SOUTHFIELD, Mich. (WXYZ) — It's no secret that investments are one of the best ways to achieve financial freedom.
So, for decades people have relied on brokers to turn their dreams into reality.
But in recent years, especially since the pandemic, the trend has changed, thanks to investment apps.
Robinhood, Acorns, Etoro and Public are some of the many investing apps that allow anyone and everyone to start their investment journey without depending on a middleman.
Karen Mccallum works as a nurse anesthetist and apps give her the flexibility to track her investment during breaks.
"I think it's great that people are able to invest at anytime, anywhere," said Mccallum about why she likes to invest through apps.
Patrick Bailey is also on investment apps and has friends that have made a fair amount of money through online platforms by investing a few hundred dollars.
"It truly is amazing. Especially for teenagers. You hear these success stories of them becoming millionaires overnight. Whether they are doing Dogecoin or some other transaction," said Bailey.
Financial guru, Dewey Stefan says investment apps are great for millennials.
"40% of Millennials don’t think they have enough money to get started. If there's an app out there that you can invest, try starting with $5 or $100. That is an amazing entry point for them to give it a shot," said Dewey Steffen, CEO of Great Lakes Wealth.
A recent survey by 'The Penny Hoarder' shows that 60% of Americans plan to put more money into investment apps in 2022 than they did in 2021. While 66% plan to try new investing apps this year.
"Start with a small amount. Maybe $1000 and then continuously add $100 a week or $100 a month. The road map to success is start and then add," said Steffen.
Dewey says apps also give users the option of investing in cryptocurrency and cannabis, the two categories that are not yet available through investment firms.
Dewey emphasized that brokers will not be replaced by apps because serious investors will always seek professional advice, something that most apps don’t offer.
"Every market is basically down from stocks, bonds, crypto. The only one is up is oil and some commodities. So, again, you need to understand what you are doing and why you are doing it," Steffen said.
Adrienne Volk, who also invests using apps, still feels the digital space meets her needs.
"I am very ambivalent about brokers and financial advisors. I think I’m going to stick with the online resources for a while," Volk said.
Dewey says, since the market is currently down, this is a great time to invest. The key is to do your due diligence, seek professional advice, if you can, and don’t use your credit card to start your investment journey.
