9 Game-Changing Alternative Investment Apps That Beat My 401k Returns

If you’ve been relying on your 401k for retirement savings, it might be time to consider alternative investment apps that can offer better returns and greater flexibility. Many of these apps allow you to invest in stocks, real estate, cryptocurrency, and other assets outside the limits of a traditional 401k. Millennials, in particular, can benefit from the flexibility these apps provide, offering them the opportunity to build a diverse investment portfolio that could yield higher returns over time.

In this article, we’ll explore 9 investment apps that could potentially beat the returns of your 401k. These apps offer features that may help you grow your wealth, diversify your portfolio, and take more control over your investments.

Key Takeaways:

• Investment apps can provide better returns and flexibility compared to traditional 401k plans.
• Millennials are in an ideal position to leverage these apps for higher returns, thanks to their longer investment horizons.
• These apps offer diverse investment options such as stocks, real estate, crypto, and more.
• Diversifying outside of a 401k can help mitigate risks and boost your portfolio’s growth potential.
• Below, we outline 9 investment apps to consider for smarter investing.

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1. What Are 401k Alternatives?

401ks are retirement plans provided by employers, offering tax advantages but with restrictions such as contribution limits and limited investment options. Many people turn to 401k alternatives, such as investment apps, to explore a wider range of investment opportunities. These apps allow for greater flexibility and often better returns, as they provide access to asset classes like stocks, real estate, and cryptocurrency.

Unlike 401ks, these alternatives are more dynamic, allowing you to manage your investments actively. With a 401k, your employer typically selects the investment options, but with investment apps, you have the ability to choose your investments based on your personal preferences.

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2. Why Millennials Should Consider 401k Alternatives

Millennials, particularly those in their 20s and 30s, have an advantage when it comes to investing. With longer time horizons, they can afford to take on more risk, which could lead to higher returns. Many millennials are also looking for more flexibility in their financial decisions, which is why investment apps are particularly appealing.

These apps offer an easy entry into investing with low fees and minimal starting capital. For those who are new to investing or want to explore a variety of assets, these apps provide a simple, low-cost way to start building a diversified portfolio.

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3. The Benefits of Using Investment Apps Over 401k

While 401ks have their place in retirement planning, they come with several limitations. Here are a few benefits of using investment apps as alternatives:

• Higher returns: Many investment apps provide access to higher-risk, higher-reward assets like stocks, real estate, and cryptocurrency, which can offer better returns than a 401k.
• Flexibility: Unlike a 401k, you can access your funds whenever you need them, without facing withdrawal penalties (though you may still incur taxes or other fees).
• Diverse investments: Investment apps allow you to diversify your portfolio across different asset classes, helping you manage risk and maximize returns.

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4. Alternative Investment Apps for Millennials

Millennials are a prime audience for investment apps because they can start with small amounts of money and invest in a wide range of options. These apps often provide educational resources and tools to help new investors build their portfolios.

Here are some top investment apps that can provide better returns than a traditional 401k plan.

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5. App 1: Betterment – Robo-Advisor for Smart Investing

Betterment is a robo-advisor that automatically creates a personalized investment portfolio for you based on your risk tolerance, time horizon, and financial goals. This app is ideal for individuals who prefer a hands-off approach to investing. Betterment also offers automatic rebalancing and low management fees, making it an excellent option for long-term growth.

With Betterment, you don’t have to worry about managing individual stocks or bonds. The app does all the heavy lifting for you, creating a diversified portfolio that aligns with your goals.

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6. App 2: Acorns – The Micro-Investing Platform

Acorns is an investment app that allows you to round up your everyday purchases and invest the spare change. For example, if you make a purchase of $3.50, Acorns will round it up to $4.00 and invest the 50-cent difference. Over time, these small amounts can add up, offering millennials a simple way to start investing with minimal effort.

Acorns is a great option for beginners who want to dip their toes into the investing world without committing large amounts of money upfront.

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7. App 3: Wealthfront – Automated Wealth Management

Wealthfront offers a full suite of financial tools, including automated wealth management and financial planning. Wealthfront creates a diversified portfolio based on your investment goals, risk tolerance, and time frame. It also offers tax-efficient investment strategies and automatic rebalancing, which helps maximize your returns.

With Wealthfront, you get the benefits of professional wealth management without paying high fees.

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8. App 4: Robinhood – Commission-Free Trading

Robinhood has revolutionized the world of investing by offering commission-free trades on stocks, options, ETFs, and even cryptocurrency. This app is perfect for people who want to actively trade stocks and other assets without paying fees that can eat into their profits. Robinhood’s easy-to-use interface makes it ideal for beginners and experienced traders alike.

Whether you’re interested in traditional stocks or newer assets like crypto, Robinhood allows you to make trades quickly and easily.

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9. App 5: RealtyMogul – Invest in Real Estate

RealtyMogul provides a platform for investing in commercial real estate properties. With as little as $1,000, you can invest in real estate projects that would otherwise be out of reach. RealtyMogul allows investors to access both equity and debt investments in real estate, which can provide stable income and potential capital appreciation.

For those looking to diversify their portfolios with real estate, RealtyMogul offers a unique and accessible opportunity.

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10. App 6: Stash – Easy Stock Market Access

Stash is an investment app that allows users to buy fractional shares of stocks, ETFs, and bonds. It’s perfect for beginners who want to learn about the stock market and make investments without committing large sums of money. Stash also offers personalized investment advice based on your financial goals.

With Stash, you can start investing with as little as $5, making it an ideal app for millennials just getting started in the world of investing.

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11. App 7: SoFi Invest – Comprehensive Investment Options

SoFi Invest offers a wide range of investment options, including stocks, ETFs, and cryptocurrencies. The app is easy to use, making it perfect for millennials who want to create a diversified portfolio with a simple, user-friendly interface. SoFi also offers free access to financial planners, helping users make informed investment decisions.

For those looking for a comprehensive app that combines investing with personal financial advice, SoFi Invest is a solid choice.

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12. App 8: Coinbase – Crypto Investments Made Easy

Coinbase is one of the most popular platforms for buying, selling, and storing cryptocurrencies. If you’re interested in diversifying your portfolio with digital currencies, Coinbase makes it easy to get started with a wide variety of coins. The platform is secure and user-friendly, and it offers both educational resources and tools for more advanced traders.

For millennials interested in the rapidly growing world of cryptocurrency, Coinbase is a great app to explore.

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13. App 9: Fundrise – Invest in Real Estate with Low Fees

Fundrise is another platform that allows users to invest in real estate, but it focuses on REITs (Real Estate Investment Trusts). Fundrise offers an easy entry into real estate investing with a low minimum investment of $500. It also charges relatively low fees, making it an affordable option for millennials looking to diversify their portfolios.

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14. Comparing These Investment Apps: Which is Best for You?

When deciding which investment app to use, it’s important to consider your goals, risk tolerance, and investment preferences. Here’s a quick comparison to help you choose:

App Name	Investment Type	Fees	Best for
Betterment	Robo-advisor	Low	Long-term growth
Acorns	Micro-investing	Low	Beginners
Robinhood	Stocks, ETFs, Crypto	None	Active traders
RealtyMogul	Real estate	Moderate	Real estate investors
Coinbase	Cryptocurrency	Low	Crypto investors

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15. FAQs: Common Questions About Investment Apps

• How do I get started with investment apps?
  Most apps are easy to set up. Download the app, create an account, and link your bank account. From there, you can start making small investments.
• Are investment apps safe?
  Yes, investment apps are generally regulated by financial authorities and use encryption to protect your personal data.
• Can I replace my 401k with investment apps?
  While investment apps can offer higher returns, 401ks have tax benefits and employer contributions that make them a solid retirement tool. Investment apps can complement a 401k but should not be relied upon as a sole retirement strategy.
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10-Point Checklist for Getting Started with Investment Apps

1. Download your chosen app.
2. Set up an account and complete the verification process.
3. Link your bank account for easy transfers.
4. Review the app’s investment options.
5. Start with a small amount to test the platform.
6. Diversify across different asset classes.
7. Set investment goals and time horizons.
8. Monitor your portfolio regularly.
9. Rebalance your investments as needed.
10. Use educational resources to learn more about investing.