Robinhood just blew open the doors to passive investing for EVERY American of investing age.
They are not promoting it as such but I will. Let me explain.
The new Robinhood app upgrade allows for automatic deposits. Now any American of investing age can open an account in a few minutes and set and forget weekly deposits. With a few clicks and zero commission every investor can dollar cost average those savings into $SPY the largest and most efficient S&P ETF.
Basically, Robinhood has built the simplest, most efficient and cheapest ‘robo’ saving and investing plan on the planet.
People think of brokerage and think ‘active’ and ‘trading’. Not anymore. Robinhood is the simplest bank, saving, and passive investing account we could ever ask for.
Start investing today.
With this big push to passive investment, I really wonder what the investment world will look like 20 or 50 years in the future. Will everyone just switch to ‘passive’ investing? What will that mean for how the stock market trades?
Perhaps it will be passive but not without purpose? Perhaps people will invest in what they know and like… affinity based investing?
they should.
The data tells you that if you passively invest over time, you will get an 8% return on your money. Invest in a no load mutual fund and invest the same amount every month no matter where the market is. You will make money. If you get bullish a stock and want to accept more risk and buy it (50% chance of being right)-instead sell an out of the money put (70% chance of being right). Passive investing is boring, but it works.
i agree. works best for me over time. nike, apple, chipotles…
I just funded my Robin Hood account account this week and it is great. Total game changer.
cool
From my own personal standpoint (and probably that of countless others) — by far, one of the most underrated, yet radically innovative startups to pop up in the past few years. I can’t even begin to count how much money this would have probably saved me when I first started throwing money at the markets. But then again, the friction of commissions likely put a little more discipline on me. That being said, I wonder how many “day traders” Robinhood has spawned since launching…
tthats great to hear. its an educational platform that you can finally learn the language of the markets for nickels and dimes.