Automated Financial Service
Passive income is an attractive proposition to many, but investors who are not familiar with the concept often find the abundance of options confusing.
The secret is to find a strategy that is both passive and practical.
Investment blogs often talk about strategies such as dividend investing, market timing, and selling options as passive income. While this method might work out for some, it is ill-advised for most people. Many retail investors rely on automated financial services to assist them in their investment activities. These services are accessible through a computer, smartphone, or tablet to help investors with setting their portfolio, monitoring for changes in the market, and providing investment advice.
These automated services have increased in popularity in the last couple of years because of their ability to deliver an easier way to manage investments. Some of the most common automated financial service providers are:
- Wealthfront: Wealthfront is a California-based investment service that is designed to offer a low-cost wealth management program.
- Personal Capital: Personal Capital is an automated investing service that focuses on investment management, portfolio tracking, and trading.
- FutureAdvisor: FutureAdvisor has a higher investment minimum than many other services, but it still has a solid client base. The service offers future planning, asset allocation, retirement and college planning, tax optimization, and more.
DIY Investing
There are two different types of investing strategies: passive investing and active investing. With passive investing, you’re basically planning to sit back and let time do the work for you. With this type of approach, you’re letting the market do all of the work and there’s not too much that you have to do.
With active investing, you’re making day-to-day decisions in order to grow your money