Many people are nervous about investing right now. And for good reason. It is difficult to feel good about actively managed mutual funds, with their suspect managers, but it is also hard to feel confident that you will make good decisions that will result solid gains over the long haul. One way to help you feel a little bit better about building an investment portfolio is to use MarketRiders. MarketRiders is an interesting service that can help you manage your portfolio, based on your needs. The service relies entirely on suggesting low-cost exchange traded funds (ETFs).
MarketRiders asks you questions as it tries to help you build an ETF portfolio. MarketRiders uses your age, when you need the money, your risk tolerance, how much money you have to invest, and your comfort level with investing to suggest an investment portfolio. Here is a sample portfolio based on my preferences, assuming I have $5,000 to invest:
If you go on to the next step, MarketRiders provides specific ETFs that match your investment portfolio asset allocation. If you have a broker already, all you have to do is go and make the purchases recommended. “Confirm” that you made the purchases on MarketRiders, and the company will keep track of the performance, so you can watch how your portfolio does. If you don’t already have a broker, MarketRiders offers a handy comparison chart of online discount brokers.
MarketRiders allows you to build multiple portfolios if you wish, and sends alerts when it is time to consider rebalancing your portfolio. As you approach retirement (or your goal to start using the money), you can employ asset allocation. MarketRiders costs $9.95 per month. It is also important to realize that you will have to pay small fees for the ETFs (although nothing to the fees charged by managed funds).
Bottom line: MarketRiders can help you create an investment portfolio that is low-cost and fits your investing style. However, for more seasoned investors, or for those who prefer to “set it and forget it” with index funds, $9.95 might not be worth the price to pay. But it is a reasonably good deal, and can provide you with some help and confidence as you build an investment portfolio.