My favorite investing strategies aren’t my own but some of the best investing ideas on Motif Investing
Part of being #MoneyConscious is about creating a financial plan and deciding what you really want in life. For me, this means helping my son have the financial advantages I never did growing up.
Read John and David’s blog long enough and you understand that debt is what holds you back from realizing your dreams. Becoming debt free is a way of removing the road blocks in your way but investing your money is what will help you reach your goals.
But how do you find the right stocks, the right investing strategy to get you there?
Even as an investment analyst, I run out of ideas and strategies to invest every once in a while. When I do, I go back to one of my favorite online investing sites for fresh ideas.
How to Create Your Own Investing Strategies with Motif Investing
Motif Investing is a new investing website built around the idea of diversification and low-cost investing. Instead of just buying one stock at a time, and paying a commission each time you do, Motif allows you to buy up to 30 stocks or exchange traded funds (ETF) all at once.
You pick the stocks you want to buy, group them into a customizable fund and then buy them all with one commission. Not only do you spread your investing risk instantly across many stocks but you save hundreds of dollars in trading fees.
How I Find Investing Strategies on Motif Investing
Besides saving money on investing, I’ve found another way to use Motif. Each of the funds created by the website and other investors are available to look over for ideas. More than 12,000 funds, called motifs, created by investors across 10+ categories provides an excellent resource for stocks to invest in and investment ideas.
Say you want to find dividend stocks in which to invest but are out of ideas. There are nearly 1,500 different motifs specifically built around the idea of putting cash in your pocket with dividend-paying companies.
You can sort the funds by return, dividend yield, risk and a few other filters. Filter for dividend yield and you might find one of my favorite motifs called Grandma’s Conservative Dividend Portfolio. The fund is filled with 30 stocks of companies with long records of stability and the financial strength to withstand just about any economic environment…and paying an average 3.7% dividend a year.
You can invest directly in any of the existing motifs or create your own with ideas you get from other funds. Whatever you choose, you’ll always pay just one commission to buy or sell your group of up to 30 stocks.
There’s no minimum to opening an account though the minimum is $300 to invest in a fund. The low starting point is one of the things that makes Motif one of my three favorite ways to invest $1,000 now. I’ve created four funds on the site from different investing strategies. I’ve got funds built around dividends, retirement and following Warren Buffett’s stock picks but my favorite is built around sectors that I think will drive the U.S. economy for the next 30 years.
Across the four funds, I own more than 50 stocks and ETFs. I could have bought them all through another investing site like TD Ameritrade or Scottrade but it would have cost me as much as $500 to buy each separately. Not only can I bucket them all into fun investing strategies on Motif, I also saved up to $460 through creating the funds on the site.
Joseph Hogue, CFA is an investment analyst and blogger. He runs six websites on topics including personal finance, investing, crowdfunding and making money from home. A veteran of the Marine Corps, he holds the Chartered Financial Analyst (CFA) designation and lives with his family in Medellin, Colombia.
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