Do you ever feel like it’s difficult to navigate the world of investing? Are you looking for ways that you can start getting involved in stock markets and other investment opportunities without needing a financial adviser? If so, then this blog post by William Schantz is for you! As someone who has personally navigated investment options both with and without an adviser, William Schantz is here to offer some advice on how anyone can get started investing like a pro. With just a little bit of research, knowledge-seeking, and discipline, even novice investors can begin establishing themselves as savvy financial experts. Read on to learn more about simple but effective ways to take control of your investments.
William Schantz Lists Ways to Invest Like a Pro: No Financial Adviser Required
1. Exchange Traded Funds (ETFs): ETFs are similar to mutual funds, and they usually track a specific stock index or asset class. They can be purchased on the stock exchange just like stocks, and they offer low fees and a diversified portfolio. Plus, you can buy and sell ETFs anytime during trading hours. According to research by Morningstar Inc., in 2019, U.S.-listed ETF assets reached nearly $4 trillion – an increase of more than 14% from the previous year. Additionally, the average expense ratio among all ETFs was 0.33%, which is much lower than most mutual fund fees. As an example, consider investing in the SPDR S&P 500 ETF (NYSEARCA: SPY). This ETF tracks the S&P 500 index, and it has an expense ratio of 0.0945%.
2. Dividend Stocks: Investing in dividend stocks is another great way to generate passive income. Dividends are payments made by companies to their shareholders out of their profits or reserves. Companies usually have different dividend-paying schedules, such as quarterly or semi-annually, and investors can use these dividends for either reinvestment or living expenses. According to research from Bankrate, dividend stocks accounted for almost 41% of total stock market returns between 1972 and 2018. As an example, consider investing in Johnson & Johnson (NYSE: JNJ). It is a blue chip stock that pays quarterly dividends with a current dividend yield of 2.77%.
3. Real Estate Investment Trusts (REITs): According to William Schantz, REITs are a type of security that invests in real estate and pays out the majority of their income as dividends to shareholders. They provide investors with access to a diversified portfolio of real estate investments, such as office buildings and apartments, without having to actually buy or manage any property themselves. According to research from NAREIT, US equity REIT total returns were 12% in 2019 and approximately 11% annually since 1995. As an example, consider investing in Simon Property Group (NYSE: SPG). It is a real estate investment trust focused on owning and managing shopping malls, and it has a current dividend yield of 5%.
4. Peer-to-Peer (P2P) Lending: P2P lending is a type of loan that is made directly between individuals or businesses without the use of banks or other traditional financial institutions. Investors can earn high returns by investing in loans backed by real people, and borrowers can get access to low-interest rates since there are no overhead costs for financial intermediaries. According to research by Statista, the global peer-to-peer lending market was valued at about $26 billion in 2019 and is expected to grow at a compound annual growth rate of 33 percent from 2020 to 2025. As an example, consider investing in Lending Club (NYSE: LC). It is a leading online loan marketplace with more than $100 billion of loans originating and an average weighted interest rate of 5.2%.
William Schantz’s Concluding Thoughts
Overall, there are a variety of different ways to invest like a pro without the need for a financial adviser. Whether it’s through ETFs, dividend stocks, REITs, or P2P lending, investors, as per William Schantz, can take advantage of these strategies and build a diversified portfolio with high returns and low fees. With careful research and due diligence, anyone can become a savvy investor in no time!