How I Began Building My Portfolio Using the Stash App to Invest in the Stock Market (Part II)

When I downloaded the Stash app for beginner investors a few weeks ago, I didn’t know the first thing about the stock market. In my last article, I shared how I began my journey of educating myself about investing by simply using the only tool I knew at the time: Googling search terms to learn about popular picks, and finding my way to experts who knew more than I did. From there, I began trying the in-app learning tools Stash offers, and that’s where things started to get really exciting.

The following is based on personal opinions and personal experiences, and should not, under any circumstances, be considered professional investment advice. Always do your own research before making financial decisions. Please note no views or opinions of the author are endorsed by any other party mentioned herein. (I doubt they even know I exist.)

Step 2. Exploring the in-app Stash recommendations for diversification.

Now we’re getting a little more savvy. This step was a deliberate act of faith… an informed faith, at least, after searching Stash recommendations on Google and reading a bunch of reviews with good things to say about the results other users have experienced.

(Side note: It's worth mentioning that I did notice Stash seems to have a lot of complaints on the Better Business Bureau site. But... well, most folks who go to the BBB aren't there to leave positive feedback. So, as always, do your own research and draw your own conclusions.)

With this burst of recreational reading, I found enough encouraging reports from places like NerdWallet, Business Insider, Money Under 30, and Investor Junkie that I felt comfortable enough clicking on "Get Recommendations" in the Stash app. Then I simply did half a dozen or so of the things the app suggested I do.

Boom. Taking advantage of the built-in diversification analysis, which tells me where I should increase my buy in order to develop a well-rounded portfolio, I worked my way, one by one, through suggested actions and in-app projections, all offered in plain English.

Using this information, I incorporated as much of the robo-advice as I felt comfortable putting money on that early in the game. (A few bucks here, a few bucks there... I'm still a broke South Dakotan, you know.) In addition to the fractional shares of company stocks I’d already purchased, I invested a few small amounts in a variety of themed funds with names like Clean & Green, Small But Mighty, Up & Coming, and Long-Term Mix—names which provide a good idea of the types of holdings they include.

Then, because the Stash app said I should, I went back and threw in a little bit of everything from the list of foreign and domestic bonds, too, just to say I did.

With this step, I got to experience the sense of satisfaction of doing something I've never done before. This represented the first time in my life that I have ever taken financial recommendations to get out of my comfort zone and see what happens.

Granted, ETFs and bonds like this aren't as exciting as the big-name U.S. brands set for explosive growth in 2021. But the purpose of the Stash diversification recommendations is to help build in some long-term stability by picking a mix of different funds and bonds, both foreign and domestic, which are expected to yield relatively steady increasing returns over the long haul.

A different day, I’ll write a bit more about what all of this terminology means. For now, just know the idea of diversification is to build in some cushion and avoid putting all your eggs in one basket. That way, if you do want to play around with some high-stakes company stocks (like I do), you stand less chance of losing everything if one of those companies suddenly tanks.

Since I'm in my 30s, not my 20s (which means I have less time to live to see my fortunes pay off), and I'm a struggling South Dakota gal who doesn't have a lot of disposable income to gamble on roller-coaster volatility, an informed approach to my investing will reflect my reality. Therefore, I opted to go with some of Stash's recommendations for a moderate-risk, long-term investment strategy. This meant including a combination of funds and bonds that are carefully curated by people who know a heckuva lot more than I do.

On that note, I've been getting a lot of use out of Stash's handy in-app glossary along the way. Plus I’m still Googling everything before I buy anything.

Incorporating some Stash app recommendations, then, I'm happy to report I briefly achieved a green progress bar with my diversification analysis, signaling that I'd met all the measures for a well-balanced mix. Hooray!

That was right before I moved into the last step of building my first investment portfolio—at which point I threw my diversification analysis right out the window, by binging a bunch of those big-name U.S. brands set for explosive growth in 2021.

But that brings us to the third step I took to develop my beginner portfolio, which takes a long-term wealth-building view and taps into some aggressive opportunities to take advantage of our current economic conditions. Next time, I’ll tell you about the most valuable industry resource I’ve found so far, which is giving me the confidence and the courage to step out in an informed faith that the future can be different than I ever imagined.

In the year ahead, I plan to continue writing about my experiences as a beginner investor, using the Stash app to build a portfolio in the stock market. I’m not saying you should do it, too—I’m just gonna try it myself and let you know what happens. I’m learning as I go, so if you’d like to come along for the ride, we’ll be learning together, hopefully doing our small part to turn the tables and win the wealth-building game, for the good of greater society.

Does that sound overly ambitious to you? Maybe we just haven't allowed ourselves to think big enough before.

If you like anything you read here, please share this article with your social media networks to get more people thinking about how we can all start winning the wealth-building game. Like to connect? Drop me a line: jeanmillersays {at} gmail.com.