Imagine this: You’re drinking coffee in pajamas and, with just a few mouse clicks, have planned your financial future. This sounds like something out of a movie, right? Welcome to the era of online financial planning. Visit us, if you’re looking for good financial advisor.
The days of sitting across from a suit clad advisor and nodding while secretly wondering whether you left the stove running are gone. You can do everything at your fingertips. Let’s first understand how this digital treasure chest works.
Consider what you are looking for in an online financial planner. Are you looking to save for retirement? Is it debt management? What about just finding out where your money goes every month? It’s half the battle to know what it is you need.
Let’s move on to tools. Numerous apps and sites promise to turn you into the next Warren Buffet. Others may be expensive. Some are even free. But remember: price doesn’t always equal quality. User reviews and ratings are a good place to start. If a particular app has more negative reviews than a Hollywood failure, you should avoid it.
Robotic advisors are popular. These digital wizards will manage your investment based on the goals you have set and your tolerance for risk. Consider them the autopilots of investing. They take care of the details, while you can relax.
But don’t get too comfy! Even if you automate, it is important to be involved. Keep an eye on your accounts, and make adjustments as necessary. You may have received a raise, or you might want to buy that vintage guitar. Your financial plan will need to change.
You can also use budgeting apps such as Mint or YNAB to plan your finances online. They track your spending habits and sync them with your bank. You’re getting a personal account who will not judge your avocado-toast obsession.
Ever heard of peer to peer lending platforms? The online platforms are reshaping traditional banking, allowing individuals to lend directly to each other. The risk is high, but the returns can be higher than those of traditional savings accounts.
No plan would be complete without a consideration of taxes. TurboTax is a great tax preparation software that can come in handy on April 15th or whenever the season of taxes rolls around. The software will guide you to the right deductions and credit that can save you a lot.
Don’t forget to educate yourself! Khan Academy or Coursera provide free online courses in personal finance, ranging from budgeting to advanced investing strategies. Knowledge is the key.
Cyberspace may be a place of gold, but it’s not all there is. Every virtual corner is full of scams waiting to lure unsuspecting people. Before sharing any personal information online or making an investment, always verify credentials.
Technology has made financial planning more accessible than our grandparents ever could have imagined. But with great power also comes great responsibility. These tools are powerful, but they also come with great responsibility (thanks Uncle Ben!).
You can see that online financial planning doesn’t require rocket science, but you do need to be aware of potential pitfalls and make smart moves.