I learned in college that there are 4 simple things that you can do(and definitely should do) to lower your risk and increase your returns on investments.
#1 – Diversifying – by diversifying you can lower your risk on an investment.
#2 – Rebalancing – by rebalancing your portfolio on a regular basis, you can increase your return on an investment.
#4 – Dollar Cost Averaging – by investing a set amount each month, you can increase your return on an investment.
#4 – Keep Costs Low – by investing in index funds, you can maximize your return on an investment.
Now, like I said, I learned this in college many years ago, but know what to do and actually doing it are two different things. I did start investing immediately always maximizing my Roth IRA accounts, but I did not take advantage of these simple techniques to invest my shorter term savings accounts.
That is until I found Wealthfront. Wealthfront is an automated financial advisor. They charge just 0.25% to manage your money and do all the things I mention above. A couple years ago I set up a monthly draw from my bank account to automatically be invested in my account with Wealthfront. It is so easy and I feel great about know that I am investing in one of the smartest ways possible.
Check them out. And, if you use this link, you will not be charged the 0.25% on your first $5000 invested. https://wlth.fr/2lPWb0m
And it is important to know that you can open an account with as little as $100!
(And it is also important to know that I benefit too if you open an account with them – I get the same thing you get – no charge on $5,000 managed money.)