one-stop-shop for investing, trading, and saving for retirement. Whether you’re a novice or an experienced investor, you’ll find value in this app. It provides over 4,400 no-load, no-transaction-fee mutual funds as well as 0-fee stock and ETF trading funds.
E*TRADE account types include individual, joint, and custodial brokerage accounts. Their core portfolios include fixed income, dedicated, and blend portfolios which are great for people who are not interested in self-directed investments.
These are best for folks who can afford to invest over $25,000. They get to enjoy a 0.35% to 0.45% annual AUM fee for a Fixed Income Portfolio.
Apart from high net worth investors, passive investors also enjoy a small 0.30% annual AUM fee for a Core Portfolio, and they only need a minimum balance of $500. This guarantees optimum financial advice.
To get financial direction, all you need to do is fill out a risk profile where you state your risk tolerance, time horizon, and financial goals. From here, they recommend a tax-sensitive ETF portfolio. You could also specify that they can only invest your money in companies that are “socially responsible.”
It’s as straightforward as a commission-free trading app gets. Without paying any fees, investors can buy and sell US-exchange listed equities and ETFs (including fractional shares of each), options, and cryptocurrencies.
For stock, ETF, and options trades, there is no minimum account size restriction. To trade, you’ll need at least a minimum of $25,000 in your account and $1 fractional shares.
Robinhood offers individual accounts and a no-fee, high-yield cash management account that includes FDIC insurance up to $1.25 million and a debit card. The app also boasts $0 fees for daily stock trading, crypto, options, and ETFs, but a $5 fee is required for Robinhood Gold membership.
To upgrade to Robinhood Gold, you get a 30-day free trial and $5 per month after that to have access to larger immediate deposits. Up to $50,000 in instant deposits are included, as well as $1,000 in margin and a 2.5 percent interest penalty on any excess margin used.
The Webull app is available on iOS and Android, with a rating of over 4.4/5 on both. And why not? It offers commission-free stocks, options trading, ETFs, and crypto trading with no minimum requirements! Users can also buy fractional shares and IPOs.
It is one of the best investment platforms for active traders, and you’ll be glad to find out that it supports IRAs (Roth, traditional, and rollover), allowing users to manage their retirement assets and equities in one place. You can also install the desktop version for trading on a larger screen.
Investment vehicles include brokerage accounts and commission-free investing IRAs. The minimum deposits, balances, and fees vary by investment vehicle, but there are no minimum requirements to begin investing or to open an account.
You’ll get a bonus of 5 free stocks whenever you open and fund an account. When you sign up, you’ll get two free stocks worth up to $300 each, and when you make a deposit, you’ll get three free stocks worth up to $3,000 each.
This one is great for beginners because it is a micro-investing app. Micro-investing simply means continually investing little amounts of money in the market so that your contributions pile up over time. It’s a terrific technique for beginners who wish to dip their toe into the investing pool before jumping in head first.
It has a Round-Ups® feature, which takes users’ spare change and invests it in diverse ETFs, enabling them to micro-invest. When users link their credit or debit card to their Acorns account, the app will sweep the accounts to round up purchases to the nearest dollar and invest the difference.
Spare change from your connected cards is saved until you reach a $5 threshold, after which it is transferred to your Acorns Invest account.
Acorns Invest is a Robo-advisor that recommends managed portfolios (composed of several ETFs) based on an investor’s risk tolerance. Acorns does not allow investors to buy or sell individual equities.
It has two plans: a personal plan that costs $3 per month and includes a checking account, an investment account, and a retirement account, and a family plan that costs $5 per month. This comes with the same three accounts as the Personal plan, plus additional investment accounts for your money.
Best Online Stockbrokers for Seniors
1. Ally Invest
Ally is known as an online bank but what people may not know is that it also offers an Ally Invest service. This is an online stockbroker that is simple to learn and use for both new and seasoned stock traders. It has one of the lowest commissions on the market right now, and there is no account minimum.
It’s easy to navigate and intuitive to use. With a variety of internet research tools, you can simply make low-cost, budget-friendly trades and manage your money. What makes it perfect for seniors is that Ally Invest can handle the majority of the work, especially for those who are new to stocks.
It was one of the first online stockbrokers, and it’s every bit as good as its illustrious history suggests. E*TRADE can handle all types of investments you’re interested in, and it’s quite easy to use. You’ll also enjoy resources like analyst research, free market data, and market commentaries to help you invest wisely.
What makes it great for the elderly is that it’s affordable and caters to people who are unwilling to take substantial risks. Granted, investing while you’re nearing – or have already reached – retirement age might be risky. With cheap fees, as well as thousands of mutual funds and other investment options, you can, however, make a minimal risk choice.
3. TD Ameritrade
This one has managed to be a comprehensive and robust platform without being overwhelming. It is renowned as one of the best-rated online brokerages, thanks to its extensive investment tools, a wide range of financial products, and thorough research.
If you want a wealth of information and research before making a move, TD Ameritrade provides the finest access and support.
You can also screen various investment opportunities by stock, option, and mutual fund to evaluate each one individually. TD Ameritrade has a lot to offer, including typical, fair trading costs and commissions, as well as no account minimums.
Here, you’re guaranteed a smart investment choice because all guidance and resources are available.
4. Fidelity Investments
A balanced portfolio requires a variety of good assets, which is especially crucial for aging seniors. That’s one of the reasons why Fidelity Investments is such a good online brokerage. It has innumerable investment alternatives, it’s quite economical, and best of all, it’s pretty simple to manage.
It is particularly known for its low fees: No more account fees, including transfer and account closure fees! It also places a lot of value on research, making it an all-in-one option. Seniors will therefore have no issue putting together a well-balanced retirement portfolio that continues to expand thanks to the variety of funds available!
What Is the Best Type of Investment for Seniors?
Owning assets that will pay off in the future is the best way to define investing. As a senior, however, you’re not just looking to invest. You’re looking for something with good returns while avoiding extra risk.
Of course, you may have retired and have no regular stream of income, which certainly makes it crucial for you to make a wise choice. Here are the best options to make a decent return without taking on too much risk:
Treasury Bills, Notes, Bonds, and TIPS
These are investments that generate a consistent and reliable cash flow. A bond is essentially a promissory note that promises to be repaid with a specified interest rate. Borrowers are typically municipal entities, such as a city or a local government.
They are considered short-term investment options that pay over a long period ranging from 1 year to 30 years. TIPS or Treasury inflation-protected securities pay interest in 6 months over 10-30 years. Bonds, however, take longer to mature but pay every 6 months.
Why are they ideal? Because when you’re investing with the government, you’re assured of getting your money back. They will give you the steady income you need, but unfortunately, they have a lower rate of return when compared to other options.
Real Estate Investment Trusts (REITs)
REITs, or real estate investment trusts, buy mortgages or direct stock stakes in a variety of buildings. They are obligated to distribute 90% of their taxable income as dividends to their shareholders, and the return is typically higher than stock dividends.
These investment vehicles “may be a strong total return investment for retirees” because of their high yields and ability to develop or sell assets and reinvest the proceeds. Because they keep up with inflation and are tax-efficient, they are ideal for seniors. Some include Crown Castle and American Tower Corp.
Annuities are contracts between you and an insurance provider that allow you to invest in your future. They come in a variety of types, but they all provide a guaranteed rate of return. If you’re seeking a guaranteed income stream with minimum risk, this safe investment option is likely to benefit you.
They guarantee the principal invested, a minimum interest rate, and predetermined payouts for the annuitant’s lifetime. Note, however, that it’s crucial to pay attention to the annuity’s costs and commissions, which can be quite hefty.
Generally, most annuities are very complex and would need the help of a financial advisor to understand, so bear that in mind before making a move.
Dividends are usually paid to shareholders by well-established companies. Dividend-paying stocks are a safer investment alternative for people who want a more continuous or steady income stream.
Companies will pay a reasonable amount of dividends, allowing seniors to have a more constant flow of money. They, however, have a major risk because a risk-free return cannot be guaranteed. After all, a corporation may decide to make changes and stop paying dividends.
5 Key Investment Tips for Seniors
1. Start Small, Then Broaden Your Horizons
Begin with what you already know and work your way out. A varied portfolio can be quite profitable in the long run. Invest in bonds, real estate, stocks, and other investment vehicles. Diversification lowers your retirement fund’s risk while also allowing it to grow.
2. Before You Invest, Do Some Research on the Company
Before investing, you should gain a thorough understanding of the company’s operations and products or services. Check the company’s financial statements using the SEC’s EDGAR database or contact your state securities authority before buying any stock. Never base your investment decisions solely on unsolicited emails and marketing posts.
3. Don’t Be Pushed Into Making an Investment Decision
Just because someone says, they made some money doesn’t mean you’ll make money. Be especially wary of investments touted as “once-in-a-lifetime” chances, especially if they come with a high price tag.
4. Keep a Close Eye on Your Investments
This is your money: Hard earned money. Don’t put your trust in an investment advisor who says, “Leave everything to me.” Always keep an eye on your account’s activity and request regular statements. You should never be afraid to question any trade activity that you are unfamiliar with.
5. Locate a Financial Advisor
This is hands down the most important piece of advice. They know things that you don’t, they can smell a con from miles away, and they are conversant with investments. Find a financial advisor! You’ll be guaranteed that you’re not stumbling in the dark.
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The Time to Invest is Now
As life expectancy goes up, you’re almost guaranteed years of living expenses no matter how old you are. That said, investing wisely can complement social security benefits to acquire you a comfortable retirement.
As such, we hope this article serves as a perfect guide to help you make wise investment decisions from the comfort of your home. With these apps, tips, and other online accounts, anyone can start learning now and become a pro at making money no matter their age. Know no limits!