5 | durhamregion.com | This Week | Thursday, December 22, 2022 | Over 90 years of Service to our Community We offer Modern Amenities Together with Timeless Values of Trust and Caring Service. 110 Dundas Street E.,Whitby • 905-668-3410 wctownfuneralchapel.com With the rise of various finance and investing apps, there is more opportunity to invest via online platforms as opposed to seeking advice from an adviser at a bank. There is nothing wrong with people preferring to complete their day-to-day banking needs and investing online, said money expert Jessica Moorhouse, but when it comes to apps, there are issues to be cautious of. According to Moorhouse, people who are looking for easy ways to invest may seek out apps. But because there are so many that have different purposes, it can end up being more challenging, especially if you are a beginner investor. So, are investing apps the way to go? We brought in Moorhouse to give us her tips and advice. WHAT TYPES OF INVESTING APPS ARE THERE? There're a variety of investment apps that serve different purposes, said Moor-house. It all depends on your individual investing goals and what you are looking for in an app. For instance, ones like WealthSimple help facilitate investments through roboadvisers. Some help rebalance your portfolios. Apps from banks or discount brokerages like Questrade allow you to trade within the platform. There are also out-of-the-ordinary apps that have attracted an audience, like Vinovest where people can invest in fine wine. While it could be useful if you're looking for a very specific alternative investment, Moorhouse advises it's not wise for people to hop on the app and start investing in wine or other hyper-specific industries, as their initial investment. ARE INVESTING APPS THE WAY TO GO? While Moorhouse acknowledges using online platforms and apps can work for some people who prefer not to go in-person to banks or have experienced trouble speaking to financial advisers, she warns investing apps can make finances more complicated, especially for beginners. For Moorhouse, her investing philosophy is to keep it simple, which is a piece of advice she consistently passes on to her clients. "For me, why I don't love some of these apps ... is because it gamifies investing and investing shouldn't be a hobby or a game. It should be about literally building wealth," said Moorhouse. When it comes to young investors, especially, investing apps shouldn't be the place to start, said Moorhouse, pointing out many of these investing apps look enticing and exciting but because it can be so easy to get lost in the apps, there are dangers behind it. She points to young clients she has spoken to over the years who have told her how they've used apps to invest in a few stocks, with little understanding of what to do with those investments. Moorhouse said she has cautioned them about having more of an understanding and plan for why they are investing, rather than getting caught up in the excitement of trading. "Investing should be methodical. It should be strategic. It should be about understanding what you're doing," she said. Additionally, there is no barrier for entry for a lot of these investing apps. Moor-house said some financial institutions and robo-advisors prompt users with a questionnaire or initial assessment beforehand but many of these apps solely require a simple sign-up. "I worry because there's barriers and I've seen this a lot where people start making accounts, putting their money in and they have no idea what's going on," she said. WHAT ELSE SHOULD PEOPLE KEEP IN MIND WHEN IT COMES TO INVESTING APPS? Some people may use an app without knowing the basics, of how their investment works. Without a clear understanding of what kind of account you've opened, you may run into surprises if you need to withdraw money. "If it's an unregistered account ... they may not realize that they have to pay capital gains tax on that money," said Moorhouse. She also points out that some apps charge fees, be it on a subscription basis or an annual fee embedded in an investing package. So, Moorhouse emphasizes the importance of doing adequate research on whatever app or platform you are choosing to put your money into as well as having a plan behind your investing intentions. "You wouldn't jump into a lengthy swim race without knowing how to swim ... All of these companies create beautiful websites and awesome marketing campaigns and they create their brands in a specific way to attract you because that's their MO," she said. "So, you need to recognize that all of these apps exist to make money off of you. But what do you want? This is about how you want to make money," adds Moorhouse. If people want to feel confident about investing, they need to take time to understand and research before hitting the ground running, adds Moorhouse. "You may want to take action to make some progress immediately because you feel like you've been stagnant for a while and that's what may incentivize people to open an app that they don't quite understand but taking the time to do research is more important," she said. ARE INVESTING APPS AN IDEAL WAY TO START INVESTING? MADISON WONG madisonwong@thestar.ca MONEY MATTERS There is nothing wrong with handling investments online, money expert Jessica Moorhouse said, but when it comes to apps there are issues to be cautious of. Mckenna Deighton illustration