How to Set Up a Retirement Account for Automated Trading in 2018
The Money Pouch is a free wealth management app that is available for download on Google Play or iTunes.
The app was created for global expats and savers worldwide who are in need of an smartphone app that automates the investment process.
The Money Pouch will automatically invest your money on autopilot after answering a short risk questionnaire.
The world has changed… the days of careers for life are few and far between. Most people find themselves hopping between jobs and even countries during their working lives.
The Money Pouch uses algorithmic trading to automatically invest your monies into low cost ETFs.
What are ETFs?
ETFs or Exchange Traded Funds are liquid investment products that can be traded at anytime during the day. When the stock markets first launched, you could only buy physical shares in a company.
The first mutual fund was launched in 1924 and the next big change came with Jack Bogle’s idea to launch an index fund with Vanguard in 1976. This allowed investors to invest in a broad range of stocks across the market to reduce the volatility of stocks and reduce lossed for the average investor. Mutual funds, however, only had a price at the end of a trading day.
ETFs were the next revolution. ETFs allow the investor to buy & sell index funds throughout the trading day at low cost.The first ETF, the S&P SPDR, sprang into life on January 23, 1993 and now has $267 billion under management.
The Money pouch uses low cost Exchange Traded Funds to invest in stock, gold and treasury ETFs. We use momentum strategies to follow the trends in the market. We always try to use low cost ETFs and roughly once per month, the investment portfolio buys & sells ETFs to hold the optimum stock/bond mix for the best returns to risk.
What is algorithmic trading?
Stock order flow was computerised in the 1970s, but it wasn’t until the 1980s and 1990s that algorithmic trading became more popular. Now, it is thought that up to 80% of all orders are placed by computerised trading desks via algorithmic orders.
This means humans don’t have much chance to compete. If you have your entire day to devote to it, you can still pick stocks like Warren Buffett did 60 years ago, but this method of investing is becoming more rare.
It is easier to achieve a good result by relying on computer trading strategies. The Money Pouch employs a team that has written over 400 successful trading strategies.
Why Save for Retirement with a Roboadviser?
- Low fees
- No entry or exit fees
- No hidden costs
- Ability to keep investing even when you move countries (depending on regulations)
- Dividends are automatically reinvested
- If you invest over regular intervals, you can use dollar cost averaging to improve results
- No need to watch boring stock charts
- No need to remember to exit positions
- All investing runs on auto pilot
- More spare time with your family and friends
“Why waste your time watching stock charts when a computer can trade for you on auto pilot?”
What Will Your Retirement Hold for You?
Think about your retirement. What will it hold for you? Are you saving enough to reach your desired goals?
Take the annual salary you want to save for in retirement. Now, multiply that by 20. That is the amount you must save for retirement assuming zero inflation. You probably have to triple that number again if you want to take inflation and old age care into account.
Don’t forget, people are living longer, but insurance premiums are very high when you reach 80 years plus and soon, with new pharmaceutical drugs, living to 100 or more will seem normal.
Today, about 12.4 percent of the population aged 65 or older in the USA is still in the workforce, up from 3 percent in 2000. I expect this percentage to grow as people live longer and saving becomes more difficult.
The safest way to invest for the long run is to allow a roboadviser to automatically invest your cash among stock and bond ETFs.
Watch this video to find out more about how to save with a roboadviser and set up an automated trading account.
Please visit https://www.themoneypouch.com if you want to find out your risk tolerance. Just visit our site and fill out the free risk questionnaire. We will then email you your risk score. There are only a few questions and this will give you some ideas about how to understand your own stock investing behaviour.
If you are then still interested, you can set up a free account easily online.
You might also want to read our next article on how to set up an automated stock trading account in just 10 minutes.