So I wasn’t happy with the returns I was getting on robo investing with Charles Schwab. I opened a Schwab Intelligent Portfolios account back in October, and my returns have been .5% since inception. Basically returns have been like a bank savings account. Rather than sticking it out, I decided to close the account for several reasons – minimal growth and no control. Since I am part of the DIY generation, having come of age after the Great recession, it’s only natural that I want to DIY my own investments. So I took matters into my own hands and opened up a self-directed investment account. Boy I’m happy I did this because of its positive effects:
- I can invest in companies that I believe align with my values.
- I get to choose stocks that I want to buy.
- It fulfills my shopping addiction but in a more positive way since investing appreciates in value.
- I get a chance to learn more about investing and how I can diversify my assets. For now I’m investing in all stocks and one Vanguard index fund until I know more about bonds, etfs, annuities, and mutual funds.
Not that anyone has to pay off debt before investing, but one of the great perks of being debt free is the freedom to invest and feel okay about losses when they occur. Initially I was not okay about losing money, but after allocating money for an emergency fund, a vacation fund, and then a sinking fund, I knew it was time to utilize the rest for investments because one of my goals in life is to create several streams of passive income, and hopefully the stock market can be one of a few ways to do so.