Table of Contents
Introduction
Investing can be a real challenge, especially for new investors. With so many choices available to you it might be difficult to know where to start. Luckily, Ally Invest offers many tools and services to help you get the most out of your investment. Here are five valuable tips to help you increase your investment yields when using Ally Invest, together with the supporting research and real-world examples.
1. Take Advantage of Low Fees
One of the most appealing aspects of Ally Invest is that it has relatively low costs. Unlike other brokerage firms, Ally has a competitive fee structure that can increase your investment income significantly. For instance, they charge only a flat fee of $4.95 per trade for stocks and ETFs.
This way, you can save a lot of money within a year. Imagine making 100 trades in a year, you would save $500, if your broker charges $9.99 per trade as compared to another firm. This extra money can be reinvested or used to diversify your portfolio further and thus increase your returns.
2. Utilize the Ally Invest Managed Portfolios
Ally Invest also provides the managed portfolio services that can greatly improve your investment strategy. This service combines automated investing and professional advice to produce a diversified portfolio that is designed to meet your goals and risk tolerance.
When you decide to go for Ally’s managed portfolios, you are working with professional portfolio managers at a cost that is usually associated with traditional wealth management firms. This is especially useful for the new investor or someone who does not have the time or knowledge to effectively manage their portfolio.
Furthermore, the managed portfolios from Ally are designed to be tax-efficient, which means that you stand to gain more returns from your investments. This is because when you cut down on taxes, you get to keep more of your investment gains, which grow exponentially through the years.
3. Take Advantage of Research Tools
Ally Invest offers a number of research tools that can help investors make the right decisions and gain more profits. These include real-time quotes, advanced charting, and technical analysis tools.
For instance, the real-time quotes feature informs you of the current market prices to help you make the right investment decisions at the right time. The advanced charting feature helps you see the price movements and patterns in detail, which can be useful for identifying potential trades.
These research tools help you gain more insight into the market and make better investment decisions that will result in higher returns and a better investment strategy.
4. Diversify Your Portfolio
Diversification is the only way to get high returns with low risk. This means that you have spread your investment across different asset classes, sectors and geographical regions to reduce the impact of any one investment on the portfolio. You can invest in stocks, bonds, ETFs, mutual funds and options through Ally Invest. It is possible that your returns will be higher and your losses will be lower because you have invested in different asset categories.
For example, if your portfolio is heavily weighted in technology stocks and the technology sector declines then you will take a loss. However, you can prevent this from affecting your returns severely by investing in other industries like healthcare or consumer goods.
5. Stay Informed and Disciplined
The last tip is to stay current and disciplined when using Ally Invest to achieve the highest returns. This is because the financial markets are never static and it is important to stay current on the news and trends that may affect your investments.
Ally Invest also provides a wealth of educational resources including articles, videos, and webinars that can help investors become more informed and make better decisions. It is suggested that you take the time to explore these tools in order to increase your knowledge and improve your investment strategy.
However, discipline is important. Emotional decision making is known to produce disastrous investment results and low returns. This is because with the help of setting your investment goals, diversifying your portfolio and sticking to the investment plan, you can actually boost your returns over the years.
Conclusion
It is quite possible to maximize returns with Ally Invest, and these five tips will help make it a reality. Taking advantage of low fees, managed portfolios, research tools, and diversification, as well as staying disciplined and informed, will greatly improve your ability to achieve your financial goals.
Investing is a process that requires time and commitment. By taking full advantage of the tools and information that Ally Invest offers, you can make your way through the financial world with confidence and a maximum return on your investment.
