You Made It!

Welcome to Day 5 of the Beginner Investor Course with The Budgetnista & Ellevest!


What is the Beginner Investor Course? Haven’t signed up yet? Visit this page for more information: http://wp.me/p3zve4-1hp

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Did you get a chance to complete previous lessons? If not, complete them below, then come back!

Day 1: Your Intro to Investing

Day 2:  Creating Your Investment Plan

Day 3: Understanding Your Portfolios

Day 4: Funding Your Goals

 


Today’s Focus: Growing Your Wealth & Best Investing Practices


 

Today, you’ll learn..

– How to Manage Your Goals

– Growing Your Wealth

-What it means to be a good investor

 

Today is our LAST DAY! I don’t know whether to shout with joy or cry. Every day for the last five days you’ve received a video and a written lesson walking you through the process. You know I always look after my Dream Catchers. 🙂

Watch the Day 5 video below, then move on to the last lesson.

Let’s meet-up later in our Dream Catcher FB Group to discuss what we learned!

See you soon…

 

 

Dream Catcher!

You made it! It’s Day Five of our Beginning Investor Course, and it’s time to talk about managing your goals, growing your wealth, and what it means to be a good investor. If you’re still catching up, you’ve got time. Make sure you’ve finished Day One, Day Two, Day Three, and Day Four before you join us here.  Ready to go? Let’s do this!

 

You’ve followed these breadcrumbs, step by step, through the basics of investing, and I’m so proud of you. You took this opportunity to learn something new, and you’re taking actions that may have a big impact on your future.

Still a little freaked out about investing? Here’s what to consider:

 

What you DO need:

  • To get started with an investing habit
  • To have a long-term strategy through up markets and down markets
  • Financial Courage

What you DON’T need:

  • To try to “time” or beat the market
  • High fees

 

I’ve shared a lot of information during this series about creating an investing habit based on what you can afford to invest out of every paycheck, and the power of investing towards a real-life goal through a customized, diversified portfolio of investments.

 

I want to talk about Financial Courage for a minute. This is a term that means that someone has confidence in engaging in financial matters. As a Dream Catcher, you’ve got it, and you may not even know it. You’re seeking out knowledge, facing your finances and taking steps to improve your financial future.

 

Be proud! There are so many people who feel uncomfortable even talking about money, let alone making decisions about money, and it holds them back — but not you.  That’s Financial Courage.

 


 

Now let’s talk about the benefits of working with an investment advisor like Ellevest.

One thing we all know is that life is full of surprises. Your best-laid plans may need to change — and your investing strategy may need to change too. And that’s okay!  

 

The great part about working with an investment advisor is that you’ve got a partner in growing your wealth. You’ve shared your goals, and you’re making regular contributions. Your advisor should be doing their part by staying on top of the performance of all the various securities that are part of each of your goal portfolios. At Ellevest, your goal amount is their goal, too, and they’ll switch things up when they need to, to keep you on track through up markets and down markets.

Because you know what? When the stock market is being volatile, investment advisors often recommend doing nothing. Keep on keepin’ on with your investment habit. As you learned in Day One:  Historically, the market has evened out over time, and your diversified portfolio doesn’t keep all your investment eggs in one basket.

 

You may be wondering: How do I know an advisor is looking out for me, and not just recommending investments that pay a fat commission?

Find a fiduciary. They are legally required to put the best interests of the client ahead of their own. It’s a higher standard, and Ellevest is proud to be a fiduciary. Not all advisors are fiduciaries — so make sure you ask.

 


 

What should I look for in a management fee, and what am I paying for, exactly?

Fees

Advisors often charge fees as a percentage of the total amount of your money they’re managing, aka assets under management.

Look for a fee of no more than .50% for a purely digital advisor, and no more than 1% for the human touch.

 

What’s included in a management fee can also differ. With Ellevest, your management fee includes automatic rebalancing, where the team monitors the performance of your investment portfolio on an ongoing basis and makes adjustments as needed to help keep you on track to your goal.

 

It also includes unlimited texting and emailing with Ellevest’s Concierge Team to get your questions answered. Don’t be afraid to ask questions. This is your plan, and it’s your money. Be your own best advocate!

 


 

Okay, Dream Catcher, this wraps up our Beginner Investor Course. We’ve covered a lot of ground over the last five days together.

  • We learned how to make investing a habit.
  • We learned how diversified investment portfolios can help you grow wealth while minimizing risk.
  • We also talked about investing through up markets and down markets.
  • Today, we talked about what to look for in an investment adviser, which is super important, and we talked about what types of fees and services you should expect.

 

This is one part you might not be sad about… Your final HOMEWORK assignments…

As usual, they are pretty easy:

  1. Keep up with your investment goals
  2. Consider hiring a financial advisor to help you. 
  3. Share what you’ve learned with someone else. 

Giving activates abundance. – The Budgetnista

 

Now it’s up to you! What will YOU do?


 

Remember – If you have questions about Ellevest’s investment portfolios or site features, you can always reach out to Ellevest’s amazing concierge team – they’re happy to help: concierge@ellevest.com.

 

And as usual, before you go, make sure to check-in with me and your fellow Dream Catcher’s in our private FB group, here: Dream Catchers : LIVE RICHER w/The Budgetnista .

Make sure to use the hashtag #DCbeginnerInvestor when you post, so me and your fellow Dream Catcher Investors can find it.


 

If you’ve never left a comment before, please leave one below today. 

Share what you’ve learned. What have you changed? Your story will help to encourage someone else to take action.

 

Then, share what you’ve done on Day 5 with your tweeps…

With the help of The Budgetnista & @Ellevest , I AM AN INVESTOR! #DCbeginnerinvestor Click To Tweet

 

 

Live Richer,

Tiffany

 


 

Disclosures

© 2018 Ellevest, Inc., an SEC-registered investment adviser. All rights reserved. For information about Ellevest, and its financial advisory services, please visit the firm’s website (www.ellevest.com) or the SEC’s Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Tiffany Aliche, known as “The Budgetnista” is a paid solicitor of Ellevest. More information about the relationship between Ellevest and The Budgetnista can be found here: https://www.ellevest.com/thebudgetnista.

*Source Ellevest. To arrive at “about $100 a day”, we compared the wealth outcomes for a woman who begins investing at age 30 with one who began investing at age 40 after having saved in a bank for 10 years. Both women begin with an $85,000 salary at age 30 and all salaries were projected using a women-specific salary curve from Morningstar Investment Management LLC, a registered investment adviser and a subsidiary of Morningstar, Inc., which includes the impact of inflation. We assume savings of 20% of salary each year. The bank savings account assumes an average annual yield of 1% and a 17% tax rate on the interest earned, with no account fees. The investment account assumes an investment with Ellevest using a low-cost diversified portfolio of ETFs beginning at 91% equity and gradually becoming more conservative during the last 20 years, settling at 56% equity by the end of the 40-year horizon. These results are determined using a Monte Carlo simulation—a forward-looking, computer-based calculation in which we run portfolios and savings rates through hundreds of different economic scenarios to determine a range of possible outcomes. The results reflect a 70% likelihood of achieving the amounts shown or better, and include the impact of Ellevest fees, inflation, and taxes on interest, dividends, and realized capital gains. We divided the calculated cost of waiting 10 years to invest, $337,657, by 3,650 (the number of days in 10 years). The resulting cost per day is about $92.50.

The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice.

The information provided does not take into account the specific objectives, financial situation or particular needs of any specific person.

Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or a mix of funds will meet your investment objectives or provide you with a given level of income.

Forecasts or projections of investment outcomes in investment plans are estimates only, based upon numerous assumptions about future capital markets returns and economic factors. As estimates, they are imprecise and hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.

The practice of investing a fixed dollar amount on a regular basis does not ensure a profit and does not protect against loss in declining markets. It involves continuous investing regardless of fluctuating price levels. Investors should consider their ability to continue investing through periods of fluctuating market conditions.

Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time.