Are Finhabits safe? Finhabits investment app review

If you have heard about this tool and want to try it, you may be wondering Are Finhabits safe? We will share this and other information of interest with you below. Join us in this review of Finhabits, the investment platform that everyone is talking about.

What is Finhabits?

Finhabits is a bilingual digital platform that helps Hispanics to invest and save.

Finhabits is a digital investment advisor that will help you start saving for your next big purchase: a car, a house or your next vacation.

The company was created to help beginning investors create a savings plan and prepare for the future.

But let’s take a closer look at what Finhabits is and what we can do with this platform. Keep reading the Finhabits review and find out if it is safe or not for your investments.

Finhabits history

Carlos Armando García CEO of Finhabits, noted that there was a disparity between financial services offered and used by minorities in the US In an effort to give minorities access to conventional financial services and create wealth; the CEO founded Finhabits. It is a low-cost, easy-to-use robotic advisor that helps users open IRAs, save for emergencies, and invest their money..

Who is Finhabits for?

It is an ideal tool for:

  • Those without access to an employer sponsored retirement plan.
  • Investors looking for a low minimum investment amount.
  • New investors.

Finhabits advantages

  • Finhabits will get you started, so you don’t need to know much about investing at first.
  • You can start with a minimum of $ 5 per week.
  • Free for the first month.

Disadvantages of Finhabits

  • There is a monthly fee in addition to the fund fees, plus miscellaneous fees.
  • Limited investment options.
  • The expected and historical returns of some portfolios are quite low.

Other financial companies that were created with Hispanics in mind have focused on immediate needs. For example, building a credit history, paying off debts or having access to loans. Few platforms besides Finhabits, They are aimed at encouraging investment and planning long-term user finances.

As some studies indicate, blacks and Latinos are less likely than whites to work in companies that offer tax-advantaged investment accounts; therefore, whites are twice as likely to have retirement accounts. According to NBC, only 26 percent of Hispanic families had retirement savings in 2013, compared to 41 percent of black families and 65 percent of white families.

This reason is the “why” behind the launch of Finhabits insurance and its bilingual platform.

How can Finhabits help you?

If you consider that you do not have enough money, if you need a place to put a retirement fund or if you would like to make an investment in general, consult the Finhabits website they sure have something to offer you.

Although the CEO originally had minorities on his mind when he founded his company, it is not a requirement that you consider yourself a minority when investing with Finhabits.

Finhabits commissions and fees

Finhabits invests your money in low-cost exchange-traded funds (ETF or Exchange-Traded Fund), in companies like Vanguard and BlackRock. These funds charge you, on average, 0.12% per year. In addition to the fund charge, accounts less than $ 2,500 will have a charge of $ 1 per month and accounts greater than $ 2,500 a charge of 0.5% of the amount of your investment per year.

You may also be charged different charges for services such as physical copies of account statements. Once you sign up, you can review the Finhabits counseling agreement for full fee details.

Finhabits platform and tools

Every week Finhabits sends text messages to clients to remind them to save. Finhabits app, blogs, and texting service explain simple financial concepts (including the all-powerful compound interest graph), reinforcing the “need to save” explanation that many of Finhabits’ clients are beginning to learn.

Finhabits website and marketing materials are geared toward making investing a habitSo all of your tools and your website are typically focused on long-term investing.

Are Finhabits safe?

We come to one of the most important points. According to its website, Finhabits is an investment advisor registered with the SEC (Securities Exchange Commission) and offers bank-level security, including a 256-bit SSL encrypted connection on its website. In addition, your money is kept in accounts insured up to $ 500,000 by SIPC (Securities Investor Protection Corporation). Therefore, we could say that Finhabits is as safe as other recognized financial entities.

Finhabits customer service

Aimed at novice investors, the FinHabits website is focused on answering all kinds of frequently asked questions. You can contact or you can also call 1-800-492-1175 to request more information or to start using their services.

Keep reading: Acorns vs Stash: Which is the best app for investors

Finhabits and their ease of use

It is very easy to get started. To go through the processes of Finhabits you must follow the following three steps:

  1. Select your goal. (You can choose to invest or save for retirement.)
  2. Schedule your contributions.
  3. Get your Finhabits investment plan.

No matter what you are saving Finhabits offers you two practical calculators. You can enter your age, weekly deposit, risk level and initial amount. A calculator can show you how much savings you will have when you reach retirement age.

If you are interested in saving money, you can enter the amount you would like to save, how much you can contribute each week and the calculator will tell you how long it will take to collect that amount.

Once the previous steps are done, you will establish your contributions (don’t worry, you can modify them later) by adding your name, date of birth, gender, telephone number, marital status and address. Finhabits will ask you some questions about employment, income, tax return status, net worth, and investment experience, in order to offer you the best financial guidance that suits your goals.

Then you will make the selection of your investment portfolio with the help of Finhabits. They will make some recommendations based on your age and your tolerance for risk.

Final thoughts on Finhabits

It is important to note that Finhabits also has partnerships with credit unions, including Neighborhood Federal Credit Union, which serves New York City’s predominantly Latino neighborhoods such as West Harlem, Washington Heights, and Inwood. Finhabits have made an admirable effort to make everyone understand that Investing is fun.

In general, microinvestment has opened the doors to many people, especially to those who thought that it was necessary to have a lot of money to start investing. !That’s not true! It only takes $ 5 a week and a small commitment for you to accumulate a lot of money in your favor.

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