Mobile trading has become ubiquitous, and not just among millennials or Generation Z. It’s not uncommon to see boomers making trades using their favorite apps.
For investors in or near retirement, these apps make monitoring account values and making trades easier than ever.
Here’s a look at a few well-known apps and how they can help users save for retirement.
[READ: Your Guide to Retirement Planning.]
Wealthfront
Robo-advisory Wealthfront’s Path system allows users to link outside accounts, aggregating the data to project how much money they will make over time. It lets users develop various scenarios to see how each could affect savings for retirement or any financial goal.
The platform also has features such as high-yield cash management accounts, which currently offer a 4.50% annual percentage yield. Customers who refer a friend can get a 5% yield.
For savers who want to lock in a high rate for longer, Wealthfront’s automated bond ladder currently offers an APY between 4.33% and 4.43% after fees on a three-month Treasury ladder.
Wealthfront allows users to open various types of individual retirement accounts, including traditional or Roth IRAs and Simplified Employee Pension IRAs. Customers can also roll over 401(k) funds into an IRA at Wealthfront. Investors can choose among a pure robo account constructed with inexpensive exchange-traded funds, a customized ETF portfolio or direct indexing.
“Wealthfront offers an impressive automated investing experience akin to hiring an advisor, with features like tax-loss harvesting and a diversified portfolio designed for long-term growth,” said Jason Gilbert, managing partner and president of RGA Investment Advisors in Great Neck, New York, in an email.
However, he cautioned that this approach may not be the best for all investors. “A trusted advisor can provide tailored financial guidance, taking the time to understand specific goals and risk tolerance, which might be preferable to using an automated platform like Wealthfront,” he said.
[Related:Are I Bonds a Good Investment for Retirees?]
SoFi
With a complete range of banking, investing, loans and credit card services, SoFi is often the go-to for those who want the convenience of one-stop financial shopping.
SoFi Automated Investing, the company’s robo-advisor service, charges no management fee and uses ETFs with low expense ratios, keeping investor costs low.
One draw for retirees is unlimited access to SoFi’s team of certified financial planners.
SoFi provides traditional and Roth IRAs and offers a 1% match on contributions to either self-directed or automated IRAs or on a 401(k) rollover of $20,000 or more. For example, if you roll over $100,000, you’ll receive $1,000 in your account. Or if you contribute $6,500 to an IRA, you’d get an extra $65.
Matches are made up to the annual contribution limits.
On the downside, SoFi doesn’t offer tax-loss harvesting, a technique that offsets capital gains and losses to lower an investor’s tax bill.
For investors nearing retirement, SoFi may be a good option, said Chris Boyd-Witherspoon, a financial services professional at American Heritage Financial in Atlanta, in an email.
SoFi stands out, she said, because of its comprehensive suite of financial services beyond investing, which includes personal financial advice from a team of CFPs and financial education resources.
“The platform supports commission-free trading of stocks and ETFs and offers automated investment options, making it versatile for users who want a balance between hands-on and hands-off investing,” she said.
[READ: 6 End-of-Year Retirement Deadlines You Shouldn’t Miss for 2024]
Webull
Like SoFi, Webull is attempting to attract new retirement investors by matching IRA contributions. For example, in early November, the platform featured a limited-time 3.5% match on transfers from traditional and Roth IRAs and rollovers.
Investors can also get free fractional shares when they fund an account.
Like other robo-advisors, Webull doesn’t offer mutual funds, so retirement savers must liquidate those holdings before rolling over their accounts.
However, with ETFs being a lower-cost option, Webull’s suite of ETFs is consistent with its value proposition of making investing and trading as affordable as possible.
Its fixed-income products are limited to U.S. Treasurys, although it offers several popular bond ETFs for portfolio allocation.
Retirement investors who want a balanced portfolio will also find a range of domestic and international stock ETFs and commodity funds.
Webull also has a recurring investment program for dollar-cost averaging, which retirement savers can apply to qualified or nonqualified accounts. Putting investments on cruise control is often a good way to build funds for retirement.
Webull does not charge a fee for stock and ETF trades. There is a contract fee of $0.55 to trade index options and contract fees for futures, which vary according to the instrument being traded. There are also small fees for fixed-income trades. These are common at other brokerages, and Webull’s contract fees are lower than investors generally find elsewhere.
More from U.S. News
Is a 60/40 Portfolio Appropriate for Retirees?
What Is a Good Monthly Retirement Income?
19 Part-Time Retirement Jobs That Pay Well
Best Investing Apps for Retirement originally appeared on usnews.com
