More businesses are shifting the bulk of market budgets from television and print media to digital marketing platforms. Traditional pay TV lost 6 million customers over the past 2 years, and daily print newspaper circulation is dropping at a rate of more than 10% each year. That’s why it’s important for investors to understand marketing service stocks.

As digital media becomes the dominant force, you may not recognize the major players in marketing services. Take a look at the best-performing marketing service stocks that can make a major impact on your investment portfolio.

Quick Look at the Best Marketing Services Stocks:

• SRAX Inc.
• Boston Omaha Corp.
• Salesforce.com
• Thryv Holdings
• Yext Inc

Overview: Marketing Service Stocks

Before the digital revolution, most businesses used advertising and public relations agencies to handle marketing duties. Now, most of the emerging media requires specialization in email, market research, social media, digital marketing, marketing strategy, mobile devices, sports apps and gaming. Plus, print and TV advertising are still a big part of the mix. The marketing service stocks industry category covers all of these forms of marketing. 

When you search for these groups on investment sites, try a search for communications. Your search may be slightly difficult because the marketing services industry category is relatively new in the investing community.

Best Online Brokers for Stock

Investors have an increasing list of online brokers to choose from. This list features brokers among the best in the field. 

Claim Exclusive Offers

Best For

Active and Global Traders

Overall Rating

Read Review

get started securely through Interactive Brokers’s website

More Details

Best For

Active and Global Traders

N/A

1 Minute Review

Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.  

IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.

Best For

• Access to international markets
• Active traders
• Detailed mobile app that makes trading simple
• Wide range of available account types and tradeable assets

Pros

• IB SmartRouting provides significant price improvement vs. industry
• Fractional trading allows investing regardless of share price
• Industry’s lowest margin rates
• Earn more by lending your fuly-paid shares

Cons

• Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources

Best For

Leveraged Trading

Overall Rating

Read Review

get started securely through Plus500’s website

More Details

Disclosure: 80% of retail accounts lose money

Best For

Leveraged Trading

N/A

1 Minute Review

80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Plus500 is an online CFD broker focusing on contracts for difference (CFDs). CFDs are similar to binary options in the U.S. where traders take all-or-nothing speculation on the prices of certain securities like indices, commodities or currencies. While not legal to trade in the U.S., CFDs are legal in many jurisdictions across the globe and Plus500 offers a wide array of tradable markets using these instruments. 

Plus500 doesn’t charge commission and only profits off the spread, which is the difference between the buy and sell price of a specific security. But Plus500 is not a broker for beginners — the education materials are sparse and CFDs are risky derivatives capable of sapping out all of an investor’s capital. Only trade these instruments if you understand how they operate and the risks involved with buying them.

The Plus500 CFD platform is for CFDs. The Plus500 Futures platform offers futures for U.S. customers, and Plus500 Invest offers stock trading.

Best For

• Traders looking for a smooth mobile experience

Pros

• Great mobile app
• Low spreads and commissions
• Unlimited demo account

Cons

• Only derivatives are available
• Not open to U.S. residents

Best For

Trading Ideas

Overall Rating

Read Review

get started securely through public.com’s website

More Details

Best For

Trading Ideas

N/A

1 Minute Review

Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.

Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research. 

 

Best For

• Stock and ETF investors
• Crypto investors
• Investors looking to diversify with alternative assets or bonds and options

Pros

• Commission-free stock and ETF trading
• Fractional share investing
• Advanced data, tools, and insights with Public Premium

Cons

• You can’t transfer crypto to another wallet
• No mutual funds or precious metals
• At this time, only offers individual brokerage accounts and not IRAs

Best For

Commission-Free Mobile Trading

Overall Rating

Read Review

get started securely through Robinhood’s website

More Details

Best For

Commission-Free Mobile Trading

N/A

1 Minute Review

Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.

Best For

• Beginners looking for simplicity
• Mobile-first investors
• Commission-free trades

Pros

• User-friendly mobile app
• Instant double
• Cash management
• Access to cryptocurrencies

Cons

• Limited research tools
• No mutual funds available
• Basic customer support options

Best For

Active Short Sellers

Overall Rating

Read Review

get started securely through TradeZero’s website

More Details

Best For

Active Short Sellers

N/A

1 Minute Review

TradeZero is an online broker and free stock trading platform that provides everything you need to successfully share and trade, including round-the-clock customer support. TradeZero provides four different trading state-of-the-art software programs with its services, a locator for sourcing shares for shorting, commission-free trades, and real-time streaming, to name a few of the features promoted on their website. The software is a unique and (potentially) affordable option for anyone interested in stock trading.

Best For

• Traders seeking high transparency and mobility in a stock trading program
• Those attracted to commission-free trades
• Those seeking a free version of a high-quality trading program

Pros

• 24/7 live customer support
• Uses ZeroWeb technology, a powerful level 2 online platform with direct market access
• Mobile app allows users to access stocks and trade in real-time while on the go

Cons

• Enforces Pattern Day Trading restrictions (accounts need to maintain a daily equity balance of at least $25k)
• Mobile app could offer more features

Features to Look for in Marketing Service Stock

• Earnings per share ratio (EPS) is a concrete metric for evaluating a stock’s worth. It indicates a company’s ability to generate high dividends for its investors and its ability to reinvest for growth. You can calculate earnings per share by dividing a company’s total net income by the average number of outstanding shares during the previous fiscal year. 
• Stability is desirable in any stock. Stock price history, earnings per share and benchmark charts can reveal a lot about a company’s stability. Occasional dips in value are understandable but stocks with erratic fluctuations are cause for concern.
• Earnings growth can be considered by studying a company’s net income over a period of years. You can find a company’s net income history in its income statement. Look for a positive growth trend. 

Frequently Asked Questions

The post Best Marketing Services Stocks by Melissa Brock appeared first on Benzinga. Visit Benzinga to get more great content like this.

Many people interested in trading stocks wonder if there are any rules about when to buy or sell stocks.  While some vague timing guidelines do exist, the best time to buy or sell a stock really depends most on your own market analysis and individual company research. 

With that noted, the first and last hours of the trading session generally see more trading volume and volatility than the rest of the trading day. An experienced trader could take advantage of this increased volatility to move into the market to make a profit if they accurately recognize a particular pattern of price behavior in a stock. 

Business and geopolitical news also significantly impact markets and individual stocks at different times, so it pays to watch out for the common economic data release times that can result in higher volatility. 

While some traders believe that certain days of the week —  or even particular months — are more favorable for trading on one side of the market or the other, little science-based evidence can confirm whether this holds true over time, especially as such timing patterns become more widely known. Many traders continue to believe that certain times seem to work better for trading stocks. 

Stock Market Hours

These are the standard U.S. stock market hours for New York Stock Exchange (NYSE) and NASDAQ traded stocks:

• Pre-Market: The pre-market generally begins at 8 a.m. EST, but trading can begin as early as 4 a.m.
• Regular Market: The main stock trading session runs from the opening bell at 9:30 a.m. EST until 4 p.m. EST. 
• After Market: The after market begins when the closing bell rings at 4 p.m. EST and can continue until 8 p.m. EST. 

Best Time of Day to Buy Stock

Best time of the day to buy stock: During the first two hours of the trading day

According to some seasoned stock operators, the best time of the day to buy stocks for which positive news has been released over the weekend or overnight is shortly after the opening bell. The market should rise the most during the first two hours of the trading day after the opening, which is from 9:30 a.m. until 11:30 a.m. EST for the NYSE. 

The New York Stock Exchange’s bell rings at the open and close of each trading session. Source: Verdin. 

The reasoning behind this idea is that if a stock is set to rally due to good news that was released while the market was closed, the best prices for the stock would generally be right after the opening bell before the entire market has fully discounted that information. If the expected rally fails to take place, however, then the trader may be able to take a small loss or trade out of their position later during the trading session.

This may be the case for some stocks under normal trading conditions, although extraordinary events such as a major news item affecting an individual stock or the market as a whole can make a stock gap up or down at the open. Seeing such a gap should cause a trader cognizant of this phenomenon to be more cautious before making a purchase on the market open.  

Best Time of Day to Sell Stock

Best time of day: Just before the last hour of the trading session — from 3 p.m. to 4 p.m. EST

The general trader consensus on the best time to sell a U.S. stock is probably just before the last hour of the NYSE’s trading session from 3 p.m. to 4 p.m. EST. The rationale for selling during this time frame is that most stocks that have been actively trading all day may have already reached their highest level and may therefore be set to decline into the close. 

By the end of the trading day, most relevant news on any given stock has already been released. This means that whatever impact the day’s news should have on the stock’s price has already been reflected in the market, so you should not see any major shocks to the price. 

Another key factor supporting selling stocks into the closing hour is that the last hour of the trading day is when day traders will need to close out all outstanding positions in order to avoid carrying trades overnight.  Stocks that have performed well during the session could therefore begin to decline toward the market close as a result of day traders taking profits. 

If you think you can accurately anticipate this profit-taking activity, then you may be able to short such stocks before the day traders do and then profit from this commonly-seen decline by squaring your position closer to the market close.  

Best Day of the Week to Buy Stock

Best day of the week to buy stock: Monday

Monday would probably be the best day of the week to buy stock, according to a market theory called the “Monday or weekend effect.” The Monday effect says that the market will continue gaining on Monday if the market was up on Friday. 

The Monday effect has largely disappeared over the last decade, however, so many traders now expect stocks to decline overall on Mondays, especially if negative relevant news was released the previous weekend. 

This would make Monday purchases even more sensible since you may have a better chance of getting in at a good price, although you’ll probably want to wait until the expected Monday decline has happened first to time your entry point. 

Best Day of the Week to Sell Stock

Best day of the week to sell stock: Friday

Friday would typically be the best day of the week to sell stock, especially if the Friday under consideration begins a longer than usual 3-day weekend. Stock markets tend to rally on Friday due to short covering by traders to avoid paying interest on a short position over the weekend, as well as on any optimism traders might have for market-positive news during the weekend.

If you plan on shorting a stock or buying put options, then Friday would probably be the best day of the week, although you will need to time your entry in that position until after the expected short-covering rally has occurred. You can plan on covering your short position the following Monday since stock markets might open at lower levels.

Best Day of the Month to Buy Stock

Best day of the month to buy stock: Around the 10th or 15th

Due to monthly adjustments to stock portfolios by hedge and mutual funds during the beginning of the month, the best time of the month to buy stock would be around the middle of the month, around the 10th or 15th. Stock prices tend to decline during the middle of the month, which could create a buying opportunity.  

Specific dates for stocks could also present buying opportunities. For example, a company’s earnings report, news of a stock split or a potential takeover bid by another company could all present trading opportunities and are not specific to days of the week or month. To time your purchases more effectively, research when the company’s earnings are released and any other news items that might affect the price of the stock you plan on purchasing. 

Best Day of the Month to Sell Stock

Best day of the month to sell stock: One of the days leading up to the last trading day of the month

The best day of the month to sell stock would probably be one of the days leading to the last trading day of the month. The week leading up to the end of the month is often used by portfolio managers to “dress up” their portfolios by buying more of the stocks in their portfolio that have performed well. This tends to drive the prices of those well-performing stocks even higher near the month-end. 

“Dressing up” or improving the returns on a portfolio by marking upward trending stocks to market at the end of the month may only provide the portfolio manager with a paper gain. If you actually do sell your stock at a higher price seen near month-end, however, you’ll have realized your profit on that position.  

Worst Time to Buy and Sell Stocks

The worst time to buy stock generally occurs during periods of high market volatility or when the stock price is significantly inflated due to hype or speculation, such as during a market bubble. If you buy stock during these times, you may face steep losses if the stock price corrects itself or if market conditions change abruptly. Also, purchasing stocks just before major economic downturns or negative news events can lead to poor investment outcomes, as prices often drop sharply in response to bad news.

Conversely, the worst time to sell stock is typically during panic-driven market declines, where prices are falling rapidly due to fear rather than fundamentals. Selling in a panic can lock in losses that could have been avoided had you held on through temporary market fluctuations. Additionally, selling stock during a downturn, especially if it’s a short-term dip, means missing out on potential recovery and growth when the market rebounds.

Best Online Brokers to Buy and Sell Stocks

The stock broker you choose to partner with and execute your trades through can have a significant impact on your bottom line as a trader or investor, so be sure to choose wisely. Benzinga has compiled a table of the best online brokers you can use to trade stocks through, so you can quickly compare them and pick the one that best suits your needs.

Claim Exclusive Offers

Best For

Active and Global Traders

Overall Rating

Read Review

get started securely through Interactive Brokers’s website

More Details

Best For

Active and Global Traders

N/A

1 Minute Review

Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.  

IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.

Best For

• Access to international markets
• Active traders
• Detailed mobile app that makes trading simple
• Wide range of available account types and tradeable assets

Pros

• IB SmartRouting provides significant price improvement vs. industry
• Fractional trading allows investing regardless of share price
• Industry’s lowest margin rates
• Earn more by lending your fuly-paid shares

Cons

• Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources

Best For

Leveraged Trading

Overall Rating

Read Review

get started securely through Plus500’s website

More Details

Disclosure: 80% of retail accounts lose money

Best For

Leveraged Trading

N/A

1 Minute Review

80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Plus500 is an online CFD broker focusing on contracts for difference (CFDs). CFDs are similar to binary options in the U.S. where traders take all-or-nothing speculation on the prices of certain securities like indices, commodities or currencies. While not legal to trade in the U.S., CFDs are legal in many jurisdictions across the globe and Plus500 offers a wide array of tradable markets using these instruments. 

Plus500 doesn’t charge commission and only profits off the spread, which is the difference between the buy and sell price of a specific security. But Plus500 is not a broker for beginners — the education materials are sparse and CFDs are risky derivatives capable of sapping out all of an investor’s capital. Only trade these instruments if you understand how they operate and the risks involved with buying them.

The Plus500 CFD platform is for CFDs. The Plus500 Futures platform offers futures for U.S. customers, and Plus500 Invest offers stock trading.

Best For

• Traders looking for a smooth mobile experience

Pros

• Great mobile app
• Low spreads and commissions
• Unlimited demo account

Cons

• Only derivatives are available
• Not open to U.S. residents

Best For

Trading Ideas

Overall Rating

Read Review

get started securely through public.com’s website

More Details

Best For

Trading Ideas

N/A

1 Minute Review

Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.

Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research. 

 

Best For

• Stock and ETF investors
• Crypto investors
• Investors looking to diversify with alternative assets or bonds and options

Pros

• Commission-free stock and ETF trading
• Fractional share investing
• Advanced data, tools, and insights with Public Premium

Cons

• You can’t transfer crypto to another wallet
• No mutual funds or precious metals
• At this time, only offers individual brokerage accounts and not IRAs

Best For

Commission-Free Mobile Trading

Overall Rating

Read Review

get started securely through Robinhood’s website

More Details

Best For

Commission-Free Mobile Trading

N/A

1 Minute Review

Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.

Best For

• Beginners looking for simplicity
• Mobile-first investors
• Commission-free trades

Pros

• User-friendly mobile app
• Instant double
• Cash management
• Access to cryptocurrencies

Cons

• Limited research tools
• No mutual funds available
• Basic customer support options

Best For

Active Short Sellers

Overall Rating

Read Review

get started securely through TradeZero’s website

More Details

Best For

Active Short Sellers

N/A

1 Minute Review

TradeZero is an online broker and free stock trading platform that provides everything you need to successfully share and trade, including round-the-clock customer support. TradeZero provides four different trading state-of-the-art software programs with its services, a locator for sourcing shares for shorting, commission-free trades, and real-time streaming, to name a few of the features promoted on their website. The software is a unique and (potentially) affordable option for anyone interested in stock trading.

Best For

• Traders seeking high transparency and mobility in a stock trading program
• Those attracted to commission-free trades
• Those seeking a free version of a high-quality trading program

Pros

• 24/7 live customer support
• Uses ZeroWeb technology, a powerful level 2 online platform with direct market access
• Mobile app allows users to access stocks and trade in real-time while on the go

Cons

• Enforces Pattern Day Trading restrictions (accounts need to maintain a daily equity balance of at least $25k)
• Mobile app could offer more features

Market Moves Often Do Not Follow Rules

Any suggestions made above about the best time of the day, week or month to buy and trade stocks should be understood as a broad generalization and not a firm rule that always holds true. As you watch the stock market over time, you will probably find many exceptions to the general guidelines previously mentioned. 

This variation tends to occur because stock market movements are affected by a wide range of factors, just as individual stock prices are, so they often do not follow simple rules. In fact, many price moves arise as a result of major news events and other unpredictable elements that may not become known on a fixed time schedule. 

Also keep in mind that as any timing patterns appear to arise in the stock market, the smart money is quickly finding a way to take advantage of them. As a result, any returns from exploiting such a pattern may well diminish over time. 

Any trading session’s initial and concluding hours will very likely be its most active. You may see numerous trading opportunities arise during those time frames, although the times in between can also be profitable to trade on any particular day.

Frequently Asked Questions

The post Best Time to Buy Stocks: An Hourly Analysis of the Trading Day by Melissa Brock appeared first on Benzinga. Visit Benzinga to get more great content like this.

While relationship building involves more than just money management, studies have shown that making money decisions without your spouse or partner can negatively affect your relationship. Working together as a team using money management budget apps can help you hit your money goals.

However, that’s only possible if you pick the best budget app that fits your specific needs. Let Benzinga help you choose the best budget app for couples.

1. Stash

Best For

Casual investors

Account Minimum

• $0 for Personal Portfolio, Investment Account (Taxable Brokerage Account) and Banking Account ¹
• $1 for IRA and Custodial Accounts

get started securely through Stash’s website

More Details

Disclosure: Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. Investing involves risk and investments may lose value. Holdings and performance are hypothetical. Nothing in this material should be construed as an offer, recommendation, or solicitation to buy or sell any security. All investments are subject to risk and may lose value.

Pricing

$3 or $9 a month

Account Minimum

• $0 for Personal Portfolio, Investment Account (Taxable Brokerage Account) and Banking Account ¹
• $1 for IRA and Custodial Accounts

1 Minute Review

Stash is a personal finance hub app that offers access to investing and banking services. Designed for everybody, you can use Stash for budgeting, investing, banking, and gaining financial literacy. Additionally, they offer tiered monthly subscription plans.

Best For

• Casual investors or people looking to test the waters
• Long-term investors who can tolerate potential market volatility
• Savvy investors who can self-direct their strategy with the help of expert advice

Pros

• No investing minimums*
• Fractional shares
• Flat-rate fee structure

Cons

• All educational services are done through the app/website, and there is no personal advisor on the phone or in person
• Can’t roll over existing retirement accounts like a 401(k) or IRA

Stash can be a great app for couples to budget and save. Although it does not allow for joint accounts, you can pay your bills, track your spending and make Goals¹ to save all in a single app. You can have access to this platform starting at just $1 a month.

To get started, head over to Stash and download the app. It’s compatible with both iOS and Android devices. From there, the app asks you a few questions that will give insight into your financial goals.

Then you’ll pick a plan, add money to your Stash account and you’re well on your way to banking, budgeting and creating as many goals as you wish.

2. Tiller Money

Best For

Free Trial

Account Minimum

None

get started securely through Tiller Money’s website

If you’re ready to get your money in shipshape alongside your partner, consider Tiller Money. Known for easy collaboration, Tiller Money updates spreadsheets with your daily finances so you can see what’s happening to you and your partner’s financial life — all in one place.

Link your bank, credit cards and other financial accounts from 21,000 sources to Google Sheets and get:

• Flexible monthly and yearly budgets
• Free community-supported templates and reports for tracking net worth, saving goals, debt and more.
• Free templates, utilities and reports
• Your own custom dashboard

Tiller offers other perks, too:

• Automatic categorization
• Daily account summaries
• Weekly webinars
• Privacy and security

Tiller Money is completely free for 30 days. After 30 days, Tiller Money costs $79 per year. It’s just $6.58 per month! Start your free 30-day trial.

3. Monarch Money

Monarch Money allows you to see all your finances in one place, learn about saving, investing and more. You can go through each step of the process when you log in, share the account with your spouse and ensure that both of you are handling your finances in the app, using:

• Reviewing your finances
• Securely add partners, banks and investment portfolios as needed
• Get personalized advice from an expert
• Track all your money in one place
• Customize your dashboard
• Learn how to save more money
• Watch your spending
• Create financial goals
• Always keep your information safe

Couples can use these resources to make the most of their money during all of life’s circumstances from expecting a new child to activities, vacations, college, retirement and more. Plus, it’s never too soon to start managing your finances smarter using these tools and learning more about growing your wealth instead of just paying the bills.

4. Origin Financial

Best For

Holistic Financial Planning

Overall Rating

Get started securely through Origin Financial’s website

More Details

Best For

Holistic Financial Planning

N/A

1 Minute Review

Origin Financial offers a wealth-building platform for individuals looking to manage their finances beyond basic budgeting and spend tracking. Originally launched as an employee benefit for organizations like Webflow, Turo, and Modern Health, Origin Financial combines expert advice with cutting-edge technology. Through the platform, users can access tools for tracking their net worth, budgeting, monitoring their credit scores and investing without AUM fees. The platform provides access to Certified Financial Planners (CFP®), estate planning options, a high-yield cash management account, and investment accounts.

Best For

• Users seeking a holistic financial planning solution
• Individuals looking to connect multiple financial accounts for better oversight

Pros

• Comprehensive financial tools, including spend tracking, budgeting and estate planning
• Offers both human planners and an AI assistant for financial guidance
• High-yield cash account with a competitive APY rate and promotional rates for new users

Cons

• Additional costs for estate planning and financial advising sessions

Origin Financial is a wealth-building platform that is designed for those who wish to manage their finances and get past the basics of budgeting. This was once an employee benefit for firms like Turo and Webflow, but it is now available to all. You can track your expenses, obtain expert advice, monitor your credit score and much more all in one place without AUM fees. Estate planning, financial planning, investment and high-yield savings accounts are also available. 

5. Simplifi

Best For

Direct look at spending

Cash Advance Options

No

get started securely through Simplifi’s website

More Details

Monthly Cost

FREE for 30 Days $2.99/month after

Cash Advance Options

No

1 Minute Review

Simplifi by Quicken is a personal finance app to help you track your cash flow and provide an overall snapshot of your finances at any given time. 

While Simplifi by Quicken isn’t linked or integrated with the Quicken accounts or mobile app, it brings you the qualities Quicken is known for: innovation, user features and security and at-the-ready customer support.

Simplifi provides all-in-1 budgeting technology by linking your financial accounts and analyzing your income, monthly expenses and spending habits. Its spending plans mean your budgeting and saving blueprints are perfectly tailored to keep you within your spending limits to meet your savings goals.

The 1st 30 days of your Simplifi subscription are free. From there, you’ll pay as low as $2.99 per month. Sign up now to start your free trial.

Best For

• People who want to link several accounts for tracking; Simplifi links to over 14,000 financial institutions.
• People looking for straightforward budgeting and direct look at spending

Pros

• Integrated holistic budgeting, taking your bank accounts, credit cards, loans and investments along with your monthly income to create a custom spending plan
• 30-day free trial
• Low cost subscription plans

Cons

• Budgeting and saving technology only
• No crossover with other Quicken financial products

Simplifi by Quicken offers a simple and effective platform for building enterprise mobility applications.

Simplifi synchronizes data when internet is available and its location tracking features work with and without the mobile network availability. You get automated alerts and notifications. Some notifications are system generated and don’t require internet connection for them to deliver to you. You’ll pay a monthly subscription fee for the app after the 30-day free trial.

Once you create a Simplifi account, you’ll need to go through each financial account you have to register it within the app. Assign categories to all your transactions so you know where your money comes from and where it goes.

Simplifi comes with a default set of categories like auto and transport, dining and drinks, entertainment, groceries and utilities. You can add, edit and delete categories on the master list and you can change the categories that the site has already assigned to transactions.

Download Simplifi on your Android or Apple devices.

What is a Budget App?

So, what exactly is a budget app? It’s a piece of software that allows you to create a budget, categorize your income and expenses and then enter and track your transactions against your budget.  The app then helps you see how you spend money by providing useful reports and analysis.

Typically, the budget app runs on smartphones, but you’ll also find versions supported on desktops and other mobile devices.

What Couples Should Look for in a Budget App

Unlike general purpose accounting or finance software, couples should look for some specific “shared” features in the app they choose to help them co-manage their finances.

Syncing budgeting data between devices offers a great way for both partners to know exactly what’s going on with their finances, ideally in real time. You also want to make sure you access multi-device support. That way, if both partners don’t own the same type of device (iPhone or Android), you’ll still be able to use the budgeting app effectively. You may want to look for desktop support, especially if you like sitting at a desk and analyzing your transactions at leisure on a large screen.

Look for an app that allows you to customize your income and expense categories. Many couples would like the app to link to their external bank accounts and automatically download transactions. But if you aren’t comfortable with that, the app should at a very minimum allow you to enter account, payee and institution details while capturing transactions and use that data to track account balances. It’s always nice to see your budget and spending patterns illustrated graphically, either in pie-chart or bar chart form.

Also, if your app doesn’t store your data in the cloud (some couples might prefer local storage of data on their laptop/smartphone), then look for convenient features that make it easy to back up or restore your data.

Find Your Money App Today

The apps reviewed here make co-managing money with others a breeze. By linking your checking and savings account, you can take the stress out of budgeting and tracking your expenses manually.

With the help of these apps, you’ll not only collaborate better, but you’ll make more effective money management decisions such as the most cost-effective vacation or deferring the purchase of a new car based on financial transparency.

Frequently Asked Questions

Disclosures:

Paid non-client endorsement. See Apple App Store and Google Play reviews. View important disclosures.

Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. Investing involves risk and investments may lose value. Holdings and performance are hypothetical.

Nothing in this material should be construed as an offer, recommendation, or solicitation to buy or sell any security. All investments are subject to risk and may lose value.

Stash offers three plans, starting at just $1/month. For more information on each plan, visit our pricing page.

Stash Subscription fee starts at $1/ month. You’ll also bear the standard fees and expenses reflected in the pricing of the ETFs in your account, plus fees for various ancillary services charged by Stash and the Custodian. Please see the Advisory Agreement for details. Other fees apply to the bank account. Please see the Deposit Account Agreement.

Bank Account Services provided by Green Dot Bank, Member FDIC

Stash offers access to investment and banking accounts under each subscription plan. Each type of account is subject to different regulations and limitations. See the Advisory Agreement and the Deposit Account Agreement for more information

¹ Money moved into a Goal must be moved back to the bank account available balance to be used and does not earn interest.

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In the ever-evolving landscape of financial markets, two investment avenues stand out for their potential to deliver substantial returns—penny stocks vs forex trading. Both offer unique opportunities and come with their own set of risks, but understanding their fundamental differences can be key to aligning them with your investment strategy.

Whether you’re drawn to the low entry cost and speculative nature of penny stocks or the fast-paced, global scale of forex trading, it’s essential to grasp the nuances of each before diving in. In this article, we’ll explore the core characteristics, potential benefits, and inherent risks associated with penny stocks and forex, helping you make an informed decision about which path might be right for your investment goals.

What Are Penny Stocks?

Penny stocks typically trade for under $5 per share. Most penny stock companies are companies that haven’t achieved much notoriety and traditionally have small market capitalization.

Those two factors make them highly speculative, which equals high risk for traders. Penny stocks are quoted over-the-counter, such as on the OTC Bulletin Board or “pink sheets” and can also trade on securities exchanges, including foreign securities exchanges.

How to Invest in Penny Stocks

If you’ve decided you’re game to try penny stocking despite its highly speculative nature, do your research of the penny stock companies you’re interested in, then:

1. Choose a stock broker to open an account with.
2. Determine which stock to trade; a good starting point is to use tools from the OTC Markets website or Finviz. The OTC Markets Group also organizes securities into tiered marketplaces that can help you determine which stocks to trade.
3. Start by paper trading for a reasonable amount of time so you gradually build more confidence with real money.
4. Begin trading, but be sure you’re comfortable with losing money on some (or potentially all) of your trades, particularly when trading on margin.
5. Get a mentor who trades penny stocks.

What is Forex?

The market participants in a forex market include traders, investors, governments, banks, businesses and more. The market is open 24 hours, five days a week. When you trade forex, you simultaneously buy and sell currency pairs. The most often-traded currency pairs include:

• EUR/USD: The euro and the U.S. dollar
• USD/JPY: The U.S. dollar and the Japanese yen
• GBP/USD: The British pound sterling and the U.S. dollar
• USD/CHF: The U.S. dollar and the Swiss franc

Notice that all pairs include the U.S. dollar. (If you don’t see USD on the list, it’s not a major currency pair, and is instead called a currency cross.) Examples of these can include, but are not limited to, euro crosses and Japanese yen crosses:

When trading forex, you sell one currency (the base currency) in order to purchase another (called the quote currency). The base currency and the quote currency are both always in flux. The exchange rate shows how much you’ll pay in units of the quote currency to buy one unit of the base currency. When you sell, the exchange rate reflects the number of units of the quote currency you will receive for selling one unit of the base currency. Here are a few other terms to know:

• Going long: You buy the base currency and sell the quote currency.
• Going short: You sell the base currency and buy the quote currency.
• Bid-ask spread: The difference between the price at which a dealer will buy and sell a currency.
• Bid price: The amount of money a dealer is willing to pay, or “bid” for a currency.
• Ask price: The amount of money a dealer wants for a currency.
• Price interest point (pip): The measure of the movement in the exchange rate in a currency pair.

Costs of Penny Stocks and Forex

In order to trade forex, you’ll need to open a trading account with a forex broker. Similarly,  penny stocks don’t require any set fees, trading costs or account minimums. There are no rules about how much a broker can charge you, so it’s important to shop around and compare amounts and services.

Regarding forex, some firms charge a per trade commission, while other firms make their money on the spread between the bid and ask prices. Note that some forex firms advertise “commission-free” trades, but understand that through the bid/ask spread, they’re still making money off your trades.

Here’s a quick example from TD Ameritrade listing the fees involved, and it’s a great example of how to search costs:

How to Choose a Forex Broker

Choosing a broker can be such a personal decision; it doesn’t really matter which one your friend uses or even a certain professional trader uses. If a particular broker works best for you, then go with it!

A broker should provide you with extensive research and analysis, competitive trade prices and educational material, including a practice account that helps you learn the ropes.

Last but not least, it’s important to have a top-notch trading platform with a full suite of tools (that you’re comfortable using, of course).

Final Thoughts on Penny Stocks vs Forex

As you can see, penny stocks and forex have hardly anything in common. However, they’re both risky in their own very specific ways. The penny stock market is risky because it’s highly speculative, as mentioned above. On the other hand, the forex market is risky because of the amount of leverage potentially involved. You’re typically required to put up just 1% in margin of the total value of a forex contract.

Frequently Asked Questions

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Chances are, if you put a group of Bogleheads in a room with a bunch of fund managers, it’s likely nobody will completely agree on the best investing approach.

If you casually toss the active vs. passive debate toward that crowd, it could turn up the heat and pave the way for some serious argument.

Maybe the famous economist Burton Malkiel said it best: “A blindfolded monkey throwing darts at the stock listings could select a portfolio just as well as one selected by the expert portfolio managers,” which makes an excellent case for passive investing in individual stocks.

Or maybe there’s real value in hiring a hedge fund manager, as it’s true that there’s nothing sexy about letting your investments sit — and sit some more. If you’re in pursuit of large, quick returns, you’ll likely never get on board with passive investing; therefore, active investing might make more sense for you.

What is Active Investing?

Active investing is an investment strategy in which a manager or you as an active investor purchase investments with the goal of taking advantage of profitable conditions in the stock market to beat the market.

Is Active Investing Right for You?

Active investing can help maximize returns. It is different from passive investing, which mostly involves buying and holding. Active investing requires real-time decisions to buy, sell, or hold assets. These decisions are based on market trends. This approach offers flexibility and the ability to benefit from short-term price changes. We will explore the benefits of active investing. These benefits may include higher returns and aligning investments with personal values. Professional expertise can also be important. Understanding these points will help you decide if active investing is right for your financial goals and risk tolerance.

Potential for Higher Returns

Active investing provides investors with the opportunity to leverage market inefficiencies, allowing them to identify and capitalize on undervalued securities that may not be recognized by the broader market. This proactive approach can lead to significantly higher returns compared to passive investment strategies, particularly during periods of market volatility or in bear markets. In such challenging conditions, active investors can react swiftly to changing trends and select securities that may rebound more quickly, ultimately enhancing their potential for profit.

Flexibility and Adaptability

One of the key advantages of active investing is its inherent flexibility. Active investors can continuously monitor market conditions, economic indicators, and the performance of individual companies, adjusting their strategies as necessary to optimize returns. This adaptability enables them to respond effectively to sudden market shifts, regulatory changes, or emerging trends, providing a strategic edge that can help them navigate different market environments with confidence. By staying informed and being proactive, active investors can seize opportunities that may arise unexpectedly.

Personalized Investment Strategy

Active investing allows for a more personalized investment approach, as it enables investors to align their portfolios with their unique financial goals, risk tolerance, and investment philosophies. This tailored strategy ensures that the investments reflect the investor’s individual values and objectives, whether they are focused on long-term growth, income generation, or capital preservation. With active management, investors can make informed decisions about asset allocation, sector exposure, and individual securities, creating a customized portfolio that supports their overall wealth-building journey.

Considerations Before Making Active Investments

Active investing can be a rewarding strategy for those looking to take control of their financial futures, yet it requires careful consideration and thorough preparation. Before diving into this approach, investors must evaluate their risk tolerance, investment goals, and the time they can commit to research and monitoring their portfolios. Fleeting market trends and the complexity of individual securities might tempt some to act impulsively, but a disciplined and informed approach is essential for success. Furthermore, understanding the costs associated with active trading, including commissions and potential tax implications, can significantly impact overall returns. This introduction highlights the vital considerations that should guide anyone contemplating active investing, ensuring they are well-prepared to navigate the complexities of this dynamic market.

Time Commitment

Active investing requires a significant amount of time and effort. Investors must conduct thorough research and analyze market trends and individual investments. Staying informed about economic developments, company performance, and sector dynamics is crucial. This often involves hours of preparation and review. Before choosing this approach, evaluate if you have the necessary resources, including time and expertise. If your schedule is busy or you do not want to monitor the markets closely, active investing may not suit you.

Costs and Fees

Active investing usually results in higher transaction costs and management fees compared to passive strategies. Frequent buying and selling of securities can cause significant brokerage fees. Actively managed funds often have higher expense ratios because of the extensive research and management required. It’s important to assess whether the potential for higher returns justifies these extra costs. Think about how these expenses relate to your overall investment strategy and long-term financial goals. In some situations, the higher costs may reduce net returns, making a passive approach more attractive.

Risk Tolerance

Active investing can lead to greater volatility and significant losses. Decisions based on market timing and individual stock performance can result in unpredictable outcomes. This is especially true in turbulent market conditions. It is important to assess your risk tolerance. Make sure you are comfortable with the level of risk involved in active investing. Understanding your financial capacity to handle market fluctuations is crucial. This will help you determine if active investing fits your investment philosophy and long-term goals. Be prepared for potential short-term losses. Have a strategy ready to manage and reduce those risks effectively.

What is Passive Investing?

Passive investing follows the opposite path. It’s an investment strategy that avoids the fees that occur from frequent trading, and investors who use this strategy keep these types of investments for the long haul. Passive investors do not actively buy and sell their investments as prices change in the market.

Is Passive Investing Right for You?

Today, investors seek strategies that align with their long-term goals and make market participation easier. One popular strategy is passive investing. This involves buying and holding investments to track a market index. It does not aim to outperform the market. Passive investing has several benefits. It usually has lower fees and requires less frequent trading. It can also lead to consistent returns over time. If you want to grow your wealth without constant management, passive investing is a good choice. In the next sections, we will explore the key advantages of this strategy. This will help you determine if it suits your financial journey.

Lower Costs

One major advantage of passive investing is its lower costs. Passive investment strategies, such as index funds and exchange-traded funds (ETFs), generally have lower management fees and trading costs than active investing. Since passive investing does not involve frequent buying and selling of securities or extensive research, investors can save on expenses. This cost efficiency can lead to better long-term returns. More of your investment capital stays invested and compounding over time instead of being reduced by fees. Ultimately, keeping costs low allows your money to work more effectively for you. This can improve your potential for wealth accumulation.

Simplicity and Ease

Passive investing strategies are simple and easy. They appeal to many investors. Options like index funds and ETFs allow you to gain exposure to a broad market segment. They do this without complex decision-making or constant monitoring. These investment vehicles track the performance of a specific index or market benchmark. This makes them easy to understand and manage. As a result, passive investing helps individuals maintain a diversified portfolio with minimal effort. It eliminates the need for extensive market knowledge and continuous research. This simplicity is attractive to those who lack time or desire to actively manage their investments. It provides a stress-free approach to building wealth.

Market Returns

The main goal of passive investing is to match market performance. Many active managers struggle to consistently outperform the market in the long run. This is often due to challenges in timing the market and picking winning stocks. A passive investing strategy allows investors to achieve average market returns with less risk and effort. This approach takes advantage of overall market growth. Investors benefit from market gains without the pressure of finding the next big winner. Passive investing can be a reliable way to participate in market growth. It serves as a solid foundation for a long-term investment strategy.

Considerations Before Making Passive Investments

Before you start passive investing, it’s important to know what it is. Passive investing involves buying and holding investments to mirror market indices. This strategy offers benefits like lower fees and less emotional decision-making. However, several factors can impact your success. Think about your financial goals, risk tolerance, market conditions, and investment horizon. These aspects will determine how well passive investing suits your strategy. Be aware of potential downsides, such as market volatility and the absence of active management. The next sections will discuss these points to help you decide if passive investing is right for you.

Market Risks

Passive investing aims to match market performance. However, it is still subject to market risks and volatility. Your portfolio will mirror the broader market’s fluctuations. This means that during an economic downturn or market corrections, your investments may lose value along with the market. It is important to prepare for this potential downturn. Passive investing does not protect against market losses. Recognizing that your investments will experience ups and downs can help you maintain a long-term perspective. It is essential to assess your emotional resilience to handle market volatility. Make sure you are comfortable with the possibility of short-term losses.

Lack of Flexibility

Passive investing follows a set strategy. This often means replicating a specific index or market benchmark. As a result, you have limited flexibility to adjust your portfolio quickly. This can make it difficult to respond to changing market conditions or to take advantage of short-term investment opportunities. In contrast, active investing allows for strategy adjustments based on new information and market dynamics. Passive investing requires a hands-off approach. Consider whether you are comfortable with this rigidity in your investment strategy. If you prefer to make timely adjustments based on market trends or economic events, passive investing may not suit your preferences.

Long-Term Horizon

Passive investing works best for long-term financial goals. This strategy relies on the notion that the market generally rises over time. As a result, investments can grow through compounding returns. It is important to make sure your investment timeline matches with passive investing. If you want quick returns or have a short-term investment plan, passive investing may not be suitable. It often requires patience to handle market fluctuations and see gains. Assessing your financial goals and understanding the long-term commitment will help you decide if passive investing is right for you.

Active vs. Passive Investing: Key Differences

Here are the key differences between active vs. passive investing.

Active Investments

Active investing means trading often to beat average index returns. It requires skill and knowledge of the market. Investors aim to profit from short-term price changes. Active fund managers help with this by analyzing data to decide when to trade. However, active investing has higher costs due to management fees. It also involves greater risks because timing must be precise. While it can lead to significant gains and offers customized options, it can be volatile. This strategy may not be suitable for long-term retirement savings. For many investors, the risks and costs can outweigh the benefits. A passive investment strategy may be a better choice for steady growth over time.

Stock Picking

Investors or fund managers buy equities that are considered undervalued and have the potential to increase in price or pay higher dividends over time. The tricky thing is that there is no one right way to pick stocks; it’s a matter of determining which stocks you believe are priced lowest. Stock pickers who sit on a stock can be considered just as passive as those who buy index funds. For true stock picking within active investing, you’ll buy and sell often.

Active Investing in Mutual Funds

Professional mutual fund managers charge an annual fee, use the money to do research and pick a basket of best stocks to try and beat the market.

Active Investing by Hedge Funds

This method is generally for high-net-worth individuals and institutions. Hedge fund managers differentiate themselves from mutual funds by going short at times to potentially deliver high risk-adjusted returns. Because they have more resources, bigger hedge funds may also do more research on specific companies.

Passive Investments

Passive investing aims for long-term growth with minimal management. It often uses index funds and exchange-traded funds (ETFs). One key benefit is that it has lower fees. These funds require less active management, allowing investors to keep more of their returns. Another advantage is steady returns. Passive strategies seek to match market performance instead of trying to beat it. This leads to consistent growth, making it suitable for retirement savings and future goals. Risk is managed through diversification. Index funds and ETFs spread investments across different securities. This reduces the impact of any single investment that may not perform well and helps stabilize returns. In summary, passive investing is a straightforward strategy. It leverages market growth while keeping costs and risks low.

Real Estate

Real estate is an example of passive investing. Theoretically, you invest in a property, get some decent renters and watch the money roll in. It doesn’t always work that way, but that’s the premise of this passive investment. The odds of success in this passive strategy are influenced by several factors.

Stocks

Dividend-paying stocks, that is. This is a great way to invest because the money comes in the form of dividends. You’re not actively trading, you’re not looking to sell — you’re in it for the long haul, and as long as you can see the growth potential of certain companies, you could be on your way to a great source of passive income.

Index Funds

Instead of hiring fund managers to actively select which stocks or bonds the fund will hold, an index fund buys all or a representative sample of the securities in a specific index like the S&P 500. The goal of an index fund is to track the performance of a specific market index benchmark as closely as possible. That’s why you may hear it referred to as a passively managed fund

Peer-to-Peer Lending

Cheaper and faster than a bank, peer-to-peer lending allows individuals to borrow without having to involve an institution like a bank or credit union. As an investor, you’ll see some advantages and differences in the different types of loans you can invest in, so it’s important to do your research.

Which is Best for You?

Three things matter if you’re trying to decide between active and passive investing:

• Time horizon
• Risk tolerance
• Financial goals

If you need the money in 20 years, have a fairly low risk tolerance and your financial goals are relaxed, then you may be a prime candidate for holding passive funds. On the other hand, you may be more comfortable with active funds if you have high-risk tolerance and an instinct for immediate financial goals.

Proper Research is Key

If you’d like to dive into active investing but don’t have the time or skills to do it by yourself, you could pick a mutual fund or ETF with lower fees and a solid track record. While it’s true that past performance does not predict future returns, a record of success may indicate a solid research investing strategy and highlight companies that have a good handle on risk.

If you’re a risk-tolerant do-it-yourselfer and you’d also like to go the active investments route, you could buy and actively manage a basket of riskier securities, such as tech stocks, growth stocks and small caps.

Although tech securities are riskier and more volatile, they could potentially deliver higher returns in the long run. 

If you’re a passive investor, you’ll likely have a few more diverse options open to you, including peer-to-peer lending, real estate, index funds or dividend stocks. These investments require some research.

Just like you wouldn’t want to buy a rental property in an area of your city you’ve never investigated, you’d also avoid buying an index fund without properly researching the fund.

Frequently Asked Questions

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You may appreciate Robinhood for its streamlined layout, basic trading options and simple account types. It’s a great start for beginners (or anyone, really!) who wants to get in and get out on a simple platform. However, Robinhood wasn’t designed for in-depth technical analysis, so whether you want to sell on the heels of the WallStreetBets Reddit phenomenon, jump on another platform or start shopping for Robinhood alternatives, you’ve landed in the right spot.

Let Benzinga take you through a step-by-step guide to how to sell stock on Robinhood. We’ll cover how to sell stock on the Robinhood app, then cover how to sell stock on the web platform.

Step 1: Browse the stocks you own. 

Find the stock you want to sell by browsing on the Robinhood app. You should see the number of shares you own, your equity, average cost, your portfolio diversity, today’s return, total return, and today’s volume. You can learn the stock’s historical performance, analyst ratings, company earnings and other helpful information to help you make your final decision about selling a stock on Robinhood.

Step 2: Hit the “trade” button. 

You have the option to buy or sell, and in this case, hit the “sell” button. On the other hand, if you change your mind and want to buy, you can do that here, after you select “trade.”

Step 3: Choose how many shares you want to sell.

In the upper right corner, choose if you want to sell in dollars or shares. Insert the number of shares or dollars you want to sell. You can also see the market price and Robinhood will tell you how much credit you’ll receive if you sell that particular stock.  

Step 4: Choose a market order or limit order. 

You can choose a market order and receive the market price for your sell or you can choose a limit order and specify the amount you’re willing to receive per share of stock you plan to sell. Note that you can cancel limit orders at any time, especially if you decide you no longer want to sell your shares. That’s not the case with market orders — if the markets are open, your order will execute. 

Step 5: Review and swipe to submit. 

Once you think it looks great, tap review and swipe up and you’ve sold your shares.

How to Sell on Robinhood’s Web Platform

You’ll follow the same general process to sell on Robinhood’s web platform. 

• Look at the stock’s detail page for company information. 
• Click “sell” on the right side of the screen — on Robinhood’s order window.
• Determine whether you’d like to sell in dollars or shares using the drop-down menu. 
• Click review and submit your sell order.

Frequently Asked Questions

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New York offers two 529 College Savings Plans: the Direct Plan for direct investment and the Advisor-Guided Plan for access to financial advisors. Both plans offer investment options and flexibility for qualified education expenses.

Planning for your child’s future education can be a challenging task for many parents. With the rising costs of tuition and the uncertainty of the job market, it can be overwhelming to figure out how to best prepare for your child’s future academic endeavors.

That’s where 529 plans come in handy. A 529 Plan is a college savings plan offered by a state or state agency. This tax-advantaged investment account is specifically designed to save for future education costs, including tuition, room and board, fees, books and other expenses. Eligible educational institutions include any college, university, vocational school or other postsecondary educational institution.

If you live in the state of New York, you can choose from these two New York 529 College Savings Plans available: the Direct Plan and the Advisor-Guided Plan. Read on to find out which plan is best for you.

The New York 529 Direct Plan

The New York 529 Direct Plan offers college savers a comprehensive swath of portfolios that certainly cover a broad spectrum of performance, expense ratios and other advantages, all with the goal of arming you and your child(ren) with the best possible scenario when going off to college.

Ascensus and Vanguard

The program manager for the NY 529 Direct Plan is Ascensus Broker Dealer Services, Inc. It’s a part of Ascensus College Savings, a provider of administrative services for these types of plans. Vanguard happens to be the investment manager for the Direct Plan and is one of the leading investment management firms in the world.

Who Can Open a New York 529 Direct Plan?

Anyone can open a plan, no matter how old you are or what your income is, or whether you’re a resident of New York or not. (However, those out-of-staters might want to check into their own home state’s 529 plans to make sure they’re not missing out on tax benefits solely available for investments in that state’s 529 plan.)

The other requirement is that you must be a U.S. citizen or resident alien with a verified permanent U.S. address and valid Social Security number or other taxpayer identification number.

How to Open a New York 529 College Savings Direct Plan

It doesn’t take long to get a plan rolling, and the New York 529 College Savings Direct Plan Account website recommends having the following at the ready when you’re ready to open an account:

• Information about yourself, such as address, Social Security number, etc.
• Information about your successor, in the event of your death.
• Details about your beneficiary or beneficiaries (birthdate, Social Security number, etc.)
• Investments in mind that you plan to tackle.
• Your bank account number.
• Payroll deduction information.

New York 529 Direct Plan Fees

Vanguard has some of the lowest fees out there, and this plan is no exception. The plan charges a total annual asset-based management fee of 0.12% of account assets. That means for every $1,000 you invest, you’ll pay $1.20 in fees per year.

There are no advisor fees, sales commissions or annual account fees, like those you may find in other plans. The New York Direct Plan also doesn’t charge additional fees for individuals who reside outside of New York.

Tax Benefits of New York 529 Direct Plan

The Direct Plan tax benefits include the following, which are pretty common for 529 plans. The differences that may exist between this plan and others may be the amount of state tax deductions:

• You won’t pay income tax on earnings; the money grows deferred from federal and state income taxes.
• You can make tax-free withdrawals when you use the money to pay for qualified educational expenses.
• If you’re a New York taxpayer, you may be able to deduct up to $5,000 ($10,000 if you’re married filing jointly) of your contributions.
• You can contribute up to $15,000 per year without having to pay federal gift taxes.

Performance and Investment Options

Past performance is not a guarantee of future performance, just as it is with all investments. The NY 529 Direct Plan has a full list of portfolio names at its command, which covers an entire spectrum of aggressive to conservative investments. They include the following:

For a glimpse of performance for each portfolio, check out the full snapshot.

Drawbacks of New York 529 College Savings Direct Plan

We’ve mentioned a lot of positives thus far regarding the New York 529 Direct Plan, but there may be negatives, and most of them go along with potential drawbacks for any 529 plan. One major drawback includes youngsters’ financial aid eligibility, which is directly impacted when there is money in a 529 plan. It’s better to have the money in the parents’ name rather than the students’, as the student assessment rate on the FAFSA is high, at 20 percent. For parents, it’s assessed at 5.64 percent.

Another drawback is that while your money can be withdrawn for any reason if it’s not demonstrated as a qualified educational expense, withdrawals will be subject to income taxes and a 10 percent penalty.

The New York 529 Advisor-Guided College Savings Plan

The New York’s 529 Advisor-Guided College Savings Plan is designed for parents who want professional guidance and assistance in managing their child’s college savings fund. By working with a financial advisor, you can benefit from personalized investment advice and tailored recommendations based on your financial goals and risk tolerance.

Ascensus and J.P. Morgan

The NY 529 Advisor-Guided College Savings Plan is managed by Ascensus College Savings, with J.P. Morgan Asset Management as the investment manager and distributor. The plan provides families with access to a top 529 plan administrator and the investment expertise of a highly respected financial institution.

Who can open a New York 529 Advisor-Guided College Savings Plan?

Unlike other 529 plans, the NY 529 Advisor-Guided plan is only available through financial advisors. These advisors have a wealth of knowledge and experience in helping families plan for their financial futures, including saving for higher education expenses. By working with a financial advisor, investors can receive personalized guidance on how to best utilize the 529 plan to meet their specific goals.

New York 529 Advisor-Guided Plan Fees

The fees for the New York 529 Advisor-Guided Plan can vary depending on the investments chosen and the specific advisor managing the account. Here are some common fees associated with this plan: program management fees, investment management fees and advisor fees.

Tax Benefits of New York 529 Advisor-Guided Plan

The NY 529 Advisor-Guided Plan offers a variety of tax benefits that can help you maximize your savings and reach your financial goals.

• New York taxpayers can deduct up to $5,000 ($10,000 if married filing jointly) in contributions from their income taxes each year.
• Contributions to your account grow tax-deferred, with earnings not subject to income tax as long as the funds stay in the account.
• Withdrawals made for qualified education expenses, such as tuition, books, and room and board, are also tax-free.

Investment Options

Your advisor can help you select from three approaches to access funds.

• Age-based portfolio: These are based on an individual’s age, with younger investors taking on more risk and older investors being more conservative.
• Asset allocation portfolios: These are designed to balance risk and return by diversifying investments across different asset classes such as stocks, bonds and cash.
• Individual portfolios: These are tailored to individual investors’ specific goals, risk tolerance and time horizon, taking into account their unique financial situation and preferences.

Drawbacks of New York 529 Advisor-Guided Plan

While there are many benefits to this plan, there are also several drawbacks that families should be aware of before investing in it.

One of the main drawbacks of the New York 529 Advisor-Guided Plan is the fees associated with it. The plan includes an annual program management fee, as well as other investment fees that can add up over time. These fees can eat into the returns on your investment and reduce the amount of money available for college expenses.

Another drawback of this plan is the limited investment options available. While the plan does offer a variety of investment portfolios to choose from, these options are still limited compared to other 529 plans. This can make it challenging for investors to find the right mix of investments to meet their financial goals and risk tolerance.

Additionally, the New York 529 Advisor-Guided Plan may not be the best option for families who want more control over their investments. With this plan, families rely on the guidance of a financial advisor to make investment decisions. This can be a drawback for investors who prefer to have more hands-on control over their college savings.

Why Use a 529 Plan for College Savings?

There are definitely reasons to use a 529 plan as a college savings vehicle, and those include:

• Though contributions aren’t deductible, they grow tax-free and are not taxed when the money is taken out for college.
• States offer tax breaks for specific plans (some don’t even require that the plan is from their state).
• They’re not run like custodial accounts, where the child takes ownership of assets when he/she reaches legal age.
• You can be as hands-on or as hands-off as you’d like. Investment management can be completely left up to the investment company, or you can choose your own investments and manage them yourself.
• Anyone can take advantage of a 529 plan.
• You can open a plan for more than one beneficiary, as long as all beneficiaries are U.S. citizens or resident aliens with a valid Social Security number or other taxpayer ID number.

Final thoughts

Obviously, market performance will fluctuate over the course of 18 years, and returns are never guaranteed, so that’s why you’re well-advised to start funds aggressively and then morph into conservative funds by the time your child closer to college age.

Saving early matters (as in, once your child is born) because of compound interest. The more you let compound interest take hold of your finances, the better off you’ll be on returns. An example on Vanguard’s website gives an excellent overview of the miracle of compound interest:

Imagine you saved $25 a week for 18 years and kept it in a bank account earning 1% annual interest. When it’s time for college, you’d have about $25,750—the $23,400 you put in and about $2,350 in interest.

Now, imagine you invested the money and earned 6% a year. After 18 years, you’d have about $42,600 instead.

That’s almost $17,000 in additional money your child can use for college!

Related content: BEST WAY TO SAVE FOR COLLEGE

The post New York 529 College Savings Plans by Melissa Brock appeared first on Benzinga. Visit Benzinga to get more great content like this.

Quick Answer: Set clear investment goals, research and select index funds that align with those goals and open a brokerage account through an index-fund provider like Frec or Interactive Brokers.

Would index funds be as popular if Warren Buffett hadn’t endorsed them? Maybe not. Index funds, which consist of a mutual fund or exchange-traded fund (ETF) portfolio that tracks a broad segment of the U.S. stock market, offer access to low-cost, diversified portfolios.

How to Invest in Index Funds

Benzinga recommends the following steps to choose and execute the purchase of an index fund.

1. Know Which Index the Fund Follows

Since indexing has become so popular picking an index fund isn’t as easy as it used to be, when there were fewer to choose from. Before you select an index fund, understand its underlying holdings and how it’s behaved in the past, although past performance is no guarantee of future performance.

Is the fund specialized and specific? If so, do thorough research to make sure you understand what you’re putting your money into. Specialized funds can be more slippery than mainstream index funds. Triple check to be sure that a fund you’re considering really does track an index.

2. Choose Where You’d Like to Buy Your Index Fund

You can choose from many options to buy index funds. Most discount brokerages offer them, so it’s a matter of checking out Benzinga’s investing guides.

3. Learn About Fund Fees and Tax Effects

Not all index funds are tax-efficient and not all index funds are cheap. Figure out how much a potential index fund will cost you. Fee information is available on a broker’s website.

4. Decide How Much You’d Like to Invest

This part is a personal decision based on your financial situation. You’ll need to weigh how much you can invest against the fund minimums.

set clear investment goals, then research and select index funds that align with those goals, and finally, either open a brokerage account or directly purchase index funds through an index-fund provider like Vanguard or Fidelity.

Where to Invest in Index Funds

Best For

Well-Funded Investors

Overall Rating

Get started securely through Frec’s website

More Details

Best For

Well-Funded Investors

N/A

1 Minute Review

In today’s investment landscape, tax optimization plays a pivotal role in enhancing returns. Direct indexing, a strategy embraced by many investors, including those at Frec, prioritizes tax loss harvesting as a means to minimize tax liabilities and bolster portfolio performance. By strategically managing capital gains and losses, Frec’s direct indexing service offers investors a way to optimize their earnings while navigating the complexities of the tax landscape.

Direct indexing empowers investors with control over their portfolios while leveraging tax loss harvesting to its full potential. Frec’s approach enhances earnings by unlocking tax savings, regardless of market conditions, through sophisticated algorithms and automation.

As direct indexing gains momentum, Frec is at the forefront, democratizing access to this tax-efficient investment strategy. With low fees and a $20k minimum – which is significantly lower than the $100k+ minimums often found at wealth managers, Frec makes direct indexing accessible to a broader range of investors.

Besides direct indexing, Frec offers additional financial solutions, including a low-cost portfolio line of credit and a high-yield treasury product, further augmenting its appeal as a comprehensive wealth-building platform.

Best For

• High net worth and well-funded individual investors seeking greater control over their investment strategies, customization options and efficient management of tax implications
• Experienced investors seeking portfolio diversification and increased returns via efficient tax optimization and management strategies
• Those seeking access to low-cost portfolio lines of credit or passive earnings via high-yield returns

Pros

• Daily tax loss harvesting of individual S&P 500® stocks for optimized earnings — Frec could tax loss harvest ~40% of your invested capital over ten years
• Streamlined portfolio customization — you can choose between the S&P 500® or S&P 500® Info Tech index and customize by adding or excluding stocks or sectors
• Highly competitive pricing and account minimum — $20,000 minimum deposit and 0.10% annual fee for direct indexing
• High security and safety standard — your assets are held in your name at Apex Clearing and are insured (Frec is a registered and regulated brokerage firm and registered investment adviser)
• Effortless and fully automated investing platform — you can set your direct indexing and monitor what trades are being executed without hassle
• Streamline access to passive income via high-yield treasury and expedited borrowing for emergency
• Excellent educational and learning resources

Cons

• Not ideal for undercapitalized or beginner investors
• Relatively new platform with little or no track records

Best For

Active and Global Traders

Overall Rating

Read Review

get started securely through Interactive Brokers’s website

More Details

Best For

Active and Global Traders

N/A

1 Minute Review

Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.  

IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.

Best For

• Access to international markets
• Active traders
• Sophisticated investors
• Detailed mobile app that makes trading simple
• Wide range of available account types and tradeable assets

Pros

• IB SmartRouting provides significant price improvement vs. industry
• Fractional trading allows investing regardless of share price
• Industry’s lowest margin rates
• Earn more by lending your fuly-paid shares

Cons

• Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources

Best For

Trading Ideas

Overall Rating

Read Review

get started securely through public.com’s website

More Details

Best For

Trading Ideas

N/A

1 Minute Review

Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.

Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research. 

 

Best For

• Stock and ETF investors
• Crypto investors
• Investors looking to diversify with alternative assets or bonds and options

Pros

• Commission-free stock and ETF trading
• Fractional share investing
• Advanced data, tools, and insights with Public Premium

Cons

• You can’t transfer crypto to another wallet
• No mutual funds or precious metals
• At this time, only offers individual brokerage accounts and not IRAs

Future Outlook for Index Funds

According to updated projections, by the end of 2027, index funds are expected to control upwards of 60% of the total assets in the investment-management sector. This surge demonstrates an increasing preference among investors for index funds over actively managed portfolios. The most recent data from Morningstar, Inc. indicates a dramatic shift, revealing that investors poured $750 billion into passive funds while actively managed funds saw inflows of only $300 billion last year.

Index funds aren’t going away any time soon. Investors aren’t keen to part with their money in the form of fees and taxes.

Choice or Chance?

Index funds have a promising future, though for every “Index funds are great!” message you’ll hear in the media, there’s the opposite message — “You can’t react to the market. You have limited choice over holdings. You aren’t allowed to determine strategy.”

Index funds may not be right for every investor. If you choose them, there are excellent fund managers out there who do beat the market. It’s your decision.

Frequently Asked Questions

The post How to Invest in Index Funds by Melissa Brock appeared first on Benzinga. Visit Benzinga to get more great content like this.

An index fund is a type of mutual fund or ETF portfolio that tracks a broad segment of the U.S. stock market. The beauty of index funds is that you’ll get a neat package of bundled stocks. You don’t have to pay a money manager to choose your investments for you. This means that index funds typically give way to high returns and lower fees. However, you want the best index funds because both reduce your risk and potentially increase profits.

Quick Look at the Best Index Funds: 

• Schwab U.S. Large-Cap ETF (NYSEARCA: SCHX)
• iShares Core S&P 500 ETF (NYSEARCA: IVV)
• Vanguard Total Stock Market ETF (NYSEARCA: VTI)
• Invesco S&P 500^® Equal Weight ETF (NYSEARCA: RSP)
• Vanguard S&P 500 ETF (NYSEARCA: VOO)

Best Index Funds Right Now

Benzinga has compiled a list of a few of the best index funds, and they include the following:

Schwab U.S. Large-Cap ETF (NYSEARCA: SCHX)

Schwab U.S. Large-Cap ETF has been on the market since 2009. It tracks the Dow Jones U.S. Large-Cap Total Stock Market Index and consists of over 750 of the largest U.S. companies. This ETF has holdings in companies from industrial sectors such as information technology, healthcare, consumer discretionary, communication services and finance. A few of these companies include Apple (AAPL), Microsoft (MSFT), Facebook (FB), Tesla (TSLA) and JPMorgan(JPM). 

iShares Core S&P 500 ETF (NYSEARCA: IVV)

iShares Core S&P 500 ETF has been open to trade since 2000. It tracks the S&P 500 index and consists of more than 500 leading companies in the U.S. The index has companies from industrial sectors such as IT, healthcare and consumer staples. These companies include NVIDIA, Home Depot (HD), Procter & Gamble (PG) and Visa (V). 

Vanguard Total Stock Market ETF (NYSEARCA: VTI)

Vanguard Total Stock Market ETF has been listed on the stock exchange since 2001. It tracks the CRSP US Total Market Index and consists of more than 3,500 companies. Companies from industrial sectors such as basic materials, consumer staples, energy and finance are part of the index. These companies include Amazon (AMZN), Visa (V), JP Morgan (JPM) and Apple (AAPL). 

Invesco S&P 500^® Equal Weight ETF (NYSEARCA: RSP)

Invesco S&P 500^® Equal Weight ETF has been open to trade since 2003. It tracks the S&P Equal Weight Index and has holdings in over 500 companies. The index contains companies from industrial sectors such as IT, healthcare and finance. These companies include Alexion Pharmaceuticals (ALXN), NortonLifeLock (NLOK) and PayPal (PYPL).

Vanguard S&P 500 ETF (NYSEARCA: VOO)

Vanguard S&P 500 ETF has been on the market since 2010. It tracks the S&P 500 and consists of over 500 U.S. companies. The index contains companies from industrial sectors such as communication services, consumer discretionary and healthcare. These companies include Mastercard (MA), Amazon (AMZN), Home Depot (HD) and UnitedHealth Group (UNH). 

Where to Buy Index Funds

Check out the recommended brokers below to get started with index funds.

Best For

Well-Funded Investors

Overall Rating

Get started securely through Frec’s website

More Details

Best For

Well-Funded Investors

N/A

1 Minute Review

In today’s investment landscape, tax optimization plays a pivotal role in enhancing returns. Direct indexing, a strategy embraced by many investors, including those at Frec, prioritizes tax loss harvesting as a means to minimize tax liabilities and bolster portfolio performance. By strategically managing capital gains and losses, Frec’s direct indexing service offers investors a way to optimize their earnings while navigating the complexities of the tax landscape.

Direct indexing empowers investors with control over their portfolios while leveraging tax loss harvesting to its full potential. Frec’s approach enhances earnings by unlocking tax savings, regardless of market conditions, through sophisticated algorithms and automation.

As direct indexing gains momentum, Frec is at the forefront, democratizing access to this tax-efficient investment strategy. With low fees and a $20k minimum – which is significantly lower than the $100k+ minimums often found at wealth managers, Frec makes direct indexing accessible to a broader range of investors.

Besides direct indexing, Frec offers additional financial solutions, including a low-cost portfolio line of credit and a high-yield treasury product, further augmenting its appeal as a comprehensive wealth-building platform.

Best For

• High net worth and well-funded individual investors seeking greater control over their investment strategies, customization options and efficient management of tax implications
• Experienced investors seeking portfolio diversification and increased returns via efficient tax optimization and management strategies
• Those seeking access to low-cost portfolio lines of credit or passive earnings via high-yield returns

Pros

• Daily tax loss harvesting of individual S&P 500® stocks for optimized earnings — Frec could tax loss harvest ~40% of your invested capital over ten years
• Streamlined portfolio customization — you can choose between the S&P 500® or S&P 500® Info Tech index and customize by adding or excluding stocks or sectors
• Highly competitive pricing and account minimum — $20,000 minimum deposit and 0.10% annual fee for direct indexing
• High security and safety standard — your assets are held in your name at Apex Clearing and are insured (Frec is a registered and regulated brokerage firm and registered investment adviser)
• Effortless and fully automated investing platform — you can set your direct indexing and monitor what trades are being executed without hassle
• Streamline access to passive income via high-yield treasury and expedited borrowing for emergency
• Excellent educational and learning resources

Cons

• Not ideal for undercapitalized or beginner investors
• Relatively new platform with little or no track records

Best For

Active and Global Traders

Overall Rating

Read Review

get started securely through Interactive Brokers’s website

More Details

Best For

Active and Global Traders

N/A

1 Minute Review

Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.  

IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.

Best For

• Access to international markets
• Active traders
• Sophisticated investors
• Detailed mobile app that makes trading simple
• Wide range of available account types and tradeable assets

Pros

• IB SmartRouting provides significant price improvement vs. industry
• Fractional trading allows investing regardless of share price
• Industry’s lowest margin rates
• Earn more by lending your fuly-paid shares

Cons

• Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources

Best For

Trading Ideas

Overall Rating

Read Review

get started securely through public.com’s website

More Details

Best For

Trading Ideas

N/A

1 Minute Review

Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.

Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research. 

 

Best For

• Stock and ETF investors
• Crypto investors
• Investors looking to diversify with alternative assets or bonds and options

Pros

• Commission-free stock and ETF trading
• Fractional share investing
• Advanced data, tools, and insights with Public Premium

Cons

• You can’t transfer crypto to another wallet
• No mutual funds or precious metals
• At this time, only offers individual brokerage accounts and not IRAs

Index Funds for the Win?

If there’s one takeaway, just remember that passively managed index funds can beat managed funds over time. The best performing index funds are not necessarily stacked with brokers, fancy slogans and a mission statement longer than the tax code. If you’re interested in finding the best financial tools to hold for the long term—that won’t eat up your money through expenses—seriously consider index funds for your portfolio.

Frequently Asked Questions

The post Best Index Funds by Melissa Brock appeared first on Benzinga. Visit Benzinga to get more great content like this.

Americans’ favorite mortgage is the 30-year mortgage, but that doesn’t mean you have to trudge through your mortgage for the full 30 years — or take every year of any other mortgage term, for that matter. 

What if you want to pay off your mortgage in five years? It’s doable, though it may require a major lifestyle change. Here’s how to make it happen. 

Apply Simply, Understand Fully

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Apply Simply, Understand Fully

Get a mortgage rate quote for your purchase or refinance and start working with mortgage professionals that know this space inside and out!

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Ways to Pay Off Your Mortgage Quick

Smart financial planning, some lifestyle changes and swapping your old payment out for a new payment will give you a greater chance of paying off your mortgage quickly. If you’re a first time home buyer, you’ll stand to save the most interest over time. Here are some strategies you can follow to help you achieve this 5-year goal.

1. Have a Plan

There’s nothing like a plan to get you fired up. Make sure your plan makes sense for your income and lifestyle — and you must hit the “execute” button to make your mortgage payoff happen in five years. Figure out exactly what you’ll have to do, whether that means using other funds to give you a jump start, tackling an extra job or seeking the help of a financial advisor.

2. Make Larger Payments

You’ll need to commit to extra payments — or larger payments — no matter your current mortgage rate. Contact your lender to find out exactly how much you’ll need to pay each month to achieve your 5-year milestone. Set up an automatic payment schedule with your lender so you’ll automatically pay a certain amount each month. Don’t forget to check to make sure your lender isn’t charging you for extra payments.

3. Limit Extra Spending

You may need to make drastic lifestyle changes if you want to pay off your mortgage quickly. This means saving on electricity when not in use, cutting down on luxuries and excessive spending. Hit the pause button on weekend getaways, dining out and movies. Keep your credit card locked up and use cash when possible so it’s easier to visually see where your money’s going. You may also want to pause your planned vacation or home renovations to prioritize your mortgage payment. 

Consider living on a single income — save the second income for mortgage payments. 

4. Increase Your Income

Increasing your income may be the best way to come up with extra money to pay off your mortgage. You’ll know exactly how much you need after you and your lender calculate the biweekly or monthly amount. Aside from getting a large raise, the easiest way to do this is to pick up a side hustle. Here are a few of the most popular side hustles you can do to earn more money:

• Freelance
• Sell through online platforms
• Become a home, pet or babysitter
• Deliver food or packages
• Take up online or home tutoring
• Rent out your extra bedroom, garage or even your parking space
• Become a rideshare driver
• Be a handyman
• Take online surveys

There are plenty of other ways to make extra income in your free time, so instead of wondering how you can save a few bucks on your next purchase, think about how you can earn more. The sooner you start to increase your income, the faster you’ll be able to pay off your mortgage. 

5. Refinance

Refinancing is one of the best and easiest ways to save on interest and pay off your mortgage sooner. You may find that slim pickings for 5-year fixed-rate mortgage refinances. For example, the lowest fixed term offered by Rocket Mortgage® is an 8-year mortgage term. (Check out the YOURgage® for more information about custom loan types.) 

Decide whether a refinance is a good idea if you’re pretty far along on your mortgage. For example, you may be on year 19 of paying off your mortgage and are now paying more principal than interest. You may actually lose money once closing costs and refinance fees are taken into account.

Should You Pay Off Your Mortgage Early?

There are pros and cons to paying off your mortgage early. Consider these factors.

Pros

• You’ll save money on interest.
• Monthly payments toward your mortgage will be gone sooner and you’ll increase your cash flow.
• You can tap your home equity line of credit if you need money later.
• You’ll free up money to invest in other things.

Cons

• You won’t be able to take advantage of the mortgage interest federal tax deduction.
• Paying off your mortgage means your money is not liquid and might be hard to access later.
• You miss out on higher returns from other investments.
• If the market rate drops just when you want to sell, you may not make as much money as you hoped.

Best National Mortgage Lenders

Do you have the terms and mortgage lender that fits your needs? Here’s our selection of best mortgage lenders for your needs. Understand the features and options offered by the lenders and choose a mortgage that best suits your needs.

Read Review

Avg. Days to Close Loan

30

Minimum Credit Score

580

get started

1. Best Overall: Quicken Loans®

Quicken Loans® is the nation’s largest mortgage lender, has an A+ rating with the Better Business Bureau (BBB) and world-class client service. Quicken Loans® offers FHA, VA, jumbo, USDA and other conventional loans with no prepayment penalty charges. You’ll need a credit score of 580 for FHA loans and a score of 620 for other loans. It offers a convenient online application process with fast preapproval and processing — it’s great for borrowers who want to save time and money.

Avg. Days to Close Loan

30

Minimum Credit Score

620

get started

2. Best for VA Loans: Veterans United

Veterans United is the country’s largest VA lender. The lender offers a great customer experience, flexible qualification standards and loan approval process.

You can get a home purchase with no money down, low closing costs, no private mortgage insurance (insurance you’ll pay monthly if you don’t have a large enough down payment), competitive interest rates and no prepayment penalties.

Avg. Days to Close Loan

45

Minimum Credit Score

620

get started

3. Best for Refinancing: Bank of America

Bank of America, one of the largest banks in the nation, is known as the best lender for a refinance loan. It offers many refinancing loan options — a fixed-rate refinance, adjustable-rate refinance, FHA and VA refinances and cash-out refinancing.

Bank of America also provides other attractive mortgage options for first-time home buyers with low down payments and reasonable rates.

4. Best for Borrowers with Low Credit Scores: New American Funding

First-time home buyers with low credit scores who need down payment assistance can tap into New American Funding. The company offers a generous selection of mortgages, including government-backed loans, purchase refinance, interest-only mortgages and jumbo loans. You can also choose from fixed and adjustable-rate terms. The loan application process can be done through phone, email, online or in person and loan closing time on an average loan takes less than 30 days.

Read Review

Avg. Days to Close Loan

30

Minimum Credit Score

580

get started

5. Best for Online Access: Rocket Mortgage® by Quicken Loans®

Rocket Mortgage® by Quicken Loans® is one of the best online mortgage lending tools developed by Quicken Loans. It provides a fully digital mortgage application experience with a broad range of loan products, competitive rates and diverse loan terms. You’ll also be able to find loans if you’re self-employed, but you’ll need to submit tax returns and other required documents to qualify. The seamless online application process and exceptional customer support offered by Rocket Mortgage® sets it apart from other mortgage lenders.

Pay Off Your Mortgage in 5 Years

There are many reasons why paying off your home loan sooner can be a smart move. It could leave more money in your pocket over time and lead to fewer worries about interest rate hikes. Best of all, you’ll own your home outright. As with anything else, it has its downsides. Your best bet is to research your options, consider the pros and cons carefully or speak with a financial advisor before you make your final decision.

Frequently Asked Questions

The post How to Pay Off Mortgage in 5 Years by Melissa Brock appeared first on Benzinga. Visit Benzinga to get more great content like this.