7 Pieces of Technology You Can Use To Grow Wealth
Written by
Andrew Lisa
Edited by
Chris Cluff
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Technology has made it easier than ever to track, manage and grow your money — but with so many competing services and platforms, which digital tools do the pros use and recommend to their clients?
GOBankingRates spoke with two financial advisors who answered those questions.
One showcased broad categories of basic, fundamental technologies that are perfect for novices just getting started or for those who want to keep it simple. The other outlined specific and more sophisticated platforms for advanced investors, business owners, entrepreneurs with complex tax situations or anyone looking to take their wealth-building journey to the next level.
Here’s how you can use technology to build wealth.
A Financial Advisor Covers the Basics
Rhett Stubbendeck, founder of Leverage Planning, is a financial expert and wealth planner who helps his clients use technology to simplify their financial lives and navigate their most consequential money decisions, from planning for retirement to managing long-term care costs.
He profiled some of the most basic and foundational technologies that his own clients have used to begin organizing their financial lives and take the first steps to building wealth.
Budgeting Apps
There’s nearly universal agreement that budgeting is the foundation of wealth. You can’t optimize your savings, spend responsibly or get the most out of your investments if you’re not tracking your income, planning your spending and assigning a job to every dollar you earn.
Plenty of Luddites still budget using spreadsheets or even pencil and paper — and if that’s what works for them, more power to them.
But technology offers an easier and more accurate way.
“Budgeting apps like Mint and YNAB (You Need A Budget) help you track your spending and manage your finances in real-time,” Stubbendeck said. “These apps are user-friendly and give you a clear picture of your financial health. I often recommend them to clients who need help staying on top of their budgets.”
Robo-Advisors
In the modern age, just about anyone on any budget can put their money to work through investing — but that doesn’t mean everyone is comfortable choosing their own investments or can pay a full-service manager or brokerage to do it for them.
The good news is that they don’t have to.
“Robo-advisors like Betterment and Wealthfront are great for automated investment management,” Stubbendeck said. “They use algorithms to offer personalized advice at a lower cost. Many of our clients at Leverage find these platforms helpful for managing their portfolios without the high fees of traditional advisors.”
Online Brokers and No-Fee Investment Platforms
Robo-advisors are cheaper than investment advisors and portfolio managers, but they still charge fees that nibble away at your gains over time. They can be the perfect technology for investors who are green, pressed for time or simply prefer a hands-off approach to wealth building — but many others can DIY their investing journeys for free.
If you like to pick your own stocks, manage your own portfolio or simply contribute consistently to an index fund, you can do it on your own for nothing more than the price of your ETF’s expense ratio.
“Platforms like Robinhood and E*TRADE make it easy to start investing,” Stubbendeck said. “They offer a range of options, from stocks to ETFs, with low fees and plenty of educational resources. At Leverage, we encourage clients to use these platforms to diversify their investments.”
Financial Planning Software
A basic budget is a good start, but it’s just one part of your larger financial life — and the right technology can show you the whole picture at a glance.
“Platforms like Personal Capital provide a comprehensive view of your finances, including investments and retirement planning,” Stubbendeck said. “It’s an invaluable tool for making informed financial decisions. We use it at Leverage to help clients plan their financial futures effectively.”
A Money Planner Highlights Tools for Next-Level Wealth Building
David L. Blain, CFA, is the CEO of BlueSky Wealth Advisors. He oversees a firm founded in 1999 at the dawn of the online investing age — and he built his brand using technology to enhance wealth management. These are the specific platforms he uses and recommends for more advanced wealth building. They require upfront investments; but, for users who take advantage of their full functionality, they’ll pay dividends in the long run.
Morningstar Direct
For advanced investors who have outgrown robo-advisors and ETFs with no-fee brokers, Blain recommends Morningstar Direct. Its five-figure subscription fee means it’s for high-level investors only; but, if you’re a serious player who has plateaued with your current technology, Morningstar Direct could get you unstuck.
“This platform provides comprehensive investment analysis, portfolio management and research tools,” Blain said. “It allows for data-driven decisions and sophisticated analysis which are essential for maximizing returns and managing risk effectively.”
MoneyGuidePro
With a monthly fee of $125 for the Pro version or $175 for the Elite version (or $1,400 or $2,000 per year, respectively), MoneyGuidePro is much more accessible than Morningstar Direct — and the subscription fee could buy you security in retirement.
“This financial planning software is crucial for creating detailed, goal-based financial plans,” Blain said. “It enables us to model various scenarios and stress-test portfolios, providing our clients with more resilient and personalized financial strategies. Using MoneyGuidePro, we’ve been able to significantly improve our clients’ confidence in their financial future by showing how their goals can be met under various economic conditions.”
Holistiplan
Even the wisest investments or best-laid retirement plans can fall prey to mismanaged taxes, and Blain recommends Holistiplan — starting at $999 per year — to make sure that it’s you and not the IRS who reaps the benefits of your hard work.
“Holistiplan automates the tax planning process, identifying opportunities for tax savings through strategies like tax-loss harvesting and Roth conversions,” Blain said. “This tool has been instrumental in optimizing our clients’ tax situations, which directly translates to higher net returns over time. These technologies together ensure a comprehensive approach to growing and protecting our clients’ wealth.”
More From GOBankingRates
