How To Build Wealth With Stash $5 at a Time
To become a successful investor, you must learn how to efficiently manage strategic risk. But most Americans avoid the stock market to avoid investment risk. Or they avoid investing because they just don’t know what they are doing. Unfortunately, the path to increased wealth, or even financial security, is through strategic investment. And a good way to get started learning about investing is to through fractional investments. And through patient fractional investment strategies, you can build wealth with Stash.
Stash is an online, automated investment brokerage platform that allows you to invest in thousands of ETFs and stocks via fractional investments. You can slowly begin to learn to build wealth with Stash with investments of a penny and up to $5.
With all that being said, it is important to note that investment should not be viewed as a get-rich-quick endeavor. You should try to build wealth with Stash as a learning tool, gain confidence as an investor, and practice before attempting more traditional investment strategies.
But before we discuss why you should learn to build wealth with Stash via fractional investments, let’s talk about why so many Americans are afraid to invest.
Half of Americans Don’t Invest
The reason why Stash is a great way for you to learn to invest is that most Americans either don’t invest or don’t know how to invest.
Over 47% of Americans don’t invest in the stock market or invest in any other financial manner.
Over 50% of the Americans who do invest don’t know what portfolio diversification is or how to do it. (Portfolio diversification is the financially strategic practice of investing in several different types of investment opportunities instead of just one.)
And that same 50% of American investors don’t whether or not if they should invest in mutual funds or single stocks. (A mutual fund is a collective pool of finances from multiple investors who then invest in a diversified portfolio of stock options.)
Over 92% of Americans don’t know what a fixed-income investment vehicle is. A fixed-income investment is an investment in bond securities that pays the investor a predetermined regular payment until the maturity date of the investment.
The point of all these statistics is to show you that if you are not confident when it comes to investing, then you are not alone.
It takes time to learn how to invest strategically, to learn how to find investment opportunities that other investors miss, and to learn how to strategically manage risk when investing.
While getting advice from experienced investors and financial advisors in the next best thing, you can also slowly learn how to build wealth with Stash.
What is Stash?
Stash is an automated online brokerage platform for novice investors and investors who want to invest with limited funding. You can start investing with pennies and up to $5 per trade.
After your online registration process, you can be prompted on how to invest, or you can let the automation invest on your behalf based on your preferences.
You can browse details on the thousands of mutual funds and individuals that you can access through Stash. Or as previously mentioned, you can let Stash’s automation choose your investment based on your registration preferences.
You can use Stash to slowly learn about the art of investment, your available investment options, and how to invest on your own terms.
How to Build Wealth With Stash
The creators of Stash built the investment brokerage platform to be affordable, accessible, and easy to use.
You will always be in control of what you want to invest in and how you invest. Along with its investment automation features, Stash also has a diversification scoring feature that can help you better diversify your portfolio. You will have a scoring metric that alerts you if the automation believes that your portfolio is not well diversified.
Don’t know how to diversify your investment portfolio? Stash’s diversification scoring automation will regularly analyze your investment portfolio to recommend a better mix of investments.
The diversification scoring automation will also recommend stocks for your diversified portfolio that are a better fit relative to your preferred choices.
If this all sounds overwhelming, well it shouldn’t. Stash is designed to be user-friendly, confidence-building, and financially educational.
Every available Stash investment plan features ongoing education modules about financial planning and unlimited advice and tips according to your profile. You can personally subscribe to Stash’s newsletter, The Wallet, for more useful information as well.
OK, Sounds Great. But How Does Stash’s Investment System Work?
You can incrementally build wealth with Stash through investing via the fractional shares system.
A fractional share is a fractional percentage of one actual share that can be invested in. So for example, you can buy 5% of a whole share of a stock offered for investment. A lot of mutual funds are offered in fractional shares via brokers.
And if a stock’s value increases by 20%, then a fractional share or a whole share will increase by the same corresponding value.
You can start buying fractional shares of mutual funds and stock on Stash for as little as a penny and up to $5. (Stocks and mutual funds with a value of $1,000 are offered to Stash members for $5.)
By investing via fractional shares, you can invest according to dollar amounts that you can afford.
And you can learn to build wealth with Stash incrementally as you go along.
Build Wealth With Stash
There is always something new to learn when you begin investing.
However, it can always be overwhelming to take that very first step when it comes to investing.
Try Stash today. The Stash Beginner plan starts at just $1 per month. The Stash Growth plan is only $3 per month.
And the Stash+ plan, the most expensive plan on the platform, is only $9 per month.
Learn to build wealth with Stash today.
Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.