Imagining your Raiz account as a healthy nest egg may be challenging when you first get started. Patience is a virtue in nature AND investing.
If a user adds only $1 per day to their Raiz account, it will typically take about one year before the account generates more than it costs*. Likewise, money sitting in a bank account may incur more fees than it earns in interest until the balance is large enough.
Raiz provides the most natural way to invest. If you start small, contribute often and commit long-term, you can help build a financial future which is in balance with whatever your life goals may be. Tools like Round Ups, Lump Sum Deposits and Recurring Deposits make contributions easy, and we invest in low cost ETFs so we can pass along low management fees. Using Raiz for a year can cost less than some traditional brokers charge for two trades.
Many Investors decide to start their account with a lump sum (a single payment, perhaps $50, $100, $500 or more) because it will likely earn more money faster. If you are unable to invest a lump sum when you start, Round-Ups remain a smart way to put aside spare change for your future. You’re getting started, and that’s the single most important part of investing: beginning.
Even if you build your account slowly, it will one day be a lot larger than what you started with. Whenever you’re feeling discouraged, think of the mighty oak tree, and have patience.
*Assumes average long term rates of return.