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[Bank of America® logo. Music throughout]
Let's talk about how to get started with investing.
[TEXT: Bank of America. Better Money Habits®. 3 ways to start investing]
[Disclosure: Please see important information at the end of the video.]
In the past, the main way to invest was through a stockbroker.
[A visual of a woman sitting at a desk is shown.]
Today, technology has opened the door to a world of new possibilities.
[It is revealed at the woman is appearing via teleconference. A man sits in a chair facing the screen. The man replies to the woman on the screen.]
Instead of being locked in to one approach, an array of new digital tools give you access to three (pursuing self-directed options, creating a managed account on an online investing service, and working with a financial advisor) and you can pick and choose what you like most from each one.
[The man is shown sitting sideways on a couch while using his tablet. TEXT: 1. Self-directed]
[The man is shown working on a laptop. TEXT: 2. Investing Service]
[The man is shown sitting at a table facing a woman and having a discussion. 3. TEXT: Financial advisor]
You could, say, work with a financial advisor to build part of your portfolio and then invest some money on your own.
But before deciding which approach is best for you, you'll want to ask yourself a few key questions.
First, are you confident making investment decisions and choosing those that may be right for your risk tolerance, time horizon, and liquidity needs?
[The man reads a piece of paper, sliding his finger over the text and graphs and charts as he reads. TEXT: Are you confident making investment decisions?]
Second, do you like the idea of doing your own research on different investments and then deciding what and when to buy or sell?
[Several documents show onscreen. The man uses a magnifying glass to study each document carefully. TEXT: Do you like the idea of doing your own research?]
Third, do you have the time to commit to monitoring your portfolio and making changes when needed?
[A clock is shown with its hands moving rapidly. TEXT: Do you have the time to commit?]
For example, you'll want to rebalance as necessary to make sure you maintain an appropriate mix of investments for your situation.
If you answered, "Yes," to all three questions, you might want to go the self-directed route.
[Check marks appear next to each question. TEXT: Are you confident making investment decisions? Do you like the idea of doing your own research? Do you have the time to commit?]
That means researching, buying, and selling investments on your own through an online platform.
[The man is shown viewing his tablet with the three previously stated questions on the screen. TEXT: 1 Self-directed.]
Here, your fees, expenses, and investment minimums will generally be lower than if you use an online investment service or financial advisor.
[TEXT: Lower fees, expenses, and investment minimums. Responsibility for research, monitoring, and rebalancing]
But you'll also be doing all your own legwork.
If you answered, “No,” to any of those questions, or if self-directed investing just doesn't sound right for you, you could consider creating a managed account on an online investment service.
There are plenty of options to choose from, each with different types of fees.
[The man is shown viewing his laptop screen. Three panels with one, two, and three dollar signs show onscreen. TEXT: 2 Online investing service.]
For example, on the lower fee end, there are “robo advisors” that use sophisticated algorithms to create a portfolio for you.
[The lower fee panel is expanded, showing animated charts and graphs.]
And there are others that offer guidance from a registered advisor, usually for a bit more in fees in return for the personal help.
[The most expensive panel is shown with three dollar symbols and the image of a woman.]
Be sure to read up on the fees and expenses associated with each of your options before making any decisions.
[The fees and expenses page shows on the tablet.]
Both online options will consider your risk tolerance, time horizon, and liquidity needs when helping to build, monitor, and rebalance your portfolio.
[The screen zooms out to show the man working on the tablet and viewing the options. Red checkmarks show next to each piece of text. TEXT: Risk tolerance. Time horizon. Liquidity needs.]
But, if you're looking for somebody to be even more hands-on with your investments, consider the third option: a financial advisor who'll work with you to create a customized investment strategy for your situation.
[The man is shown working on his laptop. The outside view of a building is shown. Inside, the man sits at a table with a woman. TEXT: 3 Financial advisor]
They can meet with you to discuss your goals and adjust your financial strategy when big events—like marriage, a new job, buying a home—call for a change.
The level of one-to-one service you opt for will determine the fees and expenses you're likely to pay and the minimum amount you'll need to invest, which can be quite a bit higher when working with a financial advisor than with an online investing service.
[The financial advisor points out items on the screen and shows charts and graphs. The screen splits in half, showing the financial advisor on one side, faded out, and the lower fee option screen on the right.]
Depending on how much money you can invest today, you may want to consider starting with an online investment service and switching to a financial advisor when you meet their investment minimum.
[An image of a blue piggy bank with a coin falling into it is shown. The split screen is shown again. The lower fee side fades out and the financial advisor side brightens.]
Doing a little research first can help you find the investing approach that's best for you.
Also remember that with investing comes risk.
[A closeup of the tablet is shown with a graph.]
Your investments could lose value no matter which approach you take but getting started today could be a great way to help prepare for your financial future.
[The closeup of the graph continues. TEXT: Today.]
[Bank of America Better Money Habits® logo]
The material provided in this video is for informational use only and is not intended for financial or investment advice. Bank of America Corporation and/or its affiliates assume no liability for any loss or damages resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment management.
Investing involves risk, including potential loss of principal.
Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.
|Are Not FDIC Insured||Are Not Bank Guaranteed||May Lose Value|
© 2022 Bank of America Corporation. All rights reserved.
In this video
If you’re a first-time investor, knowing how—and where—to get started can feel intimidating. The first step is to decide how you will invest your money. There are three main options to choose from: You could go the self-directed route, create a managed account with an online investment service or use a financial advisor. You could also use a combination of these approaches, depending on what may work best for your goals, time horizon and risk tolerance. Watch the video above to learn about the different ways to start investing and which approach may work best for you.
The material provided on this website is for informational use only and is not intended for financial, tax or investment advice. Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.
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|May Lose Value|