Looking to invest, but afraid to pick stocks?
Automated investing may be the answer.
- Jim Cramer on How New Investors Handle This Market
- Here's One Thing Younger Generations Don't Know About Their 401k
Brian Barnes, CEO of M1 Finance--a free automated investing website--sat down with TheStreet to discuss the outlook of the investing landscape and how his company is working to educate younger investors.
- Ask Bob: Should Millennials Be Investing With Apps?
- What Is a Robo Advisor and How Do You Choose One?
"If you don't have automated investing, the alternative is to do everything yourself. You have to do every input manually. And so, that consists of getting money as a direct deposit into your checking account, transferring it over to a brokerage account, waiting for it to settle, placing the trades, clicking a button, getting charged $7, $8 for a commission. With automated investing, it really lets you say, "Here's what I wanna own." You can have portfolios that are constructed for you, so you can leverage the advice of experts, and just systematically deploy money into it every two weeks with your paycheck, once a month, whatever it may be," said Barnes. "And the nice thing that these automated platforms are doing is they're making it so that we're using things like fractional share. So 100% of your money goes to work in the investments you want, rather than just sitting idle in cash in the brokerage account. So your money's always deployed and working for you."